<p><a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.</p>

<p>The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.</p>

<p>Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.</p>

<p>The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.</p>

<p>The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments</p>

<p><img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" /></p>

<p>Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.</p>

<p>But one of the biggest components of the proposal is what sits between the buildings.</p>

<p>Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.</p>

<p>The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.</p>

<p>Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.</p>

<p>SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.</p>

<p>The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.</p>

<p>The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.</p>

<p>Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.</p>

<p><img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" /></p>

<p>SP Setia plans to deliver the development across three stages.</p>

<p>Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.</p>

<p>If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

<p>Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.</p>

<p>Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.</p>

<p>The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.</p>

<p>“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.</p>

<p>"Eight residences is exceptionally boutique, but that's precisely what this site calls for.</p>

<p>“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”</p>

<p><img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" /></p>

<p>The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.</p>

<p>The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.</p>

<p>The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.</p>

<p><img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" /></p>

<p>The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.</p>

<p>It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.</p>

<p>Heritage has subsequently played a significant role in Cera Stribley's design.</p>

<p>The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.</p>

<p>Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.</p>

<p><img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" /></p>

<p>Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.</p>

<p>A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.</p>

<p>A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.</p>

<p>Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.</p>

<p>Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.</p>

<p>The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.</p>

<p>Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.</p>


Lowe Living unveils Middle Park apartment development

<p data-end="288" data-start="269"><strong data-end="288" data-start="269">Article summary</strong></p>

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289"><strong data-end="374" data-start="291">DVB Projects is preparing to launch its second Gold Coast apartment development</strong>, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443"><strong data-end="513" data-start="445">The 34-level tower will comprise just 49 ultra-luxury residences</strong>, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574"><strong data-end="646" data-start="576">The launch follows strong demand at DVB's nearby Sea Glass project</strong>, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718"><strong data-end="787" data-start="720">The development adds to the transformation of Old Burleigh Road</strong>, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<p data-end="1011" data-start="790"><a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.</p>

<p data-end="1296" data-start="1013">The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion</p>

<p data-end="1296" data-start="1013"><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" /></p>

<p>The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.</p>

<p>“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;</p>

<p>“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."</p>

<p>Brown says the site itself is "exceptional."</p>

<p>"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." /></p>

<p>The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.</p>

<p>A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.</p>

<p>Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" /></p>

<p>Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.</p>

<p>“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.</p>

<p>“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.</p>

<p>“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" /></p>

<p>Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.</p>

<p>With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.</p>

<p>[smartcode_project_cta:default project_id=145141]</p>


DVB Projects to launch second Broadbeach apartment tower as demolition commences

<p><a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.</p>

<p>Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.</p>

<p>The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.</p>

<p>The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.</p>

<p>A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.</p>

<p><img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" /></p>

<p>The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.</p>

<p>"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.</p>

<p>"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."</p>

<p>The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."</p>

<p>Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.</p>

<p>Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.</p>

<p>The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.</p>

<p>The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.</p>


First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<p><a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;</p>

