Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

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After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

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Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

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

<html><body>
Peter Campbell, the Clarendon Homes founder, and wife Catherine have paid $12 million for a penthouse in The Rocks.
It ranks as the sixth most expensive apartment sold in the last financial year. It has quintessential Sydney postcard views across Campbells Cove to the Opera House and up towards the Harbour Bridge.
The Hickson Road apartment has a stellar provenance having first been owned by the late McDonald's chief Charlie Bell.
Bell spent $8,525,000 in 2003 after its refurbishment of the 1912 Metcalfe Bond building by Nettleton Tribe Architects for Tjeerd la Grouw's Amstal Property Group.
Qantas chief Geoff Dixon was another past owner though he sold it at a loss in 2014 for $7.45 million.
Set in the 1912 Metcalfe Bond building, the two level apartment has three bedroom and spans 328 sqm.
The two most expensive established apartments to sell in last financial year were both secured off market by downsizers.
The former Sydney Lord Mayor Nelson Meers and his wife Carole paid $16 million for a Point Piper whole floor apartment in the Alex Popov designed harbour front Buckhurst Avenue block.
Last traded for $11.6 million when new in 2011, the unit came with four bedrooms, three bathrooms and a temperature-controlled wine cellar.
LJ Hooker agent Bill Malouf handled the sale.
The couple had downsized from Bayview where they sold their five bedroom Tuscan style villa for $4.55 million last year.
Businessman Stephen Johns, most known for being the longtime chairman at Brambles, bought the Darling Point apartment of Silicon Valley software billionaire David Doyle.
Set in the Burley Katon Halliday block, the four bedroom penthouse comprises 456 sqm of internal space, 103 sqm of terraces and a 12 sqm rooftop garden.
It has a private gym, study, maids suite, home theatre and large terrace which takes in views of the Harbour Bridge.
Doyle, a software pioneer and backer of Neil Perry's Rockpool Bar &amp; Grill, paid $7.1 million for the lavish New Beach Road spread in 2000, a record breaking apartment sale in Sydney's eastern suburbs at the time.
Like the Meers, Johns has also downsized.
He and wife Michele Bender are waiting for a buyer for their long-held Bellevue Hill trophy Belhaven which has price hopes of between $25 million and $27 million.
The third most expensive apartment came in August last year when Rocco Lagudi and wife Frances, paid $13.5 million for a Point Piper apartment.
Aussie John Symond sold his Point Piper penthouse for $13.3 million, with a caveat lodged by Angela Teplitsky, wife of property developer Michael Teplitsky.
Ferrari Australasia chief executive Herbert Appleroth sold his harbourfront apartment in Pyrmont for more than $13 million, making it the fifth most expensive sale this financial year.
The five bedroom, four bathroom apartment amalgamation had been inspected by Hollywood star Leonardo DiCaprio in 2011 as a possible rental while he was shooting Baz Luhrmann’s The Great Gatsby. 
The top six sales of established units totalled over $80 million.
The top off the plan sales were considerably pricier, with two apartments in the new Circular Quay development the Opera Residences fetching $26 million and $27 million.
The third most expensive was a $17 million apartment in another off the plan Circular Quay development, Loftus Lane.
This article first appeared in the Daily Telegraph.
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jchancellor-FAypfDUnLy

