<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?

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<div>One of the occupational hazards of middle age is that from the mouths of babes can spout seemingly simple questions which are devilishly difficult to answer. </div>
<div> </div>
<div>This troublesome issue was highlighted in a wittily observed <em>Bigpond</em> advert a decade or so ago, in which a hapless father answers to his curious son that the Great Wall of China was built by "Emperor Nasi Goreng...to keep the rabbits out."</div>
<div> </div>
<div>
<div>The difficulty in answering an apparently straightforward question such as "how much money is there?" is twofold. Firstly, this is because the answer depends on what you mean by "money". And secondly since the money supply is a moving target, by the time you have scraped together a coherent answer more money will inevitably have been created. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">How much money is there?</span></strong></div>
<div> </div>
<div>For those of us with bank accounts today, generally we don't come in to direct physical contact with most of our money. Instead, we just see a number on a screen which changes daily.</div>
<div> </div>
<div>The latest figures from the Reserve Bank of Australia (RBA) showed that the total there is more than $65 billion of currency and $250 billion of current deposits - for a total of just over $315 billion which is represented by the green line in the chart below and known as the "M1" measure of the money supply in circulation.</div>
<div> </div>
<div>It's an arresting thought that in the years since I was born there is more than 30 times more M1 money knocking around in Australian circulation.</div>
<div> </div>
<div><a href="/images/2015/11/23/A1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/23/A1.jpg" alt=""></div>
<div> </div>
<div>
<span>Of course, as the above chart shows, the green line is only a small and increasingly insignificant part of the money supply, partly because today most of us use alternative forms of payment, including credit cards and EFTPOS.</span><br><br><span>The red line in the chart above (known as "M3") - which includes term deposits, certificates of deposit, and various other deposits from building societies and credit unions with banks - totals well over $1.8 trillion, the dollar value of M3 money in circulation having increased by more than 45 times over the same time period.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/11/23/A1-1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/23/A1-1.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>Adding the green shaded areas in the graphic above (currency and current deposits, or "M1") to the blue shaded areas (the aforementioned other deposits) gets us to "M3", while there is a broader measure of money still, which funnily enough is known as "broad money" - it includes certain other borrowings denoted by the red shaded area.<br><br>All up the money supply comprises $1.83 trillion of broad money in circulation.</div>
<br><strong><span style="text-decoration: underline;">Boiling frogs</span></strong><br><br><div>One thing that we all learn in childhood is that if something that a lot of people want is scarce, then it tends to go up in value. Unfortunately, however, the supply of money has been anything but scarce. </div>
<div>
<br>While 6.3% growth in M3 money over the past 12 months (following on from 8% in the preceding year) may not sound like all that much, due to the power of compounding these cumulative increases in the money supply have snowballed into an enormous expansion.</div>
<div> </div>
<div>This, of course, is why folk have tended not to leave large sums of money in their bank accounts earning low returns for too long, and often instead aim to invest in inflation-busting businesses, "hard assets" with intrinsic value such as gold and silver, or well-located residential property with a high land value component. </div>
<div> </div>
<div>Over time we expect the price of quality assets in high demand to appreciate, while the value of any associated debt is surprisngly quickly inflated away. Only one decade ago the broadest monetary aggregate ("broad money") showed $784 billion of money supply in circulation, an amount which has comfortably doubled and then some to $1.83 trillion today.<br><br>Summarily there is well over double the amount of money chasing a limited supply of desirable assets. These figures are in themselves powerful enough, but in truth even the money supply in circulation represents only one part of the tale.</div>
<div> </div>
<strong><span style="text-decoration: underline;">Credit where it's due</span></strong><br><br><div>The other part of the story is that of "credit", being loans, advances and bills discounted to the private sector (but excluding loans made to other financial intermediaries).<br><br>Note in the chart below the massive surge in credit growth following the deregulation of the financial system in 1983 which lasted all the way through until the early 1990s "recession we had to have".</div>
<div> </div>
<div><a href="/images/2015/11/23/A3.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/11/23/A3.jpg" alt=""></div>
<div> </div>
<div>
<div>While there is not necessarily a link between the expansion of the broad money supply and growth in credit, the data over the long run suggests that a relationship between the two clearly exists, albeit a complex one.</div>
<div> </div>
<div>As explained by a Bank of England research paper last year, the way in which most money is created in a modern economy is through banks making loans. When a bank creates a loan, it also creates a deposit in the borrower's bank account (and in turn it follows that if a bank lends me money to buy your house, then that after the settlement you will have more money in the form of a deposit).</div>
<div> </div>
<div>Thus, contrary to what you might intuitively expect, deposits are not created by households saving income, but by banks creating money through loans, although of course there is ultimately a speed limit as to how much banks can lend.</div>
<div> </div>
<div><a href="/images/2015/11/20/A7.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/11/20/A7.jpg" alt=""></div>