<p>Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.</p>

<p>[smartcode_project:default project_id=107520 project_image_fid=367193]</p>

<p>The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;</p>

<p>Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;</p>

<p>"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.</p>

<p>"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."</p>

<p>[smartcode_project:default project_id=107520 project_image_fid=367183]</p>

<p>Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;</p>

<p>"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;</p>

<p>Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.</p>

<p>The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;</p>

<p>[smartcode_project_cta:default project_id=107520]</p>


The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

First Home Buyers

<html><body>
<p>The most interesting fact revealed by a St George Bank survey of first-home buyers was buried in the small print of the media statement.</p>
<p>The survey of 1,000 first-home buyers across Australia indicated that 26 percent of respondents said they had to make compromises to buy their first homes. Half of those had to compromise on location while 46 percent had to compromise on price.</p>
<p>I was amazed that only a quarter of FHBs felt they had to make compromises to achieve home ownership. I would have expected it to be close to 100 percent.</p>
<p>When I bought my first home over 30 years ago, I had to make a range of compromises, especially on location and the quality of the house I was buying. But it seems most first-home buyers today don’t feel they had to make concessions on location or price, according to this survey at least.</p>
<p>Media would have us believe that the Great Australian Dream is near dead. Journalists continue to support that notion by quoting the discredited ABS data on borrowers identified as first-home buyers, even though the ABS has issued statements admitting it is under-counting them.</p>
<p>This is because only borrowers with a government grant are identified as first-home buyers and grants are no longer available to first-time buyers of existing homes, which severely reduces the numbers identified as first-home buyers.</p>
<p>The figures also ignore first-time buyers who buy an investment property as a first purchase while continuing to rent their homes – the so-called rentvestors, who are a rising force in Australian real estate.</p>
<p>Other more credible research sources, such as the NAB quarterly Residential Property Survey, indicate that a third of sales of new properties across Australia, and 27% of sales of established properties, are made to first-time buyers (some of which are buying investment properties, rather than a home, as a first purchase).</p>
<p>The 27 buyers of buyers of established homes who are first-timers aren’t counted in the ABS figures, but media regularly quotes the bureau’s figures as an indication that first-home buyers are priced out of the market.</p>
<p>Housing affordability and home ownership have become so politically charged in Australia that it’s impossible to have a calm and rational debate about it.</p>
<p>Even the so-called research is tainted by political objectives, so that almost nothing published is believable. The annual Demographia report clearly sets out to achieve a pre-determined result – that all of Australia is deemed unaffordable – and achieves this by arbitrarily setting the “median multiple” bar ridiculously low, so that a house costing $305,000 is described as unaffordable to someone earning $100,000 a year.</p>
<p>The recent HILDA report was a biased document which had its headline written before the research was conducted. The reported claim by Professor Roger Wilkins that “a whole generation of adults would never own a home” was over the top and not supported by the evidence in the report. </p>
<p>We continue to have high home ownership rates by world standards, although they are lower than they were 15 years ago, according to this report. Home ownership rates include almost 70 percent in Western Australia, 68 percent in South Australia and 66 percent in Victoria – although given the political tone of the report and its publicity campaign, I’m don’t feel confident believing any of its figures.</p>
<p>Other reports are tainted by suspect data. The longstanding HIA’s quarterly Affordability Report, which has a long track record of telling it like it is, found affordability (as an average across the nation) improved in the March Quarter but deteriorated in the June Quarter. </p>
<p>The weakness in this report is that it relies on CoreLogic for its price data, which recorded a significant rebound in Sydney prices in the June Quarter – a result that has been starkly contradicted by figures from other major sources, including Domain and SQM Research.</p>
<p>But, taking the latest Affordability Report at face value, it found there had been a worsening of affordability quarter-on-quarter in some jurisdictions (including Sydney, Melbourne, Brisbane and Adelaide) but improvements in affordability in others (such as Perth, Hobart, Tasmania, regional NSW, regional Victoria, regional South Australia and regional WA).</p>
<p>Taking a longer-term view, affordability is the best it’s been in regional Australia at any time in the past five years. We can say the same thing about many individual areas of the nation (including Western Australia, Tasmania and the Northern Territory), though clearly not about Sydney or Melbourne.</p>
<p>The current affordability level in Sydney and NSW is better than it was five years ago, but not as good as it was four years ago before the Sydney boom got under way. In Victoria, affordability in the March Quarter was the best it’s been in five years, but then it dropped in June Quarter, caused by the reliance on CoreLogic figures, which differ from several other sources.</p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em> </p>
</body></html>

