Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.

Proposed changes to negative gearing and capital gains tax concessions would see new and off-the-plan apartments retain access to the tax benefits, while established properties would miss out, creating a clear advantage for buyers purchasing newly built housing.

The policy direction aligns with what many developers have been saying for several years. Australia needs more housing supply, and governments are increasingly looking for ways to encourage investment into new stock rather than existing homes.

The challenge for investors is that suitable product is becoming harder to find.

For much of the last decade, one-bedroom apartments were the cornerstone of investor demand. They offered a lower entry price, strong rental appeal, and were a common feature across most apartment developments.

Today, the development pipeline looks very different.

Across both New South Wales and South East Queensland, developers are increasingly targeting owner-occupiers and downsizers, delivering larger two, three and four-bedroom apartments in response to changing buyer preferences. While one-bedroom apartments still exist, they now form a much smaller portion of many new projects.

That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.

At the same time, rising apartment prices have pushed many new developments beyond the reach of traditional investors. On the Gold Coast and across South East Queensland, it's becoming increasingly difficult to find new apartments priced around the $1 million mark, particularly those offering strong rental fundamentals and long-term growth prospects.

We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

Popular Palm Beach developer Sherpa is soon to officially launch its newest local apartment development, Flourish Soleira.

The one-bedroom apartments in the building were only offered to first home buyers rather than investors, and all of those have been snapped up. The two-bedroom apartments will start from $1.07 million, and the three-bedrooms, still a good investment given the popularity of Palm Beach for owner-occupiers, starting at $2,045,000.

&nbsp;

[smartcode_project:default project_id=150017 project_image_fid=370964]

Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.

True to Sherpa's booming Flourish brand of apartment projects, Flourish Soleira will have extensive rooftop amenity across both buildings including a&nbsp;wellness centre with gym, work from home, yoga, pilates, a&nbsp;heated pool, private dining rooms, pizza oven and barbecues, basketball court, and golf simulator.

<h2>Corallo, Palm Beach</h2>

Priced from: $841,500

Nearby Flourish Soleira is Changfa Group's beachfront-inspired Corallo development. They still have some one-bedroom apartments remaining, priced from $841,500.

The 105-apartment project on Palm Beach Avenue is otherwise dominated by larger two and three-bedroom residences, many of which are aimed at owner-occupiers and downsizers.

[smartcode_project:default project_id=112194 project_image_fid=808]

For investors, the appeal lies in Palm Beach's continued transformation from a laid-back beachside suburb into one of the Gold Coast's most sought-after residential markets. Residents at Corallo will be within walking distance of Palm Beach's surf beaches, the recreational amenity of Tallebudgera Creek, and the increasingly popular collection of cafes, restaurants and boutique retailers along the suburb's central dining precinct.

<h2>Corner House, Stones Corner</h2>

<h2>Priced from: $880,000</h2>

One of only two Brisbane apartment developments to make the list with prices under $1 million is DeMartini Fletcher's Corner House development in Stones Corner.

One-bedroom apartments start from $880,000 within the 88-apartment development, providing investors with exposure to one of Brisbane's most established inner-south locations.

[smartcode_project:default project_id=149098 project_image_fid=330594]

Stones Corner has long been supported by strong tenant demand due to its proximity to major employment and education destinations. The suburb sits less than five kilometres from Brisbane's CBD and is within easy reach of the Princess Alexandra Hospital, Greenslopes Private Hospital, Queensland Children's Hospital and several university campuses.

The project's location within a walkable urban village environment, surrounded by retail, dining and public transport infrastructure, continues to attract both professionals and healthcare workers seeking accommodation close to work.

Parkdrive Apartments, Chermside

Priced from: $749,000

The most affordable apartments across Brisbane's new and off the plan market are in Chermside where developer AusDev is selling one-bedroom apartments from $749,000, and two-beds from $929,000, at its recently launched Parkdrive development.

The development is strategically positioned in one of Brisbane's largest employment and retail precincts, placing residents within easy walking distance of Westfield Chermside, The Prince Charles Hospital, St Vincent's Private Hospital Northside and the suburb's major bus interchange.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Already under construction and scheduled for completion in early 2028, Parkdrive benefits from Chermside's ongoing evolution into Brisbane's northern metropolitan centre. The suburb continues to attract significant public and private investment, supporting population growth and underpinning long-term rental demand.

For investors focused on yield and tenant depth, the combination of healthcare, retail and transport infrastructure within close proximity provides a strong foundation for occupancy and rental performance.

Joel Robinson

Investors to turn to new apartments after Federal Government changes spark hunt for Queensland's best $1 million apartments

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

[smartcode_project:default project_id=139552 project_image_fid=371025]

Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

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?

