<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.</p>

<p>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.</p>

<p>That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.</p>

<p>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.</p>

<p>"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.</p>

<p><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" /></p>

<p>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.</p>

<p>The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.</p>

<p>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.</p>

<p>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.</p>

<p>The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.</p>

<p>A significant component of the proposal is the revitalisation of Blue Street Plaza.</p>

<p>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.</p>

<p>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.</p>

<p>Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.</p>

<p>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.</p>

<p>The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>


Joel Robinson

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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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;</p>

<p>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.</p>

<p>The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.</p>

<p>Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.</p>

<p>"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.</p>

<p>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.</p>

<p>A major focus of the design has been the public domain.</p>

<p>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.</p>

<p>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.</p>

<p data-end="239" data-start="66">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.</p>

<p data-end="442" data-start="241">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.</p>

<p data-end="661" data-start="444">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.</p>

<p data-end="909" data-start="663">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.</p>

<p><em>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></em></p>

<p data-end="1339" data-start="1019">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.</p>

<p data-end="1339" data-start="1019">[smartcode_project:default project_id=30959 project_image_fid=292863]</p>

<p data-end="1398" data-start="1341">It has since quietly assembled its next wave of projects.</p>

<p data-end="1805" data-start="1400">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.</p>

<p data-end="1805" data-start="1400">[smartcode_project:default project_id=152095 project_image_fid=373685]</p>

<p data-end="1991" data-start="1807">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.</p>

<p data-end="2303" data-is-last-node="" data-is-only-node="" data-start="1993">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.</p>

<p><em>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></em></p>

<p><em>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></em><br />
&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

<p data-end="492" data-start="327">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.</p>

<p data-end="843" data-start="497">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.</p>

<p data-end="1109" data-start="848">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.</p>

<p data-end="1109" data-start="848">[smartcode_project:default project_id=152022 project_image_fid=375528]</p>

<p>Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.</p>

<p>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.</p>

<p>"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.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375531]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375524]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375530]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.</p>

<p>"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=152022]</p>


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

<p>Not all apartment amenities are immediately visible.</p>

<p>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.</p>

<p>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.</p>

<p>Online shopping has been one of the biggest drivers of that shift.</p>

<p>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.</p>

<p>For apartment residents, however, receiving those deliveries isn't always straightforward.</p>

<p>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.</p>

<p>Australia Post's Parcel Locker network is one response to that shift.</p>

<p><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></p>

<p>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.</p>

<p>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.</p>

<p>That growing presence reflects a broader change in how apartment buildings are being planned.</p>

<p>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.</p>

<p>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.</p>

<p>For buyers comparing apartments, these everyday details are becoming part of the decision-making process.</p>

<p>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.</p>


Parcel delivery is joining the apartment amenity checklist

<p data-end="471" data-start="164">Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.</p>

<p data-end="777" data-start="473">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.</p>

<p data-end="976" data-start="779">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.</p>

<p data-end="1119" data-start="978"><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.</p>

<p data-end="1399" data-start="1121">"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.</p>

<p data-end="1399" data-start="1121">"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."</p>

<p data-end="1605" data-start="1401">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.</p>

<p data-end="1852" data-start="1607">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.</p>

<p data-end="1852" data-start="1607"><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" /></p>

<p data-end="2031" data-start="1854">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.</p>

<p data-end="2299" data-start="2033">"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.</p>

<p data-end="2588" data-start="2301">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.</p>

<p data-end="4143" data-start="3991">Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.</p>

<p data-end="593" data-start="417">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.</p>

<p data-end="789" data-start="598">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.</p>

<p data-end="1053" data-start="794">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.</p>

<p data-end="4143" data-start="3991"><em>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></em></p>

<p data-end="4143" data-start="3991"><em>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></em></p>


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

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>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;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>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.</p>

<p>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).</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<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>

<p>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.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

<p>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.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>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.</p>

<h2>What is NatHERS?</h2>

<p>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;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>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.</p>

<h2>How NatHERS Ratings Work</h2>

<p>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.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> 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.</p>

<p><strong>Cost Savings:</strong> 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.</p>

<p><strong>Environmental Impact:</strong> 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.</p>

<p><strong>Improved Comfort: </strong>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.</p>

<p><strong>Market Value and Desirability:</strong> 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.</p>

<p><strong>Compliance with Building Codes:</strong> 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.</p>


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?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>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.</p>

<h3>Convenience and accessibility</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>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.</p>

<h3>Vibrant lifestyle and community</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>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.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>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.</p>

<h3>Enhanced security and maintenance</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>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.</p>

<h3>Live-work-play balance</h3>

<p>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.</p>

<p>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.</p>


alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><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></p>

<h2>Who pays Stamp Duty?</h2>

<p>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.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>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.</p>

<p>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!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<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>

<p style="line-height:1.38">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.</p>


Ellen Walker

Off-the-plan property explained: What is stamp duty?

