Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

Joel Robinson

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

The City of Sydney has approved plans for <a href="https://www.apartments.com.au/developers/billbergia">Billbergia Group</a> and Metrics Credit Partners’ $3.5 billion Castlereagh Place project in the heart of the Sydney CBD

The towers will be among the tallest in <a href="https://www.apartments.com.au/developments/sydney-nsw-2000">Sydney</a>'s CBD, with more floors than any other residential tower in the city.&nbsp;

The 6,000 sqm site was acquired by the joint venture partners in 2024. It is the largest amalgamated land parcel in the Sydney CBD and comprises eight individual sites fronting Castlereagh, Pitt and Liverpool Streets.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/castlereagh-place-sydney-324-348-pitt-street-sydney-nsw-2000">Castlereagh Place</a> will transform an underutilised city block into a landmark mixed-use destination, anchored by two 82-storey towers comprising 607 luxury residences above an 8-level podium housing a 209-room luxury hotel. A 1,000 square metre civic park on ground level features a curated mix of food, beverage and retail.

The plans have been refined over the past year to rebalance the residential and hotel offering, and reconfigure the retail footprint to create a stronger, more dynamic dining experience.

A three-level flagship building on the prominent corner of Pitt and Liverpool Streets will be the gateway to the Castlereagh Place lifestyle precinct. Set to become a Sydney icon, the building is capable of housing multiple hospitality venues.

“Castlereagh Place is designed to be the City's next great urban oasis - an energetic mixed-use precinct that pulses with life, day and night,"&nbsp;said Joseph Kinsella, Group Director of Billbergia.

"It will bring the vibrancy of places like Barangaroo and Darling Quarter into a more accessible, central destination at the very heart of Sydney."

Kinsella said the project will build on&nbsp;Sydney’s growing laneway culture with the City’s largest network of new activated lanes - an expanded, next-generation take on precincts like Angel Place, Palings Lane and Ash Street in Wynyard.

[smartcode_project:default project_id=134477 project_image_fid=374401]

Castlereagh Place has been designed by architects <a href="https://www.apartments.com.au/architects/fjc-studio">fjcstudio</a> in collaboration with Trias Studio, Aileen Sage and Polly Harbison Design, joint winners of an international design competition in 2018.&nbsp;

Signature design elements from the original scheme remain unchanged, while the public domain has been significantly enhanced, delivering 60 per cent more open-to-sky space.

Pedestrian access will also be enhanced through new laneways linking Pitt, Liverpool and Castlereagh Streets, drawing people into a new civic park with outdoor seating, landscaping and integrated public art.

With activated laneways supported by strong hospitality offerings, Castlereagh Place is tipped to become a vibrant new dining destination in the heart of Sydney’s CBD.

It marks the largest undertaking to date for the Billbergia and Metrics Credit Partners partnership. Together they are developing other underutilised Sydney sites into mixed-use precincts, including the $2.2 billion Concord Central and the $1.3 billion Chatswood Grand Residences.

Metrics Managing Partner and Group CEO Andrew Lockhart said Castlereagh Place is a landmark project that will redefine Sydney’s skyline.

"As the tallest residential high-rise development, the revitalised site will offer panoramic views across the CBD and surrounds. We are excited to partner with Billbergia to reinvigorate an underutilised site and create a sophisticated and contemporary mixed-use offering situated in the heart of Sydney.”

Total apartments within the towers have increased to 607 dwellings, with a focus on larger floorplans. Aligned to growing market demand, Castlereagh Place now comprises 299 three-plus-bedroom apartments, 198 two-bedroom units and 110 one-bedroom configurations.

[smartcode_project:default project_id=134477 project_image_fid=374402]

Resident amenities will include an exclusive residents club containing a gym, rooftop pool, dining rooms, co-working spaces, library, golf simulator, games room, cinema room, and access to an exclusive concierge service. There will be around 500 basement car spaces below the towers.

The development will also include a state-of-the-art wellness centre, set to feature a bathhouse with magnesium pools, hot/cold plunge pools and premium amenities.

&nbsp;

According to fjcstudio, the towers will feature distinctive yet elegant architectural design reflecting Sydney’s geometry and urban character, with a network of through-site links and intimate public spaces activating the streetscape.

"Castlereagh Place is a city-making project of significant scale and ambition," said Richard Francis-Jones, Design Director at fjcstudio.

"It will create a rich urban complex of public open spaces, landscaped gardens, and vibrant laneways. Defining these new public spaces and the important streetscape of Castlereagh Street is a sequence of fine-grained, diverse retail and hotel architecture designed in collaboration with Aileen Sage, Polly Harbison Design and Trias.

“Rising above the tree-lined, human-scale streetscape are two slender residential towers that will transform the city skyline and look towards the Harbour, Hyde Park, and the Royal Botanic Garden.”

Demolition and early construction works have commenced onsite at Castlereagh Place.

[smartcode_project_cta:default project_id=134477]

Billbergia, Metrics, approved for $3.5 billion Sydney skyscrapers

International developer&nbsp;<a href="https://www.apartments.com.au/developers/spg-land">SPG Land</a> is preparing to re-launch its long-awaited $1.5 billion <a href="https://www.apartments.com.au/new-apartments/paradiso-place-surfers-paradise-103-ferny-avenue-surfers-paradise-qld-4217">Paradiso Place</a> development at Budds Beach, bringing a new price point to the Surfers Paradise apartment market.