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

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Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

The latest dwelling approvals released by the ABS paint a bleak picture for the future of housing in Australia.

Following two months of growth, total dwelling approvals dropped -6.5 per cent in June, to be back around 12 year lows.

The most glaring statistic was that the declines were driven by New South Wales (-18.8 per cent) and Victoria (-13.5 per cent), the home of two of our largest capital cities and immigration hotspots.

Over the past 12 months, there have been a total of 162,892 dwellings approved, compared to 177,936 in the 12 months prior, representing an -8.5 per cent decrease. It's the lowest number of dwellings approved on a financial year basis since 2011/12.

Dwelling approvals had been trending upwards, marginally, in the two months prior to the latest release.&nbsp;

The result came in below consensus expectations of a milder -2 per cent fall although that mainly reflected a sharp drop in the volatile units component.&nbsp;

Approvals for private sector dwellings excluding houses (townhouses, apartments and terrace houses) fell by -19.7 per cent in June, reaching the second-lowest monthly level recorded since January 2012.&nbsp;

<h2>Dwelling Approvals by Building Type</h2>

<img alt="Dwelling" data-entity-type="file" data-entity-uuid="c43443ec-8b14-4237-a7e3-5e8609378858" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-07-31%20at%2011.48.09%E2%80%AFAM.png?VersionId=820tT7ActWtlQU34Jy7WZAgGs20h8oGu" />

“These building approval numbers are an alarm bell that this housing crisis could rapidly escalate into a political crisis if further action isn’t taken,” said Stuart Ayres, CEO,&nbsp;UDIA&nbsp;NSW.

“Every month of underwhelming data requires another future month of increased approvals for us to have any hope of recovery. We do not want to see these housing targets drift into the realm of impossibility."

The Property Council of Australia said the decline in approvals is another clear sign of the challenges ahead to the national housing targets.&nbsp;

<a data-entity-type="file" data-entity-uuid="ee9bdceb-a292-4e98-89b8-fefb5aa36ada" href="/developments/sydney-nsw"><img alt="Search New Property Across Sydney" data-entity-type="" data-entity-uuid="" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-08-02%20at%202.37.15%20pm.png?VersionId=2647mseF7WdBlu_6UdgG_43IFQI8Ypg1" /></a>

Property Council Group Executive Policy and Advocacy Matthew Kandelaars said the figures continue to paint a challenging picture for reaching our 1.2 million new homes by 2029 target.&nbsp;

“That our dwelling approval numbers have hit the lowest number on a financial year basis in &nbsp;over a decade is a clear sign of the challenges we face in delivering the homes Australians need,” Kandelaars said.&nbsp;

“If we don't accelerate our efforts, we will fall far short of what should be an attainable target.&nbsp;Governments nationwide must use every available measure to help industry deliver the desperately needed supply of new homes.&nbsp;

“We need an invigorated focus on supply-inducing last-mile infrastructure, more construction labour and we need to ensure that first-home buyers are given a better chance of accessing credit for housing.&nbsp;

“To achieve our goal of 1.2 million homes, we need to adopt a proactive mindset and pull every lever available to unlock more supply – including new homes for students, renters and retirees."

“These building approval numbers are an alarm bell that this housing crisis could rapidly escalate into a political crisis if further action isn’t taken,” said Stuart Ayres, CEO, UDIA NSW

Dwelling approval drop highlights urgent need for interest rate drop or incentive for developers to build

Resilience Latent Defects Insurance is changing the way people buy off the plan property in Australia.

This insurance, currently only available through Resilience Insurance, provides off the plan apartment buyers with a 10-year warranty on their new apartment and the building it's situated in.

The cover is purchased by the property developer/builder (pre-construction) and is designed to protect owners against any immediate or future problems with the structural components of their new property, from leaks to cracks and everything in between.

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<h2>Boosting Confidence in Off the Plan Apartments</h2>

In this evolving market, developers and project managers have a unique opportunity to enhance buyer confidence and drive sales through LDI. Offering a 10-year warranty on structural components of new apartments, LDI covers issues from leaks to cracks, providing a robust solution that has been a global staple for over seventy years.

<h2>Advantages for Developers and Buyers</h2>

LDI is a game-changer for the off-the-plan market. By incorporating LDI, developers ensure buyers receive comprehensive protection from the moment they take possession. This coverage not only addresses post-completion structural defects but also issues arising during the construction phase. Leading developers like Abadeen, Deicorp, Kanebridge, and Coronation Property have adopted LDI, witnessing increased sales and property value.

