Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.

The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.

Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.

[smartcode_project:default project_id=150128 project_image_fid=366285]

The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.

Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.

All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.

[smartcode_project:default project_id=150128 project_image_fid=366277]

Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.

The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.

[smartcode_project_cta:default project_id=150128]

Joel Robinson

Construction to commence at luxury Glen Iris townhome project, Orchard Mews

A rare new apartment development has been proposed on the fringe of St Ives Village.

Developer Newquest Property has lodged plans for a low-rise apartment project designed by well-regarded architecture firm Warren &amp; Mahoney, which is best known for its work in the multi-residential sector in Melbourne.

The building, proposed for a 1,916 sqm site on <a href="https://www.apartments.com.au/new-apartments/st-ives-residences-3-5-memorial-avenue-nsw-2075">Memorial Avenue</a> opposite St Ives Village Green, has been designed to blend into the surrounding natural environment.

<img alt="St Ives" data-entity-type="file" data-entity-uuid="5c1c7437-2fba-4345-a6d7-05321714ad3e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.28.46%E2%80%AFPM.png?VersionId=KrYyMaJvNqR7vbx0xbB3Ef8sJ6FuHpmn" />

“Drawing inspiration from the pale trunks and flowering canopies of the scribbly gums and blue gums prevalent in the area, a considered material palette was developed,” the architectural design report states.

“This palette references the established materiality of the suburb while elevating it through refined finishes to achieve a more luxurious architectural expression.”

Of the 33 apartments proposed, 21 will be three-bedroom residences. The remaining mix includes nine two-bedroom apartments, one one-bedroom apartment and two four-bedroom residences. The development will be supported by 62 car parking spaces and 33 secure bicycle spaces.

The proposal would replace two single-storey brick buildings currently on the site.

<img alt="St Ives" data-entity-type="file" data-entity-uuid="21422eaf-09a9-4439-9278-b9bd9daf22a1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.38.10%E2%80%AFPM.png?VersionId=v.fXSgcUcEscvOZzqcjG5nk3gVqk_Amt" />

St Ives remains a relatively untapped market for new apartment development. North Shore developer WINIM has a number of projects in the area, while INCA is nearing completion of Ellis Residences.

More recently, Traders In Purple has lodged plans for one of the denser projects proposed in the suburb, a 75-apartment development on a 5,900 sqm site on Cowan Road.

NewQuest, a construction, design and development firm, has delivered over 24 projects across commercial, residential, industrial, and lad markets.&nbsp;

&nbsp;

&nbsp;

First look: NewQuest Property proposes new St Ives apartment development

<a href="https://www.apartments.com.au/developers/centa-property-group">Centa Property Group</a> has achieved two major milestones at its <a href="https://www.apartments.com.au/new-apartments/bilinga-house-107-golden-four-drive-bilinga-qld-4225">Bilinga House</a> apartment development in the sought-after southern Gold Coast.

They've almost sold 50 per cent of the Golden Four Drive building, while at the same time announcing the commencement of construction through reputable builder Greyburn Construction.

The boutique 10-storey building, with 47 two- and three-bedroom apartments, now has a mid-to-late 2028 completion date.

[smartcode_project:default project_id=150037 project_image_fid=5333]

The <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed project is positioned just 200 metres from Bilinga Beach and brings a relatively rare apartment offering to a market that has seen limited new supply in recent years.

Residences have been designed to maximise natural light and ventilation, with open-plan interiors, generous glazing, and material palettes that reflect the surrounding coastal landscape.

Interiors incorporate engineered timber flooring, stone benchtops, and custom joinery, with layouts designed to adapt to both permanent living and lock-and-leave use.

[smartcode_project:default project_id=150037 project_image_fid=5336]

Rothelowman Senior Project Leader Matthew Tencate said the design approach centres on liveability and community.

“Providing curated on-site amenities and communal spaces for residents that facilitate a sense of community, liveability, and wellness,” Tencate said.

Residents will have access to a suite of private amenities including a pool, gym, sauna, and communal alfresco areas, alongside practical features such as surfboard storage and bicycle facilities.

[smartcode_project:default project_id=150037 project_image_fid=5336]

Centa Property Group Director Jason Yuen said the project has been designed to appeal to a range of buyers seeking flexibility in how they use their property.

“Bilinga House is designed for those who want the best of both worlds – a modern beachside escape with the flexibility to generate income when you're not there,” Yuen said.

[smartcode_project:default project_id=150037 project_image_fid=5338]

Bilinga remains one of the quieter pockets of the Gold Coast, sitting between the more established hubs of Coolangatta and Palm Beach. Its appeal has strengthened in recent years, supported by proximity to the Gold Coast Airport and the Oceanway coastal path.

[smartcode_project_cta:default project_id=150037]

Bilinga House apartments snapped up as Greyburn commences construction

Breaking into the Sydney property market has long felt out of reach for many first home buyers, particularly as median house prices sit above $1.6 million and unit prices push beyond $900,000.

But entry points still exist in pockets of Greater Western Sydney, where pricing, government incentives, and product mix are aligning to make ownership more attainable.

Understanding where those opportunities sit, and how the numbers actually stack up, is becoming increasingly important for buyers weighing up their next move.

<h2>Work out what you can actually afford</h2>

Sydney is expensive, but it isn’t uniformly expensive. The Greater Parramatta region continues to offer comparatively accessible entry points, particularly for buyers open to alternative configurations like studios.

There's an assumption that a first home needs to be a certain size, that anything smaller than a one-bedder is a concession rather than a choice. That assumption doesn't hold up against what well-designed studios in the right location actually offer: immediate liveability, strong urban amenity, and a price point that makes the deposit target realistic rather than theoretical.

At <a href="https://www.apartments.com.au/buildings/mason-main-merrylands-249-259-merrylands-road-merrylands-nsw-2160">Mason &amp; Main</a>, <a href="https://www.apartments.com.au/developers/coronation-property">Coronation Property</a>'s multi-award winning precinct in Merrylands, studio apartments are unlike the typical studio configuration.

Starting from $498,000, the bedroom is fully enclosed, separated from the living area by a cavity sliding door, creating a genuinely private sleeping space that functions more like a one-bedroom apartment than a traditional open-plan studio.

[smartcode_project:default project_id=31751 project_image_fid=359814]

At 42 sqm internally, with an open-plan kitchen, built-in robes, modern bathroom, and separate laundry, the apartments are designed for everyday liveability rather than short-term use.

With a five per cent deposit under the Federal Government's First Home Guarantee, that equates to a deposit of around $24,200, achievable for many first home buyers without the added cost of Lenders Mortgage Insurance.

