One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

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>

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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?

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It’s a case of good news and bad news for eligible Victorian first time property buyers from today.
The first-home owner grant is increasing from $7000 to $10,000 for those buying new homes, but is cut completely for buyers of existing homes.
Along with the boost to new home grants the state government will fast-track stamp duty cuts, bringing them in six months ahead of schedule.
These will increase from 30 to 40% on homes valued up to $600,000. The combination of a $10,000 First Home Owner Grant and stamp-duty cut means buyers of new home for $400,000 or less will save more than $16,500.
Treasurer Michael O'Brien forecasts the move will help create more jobs in the housing-construction sector.
"Targeting the grant to newly constructed homes - whether in regional Victoria, Melbourne's growth corridors or new CBD apartments - will stimulate the economy and create jobs in the construction sector," Mr O'Brien says.
"These measures will promote more housing construction, leading to more employment, greater housing supply and reduced residential price pressure for Victorian families."
First-home buyers looking to buy established property for, say, $450,000 will benefit only from the stamp duty concession worth $7588, which the Government says offsets the $7000 grant previously available.
Last Nevember the Real Estate Institute of Victoria chief executive Enzo Raimondo says the majority of first-home buyers would not receive the grant.
"I think that first-home buyers should be treated equally," he said.
"I understand that the Government is trying to stimulate construction but most first-home buyers buy established homes and it is unfair that they will miss out on the full savings."
“Overall, the cut is good news for those buying their first home and it will be worth an additional $2377 on a home valued at $530,000.  
‘’This will bring the total stamp duty cut on the median priced home from $4754 to $7131,” Mr Raimondo said.
But Mr O'Brien said the changes will boost construction and ease housing pressures.
"We want to see more jobs and we also want to make sure we have more housing stock to meet the needs of a growing population," he says.
Mr Raimondo says first home buyers should realise that homes bought with 60 day settlements are eligible to benefit from the lower stamp duty because they pay stamp duty on settlement – not when they sign a contract.  
“Settlement occurs on the day the balance of the purchase price is paid and the property’s title document is handed over to the buyer.’’  
“This is unlike the First Home Buyer Grant, which applies from the date the contract is signed.’’
From September 1, 2014, all first-home buyers will benefit from a 50% stamp duty concession.
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staylor-63KgDrKwoY

New financial year brings mixed news for Victorian first-home buyers

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The number of suburbs where you could be financially better of buying rather than renting has risen from 494 suburbs in December to 692 as of July, according to the latest RP Data Buy vs Rent Report.
The theoretical report lists suburbs across Australia where renters should think about doing the sums and perhaps looking at buying an equivalent property (if they can find one) rather than paying rent to a landlord.
The latest list is dominated by Queensland suburbs which make up more than third (242 suburbs) out of the 692 suburbs.
Greater Brisbane accounts for 71 suburbs while the remaining 171 can be found in the regional areas of the state.
There are 193 suburbs in NSW (73 are in Sydney), 75 in WA, 54 in Tasmania and 45 each in Victoria and South Australia.
Just two out of the 45 Victoria suburbs are in Melbourne.
Reflecting their relative unaffordability, there are just 29 Northern Territory suburbs on the list and six in Canberra.
A discounted variable mortgage rate of 5.4% and a three-year fixed mortgage rate of 5.15% have been assumed as part of the analysis.
Additionally, RP Data has assumed buyers hold a 10% deposit.
The full report is available to download for free at <a href="https://www.rpdata.com.au/buyorrent" target="_blank">rpdata.com.au/buyorrent</a>
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lschlesinger-FZcF9M3vE6

Queensland dominates list of 692 suburbs where you could be better off buying than renting: RP Data