[smartcode_project:default project_id=112966 project_image_fid=213736]

<h2>Building Market Confidence</h2>

Corey Nugent, CEO of Resilience Insurance and a pioneer of LDI in Australia, emphasises that LDI enhances the construction process and post-settlement phase. With expert partners involved from the beginning, LDI ensures quality and reliability, alleviating concerns about structural integrity. This proactive approach is crucial in a market where trust in delivery quality is paramount.

[smartcode_project:default project_id=114189 project_image_fid=272865]

<h2>Economic Impact and Market Leadership</h2>

According to a survey by MatterFact, 60% of potential buyers are willing to pay over 1.5% of the apartment price for LDI coverage, making it a cost-effective investment for developers. Projects with LDI have reported a 4-5% price increase compared to those without, highlighting the financial benefits for developers. NSW Building Commissioner David Chandler supports LDI, viewing it as a pivotal reform aligned with the state's commitment to improving construction standards and reducing litigation.

For property developers and project managers, integrating LDI into their offerings is not just about insurance—it's about positioning themselves as industry leaders dedicated to quality and buyer assurance. LDI boosts buyer confidence, enhances project marketability, and contributes to resolving Australia's housing crisis by making off-the-plan purchases more attractive and secure.

<h2>Read more about Resilience Insurance Latent Defects Insurance</h2>

<a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?</a>

<a href="/news/nsw/dcn-group-to-develop-first-bankstown-apartment-development-with-latent-defects-insurance">DCN Group to develop first Bankstown apartment development with Latent Defects Insurance</a> 
&nbsp;

For property developers and project managers, integrating LDI into their offerings is not just about insurance—it's about positioning themselves as industry leaders dedicated to quality and buyer assurance

Michael Bird

Everything an off the plan developer and buyer needs to know about Resilience Latent Defects Insurance

Brisbane's real estate picture, overall, shows stability, adaptability, and promising growth.

That's the view of&nbsp;Herron Todd White Director David Notley, who noted in the property valuation firm's 2023 Year in Review the Brisbane market experienced fluctuations over the year, but ultimately there are a lot of factors driving the market.

"When thinking about the things that surprised us this year, it’s hard to go past the ongoing strong demand for housing," Notley said.

"Yes, population growth and a rosy outlook leading to the 2032 Olympic Games all helps but given the interest rate rise cycle may not yet be quite over and that there might well still be some economic pain on the horizon, you might expect demand to slow a little. This simply hasn’t been the case and the recent uptick may well continue into next year as well."

Notley said while the&nbsp;beginning of 2023 delivered a little more stability following the RBA's 2022 interest rate rises, buyers still had some trepidation around when or if rates would rise again.

"Property owners weren’t keen to list their homes during a time of reduced buyer demand and uncertainty around the economy.&nbsp;However, the net effect was resilient property prices, remaining largely unaffected despite the temporary dip in activity.

"The pace picked up a little over mid-year. It would appear that some buyers who had delayed their plans were feeling a little more secure in the economic landscape.

"This strengthening in the market – both sales volumes and prices – has continued through to the end of the year. Some interesting statistics show how well we’ve performed in comparison to other capital cities, too. CoreLogic data to October reveals Brisbane’s rolling quarterly change in property values was greater than both Sydney and Melbourne as we tail out the year. But of course, markets are more nuanced than this with various price points, property types and locations all seeing different outcomes in 2023."

<img alt="HTW" data-entity-type="file" data-entity-uuid="8ae6c2f2-4c40-4184-9713-f67cbd3c8c0a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-01-31%20at%207.44.34%20pm_1.png?VersionId=18o1yE2kXRv5xBo1JvvtrQ1KkxLJeWZq" />

&nbsp;

Notley said units and townhouses gained popularity among first-time buyers, offering an affordable entry into the property market.&nbsp;

&nbsp;

"Big money was also being regularly spent on the apartment market," Notley said.

"Downsizers/empty nesters who have done well riding Brisbane’s property wave over the past few decades were able to enjoy some very impressive living.

"New apartment sales – both completed and off-the-plan – at $3 million-plus price points were a regular occurrence during 2023."

Brisbane's population surge has intensified pressures on the tight rental market, with meagre vacancy rates of approximately 0.9%.

"That flags an extreme imbalance with very tight supply butting up against huge demand. As a direct result, there has been upward pressure on rents. This seems to have prompted some investors to re-enter this sector of the market over recent months, which is a good thing."

To address affordability concerns for first-time homebuyers, the state government recently announced a doubling of the first homeowner’s grant to $30,000, albeit limited to new builds.

"The bump will be enormously helpful to first-time buyers but might also drive up the price of property in certain locations. Activity in fringe estates or new stages in the growth corridors – such as Ripley out to the west of Brisbane – might pick up on the back of the announcement."