The developer will release one-bedroom apartments from $825,000 and two-bedroom apartments from $1.24 million in the three-tower development.

According to Urbis, the starting price for the two-bedroom apartments is more than $400,000 below the weighted average sale price for comparable two-bedroom apartments in Surfers Paradise during 2025, which was pinned at $1.7 million.

&nbsp;

Urbis reported quarterly average sale prices for new two-bedroom, two-bathroom apartments ranged from around $1.2 million to $1.7 million throughout 2025, peaking in the December quarter.

[smartcode_project:default project_id=106566 project_image_fid=185853]

Paradiso Place is now moving into its formal sales campaign, with a limited early-release opportunity available ahead of the public launch.

The development will comprise 845 apartments across three towers rising 40, 41 and 44 storeys from a 1.15-hectare site spanning an entire city block. The towers will sit above a new retail precinct.

"Paradiso Place represents a rare opportunity in today's market, offering premium apartments at a price point that is significantly more competitive than anything else currently available," SPG Land Sales Director Brad McMahon said.

"When you look at comparable new developments across Surfers Paradise, Main Beach and the Southern Beaches precinct, buyers are typically paying hundreds of thousands more for a similar product.

"The scale of this project and the developer-builder construction model allows us to unlock efficiencies that smaller developments simply cannot achieve. We are passing those benefits directly to buyers, while still delivering a five-star residential experience with an unmatched lifestyle."

[smartcode_project:default project_id=106566 project_image_fid=374280]

Each of the three towers designed by Rothelowman will have its own podium, connected by an elevated skybridge network to create a beachside village for residents. The resident amenity has been designed to rival a five-star hotel, with private dining rooms, resident lounges and entertainment spaces.

McMahon said the pricing strategy was a deliberate response to the current market.

"What Paradiso Place offers is a unique balance, genuine value within a premium market. Buyers are not compromising on quality, design or amenity, they are gaining access to it at a more competitive price point at a time when prices across the Gold Coast continue to reach new highs."

[smartcode_project:default project_id=106566 project_image_fid=362498]

Located around 100 metres from the beach and within walking distance of the Surfers Paradise North light rail station, Paradiso Place occupies one of the Gold Coast's most tightly held beachfront precincts.

Construction is continuing to progress, with eight of the project's 112 foundation piles now complete. Excavation has also commenced on the first diaphragm wall panel, with the first concrete poured on 15 June, marking a key milestone in the project's early works program.

[smartcode_project_cta:default project_id=106566]

SPG Land launches $1.5 billion Paradiso Place at attractive price point

Luxury developer-builder <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> has achieved a new Victorian benchmark for an off-the-plan apartment, with the sale of two penthouses at its ultra-exclusive Maison Savoy development in Brighton.

The two penthouses achieved a combined sale rate of $49,926 per sqm. Both transactions eclipsed the previous identified Victorian off-the-plan price-per-square-metre benchmark, set by the 449 sqm apartment at Como Toorak, which sold at $46,659 per sqm.

[smartcode_project:default project_id=140818 project_image_fid=366473]

<a href="https://www.apartments.com.au/new-apartments/maison-savoy-brighton-150-esplanade-brighton-vic-3186">Maison Savoy</a>, Lowe Living's redevelopment of the former Brighton Savoy Hotel on absolute beachfront land at 150 The Esplanade, Brighton, has gained significant momentum since launching just eight weeks ago. Around 30 per cent of the project's 19 residences have already been secured, generating approximately $45 million in sales.

"Securing two of the three penthouse sales at this stage, within eight weeks of launching to market speaks to the confidence our clients place in Lowe Living," Lowe Living co-founder Emma Lowe said.

"They know we'll be with them through every stage of the journey, and that assurance is something we've worked hard to earn and never take for granted."

[smartcode_project:default project_id=140818 project_image_fid=366474]

Lowe said Maison Savoy was conceived as a genuine alternative to a prestige Brighton home, combining house-scale proportions with the convenience, security and lock-up-and-leave appeal of apartment living.

Lowe Living co-founder Tim Lowe said the early sales success demonstrated the resilience of Melbourne's prestige market and highlighted the growing demand for house-sized apartments among ultra-high-net-worth buyers.

"The Melbourne market has definitely been tested in recent years, with interest rates and global economic factors all creating a period of uncertainty across the real estate sector. The sales success at Maison Savoy however demonstrates that confidence remains exceptionally strong at the top end of the market.

"The prestige market is being driven by long-term lifestyle decisions rather than short-term market sentiment, which continues to create a level of certainty that befits an absolute beachfront property in a blue-chip location like Brighton.

"Brighton's fundamentals remain among the strongest in Melbourne, with limited new supply, enduring demand from an overwhelmingly local owner-occupier market, and a rare combination of beachfront amenity and proximity to the CBD."

[smartcode_project:default project_id=140818 project_image_fid=374378]

According to Cotality, Brighton remains one of Melbourne's most tightly held prestige suburbs, with an average ownership tenure of 15.3 years for houses and 12.3 years for units, while more than 73 per cent of homes are owner-occupied.

Tim Lowe said selling two of the project's three penthouses so early in the campaign was an uncommon result.

"This sales result is a reflection of quality and understanding the local market. It's incredibly rare to transact the penthouses so early in a sales campaign in any project so to have sold two of the three penthouses at Maison Savoy so soon after launch, all in-house without any external sales agency appointed, is reflective of our careful consideration of our buyers' needs and lifestyle.