<html><body>
<p><span style="line-height: 1.3em;">According to the CoreLogic RP Data Stratified Hedonic Index, the most affordable quarter of suburbs recorded annual value growth of 6.6 percent compared to a 6.4 percent rise across the middle market, and a 7.0 percent rise across the most expensive suburbs. </span></p>
<p><span style="line-height: 1.3em;">While the annual figures show the most expensive suburbs recorded the strongest value growth over the past 3 months, value rises have been more uniform and with little difference between the broad value-based segments of the market. </span></p>
<p><span style="line-height: 1.3em;">Across the most affordable suburbs, we’ve seen values move 1.8 percent higher over the March quarter followed by the most expensive suburbs move by 1.7 percent, and the middle market suburbs by 1.6 percent.</span></p>
<p><a href="/images/2016/04/21/Screen%20Shot%202016-04-21%20at%201.40.49%20PM.png" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2016/04/21/Screen%20Shot%202016-04-21%20at%201.40.49%20PM.png" alt=""></span></p>
<p> </p>
<p><span style="line-height: 1.3em;">Home values across the city increased by 7.4 percent over the past year after annual growth peaked at 18.4 percent in July 2015 Over the past year the most affordable suburbs have seen values rise by 8.0 percent. </span></p>
<p><span style="line-height: 1.3em;">The middle market values are 6.6 percent higher and the most expensive suburbs have recorded value rises of 8.8 percent. </span></p>
<p><span style="line-height: 1.3em;">The annual rate of value growth is slowing across each segment, however the premium end of the market continues to record higher rates of capital gain.</span></p>
<p><strong style="line-height: 1.3em;">Sydney: </strong><span style="line-height: 1.3em;">Home values across the city increased by 7.4 percent over the past year after annual growth peaked at 18.4 percent in July 2015. Over the past year the most affordable suburbs have seen values rise by 8.0 percent. The middle market values are 6.6 percent higher and the most expensive suburbs have recorded value rises of 8.8 percent.</span></p>
<p><span style="line-height: 1.3em;">The annual rate of value growth is slowing across each segment, however the premium end of the market continues to record higher rates of capital gain.</span></p>
<p> </p>
<p><strong style="line-height: 1.3em;">Melbourne</strong><span style="line-height: 1.3em;">: Recorded home value growth of 9.8 percent over the past year, down from a recent peak of 14.2 percent in September 2015. </span></p>
<p><span style="line-height: 1.3em;">The most affordable suburbs recorded value rises of 9.7 percent compared to 10.5 percent across the middle market and 10.0 percent across the most expensive suburbs. Growth is fairly steady across the affordable market but slowing across the middle and most expensive suburbs.</span></p>
<p><strong>Brisbane</strong>: Home values increased by 4.5 percent over the past year with the rate of value growth higher than it was a year ago. The most expensive suburbs recorded value growth of 4.6 percent over the past year compared to a 5.1 percent rise across the middle of the market.</p>
<p>The most affordable suburbs saw a 5.7 percent rise. Annual rates of growth are generally trending higher across each segment.</p>
<p><strong>Adelaide</strong>: Home value changes have been fairly steady having increased by 3.2 percent over the past year. The most expensive suburbs saw values rise by 3.2 percent compared to a 3.1 percent increase across the middle market and a 2.9 percent increase across the most affordable suburbs.</p>
<p>Across each segment growth is fairly steady with the rate of capital gain holding reasonably firm over the past twelve months.</p>
<p><strong>Perth</strong>: The only major capital city to see value falls over the past year, however, the annual rate of decline has started to improve, easing from - 4.1 percent in November 2015 to the current annual decline of -2.0 percent. Across the broad valuation segments, home values have fallen -0.5 percent across the most affordable suburbs, and are -1.5 percent lower across the middle market and 2.1 percent lower across the most expensive suburbs.</p>
<p>Across each segment values are still falling but the rate of decline in values has slowed.</p>
<p>The CoreLogic RP Data Stratified Home Value Index highlights the importance of looking beneath the broad headline figures.</p>
<p><a href="/images/2016/04/21/Screen%20Shot%202016-04-21%20at%201.42.39%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/21/Screen%20Shot%202016-04-21%20at%201.42.39%20PM.png" alt=""></p>
<p> </p>
<p>Markets within a city can be performing quite differently to what the over-arching statistics for a capital city market shows, not only across valuation based segments of the market, but also across housing types and geographically.</p>
<p><span> </span><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
</body></html>

ckusher-ujnxiKuFQs

Home value growth strongest in most expensive suburbs: CoreLogic RP Data's Cameron Kusher

<html><body>
<p>Based on the CoreLogic May monthly rental review released today, while rents increased slightly by 0.1 percent in April, overall, capital city rental rates edged lower, falling 0.2percent over the past 12 months.</p>
<p><span style="line-height: 1.3em;">Rental rates are currently $490/week for houses and $467/week for units across combined capital cities;</span></p>
<p><span style="line-height: 1.3em;">Five of the eight capital cities saw a modest rise in rents over the past twelve months, including Sydney (1.4 percent), Melbourne (1.7 percent), Adelaide (0.5 percent), Hobart (1.1 percent) and Canberra (2.5 percent); </span></p>
<p><span style="line-height: 1.3em;">Perth (-8.9 percent) and Darwin (-12.6 percent) experienced large drops in rents &amp; have collectively pulled the combined capital average lower; </span></p>
<p><span style="line-height: 1.3em;">Brisbane rents dropped by -0.6 percent.</span></p>
<div>
<p><a href="/images/2016/05/11/2016-05-09--monthly-report-report.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/11/2016-05-09--monthly-report-report.jpg" alt=""></p>
<br><p>We anticipate that the weakness in the rental market will persist over the year and rents will continue to fall over the coming months. The annual change in rental rates continues to be at its slowest pace since before 1996.</p>
<p>At the same time last year, rental rates increased by 1.7 percent which indicates a sharp slowdown in rental growth over the past year.</p>
<p>Factors contributing to a slowing in rental growth include falling real wages, excess rental supply in certain areas and lower rates of population growth - all of which have impacted on demand for rental accommodation.</p>
<p>With dwelling approvals at recent record highs and construction activity set to peak over the next 24 months, accompanied by many new properties still to settle, we anticipate that the weak rental market conditions will persist with rental growth continuing to slow and, or, fall in most capital cities.</p>
<p>Based on current market conditions, landlords won’t be in a position to lift rental rates and may actually need to reduce rents in order to keep their tenants. We see renters as holding a stronger negotiation position and where they now have the potential to upgrade into higher grades of accommodation for a similar, or lower rents.</p>
<p>Canberra is the only capital city where the annual rental change is currently stronger than it was a year ago. Mr Kusher said this highlights the weakness in rental market conditions is being felt across all other capital city markets.</p>
<p>With rental rates increasing in some cities in April, rates in Sydney, Adelaide and Hobart are at record highs. In all remaining cities, rental rates are now below their highs with the declines recorded respectively in: -0.1 percent in Melbourne, -0.8 percent in Brisbane, -13.7 percent in Perth, -17.3 percent in Darwin and -5.4 percent in Canberra.</p>
<p>The results show that as rental changes outpace home value changes, gross rental yields have trended lower and have hit record lows of 3.3 percent for houses and 4.2 percent for units.</p>
<p>In our two largest capital cities, we’ve seen rental yields move to record lows of 3.1 percent for houses and 4.0 percent for units in Sydney and in Melbourne, rental yields are at a record low 2.9 percent for houses and 4.0 percent for units.</p>
<p>With home values continuing to grow and rental markets expected to soften further, don’t be surprised if we see a further compression of gross rental yields over the coming months.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
</div>
</body></html>

