Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

First look: Ceerose doubles down in Leichhardt with adaptive reuse of former warehouse site

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?

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

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South Australia has its first 5.5 NABERS rated office building in the state. The 151 Pirie Street office tower in Adelaide's CBD achieved the 5.5 star NABERS Energy Base Building Rating, without the need to purchase green power.
Among some of the green initiatives the owner- German fund manager Real I.S. Group - undertook included the use of solar photovoltaic cells, energy efficient lighting in the common areas, as well as sub-metering of the tenant condenser water loop and a rooftop solar installation to provide renewable energy for the base of the building.
CBRE regional director Of technical services, Nick Mavropsi said there had been an overriding focus on managing the property effectively to minimise energy without compromising tenant environmental conditions.
The 12,500 square metres building (pictured below) was originally designed to achieve a 4.5 star NABERS Energy Base Building Rating.
<img src="/images/stories/2013/09/11/1.jpg" width="470" height="532" alt="1">
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Adelaide's highest rated green office building

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Four neighbouring Barossa Valley vineyards have sold for a total of $2.28 million to three separate local buyers.
St Vincent vineyard, Tschirpig vineyard, Augusta Grenache vineyard and Augusta shiraz vineyard in the Krondorf district were marketed for sale both separately and in one line. Together they formed Russell Vineyard.
St Vincent has 14.3 hectares of vines, including 9.9 hectares of shiraz vines, on 20.94 hectares of land. It sold along with Tschirpig, which has 2.5 hectares of shiraz vines on 8.67 hectares of land, for $1.5 million.
The Augusta shiraz block has 1.7 hectares of shiraz vines on 2.364 hectares of land and includes an old stone cottage and shedding. It sold for $330,000.
The Augusta Grenache block has 1.7 hectares of grenache vines on 6.216 hectares of land. It sold for $450,000.
They were sold by Colliers agents Jesse Manuel, Tim Altschwager and Nick Dean.
Altschwager says there was international interest in the property.
“We had a lot of interest in it from the whole market really including some overseas Chinese but at the end of the day the strongest guys were the locals. It’s showing there’s a bit more confidence in the market here,” Altschwager told Property Observer.
He says the property market in the Barossa didn’t soften as much as other parts of the country.
“The Barossa wasn’t affected as drastically as some of the other areas because it’s probably the best recognised region in Australia and from overseas,” Altschwager said.
Krondorf is home to labels including Grant Burge Wines, Charles Melton Wines and Rockford.
The properties were sold by John and Rosalind Russell who moved to the Barossa in 1990 to create the Barossa Music Festival and started making wines in 1994.
They will not be managing the properties.
The vineyards are part of <a href="https://www.propertyobserver.com.au/leisure/six-vineyards-that-might-tempt-those-fond-of-the-odd-drop/2013051361053">several around the country that has been offered recently.</a>
In August we reported Zhi Jian Zhou and Ou Guo Ying from Amway China bought a Hunter Valley vineyard for $3.8 million.
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Four Barossa vineyards sell to local buyers

<html><body>Australian Property Monitors (APM) has released a list of auction results in Adelaide for the weekend of September 7. <a rel="nofollow" href="https://www.homepriceguide.com.au/saturday_auction_results/Adelaide.pdf" target="_blank" style="font-size: 14px;">Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

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APM's Adelaide auction results for September 7 weekend