$12 million paid for The Rocks penthouse

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Preliminary auction numbers down for the fourth consecutive week, according to CoreLogic's latest report.
The property data firm says that however auction clearance rate increases.
The number of homes taken to auction across the capital cities has fallen for the 4th week in a row, with just 1,612 auctions held this week, down from 1,766 last week, although higher than this time last year when 1,391 properties went under the hammer.
The combined capital city preliminary clearance rate increased to 72.4 per cent this week, up from the final clearance rate of 68.4 per cent last week, although this will revise as more results are collected.
<a href="https://www.propertyobserver.com.au/images/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.13%20am.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.13%20am.jpg" alt="">
The final clearance rate has nudged slightly higher over the last two weeks after reaching a year to date low of 66.5 per cent; it will be interesting to see if this is still the case on Thursday when the final figures are released.
Adelaide and Brisbane were the only cities to see a slight increase in auction volumes this week, while Melbourne had the highest number of auctions scheduled (753).
In terms of preliminary clearance rates, Melbourne was the best performing city with 77.4 per cent of the 667 results recording a successful result, and although this result will revise lower as the final results are collected, it is likely to be stronger than what we have seen in Melbourne over the last month.
<a href="https://www.propertyobserver.com.au/images/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.23%20am.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.23%20am.jpg" alt="">
Across Melbourne, 77.4 per cent of the 667 reported auctions sold this week.
There were 753 auctions held across the city this week, falling from 818 last week when the final clearance rate was 72.9 per cent, but higher than one year ago when 667 homes went to auction and a clearance rate of 76.1 per cent was recorded.
The West region of Melbourne had the highest number of auctions this week (138), with a preliminary clearance rate of 68.8 per cent.
<a href="https://www.propertyobserver.com.au/images/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.32%20am.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.32%20am.jpg" alt="">
Meanwhile, the strongest clearance rate was recorded across the Outer East, with 90.9 per cent of the 55 reported auctions clearing, followed by the South East region with a clearance rate of 86.2 per cent.
In Sydney, 600 properties were taken to auction this week with a preliminary clearance rate of 72.9 per cent, increasing from last week, when the final clearance rate for the city was 68.6 per cent across 656 auctions.
One year ago, 470 Sydney homes were taken to auction and the clearance rate was 74.9 per cent.
<a href="https://www.propertyobserver.com.au/images/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.40%20am.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.40%20am.jpg" alt="">
Looking at the sub-regions of Sydney, the Baulkham Hills and Hawkesbury region recorded the strongest clearance rate of 94.1 per cent across 21 auctions, followed by the Eastern Suburbs (84.2 per cent), while the North Sydney and Hornsby region had the highest volume of auctions (84), and recorded a clearance rate of 76.9 per cent.
There were 116 Brisbane homes taken to auction this week, with 87 results reported so far.
The preliminary clearance rate for the city is 44.8 per cent, down from 55.7 per cent last week and lower than one year ago, when 47.0 per cent of the 120 properties taken to auction were successful.
<a href="https://www.propertyobserver.com.au/images/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.47%20am.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.47%20am.jpg" alt="">
Across the Gold Coast 14 results have been reported so far, with a success rate of 64.3 per cent.
This week, Adelaide saw a preliminary clearance rate of 75.0 per cent, with 36 reported results across a total of 65 scheduled auctions.
In comparison, over the previous week Adelaide’s clearance rate was 59.6 per cent and 54.7 per cent one year ago.
<a href="https://www.propertyobserver.com.au/images/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.58%20am.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/16/Screen%20Shot%202017-07-16%20at%2011.07.58%20am.jpg" alt="">
There were 33 Perth auctions this week and so far 18 results have been reported, with 44.4 per cent selling.
Last week 36.4 per cent of the 22 reported auctions were successful.
Canberra’s preliminary auction clearance rate of 72.7 per cent across 39 auctions is higher than both last week, when the final auction clearance rate was 62.7 per cent, and last year (63.3 per cent).
Tasmania saw 6 auctions take place this week and 5 results have been reported so far, with 3 sales.
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j.ballantyne1990-6AQqhLzZaK

Preliminary auction numbers down for fourth week in a row: CoreLogic

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Adelaide has the second lowest movement in property listings compared to 12 months ago, according to CoreLogic’s latest report.
The property data firm says that Adelaide’s total listings have risen by just 0.6% to 8,116
This is compared to Canberra’s 14.8% growth.
<a href="https://www.propertyobserver.com.au/images/2017/07/18/Screen%20Shot%202017-07-18%20at%2010.07.37%20am.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/18/Screen%20Shot%202017-07-18%20at%2010.07.37%20am.jpg" alt="">
Darwin has the lowest with a 0.2% rise in total listings while Hobart has the biggest decline of total listings with 29.2%.
A three bedroom house at <a href="https://www.realestate.com.au/property-house-sa-coromandel+valley-125956098">11 Walsh Court</a>, Coromandel Valley (above) has been listed for between $470,000 to $490,000.
Built in 1982 the property was last sold in 2008 for $373,000.
<div>
Another three bedroom house at <a href="https://www.realestate.com.au/property-house-sa-trott+park-125954210">1 Barton Drive</a>, Trott Park (below) has been listed for between $339,000 to $355,000.
Built in 1986 the property was last sold in 2014 for $325,000.
<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/2017/07/18/1%20Barton%20Drive.jpg" alt="">
</div>
</body></html>

Adelaide sees very slight listing uptick: CoreLogic

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The median unit price in Brisbane dropped 5.5 percent over the June quarter to $375,000.
Annually, unit prices are down 4.9 percent, the latest Domain State of the Market Report calculates.
Domain Group chief economist Andrew Wilson not at 3.1 percent annual house price growth is still positive, but this is the slowest growth rate recorded since 2013. 
The drop of 5.5 per cent is the steepest fall in unit prices since the December 2000 quarter - and is predicted to continue as supply continues to outweigh demand.
In the Greater Brisbane area, which includes the local government areas of Moreton Bay, Ipswich, Redland City and Logan, house prices fell 0.1 per cent
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="106">
Region
</td>
<td valign="top" width="106">
Median price
</td>
<td valign="top" width="106">
Quarter change
</td>
<td valign="top" width="106">
Year change
</td>
</tr>
<tr>
<td valign="top" width="106">
Brisbane (C)
</td>
<td valign="top" width="106">
$657,500
</td>
<td valign="top" width="106">
4.4%
</td>
<td valign="top" width="106">
1.2%
</td>
</tr>
<tr>
<td valign="top" width="106">
Ipswich (C)
</td>
<td valign="top" width="106">
$371,000
</td>
<td valign="top" width="106">
6.3%
</td>
<td valign="top" width="106">
-2.1%
</td>
</tr>
<tr>
<td valign="top" width="106">
Logan (C)
</td>
<td valign="top" width="106">
$400,000
</td>
<td valign="top" width="106">
0%
</td>
<td valign="top" width="106">
0%
</td>
</tr>
<tr>
<td valign="top" width="106">
Moreton Bay (C)
</td>
<td valign="top" width="106">
$445,000
</td>
<td valign="top" width="106">
1.4%
</td>
<td valign="top" width="106">
-1.1%
</td>
</tr>
<tr>
<td valign="top" width="106">
Redland (C)
</td>
<td valign="top" width="106">
$520,000
</td>
<td valign="top" width="106">
0%
</td>
<td valign="top" width="106">
-0.4%
</td>
</tr>
</tbody></table>
House prices in Ipswich, Moreton Bay and Redland City have all recorded drops, while Logan’s house prices are flat.
Brisbane as a city has performed slightly better, recording a 1.2 per cent rise in house prices. The median is now $657,500.
CoreLogic is not tracking the same decline.
Brisbane has the third highest 12 month home value growth among the capitals, according to CoreLogic’s latest report.
The property data firm says that in the past 12 months Brisbane’s home value has risen by 4%
The property data firm says that a rise in house values compensates a fall in unit values takes Brisbane’s annual growth rate into 2% in the June quarter.
Melbourne and Sydney take the top two spots with a home value growth of 16% and 13% respectively.
<a href="https://www.propertyobserver.com.au/images/2017/07/17/Screen%20Shot%202017-07-17%20at%2012.12.17%20pm.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/17/Screen%20Shot%202017-07-17%20at%2012.12.17%20pm.jpg" alt="">
 