Weekly rents have continued to fall over the past year: Cameron Kusher

<html><body>
<p>Let’s look at the facts and decide where first of all we need to separate the investment property markets and the first home buyer markets from the family residence markets.</p>
<p>We also need to look at the current NSW Government mandate where they intend to merge councils to ensure that NSW keeps developing and driving residential construction to record levels never seen before. Premier Mike Baird is a smart man as he knows that the investor market has never been larger given the record stamp duty and land tax receipts. These are the new ‘rivers of gold’ that will in part fund this massive infrastructure spend.</p>
<p>According to Stockland chief executive ‘the Australian property sector is in the second quarter of what is often a seven – to – eight year housing cycle’. Now I have no problems with that and I agree given we all know what the intentions are of the NSW State government….it’s build – build – build to then generate tax – tax – tax.</p>
<p>We also now find ourselves in unchartered waters given we have never encountered a record low cash rate which could even go lower – another driver of the real estate market. Historically there have been two drivers to mortgage delinquency – increasing cash rates and unemployment. On that basis we can remove an increasing cash rate in the short term or quite possibly long term, although some are now warning property developers that they should be factoring in a price crunch.</p>
<p>Well that can’t happen given the property developers are concentrating on investors and the booming overseas market where 100 per cent of all ‘new’ developments can be sold to non – Australian residents.</p>
<p>Now the biggest conflict is Australia’s housing policy or better still our elected politicians who have no idea what they are talking about when they implement new policies – Federal treasurer Joe Hockey is the prime example.</p>
<p>Earlier this week he declared ‘that the crackdown on foreign investors illegally buying property in Australia could force down house prices.” Well for that to happen there would need to be thousands and thousands of properties flooding the market. Is he aware of something that we need to know?</p>
<p>This week Treasurer Joe Hockey announced new laws regulating property purchases by foreign investors and this clanger got my blood boiling. Mr Hockey said “foreign investment rules had not been significantly revised since their introduction 40 years ago.” Under the draft laws, penalties would be increased from $90,000 to $135,000 for serious breaches of residential real estate rules. Real estate agents, migration agents, lawyers and conveyancers who knowingly assist a foreign investor in breaching the rules will now be subject to both civil and criminal penalties.</p>
<p>Well Mr. Treasurer, all you need to do is enforce that all property buyers produce a tax file number and then you build your national Property Register and the Australian Taxation Office can record all transactions.</p>
<p>Now back to the “foreign investment rules had not significantly been revised since their introduction 40 years ago”. Back on 18 December 2008, the Australian Federal Government (for reasons only known to themselves) announced policy and administrative changes for foreign investors acquiring Australian real estate where they very kindly made it much easier from 2009 for foreign investors to acquire Australian real estate. This was a major announcement so I assume our esteemed treasurer completely overlooked this announcement when he went back over the past 40 years.</p>
<p>The existing requirement which allowed only 50 per cent of new dwellings to be sold to foreign persons in an ‘off – the – plan’ situation was changed to 100 per cent – on the proviso that developers market locally as well as overseas. Today we have overseas developers selling new developments exclusively overseas and they are not offered to Australian investors. Also a ‘new dwelling’ was defined as never previously occupied or sold. This now includes dwellings that were not sold by the developer but were rented out for no more than twelve months. I bet that has never been policed or followed up by the Foreign Investment Review Board (FIRB)?</p>
<p>They also implemented student visa holder residents in Australia are no longer subject to a $300,000 limit on the value of an established dwelling purchased as their principal place of residence. So students through their parents can buy waterfronts and the like? Temporary residents will not be required to notify FIRB of proposed acquisitions of an established dwelling for their own residence, any new dwellings and single blocks of residential land. Foreign – owned companies can now purchase established dwellings for the use of their Australian – based staff provided they sell or rent them if they are expected to remain vacant for more than six months.</p>
<p>And on and on it goes …….</p>
<p>So by now I am hoping that you are identifying the conflicting evidence that is coming out of Canberra. Why has the allowed foreign investor allocation for new dwellings been allowed to remain at 100 per cent where for 34 years it was set at 50 per cent?</p>
<p><a href="/expert-insights/why-todays-chinese-property-investment-is-just-the-beginning-andrew-taylor">Why today’s Chinese property investment is just the beginning.</a> The questions that need to be asked is just why did Kevin Rudd and Wayne Swan make such significant changes to best suit foreign buyers? Why has the ratio been left at 100 per cent given the strength of the Australian property market? A strong argument that if you want to keep this at 100 per cent then remove both Sydney and Melbourne CBD’s from the overseas shopping trolley.</p>
<p>This week we learned that Nine Entertainment has sold its Sydney headquarters to Hong Kong based developer Euro Properties for $147.5 million. The selling agent CBRE’s Matthew Ramsay said 17 bids had been received from local and international investors and developers. Mr Ramsay said “that foreign investment in the Australian property market was at an all – time high, bolstered by a lower Australian dollar.” I’d say the lower dollar helps and the real reason is that the overseas developers can (thanks to the Australian Government) sell the entire development off – shore to investors.</p>
<p>Oh and I wouldn’t hold your breath if you were thinking of buying one of the 400 or so apartments when the Nine Entertainment development is offered for sale.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 66</p>
<p>• Number of houses on the market last week – 47</p>
<p>• Number of houses on the market this week – 53</p>
<p>• Number of apartments on the market this time last year – 48</p>
<p>• Number of apartments on the market last week – 40</p>
<p>• Number of apartments on the market this week – 41</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 8</p>
<p>• Number of houses on the market last week – 2</p>
<p>• Number of houses on the market this week – 2</p>
<p>• Number of apartments on the market this time last year – 13</p>
<p>• Number of apartments on the market last week – 18</p>
<p>• Number of apartments on the market this week – 15</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 4</p>
<p>• Number of houses on the market last week – 2</p>
<p>•Number of houses on the market this week – 4</p>
<p>• Number of apartments on the market this time last year– 31</p>
<p>• Number of apartments on the market last week – 25</p>
<p>• Number of apartments on the market this week – 25</p>
<p> </p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
</body></html>