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Borrowers who don’t have a 20% deposit will be forced to pay higher lenders mortgage insurance (LMI) premiums following the two dominant providers – Genworth and QBE LMI – both increasing their premiums in the last 12 months. 
This is despite Australia having among the lowest mortgage default rates in the world. 
Fitch reported that mortgage delinquencies rose from 1.57% in the December 2011 quarter to 1.6% in the first quarter of 2012 – equating to about $35 million worth of loans turning bad. 
LMI is a one-off premium that protects lenders if a borrower defaults on their home loan - if the property sells at a loss, the lender can make a claim against its LMI provider for the shortfall. 
LMI can added thousands of dollars to the cost of buying a home and is particularly an issue for first-home buyers given the 20% deposit requirement. 
Calculations using the Genworth LMI premium estimator show that a first-home buyer borrowing 95% on a house valued at $500,000 (so a $25,000 deposit) would be required to pay an LMI premium of close to $16,000 on a 30 year variable-rate loan. 
A 10% deposit would reduce the premium to just under $8,000. 
A further issue is a lack of portability – if borrowers refinance with a new lenders and they still don’t have a 20% deposit, LMI must be paid again. 
Mortgage broker and director of Investors Choice Mortgages, Jane Slack-Smith, says she would expect LMI premiums to increase if there was an increase in delinquent loans “however it is not something I have seen in my business and not something that I have heard either LMI provider discuss in their updates”. 
Slack-Smith suggests that with interest rates so low, potentially the LMI providers are expecting issues for today’s buyer in the future when rates return to the long term norm of around 7.5% - “a way of hedging the future risk”. 
QBE LMI chief executive Jenny Boddington told Property Observer it increased base premiums on its core LMI products as of July 1 this year.
"We regularly review our pricing to ensure stable and reliable provision of our lenders’ mortgage insurance across the economic cycles,” she says.
Boddington says changes to premiums in recent years have mainly been driven by increased regulatory capital requirements, continuing subdued returns on our investment portfolio and slight increases in claims.
A spokesperson for Genworth confirmed that premiums have increased in the Australian market over the past twelve months.
“As a prudent insurance business, Genworth regularly reviews all elements associated with our product offering.
“This review takes into consideration the current market environment and the costs associated with providing our product and service delivery, including the cost of capital, portfolio performance and changing investment yields.
“Each individual LMI premium is calculated on the basis of a wide range of factors related to the size of the borrower’s deposit, the loan purpose, and the property. As such, pricing changes are based on a detailed analysis of each risk factor.”
Updates sent to brokers by lenders confirm the increases as well as changes to some products and offerings. 
An email sent to mortgage brokers by the Commonwealth Bank’ in June tells them that LMI will increase for “home/investment home loan and line of credit applications created from Sunday 2 June 2013”. 
“We are making these changes in line with pricing changes from our preferred LMI provider, Genworth,” says the Commonwealth Bank’s head of third party banking Kathy Cummings. 
An email sent to brokers by Suncorp says QBE LMI will increase base premium on three of its products - “lmiHOME™, lmiINVEST™ and lmiFIRST HOME™”. 
It’s not all bad news.
The Suncorp note also says QBE has of July 1 extended the eligibility criteria for its lmiFIRST HOME product - a discounted lenders mortgage insurance offering designed for first home buyers - to individuals who are purchasing or building a residential property for owner-occupation and who also qualify for the first-home owners grant and FHB stamp duty concessions.
The move is presumably to take in those FHBs who have qualified for the bigger state grants now available for new home purchases.
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More pain for first-home buyers as Genworth and QBE LMI push up mortgage insurance premiums