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Mawson Lakes is Adelaide’s fifth most searched suburb by buyers, but with a median house price of $244,971 it’s out of reach for many. But Dry Creek, just six kilometres away, has a median house price that is 43% cheaper.
Westpac has compiled a list of ten Adelaide suburbs where it’s cheaper to buy than in their more popular but pricey neighbouring suburbs.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/08/adelaide-houses-aug-29-big.gif" rel="shadowbox"><img src="/images/stories/2013/08/adelaide-houses-aug-29-small.gif"></a>
The hidden gem suburbs are close to the popular suburb but have a lower cost median house or unit price. The most popular suburbs were determined by the most searched for suburbs on realestate.com.au.
“Buyers who want to truly own their home sooner can find real value by simply considering a suburb which is just a stone’s throw away from their first preference,” says Westpac’s Gai McGrath.
With a median house price of $733,636 Norwood is out of reach for many buyers but nearby Stepney is 28.3% cheaper. For units Trinity Gardens is a better alternative to Norwood with a median price 24.2% less.
If you wanted to buy a unit in Golden Grove, Adelaide’s eighth most popular suburb, you could consider travelling eight kilometres to Salisbury East where the average unit price is 28% cheaper.
You could own your home 16 years and one month sooner and save $80,960 in purchase price and $87,988 in interest repayments over time, according to Westpac.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/08/adelaide-units-aug-29-big.gif" rel="shadowbox"><img src="/images/stories/2013/08/adelaide-units-aug-29-small.gif"></a>
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Mawson Lakes too expensive? Try Dry Creek, one of Adelaide's hidden gem suburbs

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International luxury brands Chanel and Louis Vuitton are looking at "multiple sites" in Adelaide for their next store expansion.
Adelaide Central Plaza owner Shaun Bonett confirmed to Property Observer that both retailers were tallks with him about opening stores in his centre. He said the French retail brands werre currenty looking at "multiple sites” in Adelaide and that he would be "delighted if we were able to progress discussions with them."
"We submitted our shopping centre as a centre which they should consider," he said.
UK fashion retailer Topshop also has the Adelaide market firmly on its radar.
Earlier this month, US high-end jeweller Tiffany &amp; Co announce it would be opening its next store in Adelaide Central Plaza. Confidentiality agreements prevented Mr Bonett from disclosing further details about the lease but he said “their store in Adelaide will be very comparable to their Melbourne and Brisbane stores."
Mr Bonett said what was drawing those retailers to Adelaide was its high population, tourism appeal - namely its wineries - and that there was a significant demographic in South Australia that shopped interstate for higher end items.
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Chanel, Louis Vuitton size up Adelaide retail sites

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South Australians are voting to find the best main street in the state.
The Mainstreet SA awards recognise best practice in mainstreet management, marketing, event, partnerships and contributions.
The People’s Choice Award asks communities around South Australia about their mainstreet and highlights loyalty and support for the heart of the community.
They recently noted the Prospect Road village was bucking the bricks and mortar business trend with the lowest vacancy rate of Adelaide's shopping strips - less than 1%. 
King William Road, Hyde Park had a vacancy rate of 5.34%. The Parade, Norwood sat 8.29% and Jetty Road, Glenelg showed a 4.9% vacancy rate.
The Prospect Road village - between Gladstone Road to Daphne Street - has 103 properties with only one shop available for lease at 110-112 Prospect Road, the local paper notes.
<a target="_blank" href="https://twitter.com/MainstreetSA"><img height="109" width="470" src="/images/stories/2013/08/tweet-of-the-day-aug-28.jpg" alt="tweet-of-the-day-aug-28"></a>
Ofcourse <a target="_blank" href="https://www.propertyobserver.com.au/news/tiffany-co-to-open-its-first-adelaide-store-in-2014/2013082664561?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">Tiffany &amp; Co will open up shop in Adelaide</a> next year reportedly in Central Plaza.
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Best main street in South Australia

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There are signs of increased buyer activity in the subdued Adelaide housing market, according to APM's latest housing market report.
"Latest ABS home loan data for South Australia reports seasonally adjusted owner occupied loans up by 8.7% over the first half of 2013 compared to the same period last year," the report says.
"Adelaide median house prices have started to rise again, up by 0.8% over the June quarter, for an increase of 0.9 percent over the 2013 financial year.
<img alt="apm-aug-26-chart-4" src="/images/stories/2013/08/aug27apm/apm-aug-26-chart-4.gif" width="470" height="348">
<img alt="apm-aug-26-chart-5" src="/images/stories/2013/08/aug27apm/apm-aug-26-chart-5.gif" width="470" height="416">
<img alt="apm-aug-26-chart-6" src="/images/stories/2013/08/aug27apm/apm-aug-26-chart-6.gif" width="470" height="453">
"The performance of the local economy however remains a concern, with the July unemployment rate for South Australia rising steeply to 7.1% - the highest of all the mainland states."
 