&nbsp;

"New apartment sales at $3 million-plus were a regular occurrence during 2023": Herron Todd White's Brisbane year in review

Sydney's residential property market has showcased remarkable resilience throughout 2023, defying earlier predictions of a prolonged downturn.

Property valuation firm Herron Todd White initially expected the year to begin with continued interest rate rises and face prolonged price declines.&nbsp;

However, a closer look at the findings in their 2023 A Year in Review Report reveals unexpected trends and factors influencing the city's real estate landscape.

Herron Todd White Director Shaun Thomas said in the report that despite four interest rate hikes by June, the Sydney property market experienced a swift rebound, bottoming out in the first quarter and enjoying consistent growth throughout the year.&nbsp;

"Earlier in the year we predicted the bottom of the market was nearby but what took us by surprise was the quick rebound. Whilst value levels might not be back to where they were in 2022 the recovery is well and truly on," Thomas said.

The rebound was particularly surprising considering earlier concerns about a predicted "mortgage cliff" and a wave of forced sales that failed to materialise.

Many suburbs in the north-west led the charge to recovery, with some values returning to 2022 levels.&nbsp;

"The lack of stock had more influence over the market’s performance than the multiple back-to-back interest rate rises," Thomas noted.

The unit market in Sydney's Lower North Shore witnessed modest growth, partly driven by first-time homebuyers capitalising on government stamp duty benefits.

"Many of these buyers, having faced significant rental increases over the past 12 to 18 months, have opted to transition to homeownership," Thomas added.

<img alt="HTW" data-entity-type="file" data-entity-uuid="ee11bb3d-ed3d-4e5f-bd98-8e9f0adc491a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-01-31%20at%207.44.34%20pm_0.png?VersionId=J1Upmz2qnBz8B4C_Kt9OYopvQJMthHYy" />

Investment-grade properties and residential apartments closer to the CBD recorded increases in value levels, with the market regaining most of the capital value lost in late 2022.

"A feeling of optimism took over the market circa March 2023, with many buyers taking the opinion that the RBA was at the height of the cash rate increases attributable to the slowing inflation data being reported at the time.

"The renewed confidence amongst some buyers as well as the low levels of properties on the market for sale have been the major catalysts for strengthened sale prices throughout 2023."

The higher median property values of Sydney's inner city, sensitive to interest rate movements, experienced some softening but ultimately showed resilience. The market reacted to interest rate fluctuations, varying impacts on different property types.

[smartcode_project:default project_id=30959 project_image_fid=249157]

"With the inner city Sydney market surprisingly resilient, increases continued throughout quarter two and into quarter three, however, the momentum was dampened by further interest rate rises in May and June with CoreLogic reporting price growth slowing to 0.9%.

"The most recent rate rise appears to have been the final blow of 2023, with many agents reporting that they are in the process of finalising their last deals for the year and winding down for the holiday period," Thomas added.

The eastern suburbs showcased continuous property value increases attributed to low market supply, immigration, and first-home buyer schemes. The duplex market and large homes remained strong, with sales often exceeding expectations.

[smartcode_project:default project_id=136076 project_image_fid=212615]

Thomas added that the unit markets have remained active, particularly lower-density apartment complexes, primarily driven by investors and first-home buyers who want to take advantage of first-home buyer incentives.

"High-density apartment developers have gone under further scrutiny due to well-documented building defect issues and major developers being liquidated (such as Ralan). This has provided more of a negative stigma to these markets.&nbsp;

"We do note that the work being done by the New South Wales Building Commissioner is helping to return some confidence to buyers in this market.

"With immigration expected to remain high and new dwelling approvals at lows, there's likely to be a continued housing supply shortfall, putting upward pressure on prices and rents."

Sydney's property market year in review: Herron Todd White

The performance residential property market in Melbourne varied from market to market, property valuation firm Herron Todd White concluded in their Year in Review.

One of the most nuanced performances was the Melbourne CBD, which had different outcomes in the price and rental markets.

"Melbourne’s CBD is made up of predominantly units or apartments, making their sale prices a good gauge of the property market in the inner city," Herron Todd White's Director Perron King said.

"Although the prices may have decreased, rents have increased, and vacancy rates have once again fallen. This performance shows that the city is having a bounce back after a tough couple of years of the COVID-19 pandemic."

Rental demand and an expected influx of immigrants might lead to higher-density living trends, King noted.

"With times getting tougher for Australians and an expected 400,000 immigrants coming to Australia between 2023 and 2024, there could potentially be a shift in the way people live, and higher-density living could continue to show strong growth, especially considering the rental demand at the moment," King added.