<h2>Understand the real cost of renting versus buying</h2>

For buyers weighing up the shift from renting to owning, the numbers are closer than many expect.

Here’s how the numbers stack up for a studio at Mason &amp; Main (based on a $498,000 purchase):

<ul>
	<li>Purchase price: $498,000</li>
	<li>Five per cent deposit (First Home Guarantee): ~$24,900</li>
	<li>Loan amount: ~$473,100</li>
	<li>Estimated mortgage repayment (6.29% variable, 30-year term): ~$675–$695/week*</li>
	<li>Estimated rental return: $590–$620/week*</li>
	<li>Rental yield: 6.16% - 6.47%</li>
</ul>

At this level, the gap between renting and owning is relatively narrow, particularly when factoring in long-term equity, with rental returns also making the apartments a viable option for investors.

The rental range reflects current asking rents for remaining studio stock in the development and, based on prevailing asking prices, equates to an indicative gross rental yield of up to 6.47 per cent.

For buyers seeking more internal space, Mason &amp; Main also offers a range of one-bedroom apartments from $629,000, alongside larger one-bedroom plus multipurpose room configurations priced from $680,000 - all priced under $800,000 and eligible for first home buyer incentives.

<ul>
	<li>Purchase price: $629,000</li>
	<li>20 per cent deposit: ~$125,800 (5% deposit on exchange: $31,450)</li>
	<li>Loan amount 80%: ~$503,200</li>
	<li>Estimated mortgage repayment: ~$720–$740/week*</li>
	<li>Estimated rental return: $650–$680/week*</li>
	<li>Rental yield:&nbsp;5.37% - 5.62%</li>
</ul>

One-bedroom apartments continue to present a balanced option for both owner-occupiers and investors, supported by steady rental demand across Western Sydney.&nbsp;

[smartcode_project:default project_id=31751 project_image_fid=359812]

<h2>Make sure you're across the government incentives</h2>

Government incentives continue to play a key role in reducing the upfront cost barrier.

At Mason &amp; Main, studio, one, and two-bedroom apartments are priced under $800,000, allowing eligible buyers to access a full stamp duty exemption under the NSW First Home Buyers Assistance Scheme.

On a $498,000 purchase, that represents a saving of roughly $17,900 that would otherwise need to be paid at settlement.

Combined with the First Home Guarantee, which enables purchases with as little as a five per cent deposit, the total capital required to secure a home is significantly reduced compared to traditional lending pathways.

<h2>No waiting, no uncertainty</h2>

For first home buyers who want to move sooner rather than later, Mason &amp; Main removes one of the more common pain points from the purchase process entirely. The development is already complete and move-in ready, meaning buyers can walk through the apartments, inspect the finishes, and have full certainty about what they're purchasing before signing anything.

Coronation brought in renowned architecture firm <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> to design the development.&nbsp;

"The project's design drew inspiration from the area's rich heritage, in particular the nearby brickworks and aqueduct, infusing a contemporary perspective to seamlessly integrate historical influences into the design," Woods Bagot Principal Dom Alvaro says.

[smartcode_project:default project_id=31751 project_image_fid=736]

<h2>Factor in location and lifestyle</h2>

Beyond the apartment itself, the surrounding infrastructure matters, particularly for a first purchase. Merrylands Station sits 350 metres from the development, putting the Parramatta CBD a five-minute drive away and the Sydney CBD roughly 25 minutes via the Western Line. Directly across the road is Stockland <a href="https://www.apartments.com.au/developments/merrylands-nsw-2160">Merrylands</a>, one of Greater Western Sydney's major retail centres.

At street level, Mason &amp; Main's own retail and dining precinct has more than 30 tenants trading, including Iftar, Macelleria, Hayat, San Churro, Yuzu, and Fat Jaks. Residents also have access to a resort-style pool, a Technogym-equipped gym, private dining rooms, and a rooftop terrace with panoramic views across Parramatta, the Sydney CBD, and the Blue Mountains, all exclusive to the building.

Due to the mix of configurations, including studios which are rarely offered in today's new apartment market, first home buyers and investors have driven Mason &amp; Main to over 90 per cent sold.

Coronation Property Managing Director Joe Nahas says the development is driving a revitalisation of Merrylands, setting a high standard for future developments in the area.

Mason &amp; Main is move-in ready and is the latest in a series of award-winning mixed-use developments by Coronation Property.

Disclaimer: Mortgage repayment figures are estimates only, based on a 6.29 per cent variable rate over a 30-year term (Canstar, April 2026). Pricing and rental estimates are indicative and based on current listings and project information. Gross yield figures are indicative and derived from asking prices and estimated rental ranges. Stamp duty savings are indicative only. Buyers should seek independent financial and legal advice before proceeding.

[smartcode_project_cta:default project_id=31751]

How first home buyers can enter the Sydney property market for under $500k

Australia’s housing debate has rarely been more urgent. The National Housing Supply and Affordability Council forecasts the country could fall around 262,000 homes short of housing needs by 2029, underscoring the scale of the challenge facing planners, governments and developers.

In response, much of the conversation has centred on high-density towers around transport corridors and strategic centres.

Diversified developer Coronation Property, while also focused on well-located, strategic sites, is incorporating an arguably underutilised typology, the terrace.

Difficult to integrate into true high-rise developments, terraces have become a defining feature of Coronation’s lower-rise portfolio, including projects in Ashbury and Erskineville. <a href="https://www.apartments.com.au/buildings/ashbury-terraces-165-171-milton-street-ashbury-nsw-2193">Ashbury Terraces</a> places a stronger emphasis on this housing type, forming part of a broader community mix.

At its Erskineville development, <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, terraces are more limited, with just a handful&nbsp;included within the wider, predominantly apartment-led precinct, one of the first developments to launch in Erskineville in several years.

[smartcode_project:default project_id=135149 project_image_fid=368392]

Terrace residents at Lillian benefit from many of the same advantages as apartment owners, the lock-up-and-leave lifestyle and access to shared amenities like the rooftop wellness space, but with significantly more space.

Spanning multiple levels, the terraces also feature front and rear courtyards, providing direct access to the central landscaped gardens within the precinct.

<h3 data-end="212" data-section-id="1n97jye" data-start="191">The terrace model</h3>

Terrace housing has long been part of Australia’s urban fabric. From Paddington and Surry Hills to Glebe and Annandale, rows of terrace homes have shaped neighbourhood streets, offering a housing form that sits between detached houses and apartments.

The contemporary terrace, however, addresses many of the limitations of older designs, where narrow staircases and constrained layouts often compromised liveability.