"This is knowledge that is accumulated not just from data and demographic analysis, but via a deeply embedded understanding of how this type of buyer wants to live and feel in their home. We pride ourselves on getting to know our clients personally, and over the last 10 years we have been able to refine our product offering by talking one-on-one with our clients about their design and floorplan preferences.

"Being a fully integrated developer-builder with an in-house design and sales team allows us to lead every part of the process and ensure the highest quality of product and service at every touchpoint. It's a really important part of our DNA and the recent sales success at Maison Savoy indicates that our clients and purchasers are resonating with this point of difference.

"It reinforces that demand remains strong for thoughtfully designed residences that offer rarity, lifestyle and long-term value in tightly held locations, which ultimately validates Maison Savoy's positioning as creating a new benchmark for house-scale, wellness-led apartment living on Brighton's beachfront."

&nbsp;

[smartcode_project:default project_id=140818 project_image_fid=366480]

The residences at Maison Savoy start from 295 sqm, with most enjoying uninterrupted views across Port Phillip Bay. The project sits moments from the Brighton Bathing Boxes, Royal Brighton Yacht Club, Middle Brighton Baths and Church Street's retail and dining precinct.

A key feature of the development is its private residents-only bathhouse, curated by the founder of Aurora Spa &amp; Bathhouse and modelled on traditional European bathing rituals and the award-winning Sorrento bathhouse.

The wellness offering includes a hydrotherapy pool, salt room, sauna, steam room, cold plunge pool, foot activation zone and a Vichy rainfall bed, one of only a handful in Australia. Residents will also have access to a Technogym studio, lounge spaces and a dedicated concierge service offering everything from morning coffee delivery and restaurant bookings to dry cleaning and home coordination.

"Wellness-led design has become a defining factor for luxury buyers," Emma Lowe said.

"Purchasers increasingly value homes that enhance wellbeing through thoughtful design, private amenity, privacy and liveability."

The penthouse purchasers are now undertaking a bespoke customisation process curated personally by architect Pete Kennon and the Lowe Living team, one of the developer's signature service offerings.

Construction on the $160 million transformation of the former Brighton Savoy Hotel site commenced last month, with completion expected in early 2028. The project has secured funding from NAB alongside development partner Monark.

Just one penthouse remains available, along with a limited number of two and three-bedroom residences starting from $3.75 million.

Lowe Living currently has eight projects on the market across Melbourne and recently celebrated its 10th anniversary, having grown a $1 billion development pipeline alongside a $350 million construction pipeline.

&nbsp;

[smartcode_project_cta:default project_id=140818]

Lowe Living set new Melbourne off the plan apartment record

For more than three decades, Hyecorp has been delivering residential projects across Sydney's Lower North Shore, building a portfolio centred on design-led apartment living in some of the city's most established neighbourhoods.

Hyecorp recently launched the latest in its long line of apartment developments, Celine, a 29-storey tower on Archer Street in Chatswood. Like the majority of the developer's projects, Celine caters to a broad buyer demographic, offering a mix of one, two, three and four-bedroom apartments, all designed with owner-occupiers in mind.

Functionality and flexibility are often buzzwords in the new apartment market, but they sit at the core of Hyecorp's design philosophy.

Hyecorp Joint Managing Director Stephen Abolakian says the developer understands it isn't designing apartments for today's needs alone, but for how buyers will live several years into the future.

"When we launch our projects we need to be aware that these developments aren't finished for several years," Abolakian says.

"That home office in the here and now might be a nursery by the time the project completes for a prospective buyer, so we need to think about how the apartment spaces function for future uses so there's longevity in the ownership."

Celine's architects, Fuse, followed the same philosophy, saying the design extends well beyond aesthetics.

"Celine focuses on timeless architectural form and functionality, with a strong emphasis on light, proportion and materiality. The design responds to the urban context of Chatswood while delivering calm, highly liveable interiors that feel both contemporary and enduring. The floorplans have been carefully resolved to maximise usability and outperform typical market offerings in terms of efficiency and liveability."

Most apartments incorporate multipurpose rooms designed for flexibility. Each includes an integrated desk and a standard Murphy pull-down single bed, allowing the space to transition from a home office or study to guest accommodation as needs change. The layouts have also been designed to maximise natural light, storage and overall functionality.

One and two-bedroom apartments feature Miele appliances, while three and four-bedroom residences are appointed with integrated Gaggenau appliances and Taj Mahal stone benchtops.

Buyers who purchase early in the construction process can also take advantage of Hyecorp's "Live Your Way" interior design service, allowing them to personalise finishes and tailor elements of their home to suit their own lifestyle. It's a feature designed to appeal to owner-occupiers who want their apartment to feel uniquely theirs from the day they move in.

[smartcode_project:default project_id=149594 project_image_fid=362614]

While flexible floorplans have become a hallmark of Hyecorp's apartment design, the developer has also continued to place significant emphasis on resident amenity.

As buyers increasingly expect more from apartment living, shared spaces have evolved beyond a gym and barbecue area. They are now an extension of the home, providing spaces to relax, exercise, entertain and connect with neighbours.

At Celine, the resident amenity has been designed with a focus on wellness, centred on the level six podium. An infinity-edge swimming pool, spa, sauna and fully equipped gym are complemented by barbecue facilities and a residents' lounge, creating a range of spaces for relaxation, recreation and social connection above the streets of Chatswood.