<div> </div>
<div>
<div>The above chart shows what has happened to the amount of "narrow credit" (a measure which excludes securitisations) sloshing around Australia since 1976, which is to say that it has expanded at an even more furious pace from $36 billion to nearly $2.4 trillion, thereby increasing by an astonishing factor of more than 66 times. </div>
<br><div>While back in the year I was born housing accounted for only 24% of ourstanding credit (refer to the red shaded areas in the chart below), today that figure has expanded to 61%, with housing credit growth continuing to outpace the growth in lending to businesses.</div>
<div> </div>
<div><a href="/images/2015/11/23/A5.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/11/23/A5.jpg" alt=""></div>
<div> </div>
<div>
<div>There are a number of identifiable reasons for this trend, but probably the most significant of these is simply that banks love to lend against housing - for even if you default on a mortgage you cannot easily take the house with you, and in any case the land that it sits on isn't going anywhere.</div>
<div> </div>
<div>There have been many predictions of falling house prices over the last decade, but a bet against housing has essentially been a bet against the above chart, which shows that over the past ten years the stock of outstanding housing credit has more than doubled, from approximately $700 billion to $1.5 trillion.</div>
<div> </div>
<div>Of course, the price of all residential property has not increased as a result of this flood of credit. There is no scarcity of land in many mining regions, for example, and the demand for it has been declining in recent years, resulting in spectacularly crashing prices in many cases. Outer suburban Sydney property is now correcting sharply in some instances due to similar dynamics.<br><br>It would be true to say, however, that suburban land values in capital cites have generally been increasing strongly over time.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The outlook for credit growth</span></strong></div>
<div> </div>
<div>Onthe subject of speed limits, the regulatory body APRA recently decreed that it would like to see lenders growing their investor mortgage books at a pace of no faster than 10 per cent per annum, and for this reason we can expect to see banks instead pushing products in their largest and most profitable market sector, being owner-occupier housing credit.</div>
<div> </div>
<div>The private sector credit figures arguably represent one of the more significant indicators of what is happening in the domestic economy, and for this reason I analyse the data on this blog at the end of each calendar month. </div>
<div> </div>
<div>As I looked at in more detail at the end of last month the series showed that while commodity prices may be tanking over the year to September annual business credit growth moved up to a 79 month high of 6.3%, while housing credit growth had also accelerated to a 60 month high of 7.5%.</div>
<div> </div>
<div>Now sure, 7.5% is certainly a lower level of growth for housing credit than we have seen in cycles past - mainly because we are starting from a higher base - yet if sustained it would be enough to more than double the stock of outstanding housing credit to beyond $3 trillion within the next decade, which is food for thought (gulp).</div>
<div> </div>
<div>Whether or not banks can continue to expand owner-occupier credit growth will be one of the key housing market narratives to watch over through 2016. I'll analyse all the key figures here, of course. </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>
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</div>
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pwargent-M4siyDbqQY

How much money is there? Pete Wargent

<html><body>
<p><span>It never ceases to amaze me just how little some “property experts” actually know about real estate machinations to the point they constantly make fools of themselves with dumb commentaries.</span></p>
<p><span>For example, one commentator earlier this week declared on Twitter “Auction clearance rates crumbling Melbourne 66.3% 2yr low Sydney another crash just 57.5% 3yr low” – well, that may be true as west of Sydney is performing badly. I then reminded him that I thought he is the worst property commentator in Australia. Last week, Sydney’s lower north shore recorded a bullish 80.4 % clearance rate up from 76.6 % the previous week – of course this was not mentioned.</span></p>
<p><span>It is also worth mentioning just like clockwork as soon as we hit the Melbourne Cup each year the market starts easing off which is exactly what we are presently witnessing – buyers are tired. Having said that, we will see property sales recorded right up to Christmas and what we are presently witnessing is no different to last year, the year before that and so on.</span></p>
<p><span>The common denominator is that we are seeing fewer properties on the market. In 2013 Mosman had 100 or more houses on the market in a given week on 33 occasions, in 2014 Mosman could only break the 100 mark on just 11 occasions. In 2015 it never made it to 100 with the highest being on March 12 with 84 and the lowest on July 2 with 42.</span></p>
<p><span>There are points that we need to make about many Sydney markets. Firstly, with Chinese buyers we have only just seen the “tip of the iceberg” where we expect in 2016 and beyond that they will be the main driving force behind Sydney property prices. We can also expect that the Foreign Investment Review Board (FIRB) and Australian Taxation Office (ATO) will be pushed to the limit with overseas buying applications.</span></p>
<p><span>Six weeks ago I suggested that we were hearing that many investors both local and overseas were getting very nervous and now we hear that one in three off – the – plan buyers are in trouble. This is a major problem for Sydney’s newly created “investor market” as if these properties were to flood the markets prices would capitulate.</span></p>