<img height="360" width="470" src="/images/stories/2013/08/aug27apm/apm-aug-26-chart-3.gif" alt="apm-aug-26-chart-3">
 
 
 
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Adelaide shows signs of increased activity: APM

<html><body>Australian Property Monitors (APM) has released a list of auction results in Adelaide for the weekend of August 24. <a rel="nofollow" href="https://www.homepriceguide.com.au/saturday_auction_results/Adelaide.pdf" target="_blank" style="font-size: 14px;">Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

APM's Adelaide auction results for August 24 weekend

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All dominant regional property markets in South Australia are at the bottom of the house and unit property cycle according to Herron Todd White’s latest monthly report.
Southwest WA is at the start of a recovery while Alice Springs houses is in a declining market. Units in Alice springs though are a rising market.
In its capital city analysis Adelaide is at the Bottom of the cycle, Perth is at the peak and Darwin is rising.
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0">
<colgroup>
<col width="154">
<col>
<col>
<col>
<col span="2" width="234">
<col>
<col>
<col>
</colgroup>
<tbody>
<tr height="25">
<td height="25" width="622" colspan="3">Stage of property cycles in regional VIC/TAS</td>
</tr>
<tr height="20">
<td height="20">Region</td>
<td>Houses</td>
<td>Units</td>
</tr>
<tr height="20">
<td height="20">Adelaide</td>
<td>Bottom of market</td>
<td>Bottom of market</td>
</tr>
<tr height="20">
<td height="20">Adelaide hills</td>
<td>Bottom of market</td>
<td>Bottom of market</td>
</tr>
<tr height="20">
<td height="20">Barossa Valley</td>
<td>Bottom of market</td>
<td>Bottom of market</td>
</tr>
<tr height="20">
<td height="20">Iron Triangle</td>
<td>Bottom of market</td>
<td>Bottom of market</td>
</tr>
<tr height="20">
<td height="20">Mount Gambier</td>
<td>Bottom of market</td>
<td>Bottom of market</td>
</tr>
<tr height="20">
<td height="20">Riverland</td>
<td>Bottom of market</td>
<td>Bottom of market</td>
</tr>
<tr height="20">
<td height="20">Alice Springs</td>
<td>Declining market</td>
<td>Rising market</td>
</tr>
<tr height="20">
<td height="20">Darwin</td>
<td>Rising market</td>
<td>Rising market</td>
</tr>
<tr height="20">
<td height="20">Southwest WA</td>
<td>Start of recovery</td>
<td>Start of recovery</td>
</tr>
<tr height="20">
<td height="20">Perth</td>
<td>Peak of market</td>
<td>Peak of market</td>
</tr>
</tbody>
</table>
Source: Herron Todd White
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Investors advised Alice Springs house market is in decline, but units are rising: Herron Todd White