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Brisbane unit prices in serious price decline: Domain

<html><body>
Sydney still has the latest selling units among the capital city markets.
But Melbourne and Canberra are neck and neck in the quickest selling houses, according to CoreLogic’s latest report.
The property data firm says that the average time that a unit in Sydney stays on the market is 30 days.
Melbourne and Canberra houses are selling in 29 days in the private treaty market.
<a href="https://www.propertyobserver.com.au/images/2017/07/12/Screen%20Shot%202017-07-12%20at%2010.34.26%20am.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/12/Screen%20Shot%202017-07-12%20at%2010.34.26%20am.jpg" alt="">
Darwin and Perth are the two capitals where properties take the longest time to sell.
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Sydney units the quickest selling capital city market: CoreLogic

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The amount of construction in <a href="/new-apartments/melbourne-vic">Melbourne's central city</a> is reaching fever pitch with a number of large scale towers either topping out or rising out of the ground, forever changing the face of the city. But that's not what today's article is about. Instead I'd like to focus on five city changing projects which direct the eye to the street rather than the sky.

<h2>1. Melbourne Metro Rail Project</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/mt_cbdn_sl_03.jpg" rel="gallery-all" title="CBD North Station Franklin Street entry. Image: MMRA"><img alt="" class="image-article-full-width-580px" height="385" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/mt_cbdn_sl_03.jpg?itok=xOBu_jhP" title="CBD North Station Franklin Street entry. Image: MMRA" width="580"></a>

<figcaption>CBD North Station Franklin Street entry. Image: MMRA</figcaption></figure>I may be slightly biased with this one having been involved with the Reference Design throughout 2015 but no project will have as great an impact on Melbourne as the Melbourne Metro Rail Project (MMRP).

Over the course of the next eight years as tunnel boring machines carve their way through the heart of the city creating five new underground stations linked by twin nine kilometre tunnels, a number of changes will also be noticed at the surface as road space is taken over for station entries and widened footpaths to accommodate surging passenger and pedestrian numbers in key areas of the city.

The concept designs produced by <a href="/architects/hassell-studio">Hassell</a> in association with Weston Williamson as part of the winning Cross Yarra Partnership are largely in keeping with the framework developed as part of the reference design by the mighty MMRP design team.

Without going into too much detail lest I get myself in hot water for disclosing more than what I am allowed to, as the concept images suggest the station entries will be integrated into the fabric of the city adding to its rich tapestry of public spaces and network of laneways.

Eight years may seem like a long wait but the $11 billion investment will definitely be worth the inconvenience of construction in the heart of the city.

More information:

<ul>
<li>
<a href="/news/metro-tunnel-gets-its-tunnel-signaling-contractors">Metro tunnel gets its tunnel &amp; signaling contractors</a> (Apartments.com.au)</li>
	<li><a href="http://metrotunnel.vic.gov.au/">Metro Tunnel website</a></li>
</ul>
<h2>2. Queen Victoria Market Renewal Project</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/munro-render-8-1200_0.jpg" rel="gallery-all" title="Concept image for Munro site as part of the QVMRP. Image: City of Melbourne"><img alt="" class="image-article-full-width-580px" height="326" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/munro-render-8-1200_0.jpg?itok=QpS0L5tK" title="Concept image for Munro site as part of the QVMRP. Image: City of Melbourne" width="580"></a>

<figcaption>Concept image for Munro site as part of the QVMRP. Image: City of Melbourne</figcaption></figure>Yes, there is a 125 metre tower on the former Munro site, but this project is more than a tower or the transformation of the market's operations but rather the creation of key public spaces in the northern quadrant of the city, serviced by community facilities.

Occupying space previously reserved for vehicular movements and parking, the creation of key public spaces in the new 'Market Square' and 'Market Cross' will firmly reinforce the market as an environment for people, not cars and forklifts.