terryryder-YECXbqmri2

The Great Australian Dream is not dead: Terry Ryder

<html><body>
<h3 class="post-title entry-title"> </h3>
<p>We traded in a car this week for about a twentieth of what it was bought for when new.</p>
<h3 class="post-title entry-title"> </h3>
<p>Not so keen so reproduce this underwhelming result, in its stead I bought a 2012 Ford with 36,000 clicks on the clock, for around half of its 'as new' price. A bit more palatable.  </p>
<h3 class="post-title entry-title"> </h3>
<p>Being no spring chicken any longer, I could obviously afford to buy new, but it's only a runabout and buying second hand simply offers far superior value. </p>
<h3 class="post-title entry-title"> </h3>
<p>Besides, I feel I should practice what I preach: when compounded over a couple of decades, $20,000 could be worth quite a lot in the future. </p>
<h3 class="post-title entry-title"> </h3>
<p>Of course, someone must buy all the new vehicles, else they'd never be sold. But who?</p>
<h3 class="post-title entry-title"> </h3>
<p>Well, some people just like the 'feel' of driving something brand new. And it sometimes makes sense for some company car drivers. </p>
<h3 class="post-title entry-title"> </h3>
<p>Other people just have money burning a hole in their pocket, I guess, and more power to them...</p>
<h3 class="post-title entry-title"> </h3>
<p>Who buys new dwellings?</p>
<h3 class="post-title entry-title"> </h3>
<p>In a similar vein, buying new property tends to incur quite a hefty price premium, and for those buying 'off the plan' there is always that nagging risk that the final product doesn't much resemble what was breezily sketched in the brochure (those busy main roads just never seem to feature, hey!). </p>
<h3 class="post-title entry-title"> </h3>
<p>Some speculators go down this path anyway, hoping to make a fast capital gain before the property is even constructed. I've seen this work very well (e.g. Barangaroo), but have seen it go wrong more often (too may places to mention).  </p>
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<p>I must confess I've bought new property in Sydney before, and I'm even considering doing so elsewhere again right now, though I wouldn't necessarily recommend it to anyone looking for a bargain.</p>
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<p>Why?</p>
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<p>In fact, why would anyone buy new property? It's a bit like buying a new car in many ways. </p>
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<p>Well, firstly, some people just like the undeniably fresh feel of an unused dwelling. </p>
<h3 class="post-title entry-title"> </h3>
<p>Secondly, downsizing Baby Boomers can comfortably afford to buy new for cash using the proceeds from their home sale - so they may elect to buy new, as indeed they have earned the right to. </p>
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<p>Thirdly, and unfortunately, some would-be investors attend 'educational' courses which convince them that there are great benefits to buying new, often not realising that the apparent white knights doing the educating are actually salesmen (sometimes egregiously posing as psuedo-financial advisors).  </p>
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<p>The middlemen/salesmen may secure up to a 6 percent or greater commission from the developer, unbeknownst to the unsuspecting buyer. Goodness knows how this is still allowed to happen, but nevertheless it does. </p>
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<p>Nascent self-managed super-funds (SMSFs) and inexperienced investors are key target groups for this type of salesman. </p>
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<p>In truth, there actually are tempting depreciation and other deductions available to investors in new properties, since policy makers know that they must attempt to incentivise investors to buy new dwellings in order to stimulate construction. </p>
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<p>Strangely these generous benefits are rarely mentioned in the now-traditional annual negative gearing debate.</p>
<h3 class="post-title entry-title"><span style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12px;"> </span></h3>
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<div>That said, if anyone ever throws you this sales pitch in order to flog you a new property, tell them you're considering buying a one-year-old dwelling for the same benefits and gauge their reaction (if they're dead set against the idea, you'll know why: obviously they are angling for a sales commission from the developer). </div>
<div> </div>
<div>Fourthly, a high percentage share of the new dwelling stock in Australia is bought by non-residents, a cohort typically restricted from buying established stock (except in certain circumstances, such as for development purposes). </div>