Practical conveniences have also been integrated throughout the building, including EV charging provisions, smart parcel lockers, bicycle storage, a pet wash station and dedicated car wash bays, reflecting the project's focus on making everyday living as seamless as possible.

[smartcode_project:default project_id=149594 project_image_fid=362633]

"Celine has been designed to deliver a refined residential experience that reflects the evolution of Chatswood into a premium urban centre,"&nbsp;Abolakian says.

"With over 30 years of experience delivering projects across Sydney's Lower North Shore, Hyecorp brings a deep understanding of what local buyers value. Every detail has been considered to balance luxury, functionality and long-term liveability. This is not just about apartments, but about creating a lasting residential address for discerning buyers."

Hyecorp, vertically-integrated builder-developer, is anticipating construction commencement later this year.

[smartcode_project_cta:default project_id=149594]

Hyecorp brings 30 years of Lower North Shore experience to Celine in Chatswood

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

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

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

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

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

The inflation result the property market was waiting for

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GUEST OBSERVER
With all of the negative press about Australia’s National Broadband Network (NBN), consumers who have the option to switch to the NBN from a working broadband connection might be forgiven for being cautious.
After the NBN is made available in an area, residents have up to 18 months to switch from their current plans to one provided on the NBN. Once it is available in an area however, residents are usually deluged with offers from various internet service providers (ISPs) about switching, making it hard to ignore. 
<h2>Moving to NBN on HFC</h2>
In my area in Western Australia, I have had HFC from Telstra for many years and so changing to the NBN does not involve a change in the underlying technology. Although some researchers have classified HFC as being an inferior technology to Fibre to the Node, it is actually capable of delivering speeds of 100 Mbps down and 40 Mbps up. Within the next one to two years HFC will be capable of 1 Gbps speeds with the roll out of DOCSIS 3.1. 
HFC connections may still suffer if ISPs do not adequately provision adequate CVC capacity on the NBN but HFC does not have the same limitations as Fibre to the Node with regard to the distance from the node. There is also a possibility that the NBN will see more homes connected to a node than was the case when Telstra ran the network. This may also impact performance.
In my case, I was consistently getting speeds of 100 Mbps for downloads but only 2 Mbps for uploads. Prior to the NBN, these speeds have been a luxury for those Australian’s who lived in areas that were services by Telstra and Optus with HFC.
Making the switch to the NBN was relatively simple but uncovered some decisions that it is worth spending time considering. If doing a conversion, some of the options aren’t made obvious by the sales team and so need to be explicitly requested.
<h2>The question of speed</h2>
Once you have decided on an ISP, there is the question of what speed of connection is available at any given residence. HFC doesn’t suffer from a slowdown based on the distance from the “node” and so speeds up to 100 Mbps are available. ISPs like Telstra however, sell plans based on download limits and at the default of 25 Mpbs. Choosing up to 100 Mbps costs another AUD 30 a month. 
It seems that for most Australians who have connected to the NBN, the default of 25 Mbps has been the most popular choice, with 53% of fixed connections being at 25 Mbps and a further 29% at the lowest tier of 12 Mbps. For the average family just watching streaming video and using social media and browsing, this is likely to be fine. It has resulted however in the overall average speed of internet connections in Australia remaining low at 10.1 Mbps.
<h2>Choice of wireless router</h2>
Another choice that doesn’t seem important at the time is the choice of wireless router that ISPs offer. Here again, the default for Telstra is a basic Sagemcom F@ST 5535. And it is basic. It doesn’t support the fastest wireless protocols used by recent smartphones and laptops, 802.11ac. The fixed cable connections from the router are also not the fastest kind. Not having the fastest wireless can make a significant difference to the overall speed of the internet connection of devices and so it is always worth upgrading. 
Some of the routers also have the ability to fail over to using 4G if the NBN connection is not available for any reason. This may be important because on the NBN, the landline phone is switched over to using the main internet connection using Voice over IP (VoIP) and not the physical connection over the old copper network. However, if the power goes out, the phone will also be unavailable even by this route.
Other than for the phone connection, any wireless router can be connected to the NBN modem. The Telstra router can then be simply used for the phone connection and its WiFi switched off. 
<h2>Making the switch</h2>
For me, and I stress the personal nature of this, the switch was fast, efficient and painless. From contacting Telstra, the wireless router was shipped within 4 days and the appointment with the NBN technician booked for a week after the order was placed. Any interaction with the Telstra NBN connection staff involved little wait times and the only negatives were some confusing emails and an order status that said the order was delayed when it wasn’t.
The NBN technician arrived and didn’t need to switch the physical box attached to the wall outside the house. It was just a question of plugging in the modem, making sure it worked, and telling NBN and Telstra to switch it all on. The technician gave me advice of avoiding being disconnected when making the switch over from the old system to the new and then left, although I had been barraging him with questions about how the rollout was going. 
Getting connected was just a question of connecting the wireless router to the NBN modem, switching it on and connecting to the wireless network. As I mentioned above, I use Apple wireless routers and so altered the configuration after things were connected.
<h2>And the results?</h2>
The download speed dropped from the Telstra non-NBN connection. During the morning, I got about 94 Mbps download. The massive difference was in the upload speed which is now about 38 Mbps. This is a huge bonus over the existing connection which gave 2 Mbps. Upload speeds are never really thought about as a problem until you realise that synchronising with services like iCloud, Google Drive and DropBox all become significantly faster with the NBN connection. 
However, in the evening, the speed dropped to between 50 - 70 Mbps download and 23 - 35 Mbps upload. This was something that didn’t happen on the Telstra non-NBN connection which was consistent even in the evenings. 
It is still early days and as more people connect in my immediate area, bandwidth may be further affected. Telstra may also ramp up the capacity so that there are not these changes in speed based on the time of day. 
<h2>Update from NBN Co</h2>
In response to the article, a spokesperson from NBN Co clarified the following points:
[1] With regard to the number of HFC connections per node:
“At present Telstra runs around 1000 premises on an HFC node sharing 1Gbps of capacity. On the nbn we will have only 650 premises per Node and once we reach full DOCSIS 3.1 we will have 10Gbps of capacity available”
[2] Regarding the speed drop I had experienced in the evenings:
“Your speed drop in the evening is almost certainly CVC related”
<a href="https://theconversation.com/profiles/david-glance-148" target="_blank">David Glance</a> is Director of UWA Centre for Software Practice, University of Western Australia and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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jchancellor-FAypfDUnLy