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RP Data publishes its ever-entertaining Daily Home Value Index, and the property market recovery is well underway, with all of the main capital cities swamped in a delightful sea of green text!
<img style="display: block; margin: 0px auto 10px; border: 4px solid #eeeeee; padding: 1px; max-width: 570px;" class="aligncenter" src="https://3.bp.blogspot.com/-uAOL7jiGbRE/UgJaoo2udSI/AAAAAAAAJ-Y/2VVBXu9Nr88/s1600/Adelaide060813.jpg">
Source: RP Data
Well, OK…not quite. Obviously, there’s one city there which is in the red and showing a horrible decline of 3.5% over the last quarter. That’s really, really not good.
The year-on-year prices in Adelaide will begin to show a worse result from next month, for the reported median home price in September 2012 was sitting comfortably above $430,000, some way higher than where it sits today.
Of course, 12 months is no sort of timescale upon which to judge a long-term property investment, but if a property market can’t demonstrate price growth when interest rates are plumbing the lowest levels in a generation, you’d have to be concerned for what might happen when the easing cycle reverses from its nadir.
Adelaide’s housing market has essentially done nothing since the beginning of 2008 and remains well below where it was in 2010. Meanwhile, Perth prices are up by 10.5% in a year, and in Sydney, dwelling prices are (literally) booming off the top of the chart.
<img style="display: block; margin: 0px auto 10px; border: 4px solid #eeeeee; padding: 1px; max-width: 570px;" class="aligncenter" src="https://4.bp.blogspot.com/-0XjAz0_3Hs8/UgJckhZ3IuI/AAAAAAAAJ-o/K445y0k_fqc/s1600/ADLRBA.gif">
In 2008, BHP Billiton’s completed its pre-feasibility study and set about planning a $30 billion expansion of its major Olympic Dam project.
So the theory went (although I’ve certainly never subscribed to it), South Australia was to be the number one state for property investors over the coming years.
You need to allow some time for these theories to be proven correct or otherwise, but it’s now August 2013 and the Adelaide housing market has barely budged in spite of the widespread availability of cheap credit.
It’s fine to be wrong, not that you’ll often hear market commentators admit to being so. We’re all wrong some of the time, after all.
For example, I’ve felt for some months that Commonwealth Bank (CBA) doesn’t justify the premium at which it is trading to its price-to-book together with a PE ratio of above 15, but the market had other ideas and the price has nevertheless remained above $72 to date. C’est la vie – I’m a long-term shareholder, so I’m happy enough.
In the property markets, I felt quietly confident that Melbourne’s established stock would see prices slide marginally in 2013, but it looks like I won’t be right there either. Such is life.
The answer to sometimes being wrong, of course, is to go back to basics and establish an investment plan for the long-term to ensure that you achieve your goals.
I’ve covered my stock market views many times here before, and resources stocks don’t play a big part for mine. In the real estate sphere, it means finding the cities where a massive and growing demand is outstripping a limited supply and where there is little land available for release (hint: that’s ain’t the distant suburbs of Adelaide; it’s inner-ring Sydney).  
 
<hr class="system-pagebreak">
In a past life I was the Group FC of a copper/gold resources company with mining operations in the Adelaide Hills of South Australia.
Even in our boardroom we had no genuine insight into the expansion plans of our South Australian mining counterparts as the BHP directors mulled over their capex plans at Lonsdale Street.
Just to reiterate: even industry insiders and the execs of other South Australian copper miners couldn’t be certain as to whether BHP’s planned expansion of Olympic Dam was going ahead – there are plenty of leaky vessels on the ASX, but our buddies at the good ship Broken Hill Proprietary are generally pretty water-tight.
So when property market commentators boldly blazed ahead and instructed us all that the Olympic Dam expansion was definitively all systems go well, that was completely and utterly bonkers.  
Of course, the promoters of South Australian property would say that there is more to the state than one mining project and that it would be wrong to down-play Adelaide’s prospects based solely upon the shelving of the Olympic Dam expansion. I couldn’t agree more – we should recognise the billions of dollar worth of other projects which got canned as well.
The Adelaide Advertiser reported that the cancellation of the $1 billion Arafura Resources rare earths project, the decision by Deepak Fertilisers to withdraw plans for an ammonia nitrate processing complex and the Olympic Dam deferral – “all potentially worth billions of dollars with major economic spin-offs” – were collectively a “major blow” to the Whyalla region.  
Whyalla mayor Jim Pollock said: “Arafura’s announcement is disappointing. I know our community is resilient but is hard to build confidence after major projects get deferred or scrapped.”  
If these projects were touted as the very reason to invest in a region when they were in the pipeline, then it should equally be acknowledged when they are cancelled (rather than completely glossed over or just simply never mentioned again, as seems to be the way in the world of property investment advice).
In spite of the projects which got wiped, some of the better prospects for the state probably are still at Whyalla.
In one suburb of Whyalla median prices have increased by around 15% since 2003, which is reportedly the “fastest rate of growth in the state”. Reports news.com.au:
<blockquote>“A pocket of residents in Whyalla has seen the value of their properties rise faster than any other area in the state in the past decade, new data shows. The median price of homes in Whyalla Stuart, in the western suburbs of the Eyre Peninsula town, has increased by 16.1 per cent since 2003, from $143,750, according to figures from analyst RP Data. That figure was closely followed by Findon – which is Adelaide’s fastest growing metropolitan suburb – as it saw a 15.8 per cent increase from $287,565 to $333,000.”</blockquote>
Investors could have done so much better than invest in Adelaide over the past half decade.  
 