The City of Melbourne has long spoken about a public space at the market as a 'Fed Square of the north' but rather than thinking of it in terms of built form or architecture this is meant as a comparison of what Federation Square provides in the way of quality multi-functional open space which can host a range of events of various size throughout the year.

For a complete rundown, read <a href="/news/the-queen-victoria-market-renewal-project-a-refresher">The Queen Victoria Market renewal project: a refresher</a> (Apartments.com.au).

<h2>3. Southbank Boulevard</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/df7137ecebff824cdc3581a6ddd69bec_0.jpg" rel="gallery-all" title="Southbank Boulevard renewal. Image: City of Melbourne"><img alt="" class="image-article-full-width-580px" height="363" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/df7137ecebff824cdc3581a6ddd69bec_0.jpg?itok=6Z4uX7a2" title="Southbank Boulevard renewal. Image: City of Melbourne" width="580"></a>

<figcaption>Southbank Boulevard renewal. Image: City of Melbourne</figcaption></figure>Covered on Apartments.com.au <a href="/news/southbanks-new-green-spine-a-step-closer">last week</a>, the Southbank Boulevard and Dodds Street concept plan sees ancillary road space in the heart of <a href="/new-apartments/southbank-vic-3006">Southbank</a> transformed into new open space to help service Southbank's growing residential population.

With Council voting to adopt the concept plan, its full steam ahead on the first of many projects which will see the replacement of bitumen with grass and trees providing 2.5 hectares of usable open space in Melbourne's most densely populated suburb. What was once a traffic sewer will by 2020 become Southbank's new green spine.

To find out more, visit <a href="https://participate.melbourne.vic.gov.au/southbankboulevard#/features">Southbank Boulevard and Dodds Street Draft Concept Plan</a> (Participate Melbourne).

<h2>4. Elizabeth Street South</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/elizabeth_south.png" rel="gallery-all" title="Elizabeth Street South concept image. Image: City of Melbourne"><img alt="" class="image-article-full-width-580px" height="305" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/elizabeth_south.png?itok=MpaO06OF" title="Elizabeth Street South concept image. Image: City of Melbourne" width="580"></a>

<figcaption>Elizabeth Street South concept image. Image: City of Melbourne</figcaption></figure>The southern end of Elizabeth Street will be transformed via a $1.5 million makeover, with plans to close the southbound lane between Flinders Lane and Flinders Street to make this major entrance to the station more pedestrian friendly, with new paving, street trees and improved drainage.

Despite being one of the most important entry points into the city, this section of Elizabeth Street is characterised by poor urban design, an absence of trees, soft and hard landscape and constrained footpaths which results in a compromised pedestrian experience. Additionally, the current state of the tram turnaround area and shelters detracts from the visual and historical significance of Flinders Street Station.

Construction is expected to begin later this year following the release of a detailed concept plan in coming weeks. The City of Melbourne is also considering eventually extending the pedestrianised areas up to Bourke Street in future.

To find out more about the Elizabeth Street South Project, visit <a href="https://participate.melbourne.vic.gov.au/elizabethstreet">Elizabeth Street South</a> (Participate Melbourne).

I believe another candidate for a similar transformation into a more welcoming pedestrian environment would be Spencer Street directly opposite Southern Cross Station between Collins and Bourke Streets. These corners are already swelling during peak hours and during event mode, with pedestrians waiting at the respective intersections to cross to or from the station - a potentially hazardous scenario.

This would then allow the tram super stop to be reconfigured for direct interchange between the station and the trams removing the pedestrian conflict with vehicles and allowing for a more permeable interface between the now 10-year-old station and an improved 'front door' allowing retail to spill out onto Spencer Street.

Fewer bollards would also be required (sorry boll-artists) and these could then form part of an overall urban design and landscaping strategy for the area.

With a bit more interrogation this may eventually become the subject of its own article on Apartments.com.au.

<h2>5. Harbour Esplanade Redevelopment</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/harbour_esplanade.png" rel="gallery-all" title="Concept sketch for Harbour Esplanade. Image: City of Melbourne"><img alt="" class="image-article-full-width-580px" height="306" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/harbour_esplanade.png?itok=I365TGLJ" title="Concept sketch for Harbour Esplanade. Image: City of Melbourne" width="580"></a>

<figcaption>Concept sketch for Harbour Esplanade. Image: City of Melbourne</figcaption></figure>While construction progresses all over the Docklands Precinct one key project has consistently lagged behind the rest - the Harbour Esplanade Redevelopment.

Long mooted for the past decade, only the first stage of what was a <a href="/architects/bkk-architects">BKK Architects</a> produced scheme was realised. This involved the reconfiguration of the road reserve and relocation of the tram tracks to a more central location releasing land along the water's edge for a grand public space.

Additionally, the Canary Island palms planted as part of <a href="/architects/arm-architecture">ARM's</a> initial take on Harbour Esplanade were replaced with Norfolk Pines which are more suited to a waterside environment.

Since then a subsequent master plan was produced by Hassell following further rounds of community engagement. While not proposing anything concrete, the master plan rather takes a space proofing approach identifying areas suitable for particular activities or built form.