<p><span>It will be most interesting going into 2016 to watch what strategy developers, and more particularly the banks funding these developments, decide to adopt. Will this see the Australian Prudential Regulation Authority (APRA) forced into relaxing the newly introduced LVR’s? The off – the – plan feeding frenzy saw entire developments sold in a minimum of hours. Well I predict it will take months and months to see these properties find new owners. Will the developers offload apartments to parties that are already owners at discounted prices? That would be a sensible option to avoiding adverse publicity.</span></p>
<p><span>How many properties will the ATO force back onto the market in the form of Divestment Orders for parties that acquired real estate illegally? If this is as big as some believe (myself included) the Sydney property markets could not sustain these two forces combined – Divestment Orders and Off – The – Plan purchases.</span></p>
<p><span>We do need to be clear here in that the newly created “investors’ market” should not be confused with the homeowner markets – although some areas that contain these newly created high density developments will naturally affect the homeowner markets.</span></p>
<p><span>The absolute no-brainer here is when the Rudd government moved the ratio for overseas buyers buying off – the – plan from 50 % to 100 % in December 2008. This needs to be reduced back to 50 % as a matter of urgency.</span></p>
<p><span>Strange isn’t it how some want to bellow about clearance rates and others want to look at our property market machinations in greater detail. I know what I find the more interesting to discuss.</span></p>
<p><span>Historically when property markets start correcting then fewer properties go to public auction. Makes one ponder what some commentators would then be left to bellow about?</span></p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 114</p>
<p>• Number of houses on the market last week – 74</p>
<p>• Number of houses on the market this week – 65</p>
<p>• Number of apartments on the market this time last year – 76</p>
<p>• Number of apartments on the market last week – 71</p>
<p>• Number of apartments on the market this week – 60</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 14</p>
<p>• Number of houses on the market last week – 13</p>
<p>• Number of houses on the market this week – 15</p>
<p>• Number of apartments on the market this time last year – 31</p>
<p>• Number of apartments on the market last week – 16</p>
<p>• Number of apartments on the market this week – 18</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 10</p>
<p>• Number of houses on the market last week – 8</p>
<p>•Number of houses on the market this week – 8</p>
<p>• Number of apartments on the market this time last year– 42</p>
<p>• Number of apartments on the market last week – 36</p>
<p>*Number of apartments on the market this week – 33</p>
<p> </p>
<p><span> </span><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>
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robertsimeon-hRNTwJyXkQ

Why off the plan can be a deadly market: Robert Simeon

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<p><span>There were a total of 249,133 residential properties available for sale across Australia as at the week ending 29 November 2015, with 110,884 capital city properties available for sale, indicating that total stock levels are -1.7% lower than last year across the combined capital cities and -2.8% lower nationally. </span></p>
<p><span>Over the most recent four week period, the majority of listings newly added to the market were within the capital cities, with 30,539 new advertisements, compared to 18,104 in regional towns, which means 63% of new listings were in capital cities, while across the total stock pool, capital city listings account for just 45% of available properties</span></p>
<p><a href="/images/2015/12/7/201511-Listings-table.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/7/201511-Listings-table.jpg" alt="" width="696" height="155"></span></p>
<p> </p>
<ul>
<li>
<strong>Melbourne</strong> – 9,477, which is 2.5 per cent higher compared to the same period last year (9,246)</li>
<li>
<strong>Adelaide</strong> – 2,537, which is 1.5 per cent higher compared to the same period last year (2,500)</li>
<li>
<strong>Canberra</strong> – 756, which is 16 per cent higher compared to the same period last year (652)</li>
</ul>
<p>While in terms of total stock, levels are higher, relative to last year, in <strong>Sydney</strong>, <strong>Perth </strong>and <strong>Darwin</strong>. While Perth and Darwin’s total stock levels have continuously been recorded at a higher volume compared to the relative period one week ago for the entirety of 2015, this has only been the case since mid-September in Sydney.</p>
<p>At one point this month, the total available stock in Sydney was the greatest it has been since late 2011, and based on the four weeks ending 29 November, there were a total of 24,579 residential Sydney properties available for sale, the highest volume of listings since late 2013, giving buyers plenty of choice across the Sydney market.</p>
<p>To put this further into perspective, three months ago, at the end of August, there were just over 19,000 Sydney properties listed for sale. Stock levels have been increasing due to two things, firstly the increase in new listings being added to the market each week, which has been trending upwards since May this year, likely attributed to the increase in home values across the city and associated vendor confidence, while since March sales volumes across the city have generally been slowing.</p>
<p><a href="/images/2015/12/7/201511-Capital-City.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/7/201511-Capital-City.jpg" alt="" width="778" height="294"></p>
<p><span>Nationally, total listings are -2.8 per cent lower than they were one year ago. Across South Australia, the number of total listings is virtually the same as one year ago, while in the Australian Capital Territory, total listings are just -1.9 per cent lower. Across all the other states and territories, the difference between total stock this year relative to last year is more prominent, with Northern Territory (+9.7 per cent) and Tasmania (-7.0 per cent) showing vast differences.</span></p>