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For many years now, I have suspected that I may well suffer from a very modern affliction. In fact, I think it’s so contemporary that no-one – not even drug companies which is highly unusual – have classified it yet. You see, I think I am suffering from OPSA – or Online Property Search Addiction.
Looking back, I think the first signs that I had developed OPSA were about seven years ago which also happened to coincide with a rather major event in my life. It also corresponded with the start of my employment at the REIQ, but I believe that’s just a happy accident rather than a situation that allows me to feed my OPSA and get paid at the same time too, which you have to admit is really a rather fabulous state of affairs to be in.
But the initial stages of OPSA were developed back in early 2007 when I was starting to search for my first home.  As is quite usual for a first-time property hunter, I spent hours trawling online for potential purchases before bothering to actually inspect any in real life.
Back then, though, my budget was very limited and I was also cognisant via working at the REIQ that the Brisbane, actually the majority of the Queensland, market was on cusp of a very serious up-turn. Needless to say I knew that time was of the essence.
Alas, it appears my reading of the market was known by most other buyers as well, because at every open home I turned up too there were queues, yep I said queues, of people waiting for the inspection to begin. Many potential first-homes were sold overnight.  Indeed many were gone before I’d even had a chance to ring the agent.
Given these extreme circumstances, my OPSA grew rapidly as I found myself searching online for more and more properties that might be suitable, let alone still available.
Then a change in circumstances meant my potential budget increased significantly thanks to my brother deciding he wanted in on the first home buyer action as well.
What that meant though was that I was soon exposed to a whole new variety of properties to merrily search through – I must admit my OPSA was very happy about that turn of events indeed.
Within a few weeks, we had finally found our first home but between that time and my next purchase some five years later I must admit my OPSA never really went away.
I would often find myself searching through online listings just for fun – even properties that were far too big or too small and especially those that I could never afford to buy unless I married Bill Gates.
But the reason why today I am admitting so publicly that I have OPSA, after seven long years of kind of hiding it from most people, is that over the last day or two I have noticed that it has reared its head most ferociously and the timing of such a re-emergence is curious to say the very least.
On Tuesday, July 16, my off-the-plan investment property finally settled some 18 months after I signed the contract for its purchase.
I must admit it has been an interesting, sometimes overwhelming, experience and the first I have completed on my own so my stress levels have been very unhelpful especially over the last two or so months.
I have said to all of my friends over recent weeks: “That’s it. I’m not interested in buying another property ever again” but I think I was actually trying to convince myself and not really them. And then, I found myself – almost daze-like – back on <a href="https://www.reiq.com/">reiq.com</a> searching for that elusive cottage, or perhaps even a two-bed apartment overlooking the river and I knew the time had at last arrived to come clean about my affliction.
I’m not too sure how I am supposed to treat OPSA (since it doesn’t actually exist) short of cutting off my access to any type of technology whatsoever and that’s really not an option at all.
No, what I think I’ll do after today’s momentous admission is recognise that OPSA doesn’t necessarily have to be a bad thing.
In fact, I think it allows us to daydream about the future, and to work steadily towards that Great Australian Dream of home ownership – perhaps just multiplied by two or maybe three.
Nicola McDougall is the <a href="https://reiqblog.com/" target="_blank" rel="nofollow">REIQ</a>’s executive manager of corporate affairs.
Image courtesy of Ronin McR and has been digitally altered.
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nmcdougall-hv3JvhUJmd

My name is Nicola, and I am an online property search addict: Nicola McDougall

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First home buyers are fighting with a 100 pound gorilla with one arm tied behind their backs as they compete with investors who have the luxury of negative gearing and superannuation funds.
I believe the answer to improving affordability lies in rethinking superannuation laws and first home buyer grants.
Historically the family home has been the corner stone of ones wealth but this is in danger of being lost. Superannuation was implemented to help people self fund their own retirement and compliment the wealth in their family homes. I believe that allowing first home buyers to access their super and assist them in laying that foundation keeps within the spirit of superannuation.
A worker who earns the average Australian income of $50,000 a year will have around $36,000 in super by the time they are 30 not including any return on their investments. As a couple that is $72,000! They also have the benefit of diverting more of their income into a tax-sheltered environment. It would not be unreasonable for a first home buying couple to have in excess of $100,000 in super by the time they want to purchase their first home.
A large deposit like this would mean first home buyers have more equity in their home and as a result in a more stable financial position. It would also save a significant amount in interest. For example if a first home buyer had a $100,000 deposit they would only need to borrow around 80% of the property value rather than 90% or more. On a $500,000 home that would save them $2,500 to $3,000 per annum in interest.
They would also avoid paying a hefty mortgage insurance bill of around $5,000 to $10,000 in most cases.
Buying a property is only the first step to home ownership. Keeping up with the mortgage payments is where the real pain starts to bite. If governments really want to help with home ownership they should look at providing ongoing assistance and review first home buyer grants.
First home buyer grants have evolved over the years but on average they provide first home buyers with around $10,000 cash or stamp duty saving benefits. Rather than paying first home buyers a lump sum payment that is usually paid to the banks for mortgage insurance, I believe annual payments will be more effective and a better use of taxpayer money. An annual payment of $2,000 a year for the first five years would help first home buyers establish themselves in the market.
While the devil is in the detail the points outlined above provide a win-win outcome. The government wins as it helps solve first home buyer affordability at no extra cost. The economy wins, as more money will flow into the important building industry. First home buyers win as they will enter the market without paying mortgage insurance and save around $5,000 per annum in holding costs for the first five years.
There is a potential downside in that it would place further pressure on property prices. However this is already happening even without first home buyers and these ideas will go a long way to levelling the playing field between first home buyers and investors.
They would help young Australians into the market and start the process of building wealth in one of our most powerful tax-free investments – our home.
MARK ARMSTRONG is a director of <a href="https://ratemyagent.com.au/" target="_blank">ratemyagent.com.au</a>, Australia’s number one real estate agent rating website.
This article was originally published on Property Observer in October 2013.
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marmstrong-sd3emVLPPb

Allowing first home buyers access to super is the answer to the affordability dilemma