robertsimeon-hRNTwJyXkQ

Why is property full of conflicting evidence? Robert Simeon

<html><body>
<div>Markets played around with the idea of the easing cycle being over for a while.</div>
<div> </div>
<div>Not any more, though, as the yield curve inverts once again.</div>
<div> </div>
<div>Still only a low probability of a cut in September. </div>
<div> </div>
<div>However, another rate cut is fully priced in for December, with the implied yield on August 2016 contracts sagging as low as 1.61%.</div>
<div> </div>
<div><a href="/images/2015/08/26/ASX.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/08/26/ASX.jpg" alt=""></div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
<p><span> </span></p>
</body></html>

pwargent-M4siyDbqQY

Interest rates to fall: Pete Wargent

<html><body>
<div>It's set to be a monester week of data releases ahead, from tomorrow in particular, but before that a quick look at the weekend auction results.</div>
<div> </div>
<div>
<em>Core-Logic-RP Data</em> reported its preliminary auction stats which showed stronger initial results than one year ago in Melbourne, Brisbane, and Perth.</div>
<div> </div>
<div>Sydney recorded another vigorous result of 78.1 per cent, which was stronger than the final result for last week of 76.2 per cent, but for the first time this year was below the preliminary clearance rate from one year ago at 79.9 per cent.</div>
<div> </div>
<div><a href="/images/2015/08/31/RPD1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/RPD1.jpg" alt=""></div>
<div> </div>
<div>
<div>Sydney's incredible run which has seen house prices rising at a pace of well over <a href="https://petewargent.blogspot.com.au/2015/08/residex-astonishing-sydney-boom" target="_blank">20 per cent per annum</a> has continued right the way through until the final week before the spring selling season.</div>
<br><div>The result of 78.1 per cent this week will doubtlesss lead to some premature extrapolation, but there are a few reasons why the Sydney market probably has a bit of a way to run yet before it runs out of puff.</div>
<div> </div>
<div>Firstly while auction volumes have been tracking at the highest level we have seen, total listings are still moderate, and less than those of Melbourne and even Perth.</div>
<div> </div>
<div>Secondly, in the inner- and middle-ring suburbs that matter, clearance rates are still tracking at exceptionally high levels.</div>
<div><span> </span></div>
<div><span><span>According to <em>CoreLogic-RP Data</em> the Eastern Suburbs (87.6 per cent), North Sydney &amp; Hornsby (86.3 per cent) and the Inner West (85.1 per cent) had the strongest clearance rates, followed by Blacktown (84.6 per cent), City &amp; Inner South (82.8 per cent) and the Northern Beaches (81.5 per cent).</span></span></div>
<div><span><span> </span></span></div>
<div><span><span>Although these are only preliminary results, traditionally it is said that results above 80 per cent point towards a "boom time" property market.</span></span></div>
<div><span><span> </span></span></div>
<div><span><span>And thirdly, John McGrath ignited some debate earlier this year when he claimed that Sydney's inner suburbs will be "hot forever".</span></span></div>
<div><span><span> </span></span></div>
<div><span><span>While this obviously isn't set in stone, simple geometry tells you that within the inner 6km there are only 113 square kilometres of land for which there is huge demand. </span></span></div>
<div><span><span> </span></span></div>
<div><span><span>Nothing is certain, of course, but personally I wouldn't bet against it. </span></span></div>
<div><span><span> </span></span></div>
<div><span><span>It's precisely what has happened in prime central London over the last couple of decades. </span></span></div>
<div><span><span> </span></span></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
<span><span><br></span></span>
</div>
</div>
</body></html>