<img alt="Units" data-entity-type="file" data-entity-uuid="84ce74f2-f6d7-4daa-8c8e-82a9327c6ddc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-01-31%20at%207.44.34%20pm.png?VersionId=9ZApCePI9kDfNX95ftXQQvERc6t5kJ19" />

King said despite challenges in the building industry, residential developments persisted, albeit with increased costs.

"The year highlighted the impact of global and local factors on Melbourne's property landscape, with changing demographics suggesting a potential shift towards higher-density living."

King said that while inner suburbs demonstrated robust performance, outer northern suburbs presented new opportunities for homebuyers and investors, adding that despite interest rate increases, stability and slight growth were observed in these areas.

&nbsp;

"Inner northern neighbourhoods such as Brunswick, Thornbury and Northcote demonstrated robust performance, albeit with limited new housing stock. Occasionally, medium-sized developers acquire larger lots to construct six to eight units or townhouses in these areas, and their prime location commands a premium."

[smartcode_project:default project_id=4802 project_image_fid=217119]

&nbsp;

&nbsp;

Generally speaking, HTW found the most affordable end of the market took the biggest hit, given the increased limitations on lending which stemmed from the RBA's interest rate hikes.

On the flip side, at top end of the market, buyers appear in many cases unfazed by interest rates, with a number of record breaking sales throughout the year.

"This is partly a result of cash purchases and the return of internationally based buyers."

Melbourne's property market year in review: Herron Todd White

A reacceleration in the quarterly pace of growth for national construction costs is suggested to be a return to trend rather than a new surge, according to CoreLogic.

The&nbsp;Cordell Construction Cost Index (CCCI), which tracks the cost to build a typical new dwelling, recorded a growth rate of 0.8% over the three months to December. This marks a reversal of the easing trend seen over the previous four quarters when the quarterly CCCI reading went from 4.7% in Q3 2022 to 0.5% in Q3 2023. The annual growth rate for the 2023 calendar year was 2.9%.

CoreLogic Economist Kaytlin Ezzy&nbsp;said although the quarterly CCCI reading has risen, the latest growth rate remains 20 basis points below the pre-COVID decade average of 1.0%.

"This suggests that reacceleration is more a return to trend rather than a new surge in construction costs," Ezzy said.

"While up over the quarter, the annual change in residential construction costs continued to ease as larger quarterly increases fell out of the annual calculation."

At 2.9%, the latest 12-month increase was the smallest annual rise in the national CCCI since the year to March 2007 (2.7%) and below the pre-COVID decade average (4.0%).

"This suggests that growth in construction costs have normalised after recording a recent peak of 11.9% over the 12 months to December 2022, albeit at a higher level. Although 26.6% higher than at the onset of the pandemic, the recent surge in CCCI is below the increases seen across national house values, with CoreLogic's Home Value Index rising 36.5% over the same period," Ezzy added.

CoreLogic Construction Cost Estimation Manager John Bennett&nbsp;said pricing remains generally unsettled, with no clear trend seen across most product types.

"Depending on the supplier, both increases and decreases were recorded in timber and metal prices, although we have seen rises in the price of hardware and chemical items. This tells me suppliers are either bringing their product pricing back down to acceptable levels from the increases during the Covid period, or they are increasing to set up for the year ahead," Mr Bennett said.

"In 2023 there was a bit of uncertainty around what the fallout from the interest rate increases would be and therefore the overall impact on the building industry. While the latest figures show the market has settled down, I don't think we have seen the slowdown many were expecting.

"While dwelling approvals are still well below historic averages, there is still an elevated level of projects under construction which is keeping cost pressures high," he added.

Price rises were also varied across the states, with an increased growth rate seen in NSW, Victoria and WA, while SA and Queensland both saw a reduction in quarterly CCCI growth.

<h2>CCCI Outlook</h2>

Ezzy said the outlook for construction costs over the coming year is uncertain.

"While it's unlikely we'll see any declines in construction costs, the pace of growth could be influenced by several factors. Although national dwelling approvals have risen from a recent low of 12,185 in January, the latest data from the ABS showed that dwelling approvals remained -15.8% below the decade average in November at around 14,500. Although a number of projects are still moving through the construction pipeline, the recent lull in approvals could result in a shortfall in new projects, which would help keep growth in building costs low, due to greater capacity in the construction sector.

"However, with the CPI continuing to ease, it's looking increasingly like we'll see a cash rate cut in the second half of 2024, which could fuel housing demand for both established and new dwellings. Regardless, the normalisation in CCCI growth will help provide some certainly for builders, insurance companies and homeowners alike," she said.