To allow this master plan to progress (albeit very slowly) a number of wharves were demolished by Places Victoria in order to create a seamless transition from the existing footpath to the reinstated but lowered wharves. A this stage no definitive date has been nominated for completion of these works or the further progression of the Harbour Esplanade Master Plan.

I consider Harbour Esplanade to be <a href="/new-apartments/docklands-vic-3008">Docklands</a>' most important project and as such should be adequately funded with Development Victoria and the City of Melbourne working together to deliver the best outcome for Melbourne.

Talk of reinstating sheds seems counter intuitive considering they were initially demolished to open Harbour Esplanade to the water although built form wind breaks of some form may be required or the sheds' exposed structures reinstated as a 'memory' of what once was while still allowing for a degree of visual and physical permeability to the water.

One of Harbour Esplanade's most critical roles is not only linking a number of disparate precincts together while also providing quality, usable open space which celebrates Docklands waterfront location. I would suggest that whatever the final outcome the master plan needs to also consider Harbour Esplanade's relationship to Central Pier creating a unified vision for the waterfront.

<blockquote>
Places Victoria’s ambition for Harbour Esplanade is for it to be a place of increased national significance and one of the great post-industrial waterfronts anywhere in the world.

Harbour Esplanade should be the primary public space in Docklands – a fine boulevard for promenading, providing an opportunity to experience elements of Melbourne’s rich industrial ports heritage and a place to welcome and guide the public through the sub-precincts of Melbourne’s Docklands and central city.
<cite>Places Victoria</cite>
</blockquote>

For further information, read: <a href="/news/places-victoria-submits-harbour-esplanade-masterplan">Places Victoria submits Harbour Esplanade Masterplan</a> (Apartments.com.au).

Do you agree with the list? What do you believe the top five projects for Melbourne are? Leave your comments below.
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Laurence Dragomir