Inner suburbs hot for-evuh: Pete Wargent

<html><body>
<div>Historically dwelling listings tend to begin to rise from the end of August.</div>
<div> </div>
<div>However, nationally dwelling stock on market levels remain 1.3% lower than a year ago.</div>
<div> </div>
<div>At the capital city level stock on market has declined over the past year in Hobart (-11%), Canberra (-8%), Melbourne (-5%), Brisbane (-3%), Adelaide (-2%) and Sydney (-1%).</div>
<div> </div>
<div>However, there have been significant increases in stock on market in the struggling markets of Perth (+18%) and Darwin (+15%).</div>
<div> </div>
<div><a href="/images/2015/09/02/201508-Table.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/02/201508-Table.jpg" alt=""></div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</body></html>

Stock for sale virtually unchanged from last year: Pete Wargent

<html><body>
<div>There has been a lot of misleading commentary about population growth dropping off a cliff, and so on.</div>
<div> </div>
<div>It really isn't, but the composition of growth is sure changing.</div>
<div> </div>
<div>I explained <a href="https://petewargent.blogspot.co.uk/2015/12/students-to-drive-population" target="_blank">here</a> back in 2015 why international students would be the key driver of growth going forward.<br><br> It's a key reason why so many bloggers and analysts got their supply and demand ratios so muddled last year, particularly in Melbourne where <a href="https://petewargent.blogspot.co.uk/2016/12/melbournes-population-explosion" target="_blank">population growth broke all known records in 2016</a>, but also in Sydney, and to a much lesser extent Brisbane. </div>
<div> </div>
<div>The latest figures from the DIBP confirmed a walloping increase of 90,380 temporary visa holders over the year to September 2016, with a crunching increase in student visa holders of 45,070 over the year.</div>
<div> </div>
<div>Remember many international students are expected to go to secure Australian residency through other visa classes.</div>
<div> </div>
<div>There was also a massive 51.4 per cent increase in temporary graduate visa holders, easily eclipsing the relatively small decline in skilled 457 visas (that form the basis of most doomsday scenarios).</div>
<div> </div>
<div><a href="https://3.bp.blogspot.com/-lK4sTHM0uYs/WHdgU0fcoSI/AAAAAAAAhM0/GyXPi2QtKwIIQYK41p-R605PYMtqVcG5QCLcB/s640/V1.jpg" target="_blank">Click to enlarge</a></div>
<p><a href="https://3.bp.blogspot.com/-lK4sTHM0uYs/WHdgU0fcoSI/AAAAAAAAhM0/GyXPi2QtKwIIQYK41p-R605PYMtqVcG5QCLcB/s1600/V1.jpg"><img src="https://3.bp.blogspot.com/-lK4sTHM0uYs/WHdgU0fcoSI/AAAAAAAAhM0/GyXPi2QtKwIIQYK41p-R605PYMtqVcG5QCLcB/s640/V1.jpg" width="640" height="240"></a></p>
<p>Source: DIBP</p>
<div>By far the greatest number of temporary visa holders were Kiwis on the visa subclass 444, increasing by 2.3 per cent to 677,030, dispelling the narrative that all Kiwis are heading home.<br><br> Total temporary entrants will rise towards 2.1 million by the end of 2017.</div>
<p><a href="https://1.bp.blogspot.com/-VzgXJuEpkk0/WHdgUqv7CTI/AAAAAAAAhMw/DC6WVITK2OUb1g5rEkB6izXpV9_sxBxDwCLcB/s640/V2.jpg" target="_blank">Click to enlarge</a><br><br><a href="https://1.bp.blogspot.com/-VzgXJuEpkk0/WHdgUqv7CTI/AAAAAAAAhMw/DC6WVITK2OUb1g5rEkB6izXpV9_sxBxDwCLcB/s1600/V2.jpg"><img src="https://1.bp.blogspot.com/-VzgXJuEpkk0/WHdgUqv7CTI/AAAAAAAAhMw/DC6WVITK2OUb1g5rEkB6izXpV9_sxBxDwCLcB/s640/V2.jpg" width="640" height="270"></a><br><br> Thanks to the visa subclass 444, some 34.5 per cent of temporary visa holders are New Zealanders.<br><br><a href="https://1.bp.blogspot.com/-rfnlCybJ6ME/WHdgVEXjSuI/AAAAAAAAhM4/SpZNbB3_84gsYYaz5gmVwrT8KZm2wSIHwCLcB/s640/V3.jpg" target="_blank"> Click to enlarge</a><br><br><a href="https://1.bp.blogspot.com/-rfnlCybJ6ME/WHdgVEXjSuI/AAAAAAAAhM4/SpZNbB3_84gsYYaz5gmVwrT8KZm2wSIHwCLcB/s1600/V3.jpg"><img src="https://1.bp.blogspot.com/-rfnlCybJ6ME/WHdgVEXjSuI/AAAAAAAAhM4/SpZNbB3_84gsYYaz5gmVwrT8KZm2wSIHwCLcB/s640/V3.jpg" width="640" height="296"></a><br><br> However, the real growth sector is in student visas, particularly to Chinese and Indian students.</p>
<p><a href="https://3.bp.blogspot.com/-S7kZqDb9cgU/WHdgToxuj0I/AAAAAAAAhMs/WzCBZ5Otx-IThjZwfZ_c-6tQ9aCvGp_ewCLcB/s640/STUDENT.jpg" target="_blank">Click to enlarge</a></p>
<div><a href="https://3.bp.blogspot.com/-S7kZqDb9cgU/WHdgToxuj0I/AAAAAAAAhMs/WzCBZ5Otx-IThjZwfZ_c-6tQ9aCvGp_ewCLcB/s1600/STUDENT.jpg"><img src="https://3.bp.blogspot.com/-S7kZqDb9cgU/WHdgToxuj0I/AAAAAAAAhMs/WzCBZ5Otx-IThjZwfZ_c-6tQ9aCvGp_ewCLcB/s640/STUDENT.jpg" width="640" height="298"></a></div>
<div> </div>
<div>Most international students head to institutions in Melbourne, Sydney, and Brisbane - in that order.</div>
<div> </div>
<div>As expected, the insatiable demand from international students will keep on keeping on, delivering a substantial boost for population growth in those three capital cities through 2016 and beyond.</div>
<div> </div>
<div>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</div>
</body></html>