Things to consider when making the switch to the NBN and what to expect

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GUEST OBSERVER
As expected, the minutes of the monetary policy meeting of the Reserve Bank Board showed that the Bank has been somewhat encouraged by recent developments in the economy.
In particular, conditions in the labour market have continued to improve with employment growth being described as “broadly based across the states”.
Solid employment growth is expected to continue given the current forward indicators in the labour market, although “spare capacity remains”.
On the other hand, the Board continues to be concerned about wages.
Wage growth is described as stable at a low rate, and the forecast is for “growth in wages to remain low for some time, before picking up gradually in response to a strengthening labour market”.
Evidence to support that view is that those industries with stronger employment growth are showing higher wage outcomes.
Another encouraging sign is around non-mining business investment, where forward looking indicators such as capacity utilisation and investment intentions from business surveys suggest a further pick-up.
The Bank is reasonably cautious on this, forecasting that non-mining investment will “strengthen gradually”.
It notes that non-residential investment is also improving although the data from the capex survey still pointed to modest growth at best, with sectors not covered by capex such as education and health looking stronger.
The dark side of the construction cycle centres around residential construction.
The Bank appears to be considerably more optimistic here than Westpac.
It accepts that construction has passed its peak but is still expecting a strong pipeline while continuing to note that “a considerable number of new apartments were scheduled to be completed in the period ahead”.
In the Governor’s statement following this board meeting, he pointed out that conditions in the housing market had eased, notably in Sydney.
The minutes flesh out this point, and in particular note that conditions “had remained strong in Melbourne”.
Overall, the minutes indicate a less comfortable assessment of developments in the housing market than was implied in the statement.
The issue of concern for the Bank is growth in housing debt continuing to outpace income growth.
That summarises why the Bank is most concerned about wages, employment and house price growth.
As with the Governor’s statement, there is no attempt to “jawbone” the Australian dollar.
It is accepted that weakness in the US dollar is a key contributor to AUD strength, but it also noted that the rise in the AUD “was weighing on domestic growth and contributing to subdued inflationary pressure”.
The warning from the minutes in August is repeated, “a further appreciation of the Australian dollar would be expected to result in a slower pick-up in growth and inflation”.
The discussion on international economic conditions once again centres on China.
It appears apparent that the Bank expects growth in the Chinese economy to slow over the course of the next few years, with the key challenge being balancing a commitment to short-term growth targets with the need to address high debt levels.
The implication is that Australia’s commodity prices can be expected to fall over the course of the next few years.
Commentary around the US Federal Reserve has changed somewhat.
In previous minutes, the Board seemed to accept that the Federal Reserve would continue its tightening program.
In these minutes, market pricing is noted to indicate that a rate hike was not expected until the second half of 2018.
Given the Bank’s clear comfort with a lower AUD, this observation might indicate recognition of AUD holding higher for longer than had been anticipated previously.
The minutes are not quite as upbeat as the Governor’s statement indicated.
The improved labour market conditions are recognised but clearly qualified by an expected slow response from wages and ongoing spare capacity.
Improving prospects for non-mining investment are noted, but the peak in the residential construction cycle has been reached, and prospects for non-residential investment are mixed.
The easing of conditions in the housing market, especially in Sydney, are noted, but the qualification that the Melbourne market remains strong is added.
The policy conundrum of rising household debt in an environment of low inflation is emphasised.
While, the commentary notes that financial markets are giving “some expectation of an increase in the cash rate by mid-2018”, there is no signal in these minutes to suggest that the Board sees any urgency around interest rates.
Westpac expects that concerns with weak income growth weighing on consumer spending and eventually the jobs market will dominate the policy debate in 2018.
The sustained application of macro-prudential policies is likely to continue to ease conditions in housing markets precluding any need for the Bank to raise rates next year.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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bevans-rYk9SxEa4r