[smartcode_project:default project_id=135149 project_image_fid=368157]

“Terraces represent one of the city’s most intelligent housing models,” says Joe Nahas, Managing Director of Coronation Property.

“They deliver density without losing the human scale that makes neighbourhoods liveable. In many ways, they provide a bridge between the Sydney we know and the Sydney we need to build. If Sydney is going to grow well, it can’t rely on towers alone.”

<hr data-end="1090" data-start="1087" />
<h3 data-end="1124" data-section-id="1a7l0gw" data-start="1092">The evolution of the terrace</h3>

That thinking has shaped Coronation’s approach at Ashbury Terraces, where the terrace typology has been reinterpreted for modern living.

Designed by SJB, the project recently received recognition at the 2026 Better Future World Design Awards, acknowledging its architectural clarity and response to the surrounding suburban context.

SJB Director Adam Haddow says the intent was to evolve a familiar housing form rather than reinvent it.

“The terrace is one of Sydney’s most familiar housing forms, so our approach at Ashbury was to reinterpret that typology in a contemporary way,” Haddow says.

“The homes are designed to sit comfortably within the existing neighbourhood while introducing more light, landscape and shared spaces that support modern living.”

Ashbury Terraces combines terraces, apartments and penthouses across a series of low-rise buildings, integrating contemporary architecture with landscaped communal spaces and resident amenity.

That same typology is now being carried into Coronation’s Lillian development in Erskineville, where a smaller number of terraces sit within a predominantly apartment-led precinct.

<hr data-end="2269" data-start="2266" />
<h3 data-end="2289" data-section-id="cazuws" data-start="2271">Buyer response</h3>

Coronation’s decision to include terraces at Lillian was informed by strong buyer feedback from Ashbury Terraces, where purchasers were drawn to the flexibility and scale the housing type offers.

One resident, Sweta Pursem, purchased a terrace as a single buyer, citing its long-term versatility.

“As a single buyer, it might seem surprising that I chose a terrace over an apartment, but I was thinking long term,” Pursem says.

“The terraces are incredibly versatile, catering to a range of lifestyles while still offering the space and privacy of a house.”

For Pursem, the multi-level layout provides a level of functionality not typically found in apartment living.

“Having a separate living area from the bedroom and home office makes everyday living feel both functional and comfortable. When friends and family come to visit, the layout gives a sense of privacy while still feeling open and spacious.”

Her terrace also supports a more connected, lifestyle-driven way of living.

“I love entertaining, and the courtyard is ideal for relaxed weekend drinks with friends. I tend to use each level differently throughout the day, it creates a natural rhythm between work, downtime and entertaining, which I didn’t have in apartment living.”

Ashbury Terraces is now complete and ready to move in, while Lillian in Erskineville is under construction and expected to welcome residents in mid-2027.

Coronation champions terraces as a key piece of Sydney’s housing mix

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
EXPERT OBSERVER
<div>Yet another inflation target miss was recorded for the June quarter.</div>
<div> </div>
<div>Nothing too earth-shattering there - the target has consistently been missed for years - but this one was a real corker, with headline inflation down by -1.9 per cent in the June 2020 quarter.</div>
<div> </div>
<div>And now the annual inflation rate has also turned negative, which a true rarity.</div>
<div> </div>
<div>Stated the ABS:</div>
<div> </div>
<div>'Since 1949, this was only the third time annual inflation has been negative. </div>
<div> </div>
<div>The previous times were in 1962 and 1997-98.'</div>
<div> </div>
<div>Underlying inflation was pretty flat for the quarter.</div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-zkgBciXdxgs/XyE29Bo1OQI/AAAAAAAA3VE/jP62pSmF3WkjpTlN7WZf3iGlg6YJuvchQCNcBGAsYHQ/s640/PW.jpg" width="640" height="126" data-original-height="135" data-original-width="683"></div>
<div> </div>
<div>Grattan recently produced a fairly damning indexed chart showing how inflation would've tracked higher had the target been hit over the past five years versus the actuals, a period through which there's been a persistent output gap, weak wages growth, and oodles of spare labour force capacity. </div>
<div> </div>
<div>We're still getting no closer to the inflation target then. </div>
<img src="https://1.bp.blogspot.com/-GuyrxR0LcdU/XyE197Iof6I/AAAAAAAA3Us/7ilsxHD355ESAA7OgfmRuvoGqYN1PbStwCNcBGAsYHQ/s640/A1.jpg" width="640" height="374" data-original-height="798" data-original-width="1361">
The main contributors to the weakness over the quarter included declining childcare and fuel prices.
<img src="https://1.bp.blogspot.com/-jv2DrjN1hpA/XyE19w7O2II/AAAAAAAA3Uw/6gSiXaKog4syvMHwDoL7a3v4uZor3qU0wCNcBGAsYHQ/s640/A3.jpg" width="640" height="376" data-original-height="796" data-original-width="1348">
The CBD rental markets were hit with a swathe of Airbnb and student rentals in the June quarter, and the rental price index also turned negative year-on-year...for the first time ever. 
<img src="https://1.bp.blogspot.com/-xopSOfZK4aM/XyE2GoQgGHI/AAAAAAAA3U0/on8rPBYcHIwdFBDw-AA6TgZAGutBgM-8wCNcBGAsYHQ/s640/A2.jpg" width="640" height="360" data-original-height="804" data-original-width="1427">
There will be something of a bounce in Q3 in some categories, and truthfully there weren't too many surprises here, but overall there's a long way to go before things recover.
<div>Detailed report as always from from James Foster here.</div>
PETE WARGENT is the co-founder of AllenWargent property buyers and a best-selling author and blogger 
</body></html>