<hr class="system-pagebreak">
Sadly, global sentiment has gone through a major reality check over the past 12 months and Dr. Copper doesn’t seem at all happy about life, so I wouldn’t be expecting copper/uranium mine expansions to come to the rescue when the copper spot is languishing at well below US$$3.20/lb.
The longer term outlook for copper may be bullish enough, but the majors won’t become enthused about copper again until the spot heads back towards US$4.50/lb.
Olympic Dam also produces gold and silver deposits, but the prices of those metals have been absolutely clobbered too.
<img style="display: block; margin: 0px auto 10px; border: 4px solid #eeeeee; padding: 1px; max-width: 570px;" class="aligncenter" src="https://www.kitconet.com/charts/metals/base/spot-copper-1y-Large.gif" width="400" height="253">
Source: kitco
On the plus side, with an ageing population in South Australia, the outlook is considerably brighter for the healthcare and social assistance sector, which employs the most heads in the state.  
Is Adelaide about to boom?
Well, the future is inherently uncertain and activity has reportedly picked up a little, but I wouldn’t think there is too much joy ahead for Adelaide. SQM’s Louis Christopher recently reported that supply appears to be meeting demand in the city, which is rarely a comment you hear immediately before prices take-off.
Adelaide property prices also aren’t likely to jump simply because they are cheaper than elsewhere.
While on the theme of SA mining, shares in Hillgrove Resources (HGO) are trading at under 10 cents to BHP Billiton’s $35, but that certainly doesn’t make HGO a superior investment to BHP – quite the opposite, in fact; HGO is cheap because demand for it is woeful and its immediate prospects are poor, for this is the way in which assets are priced.
To think that property prices will go up in a city merely because they are cheaper than those elsewhere is misguided.  
The population of the spacious South Australia is only expanding at a weak 15,500 persons per annum – as compared to a stonking 99,500 in Victoria, 93,000 in Queensland, 90,500 in New South Wales and 83,000 in Western Australia.
With land prices in Adelaide relatively cheap compared to Sydney, there doesn’t appear to be any good reason why the city can’t house its population in a reasonably affordable manner.  
I’ve seen nothing to alter the view which I formed in Australian property back in 2007 (in the decade prior to 2007, I was one of the many grateful beneficiaries of an outrageous British property boom): the best long-term prospects for Australian investors on a risk-adjusted basis have long been located in Sydney’s inner-ring suburbs.
The market for quality properties in Sydney’s inner-ring remains wretchedly tight and housing finance data shows that demand is booming with speculators snapping up well-located stock incredibly quickly – faster than anywhere else in the country.
Further, the population of the city increasing by around 60,000 persons per annum.
Economic growth? Employment growth? That’s all about Sydney right now, too.
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com" target="_blank">blogger</a>.  His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>' is released on 1 September 2013. 
This article originally appeared on <a href="https://propertyupdate.com.au/australias-worst-performing-capital-city-market/" target="_blank">PropertyUpdate</a>.
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