<div> </div>
<div>The Foreign Investment Review Board (FIRB) typically restricts non-residents to new properties or development projects in order to encourage construction, and by and large this policy works. </div>
<div> </div>
<div>For this reason - especially with lenders less than keen to extend finance to offshore buyers of late - non-settlements on new apartments will be one of the most keenly observed market metrics over the next two years. </div>
<div> </div>
<div>And fifthly, purchasing new just suits some buying demographics. It is frequently said that Chinese buyers like unused property to the extent that some don't even let out their new dwellings, in order to keep them in a pristine condition.</div>
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<div><strong><span>Incentives for first homebuyers</span></strong></div>
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<div>For first homebuyers, there are typically incentives available to buy or construct new homes.<br><br>These tend to vary over time, and by state and territory. The available incentives as at September 2016 are summarised in the table below. </div>
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<div><a href="/images/2016/10/20/INCENTIVES2.jpg" target="_blank">Click to enlarge</a></div>
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<br><div>In the same way that I wouldn't buy a new investment property for the depreciation benefits due to the purchase price premium, first homebuyers should be wary of buying new solely to get their hands on cash grants. </div>
<div> </div>
<div>Fortunately, most young people are quite wise to this, and a larger cash grant doesn't necessarily equate to more buyers. </div>
<div> </div>
<div>In August, for example, the housing finance figures recorded only 6 (six!) owner-occupier commitments for the purchase of new dwellings in the Northern Territory, despite a lavish cash grant of $26,000 being available for first-timers!</div>
<div> </div>
<div>That said, well-targeted grants do tend to be effective, as the recently revised first homebuyer statistics showed. </div>
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<div><a href="/images/2016/10/20/FHB.jpg" target="_blank">Click to enlarge</a></div>
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<div><strong><span>New dwelling purchases</span></strong></div>
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<div>With such a high share of new dwellings being bought by offshore buyers, particularly from mainland China these days, the domestic housing finance figures only show a part of the story. </div>
<div> </div>
<div>Overall, the August housing finance commitments figures showed domestic transaction volumes for new builds holding up well, which is good news for the economy given that there is a record number of completions due over the next two years. </div>
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<div><a href="/images/2016/10/20/A1.jpg" target="_blank">Click to enlarge</a></div>
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<br><div>At the state level, when the original data is plotted in rolling annual terms, it appears that volumes began to increase steadily in each of the most populous states from around 2012 when the interest rate easing cycle commenced in earnest.</div>
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<div><a href="/images/2016/10/20/A2.jpg" target="_blank">Click to enlarge</a></div>
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<br><strong><span style="text-decoration: underline;">Stay and renovate</span></strong><br><div> </div>
<div>Finally for today, various forecasters have long predicted a boom in major renovations.</div>
<div> </div>
<div>Generally this makes sense as a concept, for the stamp duty thresholds for the two largest cities were originally designed with much lower purchase prices in mind.</div>
<div> </div>
<div>As such, from the sublime to the ridiculous, stamp duty collection in Sydney has risen to what would previously have been thought of as absurd heights - the state's coffers are literally overflowing!</div>
<div> </div>
<div>Homeowners should therefore be incentivised to stay put and renovate rather than incur the punitive transaction costs of moving. </div>
<div> </div>
<div>In the event there has indeed been a decent boom in major renovations activity in Sydney, but to date this has not been replicated elsewhere, and the anticipated contribution to GDP has not yet materialised.</div>
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<div><a href="/images/2016/10/20/A3.jpg" target="_blank">Click to enlarge</a></div>
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<br><p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Five reasons buyers seek new dwellings: Pete Wargent