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Property investors need to pay more attention to price points, rather than just generic price growth.
If I was to tell you that there were more home sales under $400,000 across Brisbane than, say, between $600,000 and $800,000, many of you might not believe me. A similar trend exists across most other Australian capitals, including Sydney and Melbourne; and this is definitely the case in our regional towns.
This information is very important for a range of reasons.
Market size is important. More so, for me, than the general direction or position of the market. Size does matter. Buyers should know how many sales take place in their particular price category.
This helps work out how long it might take to resell. It also gives a clue as to how much one might need to promote their property in the future in order to achieve a sale.
Most property sells for less than the property intelligentsia would have us believe. We largely read about the ‘good news’ in all those property investment mags, and not the bad - or even plain average.
Again, most dwellings sold across Australia sell for under $500,000. A third sell for prices under $350,000.
The market is shaped like a pyramid. Sales volumes diminish as prices rise.
In general, the more you pay for a property, the fewer buyers there are to resell to in the future. That isn’t to say there hasn’t been growth in the size of the top end housing market across Australia. Today, one in 10 of our homes achieves over $1 million on sale, up from 3% 10 years ago. One in 50 sells for over $2 million, up from 0.7% a decade earlier.
Another important point is that price movement isn’t uniform across a market.
Certain price points move more than others, and this changes, depending on the market’s position in the property cycle.
For example, Brisbane is in a recovery phase, so the more expensive properties are starting to sell. While there has been some movement in the number of house sales priced in the more affordable sub $350,000 price range (a 12% lift) over the past three months, this is mild compared to the increase in sales priced between $500,000 and $1 million, which has increased by over 30%.
Sales over $1 million are up a whopping 43%.
In contrast, during a downturn for example, it is the cheaper properties that see more growth in sales volumes.
Keep the latest Brisbane dwelling price points in mind:
<ul>
<li>38%: Under $400,000 
</li>
<li>39%: $400,000 to $600,000 
</li>
<li>6%: $800,000 to $1,000,000 
</li>
<li>4%: Over $1,000,000</li>
</ul>
In summary, I believe investors – especially those starting out – should buy a property in the larger price brackets. There is safety in numbers. Properties in these price groups are generally more affordable, making them more ‘downturn’ proof.
When you read about generic price growth, keep in mind that not all of the market is moving at the same pace. Some market segments may even be moving in a different direction. There are many housing markets, even in the same city and local area.
 
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michaelmatusik-49YzLvdmNv

Keep your eye on price points, not price growth

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When the head boffins at the Reserve Bank deliver their sermons, saying "prices don't always rise, sometimes they fall", many Australians who don't need reminding must wonder what planet they're from.
People living in many parts of Queensland, for example.
If you're an apartment owner in Cairns or Townsville, you don't need a lecture about the reality that prices don't always rise. The latest edition of Market Monitor from the Real Estate Institute of Queensland shows that median apartment price in Townsville today is 11% lower than it was five years ago. In Cairns, average values remain 15% lower than in 2009.
There are stories like this throughout the state (and throughout the nation). Large parts of Queensland are undoubtedly on an upward trajectory now, but many markets still have price levels lower than five years ago.
The median unit price for the Whitsundays has risen 9% in the past 12 months, but it remains 6% lower than in 2009.
In Noosa, Queensland's most over-rated market, the median unit price dropped 6% in the past 12 months and remains lower than it was five years ago. The housing market in Noosa tells a better story, with moderate growth in both the past 12 months and the past five years.
Despite a little growth in the median unit price in the past year, Gold Coast values are still lower than in 2009.
Ipswich City, in the south-west of the Brisbane metropolitan area, is back on a growth path, but its median house price is still below former levels.
Owners in locations like these aren't talking about whether prices sometimes fall. They're talking about whether they ever rise.
The good news for most of the locations mentioned above is that they are now moving into growth phases. Cairns, the Sunshine Coast, Ipswich and the Gold Coast can all look forward to significant price gains, after five bad years. No doubt commentators will soon be warning us about bubbles.
The people who least need a reality check about the possibility of property values falling are those who live (or own rental properties) in Moranbah, the coal mining town in Central Queensland which has become the quintessential boom-to-bust story of modern times.
Moranbah's median house price is down 28% in 12 months, according to REIQ figures, and is now 15% lower than it was five years ago.
There are some more positive stories in the same combination of numbers from the Queensland Market Monitor report.
There is some comfort for landlords in Gladstone. While the median house price has dropped about 10% in the past 12 months, it remains 12% higher than in 2009. So anyone who bought five years ago remains ahead on value, despite the current decline in that market.
There are similar stories for owners in Emerald and Mackay. If you bought five or more years ago, you're still in front, despite the recent downturn.
The Market Monitor report reveals Toowoomba to be the state's success story. Its median house price is up 10% in the past year and is now 24% higher than five years ago. There are almost identical numbers for the Toowoomba unit market.
It also shows the gathering momentum in South East Queensland, where every municipality in the conurbation covering the Gold Coast, Brisbane and the Sunshine Coast has delivered price growth in the past 12 months – still quite moderate, ranging from 2% in Redland City to 8% in Brisbane City, but there is considerable momentum in these markets.
You can reach Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or <a href="https://twitter.com/hotspotting" target="_blank">twitter</a>.
 