<h2>Key findings by state – Q4 2023 CCCI Report</h2>

<ul>
	<li>The CCCI for NSW rose 1.0%, up 40 basis points on the previous quarter but only 10 basis points above the pre-COVID decade average of 0.9%. The annual reading eased to 3.1%, the lowest annual change since the 12 months to March 2021.</li>
	<li>Victoria’s CCCI rose 1.1% over the quarter, up from 0.3% in the September quarter, making it the fastest acceleration in construction costs among the states. The annual increase continued to ease to 2.9%, down from a recent high of 13.0% over 2022 and is Victoria's lowest annual change since the 2016 calendar year (2.6%).</li>
	<li>Queensland recorded the lowest quarterly rise at just 0.1%, down from 0.8% in Q3, bucking the acceleration trend. This is the state's lowest quarterly result since Q1 2001 when CCCI fell -0.1%. The December quarter's weaker growth helped bring Queensland's annual growth rate back in line with the other states at 2.8%.</li>
	<li>In WA, construction costs rose 0.7% over the quarter, up 50 basis points on Q3. Annually, WA's CCCI increased by 2.3%, which was the lowest annual rate among the states.</li>
	<li>SA’s CCCI Increased by 0.5%, down from 0.6% in Q3, also bucking the national trend. This took SA's annual change in construction costs to 2.8%.</li>
</ul>

CoreLogic researches and reports on materials and labour costs which flows through to its Cordell construction solutions to help businesses make better decisions, estimate rebuild and insurance quotes easily and, ultimately, price risk effectively.

Construction cost growth returns to normal trends: CoreLogic

First home buyers are shrugging off the recent interest hikes with a spike in new mortgages for those looking to enter the market for the first time.

Data from the ABS Lending Indicators showed a 25.8 per cent increase in the value of new loan commitments for first home buyers, up to $5.25 billion nationally.

The value of new loan commitments for investors was rising higher than owner occupier borrowers. Investment lending increased by 18 per cent to reach $9.72 billion while owner occupier new loan commitments were up only 10.6 per cent over the year to reach $17.86 billion in loans.&nbsp;&nbsp;

A total of $27.58 billion in new home and investment property loans were taken out in November, up by a modest one per cent from October and 13.1 per cent over the year.&nbsp;&nbsp;

Investors are up for the month by 1.9 percent, which compares to an increase of only 0.7 percent for owner occupiers.

"You could say investors are back," Canstar’s lending expert Steve Mickenbecker says, with new lending up by 18 percent year-on-year, suggesting they hold a healthy expectation for property prices over the coming few years.

“It’s first home buyers who are leading the way with new lending commitments up by 2.8 percent for the month and 25.8 percent for the year,"&nbsp;Mickenbecker says.

"Looking at the number of buyers, first home buyers’ participation represents 37 percent of all new loans."

The biggest spike in first home buyers was in Queensland, where number of loans issued jumped 10.8 per cent in November. Victoria rose 1.2 per cent and Sydney fell 4.8 per cent, unsurprisingly given the cost of buying property in much higher in the harbour capital.

First home buyer new mortgages spike as "investors are back"

Residential rents are forecast to rise further in 2024 as vacancy remains at record or near record lows, CBRE has forecast.

CBRE’s Residential Figures Q4 report suggested continued growth in the rental market, namely down to a mix of large immigration numbers and supply shortages.

Rents are already at record highs, according to the data collected by CBRE, REIA and SQM Research, while vacancy rates are touching record lows across the country.

<img alt="CBRE vacancy rate" data-entity-type="file" data-entity-uuid="4dd80446-bb1f-4143-99d1-4f73a2efac76" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-12-19%20at%207.39.30%20pm.png?VersionId=xfaN82dYkgTx8G1BLJszU3vYZcg7cs8x" />

"Substantial rental growth has continued across most markets, approaching 30% year-on-year in some cases," CBRE's report noted.

"The surge in net overseas migration has had a significant impact on Australia's residential markets, particularly rental markets which were already feeling the effects of tapering supply pipelines."

CBRE said that while the recently released migration strategy has highlighted measure to reign in the net overseas migration figure, the three-year projection of 1.135 million to FY25 still translates into demand for around 450,000 new dwellings. Adding in demand for natural increase, new dwelling demand over the next three years will likely exceed 600,000.

Completions of both houses and units in FY23 totalled a little under 175,000.

<img alt="CBRE" data-entity-type="file" data-entity-uuid="2b08a5e7-445e-401a-b00c-4a72768559a1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-12-19%20at%208.56.07%20pm.png?VersionId=bDVRANTjdPTl5m19ttJkgW8IYuN3G2qX" />

"With the pipeline slowing further, this suggests new supply will not keep pace with the demand generated, indicating little relief from the tight rental markets for the near future.