<p><a href="/images/2015/12/7/201511-National.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/7/201511-National.jpg" alt="" width="650" height="246"></span></p>
<p><span> </span></p>
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High volume of Sydney stock available for sale: CoreLogic RP Data's Shana Miller

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<p>The latest event in the evolution of the Brisbane market is the strong emergence of the Moreton Bay Region in the far north of the city.</p>
<p>It has joined Logan City in the far south as the precinct with the most momentum in the Greater Brisbane area. Meanwhile, Ipswich City in the south-west is putting its hand up as well.</p>
<p>Most national commentators misunderstand what’s happening with the Brisbane market. They look at that single figure which apparently describes the whole Brisbane metropolitan area and conclude not much is happening. Australian Property Monitors says Brisbane prices rose 5% last year while CoreLogic RP Data says 4%.</p>
<p>But beneath that one generalised (and highly misleading) figure, there has been lots of activity in precincts which have recorded double-digit annual growth in median house prices.</p>
<p>Markets in the Greater Brisbane area have been on the move for about two years. The inner-city suburbs were busy a couple of years ago and then the middle-ring suburbs on the northside surged. Many of them had annual growth in the 13% to 15% range. The middle-ring suburbs on the southside joined the party 12-18 months ago.</p>
<p>Now it’s the outer-ring areas that are leading. There are still rising suburbs in those northside and southside middle-market precincts, but it’s the cheaper areas on the outskirts that have the greatest activity and momentum.</p>
<p>In this regard, Brisbane is displaying the same pattern we have seen over the past three years in Sydney and Melbourne – the upturn started in the near-city areas and gradually gravitated outwards from the centre. The Ripple Effect is alive and well in residential real estate.</p>
<p>In Brisbane, Logan City (which is the urban bridge between Brisbane and the Gold Coast) has been  the market leader in terms of sales volumes for the past 12 months or so. But now it’s counterpart in the north, the Moreton Bay Region local government area (which is the urban bridge between Brisbane and the Sunshine Coast) has mounted a challenge.</p>
<p>Like Logan City, Moreton Bay Region is all about affordability, transport infrastructure and jobs nodes. Many of the suburbs of Moreton Bay Region – including Caboolture (the capital suburb), Morayfield and Deception Bay – have median prices in the $300,000s, while Burpengary and Narangba are in the low $400,000s.</p>
<p>These are high-volume housing markets: Caboolture, Deception Bay, Morayfield and Narangba have each recorded over 340 house sales in the past 12 months. Some have seen median prices rise 6-7% in the past year – but, in terms of price growth, they’re just getting started.</p>
<p>Median rental yields are an attraction for investors, ranging from 5.2% to 5.6% in most of the suburbs of the Moreton Bay Region.<span style="line-height: 1.3em;"> </span></p>
<p>The LGA includes the Redcliffe Peninsula, which has heightened appeal because the long-awaited Moreton Bay Rail Link will be completed this year.</p>
<p>The overall region has improved amenity through the evolution of the North Lakes master-planned community, which includes major retail (and will soon include an Ikea superstore).</p>
<p>The region also has good proximity to Brisbane Airport, the Port of Brisbane and the Australia Trade Coast industrial precinct, which means plenty of jobs are handy to the suburbs of Moreton Bay Region.</p>
<p class="Body"><em> </em></p>
<p class="Body"><em>Terry 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>
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Brisbane's Moreton Bay gaining strength: Terry Ryder

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<p><span>Across the country there were 47,483 unique new property listing over the 28 days ended 7 February 2016. The number of new property listings is 11% higher than at the same time last year.  </span></p>
<p><span>If we look back over recent years it is the highest number of new property listings at this time of year since 2010. If we look at the combined capital cities we have also seen a large ramp-up in new listings with 27,430 new listings which is 5.4% higher than at the same time last year.  </span></p>
<p><span>Again it is the highest number of new property listings over the corresponding period since 2010. The first chart shows that over the Christmas / New Year period there is typically a sharp fall in new listings.  If history is any guide new listings are likely to continue to rise until the middle of March.</span></p>
<p><a href="/images/2016/02/12/Chart-1-1-580x139.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/02/12/Chart-1-1-580x139.jpg" alt=""></span></p>
<p> </p>
<p><a href="/images/2016/02/12/Chart-2-1-580x144.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/12/Chart-2-1-580x144.jpg" alt=""></p>
<p> </p>
<p><span>Total residential property listings experience a seasonal fall each Christmas / New Year period however, the slowdown is nowhere near the magnitude of the slowing in new listings.  The most recent data in the chart also indicates that total listings are actually starting to decline.  Across the country there are 239,398 total unique property listings which is -1.6% lower over the week but 0.2% higher relative to the same period in 2015.  </span></p>
<p><span>For the combined capital cities there are 99,137 total unique property listings which is -1.0% lower over the week but 2.6% higher year-on-year.  Much like new listings, total listings typically continue to rise up until the middle of March each year.  Given this it will be interesting to see if the fall in total listings over the most recent week will be short lived or whether there are some different factors at play.</span></p>
<p><a href="/images/2016/02/12/Chart-3-1-580x326.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/02/12/Chart-3-1-580x326.jpg" alt=""></span></p>