Students help temporary visa holders soar towards 2 million: Pete Wargent

<html><body>
<p>Come in spinner or should that be spinners?</p>
<p>In a property week that can only be described as unprecedented we have had the prime minister, treasurer and newly elected NSW premier all declare that they are going to tackle housing affordability.</p>
<p>Previously housing affordability was a bit like going to your doctor for the annual check-up where after your consultation you advise the doctor that you don’t need to see the results. For years and years, our elected politicians have refused point blank to accept any responsibility for being the actual cause of this problem.</p>
<p>The new premier is already stumbling and stuttering where she stated that the heart of the problem is supply so NSW must build more properties. We all know that, this is only a part of the problem, so then the remedies moved to negative gearing (a federal problem) which explains why the prime minister has been silent following his announcement that he too, will personally pursue the housing affordability issues in Australia.</p>
<p>Next, the premier stated that she needed to make sure that the state’s finances are in order before she considers changing stamp duty. I would refer the premier to her media release on December 15, 2016. “NSW has recorded the lowest unemployment rate of the nation for 18 consecutive months and has widened its lead over the next strongest state, the latest ABS data shows. Our unemployment rate is by far the lowest in the nation and demonstrates our economic strength.”</p>
<p>Of course, the premier may always wish to investigate just why in Sydney we presently have public transport considered to be amongst the worst in the world. Back in November 2012 a global survey of 27 of the most important cities in the world ranked Sydney as fourth – worst for public transport. To make matters worse the survey also identified that Sydneysiders pay more for public transport than anywhere else.</p>
<p>Despite that embarrassing finding where our public transport would be even worse since that survey NSW continues to attract more than 50 per cent of the residential investment spend in Australia. On top of that it was revealed this week that the Sydney median house price had climbed a further ten percent in 2016 to now sit at $1,123,991 – another new record.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/29/Investor-Lending.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/01/29/Investor-Lending.png" alt=""></p>
<p>Most people already know the answer to Australia’s housing affordability woes – look no further than the Henry Tax Review that was commissioned back in 2008 then published in 2010 only to be ignored by elected politicians because it was too hard and significantly threatened their parliamentary pensions. The report consisted of nine broad themes with point 8 stating – “Toward more affordable housing: substantially increase rent assistance, gradually move to a uniform land tax and remove transfer taxes (stamp duty), and gradually move to a neutral treatment of rental and owner – occupied housing.”</p>
<p>The Henry Tax Review has now come back with a vengeance and deservedly biting our politicians where it hurts. Although the real reason why NSW refuses to make changes to Stamp Duty is succinctly explained in the following graph.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/29/NSW-Stamp-Duty.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/01/29/NSW-Stamp-Duty.png" alt=""></p>
<p>In Australia, currently the Top 10 taxes deliver 90 per cent of Australia’s taxation revenues. Three of the state taxes are in the Top 10 taxes by revenue collected, although these three state taxes are at the bottom of the Top 10 and represent less than 11 per cent of all tax revenues.</p>
<p>Many simply say increase the taxes for foreign buyers, although there are major issues on that horizon when this week two major Chinese private providers of home price data stopped publishing figures so what’s happening to the home-grown Chinese property markets? The Chinese Index Academy stopped distributing monthly housing price data for 100 cities which was usually made available at the commencement of each month. The Academy told Reuters last Friday, it had suspended distribution indefinitely and then politely declined to provide a reason.</p>
<p>Coincidentally on New Year’s Eve the Chinese government issued a statement that effectively makes it much harder for Chinese investors to now get their money out of China. In an email I received on January 5 here are the key points.</p>
<ul>
<li>The individual annual foreign exchange purchase quota of $50,000 is unchanged.</li>
<li>Banks are “encouraged” to increase scrutiny of currency transfers.</li>
<li>Banks must report any overseas transfers by individuals of US$10,000 or more.</li>
<li>Starting in July 2017, banks and other financial institutions in China will have to report all domestic and overseas cash transactions of more than 50,000 yuan ($7,201), compared with the current amount of 200,000 yuan.</li>
<li>Beijing is signalling to banks, companies and individuals that it disapproves of foreign spending and investment, except for a few purposes that are explicitly defined by the government (e.g. buying foreign-made machinery to increase the efficiency of a Chinese factory).</li>
<li>Overseas property investment has been called out by at least one major Chinese bank as insufficient reason for transferring money abroad.</li>
</ul>
<p>With great interest, we shall watch very carefully how the Chinese buyers perform in 2017 especially as very little (actually nothing) has been written on these forced changes by the Chinese government.</p>
<p>Housing affordability will be major election issues at forthcoming state and federal elections and that could not happen to a nicer group of politicians who have been complicit by neglecting these issues for decades.</p>
<p>Oh and on Australia Day, 2014 Mosman had 68 houses on the market, 2015 it fell to 58, then in 2016 it fell to 45 and this week it’s 25.</p>
<p><em>ROBERT SIMEON is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. </em></p>
<p><em>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000.</em></p>
</body></html>