"As a result, rents generally will continue to increase above CPI, although the pace of growth will ease as affordability pressures bite and alternatives such as increased share-accomodation or younger people remaining at/returning home become more common."

Completions of both houses and units in FY23 totalled a little under 175,000, well shy of the estimated 600,000 needed to keep up with immigration

Residential investors on alert as rents set to continue to rise: CBRE

ASX-listed developer Stockland has spent just over $1 billion buying 12 masterplanned communities from Lendlease.

The communities will be part of the&nbsp;Stockland Residential Communities Partnership (SRCP) with Thai real estate development company Supalai. Stockland will hold a 50.1% interest in SRCP, with Supalai holding a 49.9% interest.

They've secured masterplans across Victoria, Queensland and New South Wales, totalling over 27,000 lots. The biggest acquisition is by far Yarrabilba in Queensland, near Logan, which has 10,400 lots.

<img alt="Lendlease" data-entity-type="file" data-entity-uuid="3f291554-0aab-4722-86d4-e78c45ad8d0c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-12-19%20at%207.07.26%20pm.png?VersionId=9HKtuB2gixixMkaa5JQ_xx7zzQjLX4k1" />The&nbsp;Yarrabilba masterplan. Image credit: Lendlease

Stockland Managing Director and Chief Executive Officer, Tarun Gupta, said the acquisition represents a step change in the reshaping Stockland's portfolio.

"[It] accelerates the execution of our strategy by increasing our capital allocation towards residential sectors while scaling our capital partnership platform and generating new sources of recurring income," Gupta said.

“We are pleased to be forming the Stockland Residential Communities Partnership with our existing partner Supalai, who has a strong track record of investing in residential developments across Australia, and is aligned with our strategic ambitions. SRCP achieves immediate scale with this acquisition, and we are excited to further develop the partnership alongside Supalai.”

Supalai Public Company Limited Chairman and CEO, Dr Prateep Tangmatitham said the investment further demonstrates their confidence in the underlying drivers of the market and provides them with exposure to a high quality, well-located portfolio of communities in partnership with one of Australia’s leading residential developers.

The recent acquisitions take Stockland's landbank to around 95,600 lots. They have the potential to increase settlement numbers to around 2,500 lots per annum.

<table>
	<thead>
		<tr>
			<th>Project Number</th>
			<th>Project Name</th>
			<th>State</th>
			<th>Yield</th>
		</tr>
	</thead>
	<tbody>
		<tr>
			<td>1</td>
			<td>Figtree Hill</td>
			<td>NSW</td>
			<td>~1,320</td>
		</tr>
		<tr>
			<td>2</td>
			<td>Calderwood Valley</td>
			<td>NSW</td>
			<td>~2,780</td>
		</tr>
		<tr>
			<td>3</td>
			<td>Springfield Rise</td>
			<td>QLD</td>
			<td>~1,160</td>
		</tr>
		<tr>
			<td>4</td>
			<td>Yarrabilba</td>
			<td>QLD</td>
			<td>~10,400</td>
		</tr>
		<tr>
			<td>5</td>
			<td>Shoreline</td>
			<td>QLD</td>
			<td>~2,760</td>
		</tr>
		<tr>
			<td>6</td>
			<td>Kinma Valley</td>
			<td>QLD</td>
			<td>~2,300</td>
		</tr>
		<tr>
			<td>7</td>
			<td>Atherstone</td>
			<td>VIC</td>
			<td>~1,710</td>
		</tr>
		<tr>
			<td>8</td>
			<td>Aurora</td>
			<td>VIC</td>
			<td>~1,110</td>
		</tr>
		<tr>
			<td>9</td>
			<td>Harpley</td>
			<td>VIC</td>
			<td>~1,720</td>
		</tr>
		<tr>
			<td>10</td>
			<td>Averley</td>
			<td>VIC</td>
			<td>~1,370</td>
		</tr>
		<tr>
			<td>11</td>
			<td>Alkimos Beach</td>
			<td>WA</td>
			<td>~760</td>
		</tr>
		<tr>
			<td>12</td>
			<td>Alkimos Vista</td>
			<td>WA</td>
			<td>~250</td>
		</tr>
		<tr>
			<td>Total</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>~27,600</td>
		</tr>
	</tbody>
</table>

&nbsp;

Stockland CEO of Development, Andrew Whitson said the fundamentals of the residential market in Australia remain compelling, with ongoing land supply constraints amid strong population growth.

"This acquisition has been secured on attractive terms, with active projects that are well positioned to ramp up development activity into a potential recovery in the residential cycle. The size and scale of the acquired projects also present potential development opportunities in adjacent uses, including land lease communities and community real estate assets such as childcare and healthcare centres.”