pwargent-M4siyDbqQY

Annual inflation negative for the third time ever: Pete Wargent

<html><body>
EXPERT OBSERVER
Australia has many growth markets at the moment. Jurisdictions where prices are growing outnumber those where they’re falling.
Didn’t know that? Here’s the problem.
Most of our major media emanates from Melbourne and Sydney. Writers there are obsessed with themselves and have little awareness of the 17 million Australians who don’t live in the two biggest cities. They tend to assume that events in Sydney describe the whole nation. If Sydney’s booming, they write about the national property boom. If Melbourne - otherwise known as Corona Country, home of the Dan-demic – is falling, the coverage suggests a national market slump.
That’s never true and it’s certainly not true right now. Regional Australia is pumping and we’re not hearing too much about it.
Let’s look at the latest price data from Domain, which focuses on the figures for the June Quarter.
In annual terms, six of the eight capital cities have house prices higher than a year ago. Remarkable, really. The exceptions are Perth and Darwin.
In the June Quarter, Canberra and Hobart recorded increases while Adelaide was essentially no change. Sydney, Brisbane, Perth and Darwin all fell about 2% and Melbourne around 3%. Those figures generated nationwide headlines that prices were falling everywhere.
It’s important to note that other sources, like SQM Research and CoreLogic, have different results. Media never acknowledges that the various sources come up with different outcomes on prices – they’re too busy sensationalizing the negatives in any set of figures.
But CoreLogic’s latest figures record growth in house prices in the June Quarter in Adelaide, Hobart, Canberra and Darwin and no change in Brisbane. In other words, CoreLogic’s figures are more positive than those from Domain.
Returning to the Domain data, the results for regional Australia are considerably more bullish than those for capital city Australia. For the June Quarter it records price rises in New South Wales, Victoria, South Australia and Tasmania – while in annual terms, there are increases in Tasmania (12%), Victoria (7%), NSW (6%), South Australia (4%), the Northern Territory (4%) and Western Australia (2%). Queensland was the only regional jurisdiction to record an annual decrease (less than 1%).
The CoreLogic figures for regional Australia in the June Quarter recorded house price rises in NSW, Victoria, South Australia, Tasmania and the Northern Territory.
Markets in many regional areas are pumping. Regional cities and towns have generally experienced few cases of Covid-19 – and some have had zero cases. Apart from those heavily reliant on international tourism, local economies are travelling pretty well and some are thriving, because of the components of the local employment sector. Agriculture, viticulture, mining, medical services and food services are all sectors that have done fairly well or very well amid the virus shemozzle.
There is also the trend I call “the exodus to affordable lifestyle”. This was already well under way, with people relocating from the big cities to sea change and hill change locations within 1-2 hours of the capital. The virus shutdown phase has enhanced this significant trend. Working remotely doesn’t suit everyone but there are many for whom it works to work at home.
First-home buyers boosted by multiple government incentives and investors seeking affordability and yield, as well as solid growth prospects, are also helping to drive regional markets.
Near Melbourne, markets like the LGAs of Baw Baw (10%), Golden Plains (16%) and Central Goldfields (11%) have all recorded double-digit annual rises, according to the Domain data.
Near Hobart, municipalities such as Brighton and Huon Valley have risen 20% in 12 months, but growth markets can be found right across regional Tasmania.
In Queensland, the regional markets with prolific one-year increases tend to be resources-related locations, some of them rising from a low base after years of decline.
There’s plenty of growth happening out there in Australia, beyond the boundaries of Melbourne and Sydney.
Terry Ryder is the founder of hotspotting.com.au ryder@hotspotting.com.au twitter.com/hotspotting
 
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Property growth markets are the majority despite claims otherwise: Hotspotting's Terry Ryder

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First-home buyers have been stepping up their activity in the market over recent months, with the Australian Bureau of Statistics housing finance commitments data showing a 14.3% jump in the number of first-time buyer loans over the September quarter of 2012 compared with the September quarter of 2011.  First-home buyers now comprise 19.3% of all owner-occupier housing finance commitments, which is slightly higher than the decade average of 18.5%.
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The number of housing finance commitments for first-time buyers has been very much influenced by the specific concessions and stimulus available at the state level.  For example, the stamp duty concession that was available in New South Wales up to December 31, 2011, resulted in a surge of first-time buyer activity leading up to the cut-off date (see black trend line below).  Similarly, in Victoria, the expiry of the state level first-home buyers' bonus on July 1 caused a similar surge in activity leading up to the expiry of the stimulus (red trend line in graph below).
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More holistically, the first-home buyers' boost, which was provided by the federal government in late 2008 through to the end of December 2009, resulted in a record number of first-home buyers flowing into the housing market.  First-home buyers as a proportion of all owner-occupier housing finance commitments peaked at just over 30% in May 2009.
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The response from first-home buyers to the concessions and stimulus demonstrates how much pent-up demand there is across this important segment of the housing market.  Affordability constraints are a significant factor for first time buyers, and a stamp duty saving or grant clearly makes a big difference to their sentiment towards a home purchase and their willingness to enter the market.
On a proportional basis, first-home buyers are most active in Western Australia and Queensland.  It seems that housing prices have little to do with attracting first-home buyers to a market, with the most affordable states for housing, Tasmania and South Australia, attracting the lowest proportion of first-time buyers.
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Common sense would dictate that employment opportunities would be a factor in attracting first-home buyers, and that case can absolutely be argued in Western Australia, where there were over 68,000 new jobs created over the past year.  That isn’t the case in Queensland, which has shown a fall of nearly 43,000 jobs over the past year.
One explanation for the popularity of Western Australia and Queensland for first-time buyers is the fact that these two states attract the largest proportion of interstate migrants (<a href="https://blog.rpdata.com/2012/10/housing-demand-is-rising-at-the-fastest-rate-since-december-2009/" target="_blank">you can see our wrap on population growth and interstate migration in a recent blog here</a>).
While first-time buyers are becoming more active and comprise a larger than average proportion of the owner-occupier market, the raw numbers remain low from a historical standpoint, with the September number of first-home buyer finance commitments tracking almost 17% lower than the five year average.
Tim Lawless is national research director of <a href="https://www.myrp.com.au/" target="_blank">RP Data.</a>
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First-home buyers stepping up activity in WA and Queensland: Tim Lawless

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If Harry Triguboff were governor of the Reserve Bank, the cash rate would fall to 2.25%, a setting that the Meriton boss believes would encourage first-home buyers back into the market in a meaningful way.
In another yarn with Business Spectator’s Robert Gottliebsen, Triguboff said first-home buyers were not as responsive to interest rate cuts as they were in the past primarily because it is still cheaper to rent in places like the outer suburbs of Sydney than buy.
He believes a quarter percentage point shaved from the cash rate, as the RBA is anticipated to announce tomorrow at its December monetary policy meeting, or even a 50 basis point cut, would have little impact on the decisions of first-home buyers.
First-home buyers will only buy a property when they know it will leave them better off financially every month – when mortgage repayments are lower than rental payments.
Triguboff calls this an unprecedented attitude and one which is being felt by all developers and builders especially across the eastern seaboard and one which they did not expect.
Around a third of Melbourne residential land has been returned by building companies over the September, according to the latest report by the <a href="https://www.propertyobserver.com.au/land/one-in-three-melbourne-residential-lots-being-returned-to-developers-by-building-firms-report/2012112958179?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus">National Land Survey Program</a> report carried jointly by Research Four and property consultants Charter Keck Cramer
Last week, <a href="https://www.propertyobserver.com.au/queensland/mirvac-refunding-all-off-the-plan-deposits-for-postponed-brisbane-and-townsville-residential-projects/2012112858163">Mirvac cancelled projects</a> and refunded deposits on projects in Brisbane and Townsville after very low off-the-plan sales.
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Rates need to fall a further 100 basis points to bring back first-home buyers: Harry Triguboff

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Economist Steve Keen has delivered a damning verdict on the impact of first-home owner grants, saying they only serve to drive up property prices and push first-home owners out of the property market. 