Politicians to battle housing affordability - an oxymoron? Robert Simeon

<html><body>
<p class="BodyCopy">Many factors play a part in growth property markets, but the biggest single element is infrastructure.</p>
<p class="BodyCopy">Good places to invest are places with excellent infrastructure, including the nuts-and-bolts elements such as schools, shops and public transport.</p>
<p class="BodyCopy">And the markets most likely to grow in future are those where there’s big spending on new infrastructure - with transport facilities the most influential (although medical and educational infrastructure are also big).</p>
<p class="BodyCopy">Sydney’s recent price boom was created by three key factors - the strongest economy in the nation, pent-up demand after a decade of under-performance, and big, big spending on infrastructure, especially road and rail links.</p>
<p class="BodyCopy">Sydney’s economy and its property markets turned around when there was a change of state government in 2011.</p>
<p class="BodyCopy">After more than a decade of stagnation, with little spent on infrastructure, improved governance caused an upturn in the economy and big spending on new projects. Currently there are facilities worth tens of billions of dollars being built, including massive road and rail ventures.</p>
<p class="BodyCopy">Projects like these create economic activity and jobs, as well as improving accessibility.</p>
<p class="BodyCopy">One of the factors underpinning the revival in the Tasmanian economy and the rise of the Hobart property market has been a significant rise in spending on infrastructure.</p>
<p class="BodyCopy">Similar to the NSW experience, the turnaround in Tasmania has evolved from a change in state government, with an emphasis on infrastructure improvements and encouragement of construction projects.</p>
<p class="Body">Prices and rents have grown in Hobart on the back of these changes and the Tasmanian capital is expected to be a price growth leader among the capital cities in 2017, boosted by its low prices, tight vacancies and relatively high rental yields.</p>
<p class="BodyCopy">Against that background it’s good news that road infrastructure, according to a new study, is forecast to be the No.1 growth industry sector in Australia this year.</p>
<p class="BodyCopy">Research firm IBISWorld sees road infrastructure building as the fastest-growing industry this year, with revenue growth tipped to rise 27.2% to a tick over $20 billion in FY2017 - ahead of the sugar manufacturing and oil/gas extraction sectors.</p>
<p class="BodyCopy">Several giant transport infrastructure projects are currently driving accelerated expansion in the road &amp; bridge construction industry. “Much of the current robust growth has been due to the early construction phases of the NorthConnex M1 to M2 link and WestConnex projects in Sydney,” it says. “These private-public funded projects are set to dominate the road construction landscape for several years.”</p>
<p class="BodyCopy">Meanwhile, a report from commercial real estate consultancy Savills says that Australian cities which provide the most efficient transport infrastructure, on top of essential social infrastructure, will place themselves in the best position to deliver sound economic performance.</p>
<p class="BodyCopy">They will become the preferred home for the best and most skilled workers and the hi-tech industries that employ them over the next decade.</p>
<p class="BodyCopy">“And those cities will be at the centre of property development and investment opportunities as they grow to accommodate vastly increased populations”, it says.</p>
<p class="BodyCopy">Savills Australian Head of Research, Tony Crabb, says many academic studies have pointed to the preference among skilled workers for ‘liveability’ over financial rewards including a 2016 Savills UK study <em>What Workers Want</em>, which found workers wanted their life contained within a half-hour radius.</p>
<p class="BodyCopy">“We expect skilled or knowledge workers to be doubly attracted to places where they can achieve both a high degree of liveability and financial rewards, but transport infrastructure is the critical element with work, rest and play accessible in 30 minutes by car, public transport, walking, or cycling, the key determinant,” he says.</p>
<p class="BodyCopy">“Major transport infrastructure provides the backbone of investment opportunities and it is generally around such infrastructure that industries agglomerate, but light rail, tram, bus, cycling and street networks are equally important in delivering liveability.”</p>
<p class="BodyCopy">Other facilities such as medical and educational infrastructure are also vitally important.</p>
<p class="BodyCopy">Crabb says that while Melbourne and Sydney are likely to attract a growing number of skilled workers with population forecasts of up to 10 million by 2050, two other cities - Adelaide and Perth – were nominated (along with Melbourne) by the London based Economist Intelligence Unit  among the world’s Top 10 most liveable.</p>
<p class="BodyCopy">Melbourne ranked No.1 on this list ahead of Vienna and Vancouver, with Adelaide No.6 and Perth No.7.</p>
<p class="BodyCopy">Melbourne and Victoria continue to lead the nation on population growth, with a 2.07% increase in FY2016, ahead of New South Wales with 1.39% and Queensland with 1.35%.</p>
<p class="BodyCopy">But Melbourne has not delivered house price growth as high as Sydney’s over the past 3-4 years because it has not matched Sydney’s infrastructure spend or its overall economic performance.</p>
<p class="BodyCopy">Melbourne does, however, have some big-ticket projects in planning, including the Melbourne Metro Rail Project and the North East link road project. Both are expected to cost over $10 billion.</p>
<p class="BodyCopy">Brisbane has many factors in its favour but spending on infrastructure has largely ground to a halt and economic performance has been lukewarm.</p>
<p class="BodyCopy">Part of the problem is a state government suffering from paralysis by analysis. It was reported recently that the Queensland Government has initiated 120 reviews and inquiries since winning office in January 2015, with the under Anna Palaszczuk dubbed the “do-nothing Premier”.</p>
<p class="BodyCopy">What is starkly absent is clear decision-making and, in particular, much-needed spending on infrastructure.</p>
<p class="BodyCopy">This is hope that this will change. Brisbane is awaiting a start on eight significant projects, which entail investment totalling over $12 billion. They include inner-city rail projects, highway upgrades, big spending at Brisbane Airport and major tourism-focused inner-city developments such as the $3 billion Queens Wharf Casino and the $800 million Brisbane Quarter project.</p>
<p class="Body"> T<em>erry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
</body></html>