Housing debt continuing to outpace income growth: Bill Evans

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The King &amp; Phillip Residences in Sydney secured $250 million worth of apartments sell on the first day.    
<div class="in-content-ad">
<div id="adspot-1x1-pos-5" class="ad" data-google-query-id="CP2z3reHrtYCFUITvQodpV0F9Q">
<div id="google_ads_iframe_/31694718/domain.com.au/news/latest_2__container__"><iframe title="3rd party ad content" name="google_ads_iframe_/31694718/domain.com.au/news/latest_2" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" width="1" height="1" data-integralas-id-e013c8b3-0a4f-3f15-1d10-c684307e4f97=""></iframe></div>
</div>
</div>
<div class="in-content-ad">Of the 104 apartments on offer in the Galileo Group development 80 per cent sold last Saturday, of which all but two apartments sold to locals, mostly Chinese Australian buyers.</div>
The sub-penthouse sold for $10.1 million
The building’s one-bedroom apartments with study sold for as high as $2 million plus, without any carspace, the two-bedroom apartments sold for between $3 million and $4 million, and the larger three-bedders sold for between $5 million and $6.5 million.
<img class="attachment-full size-full" src="https://static.domain.com.au/domainblog/uploads/2017/09/18155225/3_gxvpx4.jpg" alt="The King and Phillip apartments in Sydney." width="705" height="928">
The 25-storey building designed by Francis-Jones Morehen Thorp (fjmt) is set to be complete in 2020 on the site of the former University of Sydney law school campus. 
The Galileo Group bought the brutalist-style building from Sydney University in 2015 for $45 million.
 
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j.ballantyne1990-6AQqhLzZaK

$250 million worth of apartments sold in King & Phillip Residences, Sydney

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A vacant land at Woolloongabba, Brisbane, Queensland has been listed for mortgagee sale.
Located at <a href="https://www.realcommercial.com.au/property-land+development-qld-woolloongabba-502516766" target="_blank">21-23 Carl Street</a>, the 1012 sqm land is marketed as a strategic, boutique development site.
It is within walking distance to public transport as well as Stones Corner retail area.
There is also 20 metres of Carl Street frontage.
The area is a high density zone with a code assessable allowable height of 12 levels.
There are ample parkings available on the property.
Expressions of Interest close today through Cushman &amp; Wakefield agents Andrew Gard and Joe Kennedy.
A 397 sqm block of land at <a href="https://www.realestate.com.au/sold/property-residential+land-qld-woolloongabba-201795518" target="_blank">29 Bourne Street</a>, Woolloongabba was sold this year.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/19/29%20Bourne%20Street.jpg" alt="">
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Woolloongabba, Queensland vacant land listed for mortgagee sale

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GUEST OBSERVER
CoreLogic’s Accumulation Index looks at the total returns from the housing asset class factoring in the change in the value of the dwelling and the gross rental return from the property.
The CoreLogic Accumulation Index shows that nationally, the total returns from the housing asset class over the 12 months to August 2017 were 13.2%.  Because the return is calculated from value change as well as the gross rental yield, you tend to find that houses have a superior value growth performance while units offer superior rental returns.  
Over the past year, total returns for houses nationally have been recorded at 13.5% compared to a 12.0% return for units.  Over the 10 years to August 2017, the annual total returns for housing nationally have been recorded at 8.8%, split between 8.9% for houses and 8.5% for units.
<h3 class="text-align-center">Annual total returns from the housing asset class, National</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/20/2017-09-18-image1.png" alt="">
Total housing returns have generally been superior in capital cities to regional markets however, in the 2008 and 2010-11 downturns, returns slumped by a greater magnitude in the capital cities.  Over the past decade, combined capital city annual total returns have been recorded at 9.3% with returns of 9.5% for houses and 9.0% for units.  Over the 12 months to August 2017, total returns have been recorded at 14.0% for houses and 12.3% for units.  Like the national chart, the recent data for the combined capital cities shows that total returns have started to slow.
<h3 class="text-align-center">Annual total returns from the housing asset class, combined capital cities</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/20/2017-09-18-image2.png" alt="">
Regional markets are also beginning to see total returns slow however, the returns over recent years have generally not been as strong as those across the combined capital cities.  Over the past 12 months, total returns have been recorded at 11.7% for houses and 10.2% for units.  Over the past decade, annual total returns for housing outside of the capital cities have been recorded at 7.0%, 7.2% for houses and 5.6% for units.
<h3 class="text-align-center">Annual total returns from the housing asset class, combined regional markets</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/20/2017-09-18-image3.png" alt="">
Hobart has recorded the strongest annual growth of all capital cities over the past year and it also has some of the highest rental yields which has meant it has had the strongest total returns.  Total returns for houses over the past year have been above 10% in each of Sydney, Melbourne, Adelaide, Hobart and Canberra.  For units, double-digit total returns have been achieved over the past year in each of Sydney, Melbourne and Hobart.  Units in Darwin were the only capital city property type to achieve negative returns over the past year.
<h3 class="text-align-center">Annual total returns from the housing asset class, individual capital cities, to Aug-17</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/20/2017-09-18-image4.png" alt="">
With capital growth now appearing to have peaked and rental yields at record lows it is reasonable to expect a further moderating of total returns over the coming months.  
The other important thing to consider when looking at total returns is the calculation of the rental income.  Although rents are increasing in many areas, the assumption in a gross rental yield calculation is that the property is occupied for 52 weeks of the year.  In some parts of the country this is increasingly difficult to achieve and it can eat into the investment returns.
The total returns data, particularly for the past decade, shows why housing investment has been so popular and hit record highs.  
Returns have been fairly consistent and less volatile than equities however, the ongoing strength and the evidence of a recent slowdown should give investors pause for thought.  
With mortgage rates starting to increase for investors, record-high levels of new housing supply and value growth slowing, housing investors shouldn’t assume that the types of returns seen over recent years will continue to be replicated going forward.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
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ckusher-ujnxiKuFQs