The embattled economics professor and columnist, currently in a legal dispute with his academic institution the University of Western Sydney, says the new doubled $15,000 first-home owner grants being offered by the NSW and Queensland state governments – labelled builders’ grant by Ray White boss Brian White – aren’t as damaging as the previous broader grant to buyers of existing properties.

Keen labelled the recent accusation levelled by acting NSW opposition leader Linda Burney that Premier Barry O’Farrell had abandoned first-home buyers by cutting the grant for existing home and removing stamp duty concessions (unless you buy or build a new home) as “bollocks”.

“First-home buyers weren’t locked out by the ending of the first home vendors’ grant: they were locked out by the impossibly high prices that this grant has helped generate over the 30 years since it was first invented,” says Keen.

Keen says former prime minister Kevin Rudd’s doubling and tripling of the first-home owner grant from 2008 to 2010 caused the last spike in house prices, with the real beneficiaries those vendors who sold their first homes to first-home buyers – hence why Keen calls it the "‘first-home vendors’ grant" – and the banks that took the extra deposit and heaped first-home buyers with “initially three and ultimately over 10 times as much more debt”.

“The grant should be abolished, and governments should keep their hands out of asset markets.

“The O’Farrell government is still in there with its grant to purchasers of new properties, but that isn’t as damaging as the broader grant to buyers of existing properties as well.

“In that sense, I applaud the O’Farrell government for limiting the damage done to first-home buyers – and indeed the economy – by the grant,” he says in a column for Business Spectator.

Keen says the purpose of the first-home owners grant has never been to give first home buyers a helping hand, but has “always been used as a way of giving the economy the economic equivalent of a steroid injection”.

“First-home buyers have instead been the sacrificial lambs of an asset-price-inflation route to apparent national prosperity,” says Keen.
 
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Keen says former prime minister Bob Hawke was the first to use a first-home buyers grant after he beat Malcom Fraser at the 1983 election, not to help first-home buyers but as a way of “reviving the housing market and perhaps the economy”.

He says it worked a treat, and allowed Paul Keating to claim the mantle of greatest treasurer ever.

But, Keen says, the grant also “supercharged house price rises”.

According to Keen, every time the government has introduced a first-home owner grant, the effect has been the same and can be observed by looking at house price before and after its introduction.

He says without government-injected stimulus, house prices have risen more or less in line with inflation, but have diverged noticeably to deliver real growth on the back of first-home owner grants.

“This is when the myth that house prices always rise took hold in the Australian psyche – without the awareness that this was not a natural phenomenon like sunrise, but took not only rising leverage from the banks, but also active intervention in the property market by both state and federal governments.

Keen is currently embroiled in a Fair Work Commission dispute with the University of Western Sydney over delays in processing his voluntary redundancy while at the same time facing a corruption watchdog enquiry after telling his economics students he could not fail any of them because they would not be able to re-sit exams due to the university no longer offering an Economics degree course.

A tribunal hearing involving Keen and UWS began yesterday in Sydney while UWS has already referred the matter to ICAC.

Keen tweeted that it was confidential hearing at the request of the university.

Keen explained what he told his students in an interview with ABC News radio yesterday.

“I told the students that I would not fail anyone given the circumstances that their subject was quite possibly being abolished and they were told about it two weeks before the exam for that subject would take place and of course if they failed, there wouldn't necessarily be a subject there for them to repeat the following year and I certainly wouldn't be teaching it so in that situation I just couldn't see how I could fail anybody.

He says he “probably overstepped the mark”, but claims UWS has “blown the matter out of proportion as part of a battle over the cuts to economics”.

Keen says he has been invited to two universities in London to apply for professorships and has also applied to his alma mater, the University of Sydney, for the professorship of political economy.
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State handouts turned first-home owners into “sacrificial lambs”: Steve Keen

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With another federal election now passed all the political rhetoric about infrastructure will be buried until the next election in three years’ time. Sadly, in Australia our elected governments are only interested in the one thing – taxes.
Since the early 1980’s politicians have conveniently discussed the construction of a high – speed rail link along the east coast where typically nothing has happened, although you can be guaranteed that it will be mentioned again prior to the next federal election. In 2013 the High Speed Rail Study Phase 2 Report estimated that a conventional High Speed Rail Express trip from Sydney to Melbourne would take 2 hours and 44 minutes (about the same time it takes to check into an airport). Sydney to Brisbane would take 2 hours and 37 minutes. Again these reports end up in the too hard basket.
Sydney is now recording the highest prices ever recorded with no signs of easing as the official cash rate keeps going down and this will be the case for easily the next decade. What is urgently required is a high – speed rail link from Sydney to Newcastle and Sydney to the Southern Highlands then to Wollongong. This is the only feasible way that property prices will ease given it’s now urgently required that these three cities are inter – connected.
In 2013 CoreLogic reported that the number of Australian suburbs with a median home value in excess of one million dollars was 264. Their latest data now indicates that this has now jumped to 570.
To provide a frightening case study in June 1992 I sold a home in Ourimbah Road Mosman for $320,000. Every two years I provide the owners with an updated weekly rental and value as the subject property is in a Superannuation Fund. In 2002, our estimated value was $775,000 to $800,00 with a rental of $600.00 to $700.00 per week. In 2006, our estimated value was $1,150,000 to $1,250,000 and the rental $900.00 to $925.00 per week. In 2014, our estimated value was $1,550,000 to $1,600,000 and the rental $1,500.00 to $1,600.00 per week. This week I assessed the property for 2016, our estimated value was $2,300,000 to $2,500,000 and the weekly rental was now $1,800.00 to $2,000.00 per week.
Little wonder the retiring Reserve Bank of Australia governor Glenn Stevens had plenty to say this week on the Australian economy in his farewell speech. Ultimately, low interest rates could only do their job when “someone somewhere has both the balance sheet capacity and the willingness to take on more debt and spend.” Obviously aimed at the federal government to start building better infrastructure in Australia. Private sector debt in Australia for companies equates to 125 per cent of GDP where the government’s debt sits at 40 per cent of GDP.
It’s quite simple that the Sydney property market needs to expand to Newcastle, Hunter Valley, Southern Highlands and Wollongong. Our federal government is spending money on public servants and social services with very little going into new infrastructure which would then drive development, employment and ease the ever growing property prices. Sydney in this instance would be the perfect test case to identify that if you get all the market machinations right you can ease property prices.
The only problem with this is that nobody wants to push and prod the elected governments of the day into direct action. It’s high time politicians became accountable instead of prime ministers claiming the mantle as being the infrastructure prime minister. In a report on High Speed Rail I read: “fast trains to connect the eastern seaboard cities of Melbourne, Canberra, Sydney and Brisbane are feasible, practical and profitable today. The project can be done for about $30 billion, about a quarter of the cost estimated on old paradigms in 2013. And it can be done in less than seven years, not the 30 to 35 years previously suggested.”
“The trains could be the 21st century equivalent of the Snowy Mountains Scheme, and would need little or no direct government funding.”
So one needs to ask the question – why then is nothing happening? Unfortunately, the answer may well be that Australian politicians have no train of thought.
<h5>MOSMAN – 2088</h5>
Number of houses on the market this time last year – 47
Number of houses on the market last week – 42
Number of houses on the market this week – 51
Number of apartments on the market this time last year – 41
Number of apartments on the market last week – 41
Number of apartments on the market this week – 44
<h5>CREMORNE – 2090</h5>
Number of houses on the market this time last year – 2
Number of houses on the market last week – 7
Number of houses on the market this week – 10
Number of apartments on the market this time last year – 18
Number of apartments on the market last week – 17
Number of apartments on the market this week – 16
<h5>NEUTRAL BAY – 2089</h5>
Number of houses on the market this time last year – 2
Number of houses on the market last week – 7
Number of houses on the market this week – 8
Number of apartments on the market this time last year – 25
Number of apartments on the market last week – 20
Number of apartments on the market this week – 20
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
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Blame our governments for high property prices: Robert Simeon