terryryder-YECXbqmri2

The three key factors behind Sydney's price boom

<html><body>
<p class="p1"><span class="s1">When Malcolm Turnbull addressed the National Press Club this week I was really hoping that he was going to announce some major policy critiquing for all matters pertaining to Australia’s ongoing housing affordability woes. </span></p>
<p class="p1"><span class="s1">Sadly, very little was offered where he clearly laid the blame at the states and territories which simply identified that very little would be happening to this space.</span></p>
<p class="p1"><span class="s1">We can then expect political huffing and puffing until November 2, 2019 which is when Australia must contest the next election. A very strong possibility that we will see a changing of the guard where negative gearing laws will be changed which will then probably coincide with a major property downturn. On that basis, it is clear to predict the game plan for the next two and a half years. Property investors will go -hard simply because they want to get in before the negative gearing rules are changed (should there be a change in government.)</span></p>
<p class="p1"><span class="s1">There is no doubt that property prices will continue to rise in 2017 to the extent that we may well see the cumulative house prices reach 100 per cent gains in five years in some areas. The latest statistics from CoreLogic revealed this week, identified the January price rise results showed Melbourne up an additional 11.8 per cent and continues to run amok at 16 per cent. Since June 2012, the cumulative increase in house prices has been 70.5 per cent, CoreLogic reported.</span></p>
<p class="p1"><span class="s1">Two things I was expecting announcements on this week were immigration and reducing the off – the – plan ratios to overseas buyers. CBA senior economist Michael Workman said, ‘’housing affordability is set to worsen without federal action. </span></p>
<p class="p1"><span class="s1">The Federal Government controls some of the significant demand factors for housing markets, namely population growth via migration and the spectrum of tax and foreign investment policies that significantly inflate demand for existing and new housing. Housing affordability can be improved, via stabilising growth in house prices and rents, by gradual reforms to both supply and demand issues.”</span></p>
<p class="p1"><span class="s1">In the present property environment, there is no need for off – the – plan sales to foreign buyers to remain at 100 per cent and this ratio is controlled by the Turnbull government.</span></p>
<p class="p2"><a href="https://www.propertyobserver.com.au/images/2017/06/VRN-2.png" target="_blank">Click to enlarge </a></p>
<p class="p2"><img src="https://www.urban.com.au/images/2017/06/VRN-2.png" alt=""></p>
<p>Despite the construction of thousands of new apartments, we are not seeing an easing of rents as was the expected case. Data analysis from the NSW Rental Bond Board identified that NSW has more tenants than ever before. No surprises to learn that the most expensive five suburbs are Manly, Waverly, Woollahra, Willoughby and Mosman.</p>
<p>We can therefore expect to see these areas hot – spotting with investors as they know these areas provide the best rental returns as well as capital appreciation. Investors will keep driving these markets simply because the federal government has tinkered with superannuation, and property markets are out-performing the share market.</p>
<p>Of course, we all know that this will change over time although the momentum is much stronger with our respective governments doing absolutely nothing aside from weekly lip service.</p>
<p class="p1"><span class="s1"> </span></p>
<p class="p2"><a href="https://www.propertyobserver.com.au/images/2017/06/VRN-Statistics.png" target="_blank">Click to enlarge</a></p>
<p class="p2"><img src="https://www.urban.com.au/images/2017/06/VRN-Statistics.png" alt=""></p>
<p> With much being written about money laundering within the Australian property markets the appointed watchdog, the Australian Transaction Reports and Analysis Centre (AUSTRAC), is investigating more than $3 billion in suspicious transfers from Chinese property investors last year.</p>
<p>This was further backed – up late last year when the major Australian lenders ceased lending to foreign buyers amid concerns. I was then surprised to read this week that foreign investors are again on the surge where this time they are paying cash to settle the full amount of the purchase.</p>
<p>Now many will be asking the obvious questions as to where all these monies are originating from based on recent announcements that the Chinese government had shut down money transfers from China?</p>
<p>Well, allow me to lay your concerns to rest – the smartest thing that Joe Hockey did when he was treasurer was to hand all data collection on every property transfer in Australia over to the Australian Taxation Office (ATO). You may have forgotten that some months later after reviewing the respective data an excited ATO announced that they were expanding their forensic property investigations back to 1985.</p>
<p>Just this week, I received a telephone call from one of the ATO investigators requesting purchaser contact information for a property we sold late last year. Nothing was said, I simply adhered to their request and provided the relevant information.</p>
<p>What this clearly tells us, is that every property transaction is scrutineered by the ATO and you can no longer beat the system.</p>
<p>With so many discussions on housing affordability this is one announcement that should please all those closely following the real estate movements. As each property settles all the data is then sent to the ATO for recording and investigation.</p>
<p>It has become very clear that everybody buying Australian real estate should know that each transaction is noted and investigated. And yes, they have the resources.</p>
<p class="p1"><span class="s1"><em>ROBERT SIMEON is a director of </em><a href="https://www.rwm.com.au/"><span class="s2"><em>Richardson Wrench Mosman and Neutral Bay</em></span></a><em> and has been selling residential real estate in Sydney since 1985. </em></span></p>
<p class="p1"><span class="s1"><em>He has also been writing real estate blog </em><a href="https://www.rwm.com.au/news/"><span class="s2"><em>Virtual Realty News</em></span></a><em> since 2000.</em></span></p>
<p class="p1"><span class="s1"> </span></p>
</body></html>

Latest Expert Insights

Parcel delivery is joining the apartment amenity checklist

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

Parcel delivery is joining the apartment amenity checklist

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News