 
 
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terryryder-YECXbqmri2

Dear Reserve Bank: Australians don't need to be reminded that prices fall

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A one-off $7,000 payment to those relocating to a regional area finishes today in New South Wales. The Regional Relocation Home Buyers Grant is a payment provided to those relocating from a metropolitan to a regional area, and is noted as not meeting the Government's objectives.
Available to Australian citizens and permanent residents, to receive the grant the applicant must have purchased a regional property on or after 1 July 2011, and on or prior to 30 September 2014.
The regional home must not exceed $600,000, or $450,000 for vacant land.
The applicant must begin living in the regional property within 12 months of purchase, and reside in the property for 12 continuous months. For those purchasing vacant land, they must commence construction within six months and reside in the home within 12 months of purchase date.
You must also have owned and occupied a metropolitan home as a principal place of residence in the 12 months prior to commencing the purchase, and it must be sold in the 12 months prior or after purchase.
Alternatively, those renting homes in a metropolitan area for 12 months prior to purchase, and who can establish a two-year continuous rental history in metropolitan areas, can apply. This was only valid from 1 January 2014.
Applications submitted from 1 January also required the purchased regional property to be further than a 100 kilometre radius from the metropolitan home.
Prior to 2014, only one grant was available per household, even if two regional properties were purchased. However, since 1 January, if two regional properties are purchased and both applications qualify then two grants may be achievable. No value limit is placed on the sale achieved on the metropolitan home to receive the grant.
The Skilled Regional Relocation Incentive, offering $10,000, is also closing today after commencing this year.
A note on the Office of State Revenue website says that despite the closing of these grants, the Government is considering a re-introduction of the Skillled Regional Relocation Incentive, with applications backdated to 1 October 2014. The Regional Relocation Home Buyers Grant, however, will not be re-introduced.
"The Regional Relocation Home Buyers Grant has not been as effective in meeting the Government’s objectives as the Skilled Regional Relocation Incentive. For this reason, the Government is ending the Regional Relocation Home Buyers Grant. As the Regional Relocation Grants Act 2011 does not provide for partial closure of the scheme, both schemes must be closed," they explain.
If you've relocated prior to today and haven't yet applied, you are still able to provided you do so before 31 December 2015.
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jduke-EHk3XBmHkn