My top 5 city changing projects

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GUEST OBSERVER
Changes in productivity, the stock of debt, lending margins, fiscal policy and the exchange rate impact the neutral cash rate.  
We estimate the neutral policy cash rate has moved to a record low of just 3% (2 1⁄2 - 3 1⁄2% range) which is lower than our  previous point estimate in 2014 of 3 1⁄2%.  
A record low neutral rate means that very little tightening would be required to shift monetary policy from an expansionary setting to a neutral one.
<a href="https://www.propertyobserver.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.33.03%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.33.03%20AM.png" alt="">
Overview
Over the past three months there has been a significant shift in market interest rates (chart 1). The yield curve has steepened and market pricing for another RBA rate cut has receded. Current market pricing indicates a small (15%) chance that policy is eased again. And it implies a 35% chance of a rate hike within the next 12 months.
CBA’s house view is that interest rates are on hold over 2017. And in our view, the risks over the year lie with a cut. But the steeping in the yield curve and shift in market expectations has led us to revisit our estimate of the neutral cash rate. The analysis confirms our earlier work that neutral it is much lower than in previous cycles which means that the cash rate would not need to rise by much for policy to no longer be having a stimulatory impact on the economy.
In this note we update our earlier qualitative and quantitative analysis to derive our estimate of neutral. We estimate it to be 3% (21⁄2 - 31⁄2% range) which means that the current cash rate is about 150bps in expansionary territory.
What is a neutral interest rate and why does it matter?
The level at which the RBA sets the cash rate can either have an expansionary, contractionary or neutral impact on economic activity. The neutral cash rate is the interest rate (or range of rates) consistent with full employment, trend growth1 and neither upward nor downward pressures applied on the price level through monetary policy. Or more generally, when the setting of interest rates is such as to exert neither contractionary nor expansionary forces on the economy, policy can be said to be ‘neutral’.
<a href="https://www.propertyobserver.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.34.02%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.34.02%20AM.png" alt="">
But the neutral rate it is not a constant rate. Rather it is influenced by changes in productivity, the stock of debt, lending margins, fiscal policy and the exchange rate. A chronology of neutral policy settings according to the RBA is shown in Table 1. These drivers have moved in a way over the recent past that indicates the current neutral cash rate is probably at a record low.
The neutral rate is an important benchmark rate for evaluating the stance of monetary policy. It allows us to determine how expansionary or contractionary a particular policy setting is at any point in time. One rule of thumb often used is comparing the level of the cash rate to a historic average cash rate to assess how accommodative or restrictive policy settings are. But that can be misleading because the neutral rate is fluid and varies over time. When we compare current policy setting to the neutral rate they do not look as expansionary as implied by comparing the current cash rate to the historic cash rate average. 
A qualitative discussion: 
Over the past thirty years the RBA’s policy rate has trended lower (chart 2). The neutral rate has also moved lower. In this section we present qualitative arguments as to why the neutral rate looks to have fallen to a record low. The five factors we cover here are (i) productivity growth, (ii) the debt to income ratio, (iii) lending spreads; (iv) fiscal policy; and (v) the exchange rate. 
<a href="https://www.propertyobserver.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.35.10%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.35.10%20AM.png" alt="">
(i) Productivity growth is soft
During the 1990s, economic growth in Australia was powered by a significant lift in productivity. A number of key economic reforms undertaken in the late 1980s and 1990s enhanced the productive capacity of the economy and as a result, both growth and real incomes improved. The good times for Australian incomes continued after the turn of the century. But that was largely because of an income boost from a big lift in the terms of trade which concealed the fact that productivity growth had stepped down. Put another way, rising commodity prices masked the slowdown in productivity growth which kept interest rates higher than they would be otherwise.
But since the terms of trade turned down in 2012 (notwithstanding the recent bounce), soft productivity growth has become illuminated because real per capita incomes have fallen. Multi-factor productivity, which is the broadest measure of productivity growth, has been soft over that period (chart 3). It has lifted a little recently, but that is largely because the mining boom has transitioned from the from the labour intensive investment phase to the production phase. Outside of the resources sector productivity growth is poor.
Weak productivity growth lowers potential growth in output per capita which ultimately lowers the neutral cash rate. A lower neutral cash rate results because a fall in productivity growth lowers the return on capital and labour, meaning that it is less desirable to invest and employ. And if the desire to invest is lowered while the desire to save is unchanged or higher then a lower interest rate is required to balance savings and investment plans.
Here we note that Australia is not alone in having weak productivity growth. Most advanced economies around the world are also suffering from soft productivity growth and potential growth has fallen (chart 4). As a result, the neutral rate of most advanced economics is lower now than in previous decades. 
<a href="https://www.propertyobserver.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.36.04%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.36.04%20AM.png" alt="">
(ii) Debt to income ratios at record highs. 
Australia’s stock of debt has been rising over the past year at a modest pace by historic standards (5.6% through the year to December 2016). But given weak income growth, the stock of debt has been growing faster than nominal GDP 1.0 which means overall leverage in the economy has been rising (chart 5). The increase in leverage has been mainly driven by the household sector. And the debt has been going into bricks and mortar.
2016
The increase in the stock of debt relative to income means that the household debt-to-income ratio is rising (chart 6). It is currently at a record high and puts Australia in the top tier of household indebtedness globally. As the RBA noted in its October Financial Stability Review, “household indebtedness continues to drift up and, with incomes growing more slowly than in the previous decade, households may not be able to rely on income growth to make their debt easier to service.”
<a href="https://www.propertyobserver.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.36.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.36.58%20AM.png" alt="">
The increase in the stock of debt relative to income means that debt burdens have risen. This puts downward pressure on the neutral interest rate. The policy rate required to keep interest payments constant as a share of income must fall if debt is growing faster than income. As a result, the neutral rate falls when debt is rising relative to income, all other things equal. 
(iii) Lending spreads 
Lending rates are interest rates that are faced by households and businesses. It is where “the rubber hits the road”. They are the rates that have the biggest influence on the economy and they are impacted by bank funding costs which are a function of both the RBA cash rate and conditions in financial markets. Prior to mid-2007, spreads between bank funding costs and the RBA cash rate were low and stable. With hindsight there was insufficient pricing of risk. As a result of the financial crisis and repricing of risk, spreads between bank funding costs and the RBA cash rate lifted which means that the spread between lending rates and the policy rate also rose.
After an initial levels adjustment higher as a result of the GFC, the spread between lending rates and the RBA policy rate has continued to inch a little higher (chart 7). This reflects changes in funding costs and the additional cost of capital banks are required to hold against home lending.
<a href="https://www.propertyobserver.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.38.00%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.38.00%20AM.png" alt="">
A higher spread between the cash rate and lending rates means that a lower cash rate is required to produce a given level of lending rates than in the past. The neutral cash rate is lower as a result.
(iv) Fiscal Policy
The stance of fiscal policy impacts on the economy. Expansionary fiscal policy acts like an accelerator on the economy and pushes up the rate of interest required to prevent the economy moving beyond full employment, other things being equal. Conversely, contractionary fiscal policy, or fiscal consolidation, acts as a brake on the economy. Under fiscal policy that is contractionary, the interest rate that is required to keep the economy growing at trend is lowered, other things equal.
Fiscal slippage has been a persistent theme in recent years and progress in repairing the budget has been elongated. This has meant that fiscal policy has had a negligible impact on the neutral cash rate. But fiscal consolidation remains a priority of both major political parties (chart 8). The change in the budget balance is an approximate guide to the fiscal impact on the economy. And on that score, the 2016/17 Budget “takes out” 0.4%pa of GDP on average over the next four years. Fiscal consolidation will act as a headwind on the economy if these plans come to fruition and as a result it will put downward pressure on the neutral interest rate.
7.
(v) Exchange rate
Financial conditions are also affected by the currency. Overall monetary conditions are determined by interest rates and the exchange rate. The higher the currency, the more restrictive monetary conditions are and vice versa. We have replicated the RBA’s fair value model whose inputs are based on the traditional drivers of the currency - interest rate differentials, export commodity prices and the current account (chart 9).
<a href="https://www.propertyobserver.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.39.12%20AM.png" target="_blank"> Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.39.12%20AM.png" alt="">
The model suggests that the AUD continues to trade a little above what looks like fair value, though the differential is not material. Notwithstanding, it does suggest that the level of the exchange rate is exerting some soft downward pressure on the neutral interest rate relative to where it would be if the AUD was trading at fair value.
A quantitative analysis
In this section we run three models to derive our estimate of the neutral interest rate: (i) Mankiw; (ii) RBNZ yield curve; and (iii) Critical debt service level (CDSL). 
Mankiw Rule 
The Taylor Rule is the general term for a rule that sets a monetary policy rate (the RBA cash rate in this case) as a linear function of an inflation rate and a measure of economic slack. The Mankiw Rule is a variation of the Taylor Rule that uses the unemployment rate as a measure of economic slack. Using the CPI and the unemployment rate to model the RBA cash rate is logical because the RBA’s mandate is price stability and full employment.
Here we estimate a relationship between the RBA cash rate and the Mankiw Indicator (defined as the annual change in core CPI inflation minus the unemployment rate). It says that the cash rate is a linear function of CPI inflation minus the unemployment rate.
The red line in the chart opposite plots the derived Mankiw Rule cash rate against the RBA’s cash rate over the last ten years (the green line plots the derived Mankiw Rule cash rate over the last five years). The green line is below the red line meaning that neutral is now lower (chart 10).
Based on the observed relationship between core inflation, the unemployment rate and the cash rate over the past five years we could expect to have an interest rate of around 23⁄4 - 31⁄4% if the economy was operating at full employment and inflation was within the RBA’s target band. The current cash rate of 11⁄2% therefore implies that the RBA is pushing monetary policy some 150bps into expansionary territory from neutral on this measure. 
RBNZ yield curve model
The RBNZ developed a method of estimating neutral based on the slope of the yield curve. The idea is that over the business cycle monetary policy settings must be neutral if inflation is stable.
The divergence of the yield curve slope from “normal” is an indication of whether monetary policy is contractionary or not. In this approach “normal” is defined as the difference between the 90-day rate and the 10-year rate over a period. That difference is the term premium or average yield curve slope. The neutral rate can be calculated by subtracting the average yield curve slope over the period from the 10-year rate.
<a href="https://www.propertyobserver.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.40.16%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.40.16%20AM.png" alt="">
Taking this approach and applying it to the Australian yield curve indicates a neutral real rate of 3⁄4%. Or 3 1⁄4% in nominal terms with a range of 2 3⁄4% to 3 3⁄4% (chart 12).
Critical debt service model
The imbalances associated with rapid growth in debt and asset prices are a recurring theme in the policy debate. Organisations such as the Bank for International Settlements have attempted to develop indicators of financial stress. The same approach can be used with debt servicing.
The idea is that there is a certain critical debt service level over and above normal where the resultant “stress” has a significant impact on consumer spending. That critical level can be determined by benchmarking deviations in debt servicing against deviations in consumer spending growth.
The approach is quite neat because once the critical debt service ratio is known, it is possible to work out what cash rate you need to get there. One description of neutral is the rate at which interest rates are neither stimulating nor weighing on economic activity. So the implied cash rate in these calculations should be an approximation for neutral.
The model suggests that the current critical level would be breached with an RBA cash rate of around 2 3⁄4% (chart 13). Adjusting for the change in lending spreads
means the critical rate would be breached at a cash rate of 1 1⁄2%. In other words, any tightening from here would have a significant negative impact on consumer spending. The rate is at a record low because the stock of household debt is at a record high relative to income. Policy easing over recent years has not resulted in the stock of debt falling as a share of income even though rate cuts make debt repayment easier. Instead, rate cuts have contributed to a lift in borrowing because debt looks cheaper. Dwelling prices have risen as a result.
<a href="https://www.propertyobserver.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.41.24%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/19/Screen%20Shot%202017-07-19%20at%2011.41.24%20AM.png" alt="">
Summary and policy implications
A range of estimates and theoretical arguments suggest that the neutral cash rate has moved to a record low. Our qualitative and quantitative analysis points to a neutral range of 2 1⁄2%-3 1⁄2% meaning a point estimate of 3%.
The analysis suggests that the RBA is faced with a relatively easy task if it needs to put the brakes on the economy at some point further down the road. It wouldn’t take a lot of tightening in policy to restore monetary policy to a neutral setting.
The flip side is that it becomes harder for the RBA to stimulate the economy as the neutral rate falls and we approach the lower bound. The limitations of monetary policy to stimulate growth become more apparent when the neutral rate falls towards the lower bound. The need for meaningful fiscal policy reform grows as a result. We don’t see the RBA tightening over 2017. And in our view the risks like with further easing. Calls for fiscal policy reform in addition to higher levels of public investment will continue. 
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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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 Interest rates on hold over 2017: Gareth Aird