<p>If we look at the number of listings across the individual capital cities there are some rather interesting differences across the cities. While new listing overall are higher than a year ago they are lower in Sydney and Darwin. </p>
<p>In fact new listings in both Sydney and Darwin are at their lowest level for this time of year since 2012. Elsewhere new listings in Melbourne and Brisbane are at their highest level on record (since 2007) for this time of year. In Adelaide and Perth new listings are at their highest levels for this time of year since 2010 and in Hobart and Canberra they are at their highest levels at this time of year since 2014. </p>
<p>Whether the surge in new listings in most capital cities is in response to a belief that housing demand is improving or trying to beat a potential slowdown remains to be seen.  The rise in Perth new listings in particular is counterintuitive considering it has been the weakest capital city housing market over the past twelve months and you would expect given those conditions fewer people would be looking to sell.</p>
<p>Turning to total listings, although they are 2.6% higher year-on-year across the combined capital cities, Sydney, Perth and Darwin are the only cities in which total listings are higher than a year ago. This seems more in-line with market conditions with concerns the Sydney market is slowing and values falling in Perth and Darwin it appears that total listings reflect the slowdown in sales activity in these markets. </p>
<p>If we look at the other capital cities relative to the same time of year previously, Melbourne listings are at their lowest level since 2011, Brisbane its lowest since 2008, Adelaide and Hobart listings are at their lowest levels since 2010 and Canberra listings are at their lowest level since 2014.  The relatively low level of stock across these cities has the potential to spark competition for the available stock and lead to increasing values. </p>
<p>Of course this would only occur if buyer demand is also rising and it is a little too early in the year to tell if that is occurring.</p>
<p><a href="/images/2016/02/12/Chart-4-1-580x207.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/12/Chart-4-1-580x207.jpg" alt=""></p>
<p>The CoreLogic RP Data Listings Index tracks pre-listing activity by real estate agents across our proprietary platforms. The index points to properties about to be listed for sale and correlates with new listings data.</p>
<p>At a national level, the listings index is at its highest level since early October of last year however the seasonally adjusted data still shows the seasonal slowdown. In terms of a comparison to the current reading compared to the comparable week in past years, the Index is at its highest level for this time of year on record.</p>
<p>Looking at the Listings Index across individual capital cities shows some varied trends when we compare the current value to the value over the same week in previous years.  The Index is lower relative to a year ago in Sydney (-8.9%) and Adelaide (-3.1%). In Melbourne, Brisbane, Hobart and Darwin the Index is at a record high for this time of year.  In both Perth and Canberra the Index is at its highest level for this time of year since 2011. Based on this data we can expect over the coming weeks new listings to be higher than they were across most capital cities.</p>
<p>The listings data and Listings Index will be interesting to track over the coming weeks. The capital city housing markets were showing softer value growth conditions over the second half of 2015 however, early indicators for 2016 have showed a bit of a rebound in the CoreLogic Home Value Index and improved auction clearance rates.  It is important to note that the indicators early in the year are based on a thinner number of sales so it will be important to track the trends as they are updated week to week.</p>
<p>What we do know is that the amount of properties listed for sale both in terms of new listings and total listings is high and it will be interesting to see how well these properties are absorbed by the market over the coming weeks and months.  Particularly as auction volumes and buyer activity typically starts to pick-up between now and Easter.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.</em></p>
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New residential property listings are ramping up quickly in 2016: Cameron Kusher

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<p><span style="line-height: 1.3em;">The REIV is embarking on a comprehensive consultation process with members in a bid to address underquoting.</span></p>
<p>The Institute will gain valuable input from members on a suitable outcome which will drive industry-wide change and best serve the interests of consumers.</p>
<p>Industry input would be received via a member-wide, online survey and through forums in key regional centres in the next fortnight.<span style="line-height: 1.3em;"> </span></p>
<p>We are committed to ensuring this issue, which is clearly impacting on members of the public, is addressed in a timely and effective manner.</p>
<p>Poor price quoting is a symptom of a broader, more important issue – the educational qualifications required to practice as an agent in Victoria.</p>
<p><span style="line-height: 1.3em;">We currently have a situation in this state where a Certificate III is all that is required to sell or manage real estate.</span></p>
<p><span style="line-height: 1.3em;">This is the same level as that required to work in hospitality – as a waiter or barista.</span></p>
<p>There are also some registered training organisations (RTO’s) which are offering a full licensed course (Certificate IV) in just five days.</p>
<p>These fast-tracked courses are clearly impacting on the industry, and creating poorly trained, inadequately qualified real estate agents.</p>
<p><span style="line-height: 1.3em;">The agents receiving this training are a significant threat to consumers.</span></p>
<p><span style="line-height: 1.3em;">The Institute would continue to press for the introduction of higher educational qualifications.</span></p>
<p><span style="line-height: 1.3em;"><em>‎Enzo Raimondo is chief executive officer of <a href="https://www.reiv.com.au/" target="_blank">The Real Estate Institute of Victoria</a>.</em></span></p>