New South Wales’ Regional Relocation Home Buyers Grant ends today

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Vendor discounting figures are regularly collected by research house SQM Research. Now, they’ve compiled the 10 most discounted individual properties in Western Australia.
They note that Western Australia is a locality that has undergone substantial change in recent years for residential property, with the mining boom and subsequent downturn.
“Many of the properties we see below can be easily recognized from our national top ten most discounted properties, as over the past few months, Perth properties (and other properties from Western Australia) have made up the bulk of the list,” their research notes.
Just one of the homes on SQM Research’s Western Australian list had an initial asking price below $1 million, which is certainly not the norm for discounted properties across the country. After discounting, just two dropped of the Western Australian properties dropped below the seven figure mark.
Across the entire list, two were from South Perth, with the top two in Carabooda.
<a href="https://www.realestate.com.au/property-residential+land-wa-carabooda-200627671%20" target="_blank">292 Carabooda Road, Carabooda</a>
<img src="/images/2014/10/1/1.jpg" alt="">
Initial asking price: $1,650,000 Now asking: $1,032,000  Discount: 37%  Days on market: 404 <a href="https://www.realestate.com.au/property-house-wa-carabooda-114289451" target="_blank">219 Bernard Road North, Carabooda</a>
<img src="/images/2014/10/1/2.jpg" alt=""> 
Initial asking price: $3,500,000 Now asking: $2,272,000  Discount: 35%  Days on market: 404 In terms of the dollar figure, this has been reduced by the most on the list – copping a $1,228,000 reduction on asking price. <a href="https://www.realestate.com.au/property-unit-wa-bicton-115389839">28a Malsbury Street, Bicton</a>
 <img src="/images/2014/10/1/3.jpg" alt="">
Initial asking price: $1,500,000 Now asking: $1,000,000  Discount: 33%  Days on market: 308 <a href="https://www.realestate.com.au/property-house-wa-doubleview-116544475" target="_blank">1 Princess Road, Doubleview</a>
<img src="/images/2014/10/1/4.jpg" alt="">
Initial asking price: $2,700,000 Now asking: $1,800,000  Discount: 33%  Days on market: 175 <a href="https://www.realestate.com.au/property-house-wa-yanchep-115004491" target="_blank">48b Brazier Road, Yanchep</a> 
 <img src="/images/2014/10/1/5.jpg" alt="">
Initial asking price: $985,000 Now asking: $699,000  Discount: 29%  Days on market: 350
This article continues on the next page. Please click below to continue.
<hr class="system-pagebreak">
 <a href="https://www.realestate.com.au/property-apartment-wa-south+perth-113923551" target="_blank">12/4 Scott Street, South Perth</a>
<img src="/images/2014/10/1/6.jpg" alt="">
Initial asking price: $3,650,000 Now asking: $2,600,000  Discount: 29%  Days on market: 481 <a href="https://www.realestate.com.au/property-duplex+semi+detached-wa-burswood-116984079" target="_blank">21b Hampton Street, Burswood</a>
<img src="/images/2014/10/1/7.jpg" alt="">
Initial asking price: $1,400,000 Now asking: $1,000,000  Discount: 29%  Days on market: 126 <a href="https://www.domain.com.au/property/for-sale/townhouse/wa/perth/?adid=2010865160" target="_blank">211 Bulwer Street, Perth</a>
<img src="/images/2014/10/1/8.jpg" alt="">
Initial asking price: $1,500,000 Now asking: $1,100,000  Discount: 27%  Days on market: 930 Of all the properties on the list, this one has been on the market for longest – at 930 days. <a href="https://www.realestate.com.au/property-house-wa-sorrento-116607811" target="_blank">2 Marine Terrace, Sorrento</a>
<img src="/images/2014/10/1/9.jpg" alt="">
Initial asking price: $3,990,000 Now asking: $3,000,000  Discount: 25%  Days on market: 161 <a href="https://www.realestate.com.au/property-apartment-wa-south+perth-114534271" target="_blank">32/39 South Perth Esplanade, South Perth</a>
<img src="/images/2014/10/1/10.jpg" alt=""> 
Initial asking price: $1,295,000 Now asking: $990,000  Discount: 24%  Days on market: 406
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The top 10 most discounted properties in Western Australia: SQM Research

"The home, built in 1857, had been unoccupied for years," said the report of a dilapidated Victorian-era mansion in Sydney's Balmain East.

Situated in an exclusive residential pocket next door to the Balmain East ferry wharf, and sporting bayside views of Sydney's Harbour Bridge, the 457 square metre block of land attracted 200 people to the auction, 18 registrations to bid, and sold $830,000 above the reserve to a local home buyer <a href="https://www.rebonline.com.au/breaking-news/8169-decrepit-house-fetches-millions-at-auction" target="_blank">for $2.68 million</a>.

According to <a href="/expert-insights/buying/uninhabitable-crumbling-1850s-balmain-east-cottage-secures-2-68-million-price">Property Observer,</a> the site had been acquired in 1973 for $33,500 by the notable gay rights activist and historian,&nbsp;Alexander 'Lex'&nbsp;Watson. Watson was the president of The Pride History Group and a lecturer in Australian Politics at Sydney University who sadly passed away earlier this year after a long battle with cancer.

$33,500 in 1973 dollars would be $289,724 in real terms today – just over 10% of today's $2.68 million selling price.

The location was the key of course, with planned upgrades to the Balmain East ferry wharf, which will now receive services from the Parramatta River along with extra ferries to McMahons and Milsons Point, further enhancing its value.

Had the home been only a few kilometres away, a few hundred thousand could have been wiped off the price tag and the media sensation may not have been so great. Even so, it is not the only dilapidated property to make the press of late.

Opportunistic buyers caught up in Sydney and Melbourne's property boom have snapped up a string of empty homes, selling under stiff competition while exceeding all expectations of price.