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Nine separate bulky goods retail properties leased to electronics retailer The Good Guys across four states have sold for a total of $92 million.
The deals were the largest group transactions of its kind in the Australian market this year, according to Savills which negotiated them on behalf of the Muir family.
The properties are located in Victoria (Thomastown, Geelong, Bendigo and Ballarat), New South Wales (Caringbah and Ballina), Queensland (Ipswich and Cairns) and Western Australia (O’Connor), and all are leased long-term to The Good Guys, a wholly owned subsidiary of ASX-listed JB HiFi.
Sales range from $5.2 million for the Bendigo property, up to almost $30 million for the Caringbah property.  
Purchase yields range from around 6.25% for the capital city properties up to almost 8.00% for regional properties – compelling returns for a yield starved market.
A Sydney-based investment fund and sell the other properties individually.’’One investment group
Selling agents Clinton Baxter, Nick Peden and Steven Lerche of Savills said the sale had been one of the most anticipated divestment of Australian retail stock in the last 12 months.
"We expected strong interest from private investors seeking individual properties, but were particularly surprised by the numerous portfolio buyers seeking multiple properties across several states,’’ Baxter said.   
“We simply couldn’t satisfy all the portfolio offers due to overlapping property requirements, and ultimately chose to transact 5 of the properties with a Sydney-based investment fund and sell the other properties individually.’’
<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/2017/07/19/Good%20Guys_Thomastown.03.jpg" alt="">
Peden said that the wide price range of the assets, exceptional main road locations in key commercial precincts, attractive rental returns, together with blue-chip tenancy profiles appealed to a wide range of investors ranging from SMSFs, private investors, syndicators and property funds, whether based locally or off-shore.
"With The Good Guys being owned by ASX-listed retail powerhouse JB Hi-Fi Limited, investors feel extremely comfortable with the long-term security of the investment. 
"All properties are in proven commercial locations, with a long history of successful trade” Lerche said.
The properties are all owned by the Muir family. 
Savills will be selling several additional properties also leased to The Good Guys in coming weeks, to complete the divestment.
“Of the original portfolio of properties we have been handling for the Muir family, it was crucial to the process that we finalised the single portfolio transaction before allowing individual properties to be sold. 
Now that has occurred, we are busy transacting the individual properties, with the opportunity offering exceptional value for investors at attractive yields” Mr Baxter said.
The Good Guys was founded in Melbourne’s northern suburbs in 1952, and remained a family owned business until late 2016 when the company was purchased by JB Hi-Fi Limited for $870 million.
The business has grown to be one of Australia’s leading retailers in the sale of white goods and electronics, with an approximate annual revenue of $2.1 billion.
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Savills sell nine properties leased to The Good Guys in $92 million disposal