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enzoraimond-7fvRFHPR52

Price quoting issue needs to be addressed: Enzo Raimondo

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<div>Net permanent and long term migration into Australia seems to be steadying, summimg +266,400 in the year to August, according to the latest ABS Overseas Arrivals and Departures figures. </div>
<p><a href="/images/2016/10/11/C2.jpg" target="_blank">Click to enlarge </a></p>
<div class="separator"><img src="/images/2016/10/11/C2.jpg" alt=""></div>
<div> </div>
<div>The number of permanent settlers per annum appears to be very gradually rising again, with 57.1 per cent of settlers hailing from Asia. </div>
<p><a href="/images/2016/10/11/C5.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/11/C5.jpg" alt=""></p>
<div> </div>
<div>It feels as though annual population growth in 2016 will be tracking at around +1.3 per cent, or somewhere between +300,000 and +350,000. </div>
<div> </div>
<div>However, the composition of growth has changed very significantly since the peak of the mining investment boom in 2012, with Sydney and Melbourne accounting for a record and ever-greater share of the headcount growth. In aggregate, regional population growth has slowed. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Chinese arrivals</span></strong></div>
<div> </div>
<div>More dramatically, total annual short term arrivals increased by a very strong +10.6 per cent over the year to August, to sit at a smidgen under 8 million.</div>
<div> </div>
<div>Outbound trips are still increasing too, but at a far less sprightly pace (in fact the pace of outbound growth is less than half of that of short term arrivals, meaning that a positive rebalancing continues). </div>
<p><a href="/images/2016/10/11/C3-1.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/10/11/C3-1.jpg" alt=""></div>
<p>The annual number of Chinese arrivals continues to accelerate at an astonishing pace, increasing by +23.1 per cent over the past year to a new high of 1.18 million. </p>
<div>There are now more annual visitors from China and Hong Kong to Australia than there are from our more proximate neighbour New Zealand. </div>
<div> </div>
<div class="separator"><a href="/images/2016/10/11/C4.jpg" target="_blank">Click to enlarge</a></div>
<p><img src="/images/2016/10/11/C4.jpg" alt=""> </p>
<div>While many are short term arrivals <em>bona fide</em> tourists, a total of precisely 500,000 short term arrivals into Australia over the year to August were primarily for the purposes of education.</div>
<p><a href="/images/2016/10/11/C1.jpg" target="_blank">Click to enlarge</a><br><img src="/images/2016/10/11/C1.jpg" alt=""></p>
<div> </div>
<div>Higher education is hugely attractive for international students from Asia, since it comes with the lure of potential permanent residency, obviously a big drawcard. </div>
<div> </div>
<div>Note that there are now more than two years of water under the bridge since the higher education boom really teed off in earnest, meaning that over the next year or two there may is likely to be a very strong uplift in students being granted permanent residency (as indeed is forecast by the DIBP) or sundry visa types.</div>
<p><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<p>While permanent and long term migration to Australia seems to have levelled out, arguably the more significant trends are taking place beneath the surface. </p>
<div>There is plenty of noise in month-to-month figures, but simply following the trend in the number of monthly visitors from China shows a doubling from less than 50,000 per month in early 2012 to well over 100,000 per month in Q3 2016. </div>
<div> </div>
<div>In terms of the property sector, while it's true that that the incoming wave of Chinese capital most impacts new and off-the-plan properties, there are now so many permanent residents and citizens of Chinese heritage that the impacts have shifted into established property too. </div>
<div> </div>
<div>
<em>News</em> draws a tangible link between education arrivals and Chinese property buying activity, notably in inner Sydney suburbs such as Haymarket, Ultimo, Kensington, Surry Hills, Waterloo, and other parts of South Sydney, for example. </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>
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Chinese visitors more than double in 4 years: Pete Wargent

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<div id="post-body-9168898991581718703" class="post-body entry-content">
<div>The ABS produced its muchly awaited revised first home buyer numbers yesterday. </div>
<div> </div>
<div>As flagged previously, the numbers are a bit lower than previously reported, although the month to month movements remained broadly consistent with what we have already seen. </div>
<div> </div>
<div>The statistics more or less confirm what we already knew: that there are fewer first homebuyer loans being written than there were in the lead up to the financial crisis (though actually not that many fewer Australia-wide). </div>
<div> </div>
<div><a href="/images/2016/10/12/B1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/10/12/B1.jpg" alt=""></div>
<br><div>Unfortunately the figures don't shed any light on how many first-time buyers have elected to buy an investment property instead of a home (which the NAB survey implies more than accounts for the downward shift in first homebuyer numbers). </div>
<div> </div>
<div>And nor does these series cover first homes bought without finance i.e. for cash, thanks to the so-termed 'bank of Mum and Dad'.</div>
<div> </div>
<div>Unlike Britain, Australia doesn't have agonizingly high rates of inheritance tax, and thus in my opinion inequality is likely to increase in favour of those lucky folks with wealthy parents. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Sydney effect</span></strong></div>
<div> </div>
<div>Drilling down to the state level, not at all surprisingly the impact of higher prices on first homebuyers has been felt most keenly in Sydney. </div>
<div> </div>
<div>Not that we actually needed a graph to confirm this!<br><br>Even the majority of middle-aged peeps have given up trying to buy homes in the more desirable suburbs, while investors have practically been running riot since mid-2012. </div>