Stockland recently released one of the <a href="/news/qld/stockland-release-the-lake-residences-with-private-marina-berth-at-newport-qld">last residential opportunities</a> at their Redcliffe Peninsula masterplan Newport.

Stockland Managing Director and Chief Executive Officer, Tarun Gupta, said the acquisition represents a step change in the reshaping Stockland's portfolio

Stockland buys 12 masterplanned communities from Lendlease for $1 billion

Sydney is predicted to have the highest growth in luxury residential property prices of the Australian cities in 2024, according to Knight Frank research.

Knight Frank’s Global Prime Residential Forecast found the New South Wales’ capital sits in fifth place out of 25 cities globally for predicted prime property price growth next year, with 5% growth forecast.

Prime property is generally defined as the top 5% of property in each market. Melbourne came in at number eight for forecast growth in prime residential property prices over 2024, with an expected rise of&nbsp; 3%.

Globally, Knight Frank’s latest projections for prime prices in 2023 and 2024 were revised upwards by the global research network in its Global Prime Residential Forecast, foreseeing an average growth of 2.4% in 2023 and 2.5% in 2024.

<img alt="Knight Frank" data-entity-type="file" data-entity-uuid="53f3a14e-d1ea-43a3-98c5-e4e2f3b8cdc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-12-07%20at%2011.29.02%20am.png?VersionId=sOnYotq_Va2y8BXJRKfTzXcoz8QVKjEy" />

Both Sydney and Melbourne were in the list of 10 cities in Knight Frank’s Global Prime Residential Forecast that had seen an improvement in the luxury property price growth forecast for 2024. The 5% growth figure forecast for Sydney is a 2% increase on the original forecast for prime property price growth in 2024, made six months ago by Knight Frank, and is the second highest forecast price growth revision for next year behind Auckland.

Melbourne's forecasted price growth has jumped from 1% to 3%.

Both cities have also had better growth in luxury residential property prices than predicted over 2023, with price growth forecasts up to the end of this year also revised upwards.

Sydney’s forecast for luxury residential property growth for 2023 has been revised upward from 0% to 3%, while Melbourne’s forecast has been revised upwards from -1% to 1%, reflecting the better than expected performance of these two cities over 2023.

[smartcode_project:default project_id=136076 project_image_fid=212615]

Knight Frank Head of Residential Research in Australia Michelle Ciesielski said cautious optimism was emerging in the luxury residential property market globally, with prime buyers appearing confident that economic headwinds were easing.

“In Australia, buyer appetite is strengthening, while supply of prime properties is constrained,” Ciesielski said.

“The limited number of exceptional and most desirable prime residential property listings continues to create a price floor under many luxury Australian properties.

“This undersupply of luxury homes is one of the key factors set to shape the performance of the Australian prime residential market in 2024, with inflation and interest rates also set to play a big role.

“In saying that, in this upper echelon of the market, we are seeing an increasing number of cash buyers, with the proportion being 60% of all prime residential property sales in Sydney and 65% in Melbourne.

“Climate risk, geopolitical tensions and currency shifts are also expected to impact the Australian luxury property market.

“Amongst these risks there are opportunities, however, with property set to continue to appeal as a means to diversify and spread risk, being seen as a safe haven for capital.”

[smartcode_project:default project_id=108801 project_image_fid=236536]

Prime residential property has outperformed most other asset types over a 10-year period, with 55% growth, according to Knight Frank’s Prime Global Cities Index. It came in second behind oil, with growth of 110% over the same timeframe.

Knight Frank Head of Residential in Australia Erin van Tuil said in pockets of prime suburbs around Australia, record sale prices were being achieved, with some taking place before an advertising campaign takes place.

“Many of these properties are located on the waterfront, large estates and on the upper levels of apartment towers with panoramic views,” she said.

“The super-prime end of the market - especially A$20m-plus - is doing exceptionally well, with no shortage of buyers and limited homes.

“Most buyers are local Australian buyers, with a notable absence of foreign buyers committing to sales, despite enquiries.

“Relative to other Australian cities, Melbourne has counted more prime luxury product built over the past couple of years, which has made prime prices lag the stronger performance in other Australian cities.

“Melbourne is also still recovering from an extended lockdown in the pandemic, with city seeing many residents move interstate to Queensland and the slower return of international investors which the city relies heavily on.”

Knight Frank research shows in Sydney 5% of prime property buyers are foreign buyers, while in Melbourne it’s 10%.

Both Sydney and Melbourne were in the list of 10 cities in Knight Frank’s Global Prime Residential Forecast that had seen an improvement in the luxury property price growth forecast for 2024

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