An empty hat&nbsp;factory on Wilson Street, Newtown, also vacant for years, sold earlier this month for $1.725 million.

A dilapidated home on 360 square metres of land in Thornley St, Leichhardt, vacant for more than 30 years, sold a few weeks ago for $1.4 million at auction.

A home in total disrepair at 19 Durham St, Stanmore, situated on 172 square metres of land, vacant for years and sold for $923,000.

And not to leave Melbourne out, an unliveable Richmond property on 726 square metres of land, also vacant for years, <a href="/expert-insights/buying/derelict-richmond-cottage-development-site-sold-at-2-544-000">sold for $2.544 million</a>&nbsp;– $900,000 above the price it achieved only two years ago (pictured above).

The <a href="https://www.news.com.au/finance/real-estate/leichhardt-property-pulls-in-14-million-at-auction-and-tops-big-money-dump-list/story-fnd91nhy-1227006222322" target="_blank">list goes on</a>.

Barring the last example, that came with plans and permits for two town houses, these properties transacted for nothing more than their land value. However, while the buyers purchased a location, they did not pay for the services that rendered that location valuable or, in the case of the first example, compensate the local residents for suppressing access to some of the best views in town.

Instead, reinforced by inelastic zoning constraints, generous tax treatment, and unrestrained speculative growth in dwelling finance commitments, they unwittingly rewarded the sellers with a substantial unearned gain for withholding valuable land from use and depleting the nation's housing supply.

This means of 'creating wealth' common in most western nations sits at the root of many of our economic and social problems today. It has both a debilitating and destabilising effect on the economy, evidenced clearly in a painful and rising trend income and housing inequality that burdens the capacity of the 'welfare state' to compensate.

This article continues on the next page. Please click below.

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Interestingly, Lex Watson, the prior owner of the Balmain East property cited above, was purportedly greatly influenced by the writings of John Stewart Mill whose work was said to be "the touchstone of his life and later activism".

Born in London in 1806, John Stewart Mill is remembered as "the most influential English-speaking philosopher of the nineteenth century".

Inspired by his father James Mill, who tutored his nine children with daily lessons in Latin, Greek, French, history, philosophy, and politics, John Stewart Mill was a leading economist. He was a prolific logician, who dedicated his life to championing the causes of liberty and equality, while advocating 'radical' ideas, such as the abolishment of slavery and equal rights for women.

In 1848 he published the most prominent&nbsp;textbook&nbsp;on economics in the 19th century, Principles of Political Economy, critiquing systems such as communism&nbsp;and&nbsp;socialism and cementing Mill's reputation as a leading public intellectual.

Extending on the ideas set out by Adam Smith and David Ricardo, Mill employed concepts that that have been written out of today's economic narrative, that conflate land and capital&nbsp;– virtual opposites – while failing to distinguish between income that is 'earned' and the economic surplus that disproportionately flows to those that "love to&nbsp;reap&nbsp;where they never&nbsp;sowed" (a process best set out in Mason Gaffney's book The Corruption of Economics).

Writing on the moralities of taxation in Book V, Chapter II of Principles of a Political Economy Mill commented:

"The&nbsp;ordinary progress&nbsp;of a society, which increases&nbsp;in&nbsp;wealth, is at all times tending to augment the&nbsp;incomes of&nbsp;landlords; to give them both a greater amount and a greater proportion of the wealth of the community,&nbsp;independently of any trouble or outlay incurred by themselves.&nbsp;They&nbsp;grow&nbsp;richer,&nbsp;as&nbsp;it&nbsp;were in their sleep, without working, risking, or economizing."

From this Mill concluded that the government should collect society's economic rents in lieu of taxes that impede productive labour and industry, including taxes on the improvement and the transfer of property, (stamp duty) which he said, should rather be: "distributed over the land generally, in the form of a land-tax."

He was not the first or last to do so.

He followed a long line of influential activists, from Thomas Paine, who in his 1797 publication Agrarian Justice stressed:

"Men&nbsp;did not make the earth... It is the value of the improvement only, and&nbsp;not&nbsp;the&nbsp;earth itself, that is individual property... Every proprietor owes to&nbsp;the community&nbsp;a ground rent for&nbsp;the&nbsp;land, which he holds."

Most recently, Dr Ken Henry, who chaired Australia's&nbsp;Future Tax System Review, noted: "... economic growth would be higher if governments raised more revenue from land and less revenue from other tax bases."