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<p><span>EXPERT OBSERVER</span></p>
<p><span>Housing finance data from The Australian Bureau of Statistics (ABS) on first home buyer activity has generally shown that this segment of the market has been tracking at below average levels over recent years. </span></p>
<p><span>However, w</span><span>ith </span><span>each state and territory offering some level of incentive to first home buyers including grants and tax concessions, this segment is moving along quite nicely.</span><span><br></span></p>
<p><span>Nationally, there were 8,782 housing finance commitments in February 2018. Although the volume of loans was down on levels in late 2017, it was 33.1% higher than the previous February.</span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/national.jpg" target="_blank">to enlarge.</a></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/19/national.jpg" alt=""></span></p>
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<p><span>As </span><span>a share of all owner occupier commitments, first home buyers accounted for 17.9% in February 2018 compared to 13.3% the previous year.</span><span><br></span></p>
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<p><span>Across </span><span>the individual states and territories, </span><span>we’re </span><span>seeing </span>several varying trends emerge – all likely due to activity across other buyer types in the market and how recently certain incentives have become available.</p>
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<p><span>Performance around the States:</span></p>
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<p><span>NSW: February 2018 saw 2,246 first home buyer housing finance commitments compared to 1,105 the previous year which is an increase of 103.3%. Since the end of June 2017, stamp duty concessions have become available and over the 8 months there have been 18,400 commitments compared to </span><span>10,857 over the previous 8 months. First home buyers now account for 15.1% of owner occupier finance commitments up </span><span>from 7.5% a year earlier. </span>The 15.1% is the greatest share 3,000 since October 2012.</p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/nsw.jpg" target="_blank">to enlarge.</a></p>
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<p><span>Vic: 2,619 finance commitments to first home buyers in </span>February 2018. The number of commitments was 38.6% higher than a year earlier. Vic also saw stamp duty exemptions go live on July 1 last year. From the end of June there have been 23,996 first home buyer commitments compared to 17,522 over the previous 8 months. First home buyers accounted for 18.3% of commitments compared to 13.9% a year earlier.</p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/vic.jpg" target="_blank">to enlarge.</a></p>
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<p><span>Qld: Over the month there were 1,839 first home buyer housing finance commitments. The number of commitments was only marginally higher from a year ago (+3.8%). First home buyers have been much more active over recent years than in NSW and Vic although, it should be noted investors have been much less active in the Qld market. First home buyers accounted for 19.3% of the market in February 2018 compared to 17.6% a year earlier. </span></p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/qld.jpg" target="_blank">to enlarge.</a></p>
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<p><span>SA: In February 2018 there were 443 first home buyer housing finance commitments. Although the number was lower than those recorded late last year, it was 17.8% higher than the previous February. Despite house values being the lowest of any mainland capital city, SA has the lowest share of first home buyer activity of any state or territory with 13.0% of owner occupier commitments going to first home buyers, a year ago they accounted for a 10.5% share so they have risen a little. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/SA.jpg" target="_blank">to enlarge.</a></p>
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<p><span>WA: There were 1,185 first home buyer finance commitments in February 2018 which was -0.1% fewer than the volume in</span><span> </span><span>FHB No. (LHS) </span><span>February 2017. WA is the only state or territory in which there </span><span>were fewer commitments to first home buyers than a year ago. </span><span>Despite the fall in volumes, first home buyers account for </span><span>25.0% of all owner occupier housing finance commitments </span><span>compared to 22.2% a year ago.</span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/WA.jpg" target="_blank">to enlarge.</a></p>
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<p><span>Tas: Over the month of February 2017 there were 137 first home buyer housing finance commitments which was 2.2% higher than the previous February. As a share of all owner occupier housing finance commitments, first home buyers account for 13.9%, up marginally from 13.8% a year ago. A common commentary is that a lot of younger people are moving to TAS to buy a home because they </span><span>can’t </span><span>afford one on the mainland. Although the number of first home buyers </span><span>rose over the year, they remain very low which suggests, at </span><span>least at this stage, first home buyers in TAS are not particularly </span><span>active. </span></p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/TAS.jpg" target="_blank">to enlarge.</a></p>
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<p><span>NT: While 52 first home buyer commitments in February 2018 is quite a low number, it is 26.8% higher than the previous year despite a sharp monthly fall. As a share of all owner occupier commitments, first home buyers account for 19.4% compared to 14.7% a year earlier however, the share is currently trending lower. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/NT.jpg" target="_blank">to enlarge.</a></p>
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<p><span>ACT: The 261 first home buyer housing finance commitments </span>in February 2018 was a 177.7% increase in the number from the previous year. As a share of all owner occupier commitments, first home buyers accounted for 25.6% in February 2018 which was the highest share since October 2009.</p>
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<p><span>The latest trends in first home buyer activity highlights the </span>sensitivities of this important market segment to both affordability constraints as well as market incentives such as first home buyer grants and stamp duty concessions.</p>
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<p>Despite overall slowing conditions in Sydney and Melbourne, the CoreLogic home value indices results show that the more affordable end of the housing markets in these cities as still seeing values rise and likely generated by first home buyer activity.</p>
<p>In other cities where affordability constraints are less severe, in the absence of any changes to first home buyer incentives, first time buyers generally remain more active relative to Sydney and Melbourne.</p>
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<p><span>With </span><span>demand from the investment segment expected to continue to be weaker than it has over recent years, this may afford more opportunities for first home buyers to enter the market.</span><span><br></span></p>
<p><span>Outside </span><span>of the two largest cities, first home buyer volumes </span><span>may lift over the coming months due to ongoing low mortgage rates and relative affordability compared to Sydney and</span><span> </span><span>Melbourne. In fact, the outflow of people from NSW to other states and territories is continuing to rise which may result in </span><span>increases in first home buyers elsewhere.</span><span><br></span></p>
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<p><span><em><span>CAMERON KUSHER</span> is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/"><span class="s2">here</span></a>.</em></span></p>
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First home buyer levels tracking below average levels for years