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It’s a marvel that Australia has any regional cities left.
Every time there’s a major (and sometimes relatively minor) business reversal, media declares the death of the local economy and often the collapse the local property market.
Legendary author Mark Twain could have been speaking for Newcastle, Wollongong, Geelong and many other regional cities when he said that “the reports of my death have been greatly exaggerated”.
The latest Australian regional city to inspire a premature obituary is Townsville in the wake of the decision by political and business buffoon Clive Palmer to shed 237 jobs at his Queensland Nickel refinery. 
As has become common in the wake of such events, the media coverage has been a tad over the top since the announcement. I’ve seen reports predicting devastation of the local economy. One suggested Townsville would become “a ghost town”.
Admittedly some of the dire forecasts have been sourced from sacked workers who were understandably emotional.
But beyond the unfortunate impacts on the affected families, the downsizing of the Queensland Nickel business is not a catastrophe for Townsville.
The northern Queensland city is one of Australia’s strongest regional economies. It has wonderful diversity, with a broad range of strong industry sectors providing employment and economic activity.
It has a major (and expanding) military presence, a massive government sector, a significant education industry, a busy tourism industry and various activities related to the resources sector, among others. 
Few Australian regional cities can match it for strength and diversity.
A couple of years from now the Queensland Nickel kerfuffle will be seen as a minor blip in the economic life of this very strong city.
Townsville is not the first regional economy to be declared terminal and it won’t be the last.
Last rites have been administered in recent years to both Wollongong and Geelong, which nevertheless remain very much alive and kicking.
Wollongong was proclaimed an impending basket case when Bluescope Steel announced some major downsizing in 2011. Media went overboard. I recall one headline predicting that property values would fall 50%.
But something quite different occurred. The Wollongong property market has recorded strong price growth in the years since, partly because it caught the wave from Sydney and partly because of positive events in the local economy. 
What the doomsayers overlooked when they over-reacted to the Bluescope Steel job cuts is that there are a lot of  other things happening in Wollongong besides the smokestack industries. Like many other regional cities, Wollongong has been busily reinventing itself and these days has strong industry sectors in education, IT and tourism, among others.
The gradual decline in employment at the steelworks has been going on since the 1970s. Back then, Bluescope Steel employed 27,000 people. Today it provides jobs to only 10% of that number. In the meantime, Wollongong has moved on and created new modern industries to sustain itself.
It’s doing just fine.
So is Geelong, although it should have shuffled off this mortal coil before now, in the wake of bad news about the Ford car plant and one or two other old-style industries. 
But, like Wollongong, Geelong isn’t a blue collar factory town any more. Its biggest employment sectors are eduction and health. The city is thriving as an affordable lifestyle alternative to Melbourne, to which it is now better connected since the completion of the $5 billion Regional Rail Link.
Major new enterprises are opening up in Geelong. One is the National Disability Insurance Scheme, which is being headquartered in Geelong and is attracting other enterprises that want to be located near it.
In real estate terms, Geelong is the strongest market in regional Victoria and I don’t expect that to change any time soon.
There are echoes in this situation also of Newcastle, which was expected to wither and die following the closure of BHP activities in the late 1990s. But check it out today and you’ll find a strong and vibrant city where spending on new infrastructure and property developments totals many billions of dollars. 
And so it will be with Townsville. I’m sure those 237 people who are losing their jobs are suffering (I’ve experienced retrenchment a couple of times in my life and it’s not pleasant) but Townsville as a community and as an economy will not be devastated. 
We’re talking 237 jobs in a city of 200,000 people. Even allowing for flow-on effects, Townsville’s future is as strong as ever.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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Townsville economy will weather mining downturn: Terry Ryder