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Grants for first home buyers keen to buy off-the-plan in South Australia could total around $40,000 of incentives.
According to South Australia Treasurer Tom Koutsantonis a number of property developments had not sold enough apartments off-the-plan to begin construction and a $10,000 pre-construction grant will be given to buyers of off-the-plan apartments who sign a contract before September 30, 2017.
On top of the grant, off-the-plan buyers incentives include stamp duty concessions of up to $15,500, and a first-home owner grant of $15,000 for buyers of new residential property.
Previously home owners will be eligible to receive the stamp duty concession and new grants of up to $25,000.
State Treasurer Tom Koutsantonis said the $10,000 pre-construction grant, combined with the Adelaide City Council’s scheme to give owner-occupiers a “five-year holiday from council rates” was a great incentive to buy off-the-plan.
“It’s our responsibility as a state to make sure people can buy an apartment where they grew up,” he said.
View our guide to first home buyer grants here.
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New off-the-plan grants for South Australian first home buyers

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Fast-food franchisee SumoSalad has reportedly managed to negotiate lower rents from reluctant landlord Westfield through its tactic of insolvency laws.
The two parties are close to a mutually favourable commercial outcome, with the final details to be sorted out by early next week, Australian Financial Review columnist Tony Boyd wrote in Chanticleer.
The deal is expected to attract great attention from retailers operating in large shopping centres because it will show that it is possible to tip the balance of power from landlords back to tenants, Boyd said. 
SumoSalad co-founder Luke Baylis said on Tuesday he was negotiating better rental terms at Westfield centres, without going into details. 
SumoSalad’s boss put two of the 20 companies in his group into voluntary administration in June, escalating the tension between the fast food chain and Westfield after failed attempts over six months to negotiate cuts in leasing charges.
The two companies, Sumo Westfield Leasing Pty Ltd and Sumo Leasing Pty Ltd, were put into voluntary administration with Morgan Kelly and Peter Gothard from Ferrier Hodgson appointed voluntary administrators. 
Baylis’s contention was that SumoSalad franchisees had suffered from the opening of new food eating areas which, according to him, was designed to increase foot traffic but had cannibalised the sales of SumoSalad outlets because of increased competition.
"Using the voluntary administration law involved a more strategic approach in terms of negotiating," Baylis said.
He added that SumoSalad was well prepared for using the insolvency laws because all of its leases were held in separate companies within the SumoSalad Group. The two SumoSalad leasing companies had 63 separate leases across 25 different lessors. Westfield was responsible for 19 of them.
Kelly compared the use of the voluntary administration laws by SumoSalad to the Chapter 11 bankruptcy law in the United States. 
“You have protection from your creditors while you negotiate a commercial outcome,” he said.
"I believe the use of the laws in this way is unprecedented.” 
Kelly said in a report to creditors that many SumoSalad franchisees were not trading profitability "primarily due to high levels of rent" and led to a number of them “abandoning their sites”.
Baylis says that while the strategic use of insolvency laws had been effective, it would cost him about $250,000.
 
 
 
 
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