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<p>EXPERT OBSERVER</p>
<p class="p1">How long does it take a young couple to save a deposit to buy a first home in the current environment? Less than a year in most of our capital cities and less than 18 months in Sydney. </p>
<p class="p1">But you wouldn’t know it if you’ve tuned into the headlines over the past week, in the wake of another piece of bogus “research” generated by a publicity-seeker. Media treatment of this “report” would have us believe it takes over six years for the typical young couple to save a deposit.</p>
<p class="p1">How did we arrive at this disconnect between reality and media perception? Because nobody in the process gives a damn about being helpful to people. The only objective is the headline.</p>
<p class="p1">Media loves a story declaring young Australians can’t afford to buy – or that the road to home ownership is impossibly long and arduous.</p>
<p class="p1">The reality contradicts the notion that young individuals and couples are priced out of the market, but journalists will never let the facts get in the way of a clickbait headline. And their desire to publish dire scenarios is fuelled by apparently credible research organisations whose motive is to generate publicity.</p>
<p class="p1">The headlines in the past week claimed it took first-home buyers over six years to save a deposit to buy a home. I saw reports in major newspapers, on television news bulletins and in online news services. One headline shouted “FHBs bearing heavier deposit burden” and another said “FHBs take six and a half years to afford their first home”. For the source of the report, mission accomplished.</p>
<p class="p1">In each case, the figures from a press release were recycled as fact without question or scrutiny. Such is journalism in modern Australia.</p>
<p class="p1">The headlines were based on a scenario that has no relationship to the reality for most young Australians. The headlines – and the report that generated them – were based on the notion that typical first-timers need a 20% deposit, that they must buy a house rather than a unit, and that they’re buying in Sydney or Melbourne.</p>
<p class="p1">For nine out of 10 young adults wanting to buy their first home, that scenario is not their reality. A more likely situation is a 5% deposit to buy lower-priced home, possibly an apartment, in Brisbane or Perth or Ballarat or Wollongong or the Sunshine Coast – or a block of land to build a new home with the help of the HomeBuilder grant.</p>
<p class="p1">The reality is that first-home buyers are having a feeding frenzy in real estate markets across Australia. They comprise the most active cohort in the housing market. This is showing up in the lending figures, in the sales data and in anecdotal evidence from people at the coal-face of markets across the nation.</p>
<p class="p1">I would argue there’s never been a better time to be a first-home buyer in Australia, provided you have secure employment. Interest rates have never been lower and the level of government assistance has never been higher. Investors are largely dormant so first-timers are not having to compete with investors as much as before. You can borrow cheap from banks who want your business, you can pocket incentives from federal and state governments, and get into your first home with an ease that has never existed before.</p>
<p class="p1">Because of one federal scheme, you need only a 5% deposit. Thanks to another, you can get a $25,000 handout to build a new home. State assistance schemes provide more handouts. You can borrow with an interest rate that starts with a 2. And you’ll pay little or no stamp duty.</p>
<p class="p1">Aussie Home Loans data suggests that home loan pre-approvals have grown 71% since the start of the year and over half of all pre-approvals are for the first-home buyers.</p>
<p class="p1">Research published earlier this month indicated that, in most locations across Australia, it’s now cheaper to buy than to rent.</p>
<p class="p1">And yet media of all kinds have gone ballistic with claims that first-home hopefuls are having to save for over six years before being able to contemplate looking for a home.</p>
<p class="p1">It was all based on a typically bogus research report from Domain, a supposedly credible research source. They managed to come up with a negative scenario by doing what research like this always does: focus on how long it takes to save a 20% deposit to buy a house in the nation’s most expensive cities.</p>
<p class="p1">The scenario presented was irrelevant to most young people seeking to buy a first home.</p>
<p class="p1">How about presenting a realistic and relevant scenario? How long does it take to save a 5% deposit to buy a house in the lower price ranges in Perth – or Brisbane or Hobart? How long does it take to save a small deposit to buy an apartment in Adelaide or in a middle ring suburb of Melbourne? Or a home in Bendigo or Wagga Wagga or Launceston or Mackay. These are the places where most Australians live.</p>
<p class="p1">And the answers are …</p>
<ul class="ul1">
<li class="li1">If you’re the typical young couple buying an entry-level unit in Brisbane, it takes just nine months to save a 5% deposit.</li>
<li class="li1">In Perth, it would take only seven months and in Darwin just five months to save the necessary deposit.</li>
<li class="li1">Even in Sydney it takes only one year and four months to save the necessary deposit for an entry-level unit. And 12 months in Melbourne.</li>
<li class="li1">For those who prefer houses, they can save a 5% deposit for an entry level home is in a year or less in Adelaide, Perth, Hobart and Darwin. In Brisbane and Canberra, it’s slightly more than a year.</li>
<li class="li1">In Sydney and Melbourne, the typical young couple can get together the required deposit to buy an entry-level house in around 18 months.</li>
</ul>
<p class="p1">That information, I should point out, was contained within the Domain First Home Buyer Report. But it was buried in the detail and given no emphasis in the analysis, or the press releases pumped out by Domain, or by media that lapped up the material that was highlighted – i.e. it takes six or more years to save a 20% deposit for a house in our two biggest cities.</p>
<p class="p2">Why? Because the headline is the thing. And the truth is optional.</p>
<p class="p2">They’re driven by a desire to generate publicity. And media is happy to play along, because journalists care even less about helping their customers. It’s simply not how they think.</p>
<p class="p1">Sad but true.</p>
<p class="p4">T<em>erry Ryder is the founder of hotspotting.com.au<br></em><em><a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au<br></a></em><em>twitter.com/hotspotting</em></p>
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First home buyer deposit saving estimates way off: Hotspotting's Terry Ryder