Total returns from housing are starting to ease: Cameron Kusher

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GUEST OBSERVER
The Minutes of the September Board meeting suggest that the RBA is feeling increasingly comfortable with the domestic economic backdrop.
There is a slight hawkish tilt creeping into RBA commentary of late, although we would characterise the RBA as still maintaining a neutral policy bias.
The marked improvement in the labour market means that baring an economic shock, the next move in the cash rate is up. Market pricing has shifted further towards tightening over the past week. A rate rise is fully priced by August 2018.
<a href="https://www.propertyobserver.com.au/images/2017/09/20/Screen%20Shot%202017-09-20%20at%208.17.17%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/20/Screen%20Shot%202017-09-20%20at%208.17.17%20AM.png" alt="">
The Board continues to apply a positive tone to developments offshore. In particular, it was noted that, “the data received over the prior month confirmed that global economic conditions had strengthened since 2016.” While labour markets continue to tighten, the Board flagged that, “core inflation had eased a little.”
<a href="https://www.propertyobserver.com.au/images/2017/09/20/Screen%20Shot%202017-09-20%20at%208.18.40%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/20/Screen%20Shot%202017-09-20%20at%208.18.40%20AM.png" alt="">
As Governor Lowe flagged a few weeks ago, this month’s “special discussion” was on the Chinese economy. In that context, nothing should be read into the Board’s decision specifically to devote two paragraphs to the Chinese economy. The Board notes that although iron ore prices had risen, in part because of Chinese demand, it expects prices to fall over the period ahead because of a lift in the supply of iron ore. We agree.
The Board continues to sound upbeat on the Australian labour market, noting that the broad-based employment growth across the states signalled the end of the mining boom was nearing completion. And more importantly, “solid growth in employment was expected to continue, which would support household incomes and thus spending.”
Here we note that the Minutes predate the very strong August labour force report (published last week) that indicated employment rose by 54k over the month. It was the sixth robust set of monthly jobs numbers in a row and the detail was impressive (see here). As a result, the Board will be increasingly confident with its forecasts for GDP growth to lift to 23⁄4% in 2017/18.
On the latest quarterly capex survey, the Board notes that “investment expectations pointed to this (a pick-up in non-mining investment) occurring”.
On housing, the Board suggests that, “there had been clearer signs of an easing in conditions in the Sydney market but less so in Melbourne”. That looks to be a fair assessment to us. We expect some continued cooling in the national housing  market given there has been an easing in credit growth to investors, auction clearance rates have come down and consumer sentiment towards housing has  waned. 
Underemployment rate
On the AUD, the Board notes that the appreciation of the exchange rate in recent months was weighing on domestic growth and inflation. In our view, we are likely to see weak reads on tradables inflation over the next few quarters which will weigh on the overall CPI basket. 
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The Outlook 
We retain our long held view that policy tightening won’t arrive until late 2018. But we also acknowledge that the risk has shifted to a rate hike before then because of the remarkable improvement in the labour market. Employment growth has been phenomenal and there has been a gradual tightening in the labour market.
<a href="https://www.propertyobserver.com.au/images/2017/09/20/Screen%20Shot%202017-09-20%20at%208.19.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/20/Screen%20Shot%202017-09-20%20at%208.19.29%20AM.png" alt="">
 
From a monetary policy perspective, it is about what this improvement means for wages and inflation. And how the RBA responds. In our view, while wages growth should step up in Q3, we don’t expect the underlying pulse to materially lift given spare capacity in the labour market remains elevated. In addition, there are still risks around the consumer given a declining savings rate has been required to generate modest consumption growth. Finally, the AUD looks stuck at around 80 US cents – any further appreciation because of movements in interest rate differentials is undesirable. 
With the housing market cooling, as evidenced by a range of indicators, and residential construction to become a drag on growth from here, the risks around a hike in line with market pricing appear asymmetric. There is a lot to like about the recent data flow, but there is a still a fragility to economic momentum that will not dissipate until non-mining business investment takes off. As such, policy on hold until late 2018 continues to seem the most probable scenario. 
The near term focus from a monetary policy perspective turns to Friday when the RBA Governor Lowe delivers a speech titled, “The Next Chapter”. The heading implies a forward looking perspective from Dr Lowe which means it’s likely to be particularly relevant to market participants. 
 Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905">here</a>.
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Cooling in the national housing  market: Gareth Aird

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Sponars Chalet, a historic traditional ski lodge located in the Kosciuszko National Park, is currently under offer.
The <a href="https://www.crebrokers.com/properties/hotels-bars/sponars-chalet-is-at-the-gateway-to-the-northern-end-of-the-nsw-ski-fields-including-perisher-valley-smiggin-holes-and-charlotte-pass/#prettyPhoto" target="_blank">chalet</a> sits on the site of the original Kosciuszko Hotel whose Grand Slam Ski run was the first commercial ski slope in the Snowy Mountains area.
Sponars can accommodate up to 100 guests, with all rooms having en-suite facilities. It has a free car-park for guests, and also provides a courtesy bus to Smiggin Holes and Perisher Ski Resort during shoulder and peak seasons.
Other facilities include an indoor heated swimming pool, steam room, ski hire at the lodge, bar and restaurant with an open fire place and games room.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/19/Sponar2.jpg" alt="">
The listing agent is Stephen Pursell of CRE Brokers.
The leasehold is $2.4 million. 
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jonathanchancellor-7SQnKwU6yx