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Conveyancers are absolutely integral to facilitating any type of property transaction, yet most people are somewhat in the dark about their role.
Conveyancers are very much the quiet achievers in the property industry but are absolutely integral to facilitating every type of property transaction.
Many people, including some in the property industry, don’t necessarily understand the full extent of what we do. For example, many buyers and sellers aren’t aware that they can choose their own conveyancer in a property transaction.
A good conveyancer can hold a property transaction together – they are an important resource for the buyers and sellers, but also for real estate agents and mortgage brokers.
The role of a conveyancer
Conveyancers are responsible for the legal and statutory processes involved with the transfer of ownership of real estate from one person or entity to another. The preparation, execution, verification and lodgement of numerous legal documents are important elements of conveyancing.
Your conveyancer is very much a key part of your advisory team, in addition to your real estate agent and mortgage broker, and should be involved with the purchase or sale of your property from the outset.
A good conveyancer will assist you in many ways whether selling or buying – this includes reviewing the contract and offering independent advice, advising on the information provided in statutory disclosure statements, searching within government departments and local authorities for matters affecting the property, and preparing the legal documentation.
Some of their duties include responsibility for attending to payment of stamp duty on the transfer of the property on behalf of the client, coordinating and attending settlement with the client's financial institution, advising a client when settlement is completed and notifying the state’s water utility, the  local council and any affected strata or community managers of change of ownership.
A good conveyancer can also assist you with various other transactions such as leases, sales of business and land divisions, to name a few.
Your right to choose
As a key member of your selling or buying advisory team, it’s important to know that you have the right to choose your own conveyancer to help facilitate this process, in the same way as it’s your decision which real estate agent or mortgage broker you use.
As a result, it’s important that you make a well researched and informed decision. While there’s merit in considering the recommendations of others, don’t feel pressured to use them, but do your own research and make your own choice. Remember, it is your choice.
Chances are you’re going to be involved in a property transaction more than once in your life, so look to work with a conveyancer who you feel comfortable with and who you would happily use again in the future.
It’s also very important that you do not choose the conveyancer that the other party to the transaction is using. While some might suggest that it saves time, effort and money for the same conveyancer to act for both, it has the potential to create issues should a conflict of interest arise in your transaction.
Your conveyancer is ‘in your corner’ to help advocate for and protect your interests. If they are also acting for the other party there is the very real potential for them to be compromised if there is a problem with the transaction.
What to look for
When looking for a conveyancer to assist in you there’s merit in talking with two or three in the first instance to help you make your decision.
Look for a conveyancer who is a member of the Australian Institute of Conveyancers and is a certified practising conveyancer, this means he or she maintains a certain level of ongoing professional development and has a certain level of qualifications and experience. It means the conveyancer is up-to-date with changing legislative requirements and industry standards.
A conveyancer who has a certain level of longevity working in the local real estate market and knowledge of and experience in a broad range of property transactions is also a good candidate for your business.
Ask about the likely fees and charges (although don’t choose a conveyancer that is simply the cheapest), how long settlement is likely to take and how the conveyancer will communicate with you throughout the process.
It’s important that you brief your chosen conveyancer on anything that may impact on the transaction or delay settlement, such as financial issues or a short timeframe, so he or she can factor this into process. 
Most importantly, remember it is always best to speak to your conveyancer from the outset of any property transaction. The earlier your conveyancer is involved, they more likely he or she is to be able to identify any problems or issues and address these. 
Penny Erskine is a qualified conveyancer and marketing manager at Adelaide conveyancing firm <a href="https://www.conveyancingmatters.com.au/index.php">Conveyancing Matters</a>.
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A good conveyancer can hold a property transaction together: Penny Erskine

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Mortgage Choice CEO Michael Russell says he is certain state governments are re-assessing their first-home buyer grant schemes following dramatic falls in their share of the mortgage market.
Russell quoted ABS figures showing that from July to December, the proportion of first-home buyers taking out home loans fell from 18.6% to 14.2%.
A year ago (December 2011) their share of the market 20.2%.
Russell told Property Observer this was a "significant deterioration" and an area of "genuine concern.
He says changes to first-home owner grant schemes are not having a "particularly favourable effect".
Last year the Queensland and NSW governments withdrew the $7,000 first-home owner grant and replaced it with a $15,000 grant but only for those who buy or build a new home.
Russell says Mortgage Choice believes that all first-home buyers should be entitled to the first-home buyer grant.
"The notion of not indexing it it does not make sense.
"It needs to be indexed.
"I am sure it is being assessed at the moment, there will need to be action," says Russell.
He added that he does not subscribe to the notion that the grant has an inflationary effect - the theory that the grant pushes up house prices so first-home buyer don't actually get any benefit.
In his presentation to media <a href="/news">following strong interim results</a>, Russell noted that there had also been a declining in those refinancing, despite "incredibly attractive competitive interest rate and removal of exit fees" with the percentage of mortgage holders refinancing falling from 19.3% to 17.7%.
The good news for the market, he said was a rise in the number of homeowners looking to upgrade, with loans from this sector rising from 35 to 38.5% and the return of investors coming with their share of the market rising in both percentage of loans  and value, up from 31.4% to 33%.
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State governments need to look at first-home buyer handouts: Mortgage Choice

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First-home buyers can still take advantage of significant financial incentives and savings as state and territory governments prepare their 2013-14 budgets.
Victoria will be the first to announce its state budget on May 7 with Queensland to release its state budget on June 4 and NSW on June 18.
However, time is running out for some first-home buyer grants, which are due to expire at the end of the financial year.
In South Australia the $8,000 Housing Construction Grant (HCG) will expire on June 30. It applies to contracts entered into between 15 October 2012 and 30 June 2013, or in the case of owner builders, where construction commenced between 15 October 2012 and 30 June 2013. A property value cap of $450,000 applies.
And in the ACT, the Home Buyer Concession Scheme (HBCS), offering stamp duty concession to first-home buyers and anyone else purchasing a new home or residential vacant land under certain thresholds, is due to expire on June 30.
Nothing has yet been leaked about possible changes to first-home owner grants and stamp duty savings, but the Real Estate Institute of NSW (REINSW) is already campaigning for the reinstatement of first home buyer incentives in NSW for purchasers of existing properties as demand from this key sector continues to fall.
First-home buyer as a proportion of the mortgage market fell to just 14.4% in February, down from 15% in January, according to ABS figures - their lowest share of the market in more than eight years.
“We are calling on the Treasurer to not only reinstate first home buyer incentives that were removed in 2012, but to also explore additional opportunities to assist first home buyers to take their first step onto the property ladder,” says REINSW president Christian Payne. “It is not too late for the NSW Government to reverse its decision to abolish from 1 January 2012, the stamp duty exemption/concession and from 1 October 2012, the $7000 grant, for those buying existing properties.
A similar campaign could be on the cards in Queensland, which also abolished the $7,000 first-home owner grant for those buying existing properties last year in favour of a $15,000 incentive for those buying or building a new home.
<a target="_blank" href="/news">Changing the name of the scheme</a> from the first home owner construction grant (FHOCG) to the 'great start grant’ in March is unlikely to have made any difference to sentiment.
This is what is currently on offer across states and territories: 
Victoria
On January 1 this year, the state raised its stamp duty discount for homes priced under $600,000 from 20% to 30%.
The higher discount kicked in on January 1, 2013, and applies to both existing homes and new homes, delivering first-home buyers additional savings starting from $600 to a maximum of just over $3,000 on a house price at $600,000.
First-home buyers can work out their stamp duty savings using this table provided the <a href="https://www.sro.vic.gov.au/sro/sronav.nsf/LinkView/C88211C9E07486F0CA2578B70001025018E490D796850F8ECA2575C1008187C7" target="_blank">Victorian government’s State Revenue Office.</a>
Maximum stamp duty savings are now over $9,000. Combined with the existing first-home owners' grant of $7,000 there is nearly $16,000 in savings for those first-home buyers who are willing to venture into the property market in 2013.
The stamp duty discount will rise to 40% on January 1, 2014, and to 50% on September 1, 2014.
To qualify for the stamp duty discount, first-home buyers must also qualify for the $7,000 first-home owners’ grant.
All added up it means Victorian first-home buyers purchasing an existing home receive the highest amount of financial support from their state government.
Further information can be found on the <a target="_blank" href="https://www.sro.vic.gov.au/sro/SROnav.nsf/alltitle/First%20Home%20Owners?open">Victorian government first-home owner website</a>.
 