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<p><strong>EXPERT OBSERVER</strong></p>

<p>Urban Taskforce chief executive Tom Forrest has welcomed the National Housing Finance and Investment Corporation (NHFIC) first flagship report producing five-year projections for housing supply and demand across Australia’s major cities and regional areas.</p>

<p>The report identifies some tough choices for politicians.</p>

<p>The Report identifies some short-term affordability improvements for renters and prospective first home buyers as a consequence of lower population growth coupled with COVID-19 stimulus measures.</p>

<p>However, the report also warns that affordability could deteriorate if supply is not responsive to the rebound in demand once migration returns to earlier levels.  This is the biggest risk for the NSW economy and it falls at the feet of the Planning Department.  This is our dilemma. NSW Planning has responded well to COVID – but as 2020 closes it is yet to progress any significant planning reform and many within it would prefer less housing supply, not more.</p>

<p>Housing supply and population growth through migration cannot be seen as an either/or policy choice. We need both and our political leaders should be capable of developing a policy package which supports both. </p>

<p>The challenge for Sydney’s economic growth is migration. Sydney’s migration levels must return to pre-COVID-19 levels and above to keep the economy moving and generating the tax receipts that we need to pay for the care of the aging population (the baby boomers) many of whom do not have large superannuation balances.</p>

<p>Simply halting the decline in tax-payers as a proportion of the total population requires migration.</p>

<p>Our economic future, and that of hundreds of thousands of workers in the property and construction sector, depend on population growth. Population growth drives economic growth. </p>

<p>Without significant migration numbers, the ageing of our population (the baby-boomer phenomenon) will leave us with a lower and lower taxpayer base trying to support a bigger and bigger tax bill.</p>

<p>Governments need to re-open borders to investor immigration, skilled immigration, and the return of foreign students; WHILE still supporting a pipeline of housing supply.</p>

<p>The NHFIC report finds the longer term trends of declining affordability are likely to persist, particularly if supply is not responsive to demand when it recovers.</p>

<p>Housing supply also needs to be dramatically increased to create downward pressure on prices. This will mean some tough decisions for Minister Stokes and the Department of Planning.  The local character of suburbs will need to change – or they will change by themselves – as a result of the progressive decay of the city arising from the decline in the economy.</p>
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max.kwok_55688

Politicians must “chew gum” and “skip rope”: Urban Taskforce's Tom Forrest

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<p><span style="font-size: 12.16px;">Australia has recorded a ten-year high for first homes buyers in the last quarter, according to the latest REIA’s "The Housing Affordability Report (HAR)”.</span></p>
<p><span style="font-size: 12.16px;">The report revealed a ten-year high for first home ownership and an overall improvement in housing affordability across Australia.</span></p>
<p><span style="font-size: 12.16px;">A combination of factors meant that housing affordability has faced a bright spot for those who entered the market during the September 2020 quarter.</span></p>
<p><span style="font-size: 12.16px;">Market entry has experienced its largest year on year increase since 2009 and largest quarterly increase since 2010.</span></p>
<p><span style="font-size: 12.16px;">With a September quarter increase of 36.1%, first home buyers now make up 40.8% of the owner-occupied dwelling market. This is particularly good news given the large challenges faced by tenants at the outset of the COVID-19 pandemic.</span></p>
<p><span style="font-size: 12.16px;">The average loan size to first home buyers decreased to $406,223, a decrease of 5.4% over the quarter, but an increase of 0.8% over the past 12 months.</span></p>
<p><span style="font-size: 12.16px;">Mr Kelly said that first home buyers are responding to the stable market and historically low interest rates.</span></p>
<p><span style="font-size: 12.16px;">Banks could do more to further improve affordability by passing on in full interest cuts and help even more Australian’s buy homes.</span></p>
<p><span style="font-size: 12.16px;">HAR shows us that Australian families experienced a small income increase of 0.5 % while the average loan repayment decreased by 2.5 %.</span></p>
<p><span style="font-size: 12.16px;">For homeowners, affordability improved with income to loan repayments decreasing 1.1 percentage points to 33.9% over the quarter.</span></p>
<p><span style="font-size: 12.16px;">For renters, affordability declined in the September quarter and over the past year with the proportion of income required to meet rent payments increasing by 0.4 percentage points to 23.7%. This is mainly attributed to the increase in rents in a number of capital cities.</span></p>
<p><span style="font-size: 12.16px;">The next HAR will be released on 3 March 2021 showing the full impact of CV-19 on housing affordability for 2020.</span></p>
<p><span style="font-size: 12.16px;"><strong>ADRIAN KELLY</strong> <em>is the REIA President</em><br></span></p>
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j.ballantyne1990-6AQqhLzZaK

First home buyer's dominate the market: REIA's Adrian Kelly

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<div class="block-content">
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A $500 million Victorian Homebuyer Fund was announced in the Victorian State Budget to help first homebuyers break into the property market.</span></div>
</div>
<div class="block-content">
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span> </span></div>
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The fund will contribute to the purchase price in exchange for equity interest in the property, reducing the size of the deposit required by the first time buyer.</span></div>
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span> </span></div>
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span><span>The plan will reduce the size of the deposit needed for homes, new and established.</span></span></div>
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span><span> </span></span></div>
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span><span>The decision follows<span> a successful pilot program.</span></span></span></div>
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span><span><span> </span></span></span></div>
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span><span><span><span>It will help people who do not have a 20 per cent deposit.</span></span></span></span></div>
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span><span> </span></span></div>
<div class="styles__Container-sc-1ylecsg-0 goULFa"><span><span> </span></span></div>
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Victorian Homebuyer Fund to encourage first home buyers