Offer made for iconic Sponars Chalet

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A Georgian style building built in 1842 is up for lease in Sydney's CBD through Tom Buxton of Colliers International.
The three story building, <a href="https://www.commercialrealestate.com.au/property/171-173-macquarie-street-sydney-nsw-2000-11300593" target="_blank">171-173 Macquarie Street</a> has just undergone a full refurbishment has just been completed with new services and bathrooms. 
Naming and signage rights are available (subject to council approval).
Horbury House is a combined pair of 3 storey terraces with a basement, originally part of a terrace of seven residences extending from the corner, and part of a continuous streetscape of terraces. 
They are the last residential terraces in Macquarie Street (apart from No. 145) and are located between a 1970s office development and a 1940s office building. 
Only the facade and some roof framing survive from the 1842 building constructed for Ousley Condell.
It was named after Horbury, an area in England.
From the 1890's its access to Sydney Hospital made the terrace an ideal site for surgeon's professional rooms. More recently, as the medical character of the street changed, it has been used as company offices.
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Historic Macquarie Street building for lease

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Current pre-lease rentals on offer to lease new warehouses in Melbourne and Brisbane offer a good opportunity for tenants to upgrade, according to forecaster BIS Oxford Economics.
Leasing incentives in both markets have pushed effective rents to around their lowest levels in 10 years, with little change in stated rents over the 10-year period. Since 2007, average prime net effective rents in Melbourne’s South-East and Brisbane’s TradeCoast have fallen by 15 to 18%. 
Compounding the situation, stated rentals for a new lease are substantially below the rent being paid by tenants coming to the end of a long term lease, said BIS Oxford Economics.
For a tenant who signed a lease over a prime property in Melbourne’s South-East in 2007, with annual escalations of 3%, would be paying 25% above the current market rent for existing space. 
In Brisbane’s TradeCoast, the situation is even worse, with the tenant ending their lease paying an estimated 35% above market rents. It makes sense that companies would find the option to upgrade to newer, more efficient facilities at a much lower rent very appealing. 
The findings were carried in the BIS Oxford Economics’ latest reports on the sector, Melbourne and Brisbane Industrial Property, Market Forecasts and Strategies, 2017 to 2027.
<img src="https://www.urban.com.au/images/2017/09/11/ChartBIS.png" alt="">
However, the forecaster says the pre-lease deals on offer will not last indefinitely.
Over the last five years, major developers in Brisbane and Melbourne were able to use firming yields and rising capital values, underpinned by the strength of the investment market, to fund leasing incentives, whilst keeping a lid on pre-lease rents. The competition in the pre-lease market kept market rents subdued. 
But developers’ calculations will change when yields stop firming and start to soften, as forecast over the next five years. Without firming yields, developers will no longer be able to fund such generous leasing incentives and will need higher rents to underwrite project feasibility. Rising pre-lease rents will then filter through to the existing market. 
According to report authors, Lee Walker and Christian Schilling, the key trigger for the change in developer behaviour will come from rising Australian 10-year bond rates, which have a positive correlation to industrial yields. 
Even so, the forecast rise in bond rates will take time to change developer behaviour and the pre-lease deals they offer. 
Whilst BIS Oxford Economics consider it will be business as usual for the next 12 to 18 months, the generous leasing deals will gradually start to evaporate. With leases typically involving a long term commitment, tenants looking to upgrade would be advised to take advantage of the generous leasing incentives and rents whilst they are still around. 
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Industrial tenants should capitalise on pre-lease offers in Melbourne, Brisbane: BIS Oxford Economics

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Melbourne’s eastern suburb of Camberwell is witnessing a flurry of commercial transactions.
A commercial building on Toorak Road leased to National Australia Bank has been snapped up before auction for $3.48 million, while a mixed-use investment property on Camberwell Road has changed hands for $960,000.
The <a href="https://www.realcommercial.com.au/property-retail-vic-camberwell-502478002" target="_blank">1397 Toorak Road</a> property is a double-fronted brick building of 551 sqm on a 446 sqm site.
The Commercial-1 zoned property sold with a four-year lease to NAB with two further two- year terms, with a current passing income of around $141,000 per annum plus all outgoings and GST, reflecting a circa 4% yield.
The selling agents were Chris Kombi and Chris James of Fitzroys.
The sale comes just weeks after a Bendigo Bank site at 4 Prospect Hill Road in Camberwell sold for $7.03 million under the hammer on a 4.2% yield.
Kombi said the Toorak Road property’s tenancy profile and strong position were key drivers of demand, as well as the increased level of residential development in the wider area that has underpinned significant improvement in retail activity along this section of Toorak Road.
“This strip centre is a boutique commercial hub which incorporates major trading banks, an IGA Supermarket, Australia Post, various eateries and local traders and is further supported with the excellent car parking facilities directly behind the subject property,” he said.
Meanwhile, the building at <a href="https://www.realcommercial.com.au/property-retail-vic-camberwell-502492894" target="_blank">627 Camberwell Road</a> was sold post-auction to a local owner-occupier by Brett Diston of Ray White Commercial.
It was passed in at auction, but the highest bidder bought it later, Diston said.
The gross yield for the 135 sqm building was 4.65 per cent.
It last changed hands in 2015 for $738,000, according to CoreLogic RP Data.
The property comprises a freehold ground floor office and a five-bedroom/two-bathroom residence on the upper level.”
The lower floor is leased to an accountancy firm and the property was returning net rental of $44,640 per annum.
“When fully let this property, which is on a land area of approximately 157 sqm, can return net rental of $51,920 per annum,” he said.
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