<div> </div>
<div><a href="/images/2016/10/12/B2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/12/B2.jpg" alt=""></div>
<br>Elsewhere there doesn't seem to me to have been all that much of a change.<br><br><div><strong><span style="text-decoration: underline;">Loan sizes revised down</span></strong></div>
<div> </div>
<div>The data for the average first homebuyer loan size has been revised down for recent years, although the chart patterns still tend to mirror the averages for non-first homebuyers. </div>
<div> </div>
<div>One interesting observation here is that the average first homebuyer loan size over the past ten years has not increased at the same rate as median house prices. </div>
<div> </div>
<div><a href="/images/2016/10/12/B3.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/12/B3.jpg" alt=""></div>
<div> </div>
<div>You could read any number of things into this statistic (and no doubt people will!). </div>
<div> </div>
<div>For example, the figures could support the recently held argument that parents are tipping in far greater deposits than they were during 2008 and 2009, being the period when the first home owners grant (FHOG) was doubled. </div>
<div> </div>
<div>It has to be said that the divergence does seem to begin at the right time for that to be the case.</div>
<div> </div>
<div>Anyhoo, here are the figures at the state level, which I've just tidied up on a 3mMA basis to smooth out some of the jagged edges (the chart'd give you a headache otherwise). </div>
<div> </div>
<div><a href="/images/2016/10/12/B4.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/12/B4.jpg" alt=""></div>
<br><div>First homebuyers look to be steadily gearing up again in Queensland, and particularly in Tassie of late, as the Hobart market tightens and rents rise.  </div>
<div> </div>
<div>In 2014, first homebuyers in Western Australia were taking on larger loans on average than anywhere in the country. </div>
<div> </div>
<div>And in 2015, the Northern Territory became the very epicentre of first homebuyer extravagance. </div>
<div> </div>
<div>This is no longer the case - in either location. </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>
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</div>
<div class="post-footer"> </div>
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What's going down with first home buyers? Pete Wargent

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<p>Earlier this week, housing finance data for August 2016 was released by the Australian Bureau of Statistics (ABS). </p>
<p>Over the month there was $31.4 billion worth of housing finance commitments which was -1.0 percent lower over the month and -5.1 percent lower than it was at its peak in April 2015.</p>
<p><a href="/images/2016/10/13/chart-1-580x211.jpg" target="_blank">Click to enlarge</a></p>
<h1 class="title"> <img src="/images/2016/10/13/chart-1-580x211.jpg" alt="">
</h1>
<div class="entry">
<p>The $31.4 billion worth of commitments in August was split between $19.5 billion worth of commitments by owner occupiers and $11.9 billion in commitments to investors.</p>
<p>The value of lending to owner occupiers has fallen over two consecutive months while lending to investors has risen for the fourth consecutive month.  The value of lending to owner occupiers is now -8.6 percent lower than its peak in December 2015. </p>
<p>Investor lending remains well below its April 2015 peak, down -18.5 percent however, the recent rebound has seen the value of investor lending increase by 10.0 percent from its recent trough in April 2016.</p>
<p><a href="/images/2016/10/13/chart-2-580x210.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/13/chart-2-580x210.jpg" alt=""></p>
<p>The $19.5 billion worth of mortgage borrowing by owner occupiers was comprised of: $1.8 billion for construction of dwellings, $1.0 billion for purchase of new dwellings, $6.4 billion for refinancing of established dwellings and $10.2 billion for purchase of established dwellings. </p>
<p>The two largest components of owner occupier lending; refinancing and purchase of established dwellings, have both trended lower over recent months. </p>
<p>The value of refinance lending is -13.4 percent lower than its peak of $7.4 billion in December 2015 and purchase of established dwellings is -11.2 percent lower than its $11.5 billion peak in September 2015. </p>
<p>With an interest rate cut which wasn’t passed on in full by most lenders in August, there is a decent probability that refinance activity will increase over the coming months.</p>
<p><a href="/images/2016/10/13/chart-3-580x211.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/13/chart-3-580x211.jpg" alt=""></p>
<p>For investors there was $11.9 billion in mortgage lending in August 2016, which was split between $0.9 billion in lending for construction and $11.1 billion for established housing. </p>
<p>The value of lending for construction was at its lowest level since September 2015 and down -49.5 percent from its recent peak of $1.7 billion in March 2016. </p>
<p>The $11.1 billion in lending for established housing has increased over four consecutive months and is at its highest level since August 2015. </p>
<p>Housing credit data also highlights the recent up-tick in investor mortgage lending with monthly investor credit data increasing over each of the five months to August 2016.</p>
<p><a href="/images/2016/10/13/chart-4-580x214.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/13/chart-4-580x214.jpg" alt=""></p>
<p>Focusing solely on new construction which includes owner occupier construction of dwellings, owner occupier purchase of new dwellings and investor lending for construction, there was $3.7 billion in lending in August 2016. </p>
<p>The $3.7 billion was the lowest value of lending for new housing since September 2015 with lending for new housing having trended lower since March 2016.  Based on this data, only 14.9 percent of the total value of housing finance commitments in August 2016 were for new housing. </p>
<p>Of the $3.7 billion, 23.1 percent of lending was to investors.</p>