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NSW
A first-home buyer who purchases a $550,000 new home will get $35,240 in assistance.
This includes a $15,000 grant for first-home owners who purchase or build a new home valued at up to $650,000. The grant is available until December 31, 2013, reducing to $10,000 from January 1, 2014.
Non-first-home buyers who buy a new home are eligible for $5,000 whether the new home is off the plan or newly built with a value up to $650,000, The $5,000 grant is also available to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.
First-home owners are also eligible for a maximum stamp duty saving of $20,240 for homes up to a value of $550,000, with duty concessions for new homes valued between $550,000 and $650,000. The transfer duty exemption cap on vacant land is $350,000, with duty concessions for vacant land valued between $350,000 and $450,000.
Further information can be found on the <a target="_blank" href="https://www.osr.nsw.gov.au/benefits/first_home/">NSW first home benefits</a> website.
Queensland
A $15,000 first-home owner construction grant (FHOCG) is available. The FHOCG applies to new property bought or built at a value under $750,000.
First-home buyers also pay no duty on purchases up to $500,000, with a phasing-out rebate applicable for values up to $600,000.
For non-first-home buyers, the Queensland government offers a concessional stamp duty rate of 1% up to a value of $350,000, with stamp duty charged at normal rates for the remaining value of the home purchase. The buyer must occupy the home for a period of 12 months – an applicant may lose the concession if he sells or leases part or all of the home before moving in or within a year of moving in.
Further information can be found the <a target="_blank" href="https://www.osr.qld.gov.au/first-home-owner-grant/fhog-fhocg-landing-page.shtml">Queensland first home owner grant</a> website
South Australia
South Australian first-home buyers have the chance to secure $23,500 from the state government, provided they build a new home.
The $23,500 handout comprises a doubled first-home owner grant of $15,000 for contracts entered into on or after October 15 and up to a value of $575,000, plus a further $8,500 housing construction grant (HCG). The housing construction grant replaces the $8,000 first-home bonus grant.
The HCG is available to all builders of new homes for properties valued up to $400,000, phasing out for properties valued up to $450,000 where contracts are entered into between October 15, 2012, and June 30, 2013, inclusive.
Concessions could rise to $39,830 if first-tome buyers buy an apartment off the plan in the Adelaide CBD under $400,000, where a stamp duty concession of $16,330 applies.
This part of a new stamp duty concession scheme available on the transfer of a new CBD apartment or a "substantially refurbished apartment" for a contract entered into from May 31, 2012, to June 30, 2014, capped at stamp duty payable on a $500,000 apartment of $21,330.
An example where a $39,830 saving would be available to a first-home buyer is <a href="https://www.realestate.com.au/project-aria+on+gouger-sa-adelaide-600000551" target="_blank">Aria on Gouger Street </a>being developed by Brock Urban Projects, where two-bedroom apartments are priced from $335,750.
Up until June 30 2014, South Australian first-home buyers of established homes are entitled to a $5,000 grant. From July 1, 2014, no first-home owner grant is available to purchasers of established homes.
Further information can be found on the <a target="_blank" href="https://www.revenuesa.sa.gov.au/IamaFHB">South Australia first-home buyer</a> website.
 
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WA
A $7,000 first-home owner grant remains in place for a newly constructed or established home. It does not apply to vacant land purchased to build a new home. The total value of the home must not exceed $750,000 if the property is located south of the 26th parallel of South Latitude, or $1 million if located north of the 26th parallel of South Latitude. First-home buyers eligible for the $7,000 grant pay no stamp duty on homes valued up to $500,000 and up to $300,000 for vacant land. There is also The Home Buyers Assistance Account, which provides a grant of up to $2 000 for the incidental expenses of first home buyers when they purchase an established or partially built home through a licensed real estate agent for the purchase price of $400,000 or less.
Further information can be found on the <a target="_blank" href="https://www.finance.wa.gov.au/cms/content.aspx?id=3868">WA’s Department of Finance</a> website. 
ACT
A $7,000 first-home owner grant remains in place for both existing and new homes where the price of the property or construction of the home does not exceed $750,000. The territory government also offers a Home Buyer Concession Scheme (HBCS) to assist persons in purchasing a residential home or residential vacant land by charging stamp duty at a concessional rate. This scheme ends on June 30 and applies to homes valued less than $450,000 and land valued at less than $263,000.
Further information can be found on the <a target="_blank" href="https://www.revenue.act.gov.au/home_buyer_assistance">ACT Revenue website</a>.
Tasmania
A $7,000 first-home owner grant remains in place for both existing and new homes, with no cap on the value. Tasmanian first-home buyers buying or building a new home (including off-the-plan) are eligible for an additional $8,000 under the First Home Builder Boost Scheme, which applies from January 1 2013 to June 30 2014 if the qualify for the first-home owner grant.
Further information can be found on the <a target="_blank" href="https://www.sro.tas.gov.au/fhog">Tasmania first home buyer website.</a>
Northern Territory
For transaction after December 4 2012, a $12 000 first-home owner grant is available for an established home in the urban area or $25,000 outside of urban areas where the price of the property or construction of the home does not exceed $600,000. An urban area is the Darwin, Palmerston or Litchfield municipalities; Wagait Shire; the Darwin Waterfront Precinct; the “prescribed area” for the Darwin Rates Act, any other area prescribed by regulation.
The Northern Territory Government provides a stamp duty Principal Place of Residence Rebate (PPRR) to persons purchasing a new home or land on which to build a home. A calculator is provided to work out <a target="_blank" href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/StampDuty/StampDutyCalculators/Pages/PPRR-Calculator.aspx">stamp duty payable on a home eligible for the rebate</a>
Further information can be found on the <a target="_blank" href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/HomeOwnerIncentives/Pages/default.aspx">NT treasury page.</a>
 
 
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