The classical economists recognised that unless profits from the 'enclosure of the commons' – land, water rights, minerals, and so forth - were effectively collected and shared for the benefit of the community, all productive gains, every improvement in society and the economy, would be capitalised into rising locational land values, enriching those that owned the assets but more so, those who created the credit and traded on the debt.

This is equally applicable to reductions in the cost of construction.

For example, news that high-density apartment towers close to public transport in Sydney, will no longer require parking facilities, delivering an estimated saving of $50,000 - $70,000 in development costs, will do little to ease affordability.

Rather, it will simply leave more funds available to bid up the price of land. This is precisely what we are seeing in Australia – sky rocketing land prices requiring 'super tall' structures to provide a viable return on investment.

This article continues on the next page. Please click below.

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While the small one and two bedroom units may be spruiked as affordable, when calculated by cost or rental value per square metre of floor space, they are remarkably expensive.

Mason Gaffney expanded on the theory, coining the acronym ATCOR – "All Taxes Come Out of Rent." Showing that whether renting or buying, total tax liabilities from whatever area carried by the consumer, deduct from the cost of a site to the extent they limit the amount a buyer is both prepared and able to pay.

It follows that the removal of all taxes would naturally wash up into higher prices for real estate, which in theory leaves the resulting rise in the economic rent of land 'just' enough to replace the forgone revenue. (For more, see Fitzgerald's Resource Rents Of Australia).

When that liability falls on productive industry, deadweight losses occur. For example, 90% of our taxes are distortionary, adding 23% to prices of goods and services.

However, when the burden falls on land and monopoly rents – minerals, fuels, the broadcasting and communications spectrum, patents et cetera, the reverse is the case.

In respect of land, a higher tax rate levied on the unimproved value would discourage leaving dilapidated homes vacant for years while we struggle with an assumed housing shortage - suppressing the speculative element that adds to the volatility of the market cycle.

Furthermore, when the gain is collected and used to fund the expansion of infrastructure in order to service a growing population, the tax base is expanded without a subsequent lift in rates.

In the 19th century, nature's 'free lunch' was largely limited to the aristocracy of the great landed estates. Today, monopoly profits are absorbed by the financial sector, which wields significant political leverage from lending 'endogenously' created credit against real estate collateral, with the compounding interest disproportionately increasing levels of household debt.

As I pointed out previously - Australia will increasingly feel the effect of this as we move into 2019.

Our current tax system is crooked. It allows large companies to jump through loop holes in legislation and 'cook the books,' shipping profits offshore, leading to an estimated $1.6 billion in&nbsp;tax&nbsp;revenue forgone, while land on the other hand, is used by investors as an effective tax haven.

This article continues on the next page. Please click below.

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In a recent post by Dr Gavin R. Putland of the Land Values Research Group, he notes:

"No matter how high your gross income may be, you can make your&nbsp;taxable&nbsp;income as low as you like, simply by buying enough negatively-geared properties. Such artificially reduced&nbsp;taxable&nbsp;incomes are used in ATO statistics on negative gearing, which are then trotted out by the property lobby as "proof" that most negative gearers aren't rich — as exposed, for example, in Michael Janda's article&nbsp;The myth of 'mum and dad' property investors (The Drum, 24&nbsp;September 2014)."

Australia's&nbsp;economic narrative is more concerned with suppressing wages than high land values.

Joe Hockey&nbsp;has unashamedly stated that any rise to the minimum wage "will cost jobs" and "reduce competition," while remaining notably silent on the average CEO pay, which sits at an estimated 63 times average earnings (as at 2013), and showing scant regard for rising land values which increase the associated costs of running a business, while discouraging growth in productive industry.

It uncovers a damaging neo-liberal agenda, which will do nothing to raise the living standards for Australians struggling to make ends meet.

Meanwhile, in Germany, the house price-to-income ratio has fallen by almost a third nationally since the early 1990s, yet residents enjoy low unemployment and some of the highest wages per capita in the world – including the highest minimum wage in the world. Germany weathered the 2008 depression better than any other country in Europe by maintaining its focus on value adding growth.

The public needs to recapture the debate and push for a better set of democratic tools, that let the people decide directly on the benefits that can aid their communities, rather than the current state of affairs which is coloured with vested interest, polarising voters with false promises and flawed economic thinking.

The rise of citizen's juries, where a diverse&nbsp;and representative group of people are randomly selected and given the information and training needed to deliberate together on matters of policy – for the benefit of all, not just a few - limiting the power of corrupt government officials, may take us one step closer to achieving this.

Top of the agenda should be every citizen's right to affordable access to land and shelter.

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