<p>The trends ae emerging whereby demand from the investment segment is increasing again while owner occupier demand is slowing. Although investment demand is lifting, it is not expected to lift to the substantial levels recorded earlier in the current housing cycle. </p>
<p>The fading demand from owner occupiers reflects that many have already upgraded or downgraded in the current cycle as much as the fact that particularly in Sydney and Melbourne it is probably getting a little harder to justify a move in the context of significant transactional costs. </p>
<p>When owners look at the cost of upgrading and the market exit cost (agent commission etc) and entry costs (stamp duty) many are probably now considering a renovation as a better option than moving.</p>
<p>Housing market listings have increased in spring and over recent months auction volumes and clearance rates have also increased.  It will be interesting to see whether this translates into a lift in housing finance commitments over the coming months as the data becomes avaialable.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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Investor housing demand rises as owner occupier fades: CoreLogic

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<p>GUEST OBSERVER</p>
<p>The almost 4.5 year growth phase in capital city home values have driven prices higher and this week we look at the now significant premium for housing in Sydney and to a lesser degree the premium in Melbourne.</p>
<p>CoreLogic calculates capital city median selling prices on a rolling three month basis. </p>
<p>As at September 2016, the combined capital city median house price was recorded at $600,000 and the median unit price was $510,000. </p>
<p>Importantly, because a median is based on sales and transactions that are mostly occurring in Sydney and Melbourne, this figure is heavily influenced by these two cities.</p>
<p><a href="/images/2016/10/25/Quarterly%20median%20house.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/25/Quarterly%20median%20house.jpg" alt=""></p>
<p>With home values rising at a much stronger rate in Sydney and Melbourne there is increasingly a significant premium for housing across these two cities. </p>
<p>The median house price in Sydney is recorded at $890,000 and the median unit price is $675,000.  In Melbourne, median price are recorded at $641,500 for houses and $485,100 for units.</p>
<p><a href="/images/2016/10/25/Sydney%20Vs%20Melbourne%20units.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/25/Sydney%20Vs%20Melbourne%20units.jpg" alt=""></p>
<p>The second chart highlights Sydney median unit prices and Melbourne median house prices over time.  Interestingly, Sydney units have regularly been more expensive than Melbourne houses and this remains the case currently. </p>
<p>In fact, Sydney median unit prices have consistently been higher than Melbourne median house prices since February 2012.</p>
<p>Looking at median selling prices of houses over the September quarter across the individual capital cities shows a substantial premium in Sydney. </p>
<p>Across the cities, median prices were recorded at: $890,000 in Sydney, $641,500 in Melbourne, $505,000 in Brisbane, $440,000 in Adelaide, $480,000 in Perth, $349,500 in Hobart, $500,000 in Darwin and $625,000 in Canberra. </p>
<p>The median house price in Sydney is 39% higher or $248,500 more expensive than median prices in the second most expensive city, Melbourne. </p>
<p>Although the premium for Sydney housing is rising and wide on an historic basis, the Sydney premium (in percentage) terms was higher than it is currently for all capital cities back in late 2003.</p>
<p><a href="/images/2016/10/25/Quarterly%20median%20selling%20house.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/25/Quarterly%20median%20selling%20house.jpg" alt=""></p>
<p>Turning to the median selling price of units, we’ve already noted that Sydney median unit prices are higher than median house prices in all other capital cities at $675,000. </p>
<p>Elsewhere median unit prices are recorded at: $485,100 in Melbourne, $390,000 in Brisbane, $351,500 in Adelaide, $410,000 in Perth, $283,000 in Hobart, $440,000 in Darwin and $421,000 in Canberra. </p>
<p>Sydney’s median unit price is $189,900 or 39% higher than Melbourne’s. </p>
<p>As with houses, although the Sydney unit premium is substantial, in percentage terms it has been greater in the past.  </p>
<p><a href="/images/2016/10/25/Quarterly%20median%20selling%20units.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/25/Quarterly%20median%20selling%20units.jpg" alt=""></p>
<p>Although the gap in housing costs has been greater in the past, in dollar value terms it is substantial.</p>
<p>And is likely to be a challenge in the future. Housing in Sydney and Melbourne has become more expensive than elsewhere in the country due to much stronger job and broad economic conditions.</p>
<p>Despite these factors we anticipate that the substantial cost of housing in Sydney will make it a less desirable location for people to migrate to. </p>
<p>The latest demographic data shows that a greater number of net overseas migrants are choosing to move to NSW rather than Vic. </p>
<p>Meanwhile, net interstate migration into Vic is at a record high while the outflow from NSW is historically low but has started to pick-up.</p>
<p>We expect that migration, particularly interstate migration, into Vic (which is a proxy for Melbourne) will continue to rise while over the coming years while it is anticipated to slow into NSW (as a proxy for Sydney).</p>
<p>Housing costs are likely to be one of the key drivers of this change. While both economies are strong and creating jobs we expect that more interstate migrants will be attracted to Melbourne due to its substantially more affordable housing costs, rather than Sydney.</p>
<p>Outside of Sydney and Melbourne, cheaper housing alone is proving not enough to attract people to these cities.</p>
<p>This highlights the importance of a strong economy with decent employment prospects and shows that housing affordability alone is no longer enough of a lure to attract migrants to a region.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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