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<p><span>The office of Michael Sukkar has announced the lending panel leaders that are ready to accept applications for a guaranteed loan to build a new home or purchase a newly built home with a deposit of as little as five per cent.</span></p>
<p><span>As part of the Federal Government’s plan to create jobs and rebuild the economy, 10,000 first home buyers will be able to purchase a new home sooner under the extended first home loan deposit scheme, which will be available until June 30, 2021.</span></p>
<p><span>The following lending panel members are ready to accept applications for a guaranteed loan to build a new home or purchase a newly built home:</span><span> </span></p>
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top">
<p>Australian Military Bank</p>
</td>
<td valign="top">
<p>Defence Bank</p>
</td>
<td valign="top">
<p>P&amp;N Bank</p>
</td>
</tr>
<tr>
<td valign="top">
<p>Australian Mutual Bank</p>
</td>
<td valign="top">
<p>G&amp;C Mutual</p>
</td>
<td valign="top">
<p>People’s Choice</p>
</td>
</tr>
<tr>
<td valign="top">
<p>Bank Australia</p>
</td>
<td valign="top">
<p>Gateway Bank</p>
</td>
<td valign="top">
<p>QBank</p>
</td>
</tr>
<tr>
<td valign="top">
<p>Bank of Us</p>
</td>
<td valign="top">
<p>IBA Group</p>
</td>
<td valign="top">
<p>Qld Country Bank</p>
</td>
</tr>
<tr>
<td valign="top">
<p>Bendigo Bank</p>
</td>
<td valign="top">
<p>The Mutual</p>
</td>
<td valign="top">
<p>Regional Australia Bank</p>
</td>
</tr>
<tr>
<td valign="top">
<p>Commonwealth Bank</p>
</td>
<td valign="top">
<p>MyState</p>
</td>
<td valign="top">
<p>WAW Credit Union</p>
</td>
</tr>
<tr>
<td valign="top">
<p>Community First</p>
</td>
<td valign="top">
<p>National Australia Bank</p>
</td>
<td valign="top">
<p> </p>
</td>
</tr>
</tbody></table>
<p><span>From November 9 onwards, the following lending panel members will begin to accept applications for a guaranteed loan to build a new home or purchase a newly built home:</span></p>
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top">
<p>Auswide Bank</p>
</td>
<td valign="top">
<p>Credit Union Australia</p>
</td>
<td valign="top">
<p>Police Bank</p>
</td>
</tr>
<tr>
<td valign="top">
<p>Bank First</p>
</td>
<td valign="top">
<p>Mortgageport</p>
</td>
<td valign="top">
<p>Teachers Mutual Bank</p>
</td>
</tr>
<tr>
<td valign="top">
<p>Beyond Bank</p>
</td>
<td> </td>
<td> </td>
</tr>
</tbody></table>
<p><span>Eligible first home buyers will also be able to take advantage of the Federal Government’s HomeBuilder programme and first home super saver scheme, and may also be eligible for state and territory grants.</span></p>
<p><span>In September, the Australian Bureau of Statistics’ lending indicators data showed that first home buyers are flooding into the housing market, with the number of loans to first home buyers reaching the highest number in over a decade.</span></p>
<p><span>These additional guarantees will drive more construction and support jobs in the economy at a time it's needed most.</span></p>
<p><span> </span></p>
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jrobinson-rf4aSBido9

First home deposit scheme extension announced

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<p><span style="font-size: 12.16px;">A growing number of land developers are conspiring to advertise high-risk house and unregistered land packages that hasn’t been titled by local councils.</span></p>
<p>Inexperienced first-time buyers need to beware before purchasing these properties.</p>
<p>Buyer’s agency DPP Property founder Zaki Ameer warns that when developers promote unregistered land, there’s usually a hidden risk attached.</p>
<p>First-time buyers may be conned into paying deposits for the packages with the aim of utilising the $25,000 HomeBuilder grant, which will finish at the end of this year.</p>
<p>However, in most cases, councils delay title processing on unregistered land, often up to 12 to 18 months.</p>
<p>“So, immediately, [first-time homebuyers] are giving back $25,000 on any savings they might have made on the package”, Ameer said.</p>
<p>Buyers are also locked into the contract until the full payment due date, which could be up to 48 months away, leaving them at risk of being sued by developers and builders if they have to forfeit the land purchase.</p>
<p>Ameer is calling for state governments to tighten land sale regulations, especially to first time home buyers who can easily fall prey to colourful marketing tactics.</p>
<p><span>The DPP Property founder also hopes governments put an end to delayed settlements.</span></p>
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