Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

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

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

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

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

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

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

The apartment price gap drawing Sydney buyers west

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

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

HomeBuilder Grant

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EXPERT OBSERVATION
HIA welcomes the release of crucial final touches to the Federal Government’s HomeBuilder scheme. 
The addition of this extra detail will clarify questions builders and home buyers have been asking since the scheme was announced on 4 June.
The HomeBuilder grant has already boosted interest in buying a new home or carrying out a renovation project. Builders are feeling positive about the next six months of activity and equally important is the potential the scheme has to generate activity in 2021. The new details will make this interest even stronger.
The Government has announced three key refinements to HomeBuilder:
<ul>
<li>allowing the necessary time for home buyers to arrange their finance approvals, building approvals and meet other legal requirements before work is required to commence, rather than the fixed three month timeframe initially announced; </li>
<li>clarification that a sales contract for a home purchased off the plan will be eligible in the same way as a building contract, and</li>
<li>aligning the process with the current timing of payments for first home owner grants for new homes. </li>
</ul>
These updates will give greater certainty to home buyers and their builders about what projects potentially qualify for the grant. 
Recognising that a fixed three month timeframe to commence building work did not reflect how dependent home builders are on other players, like the banks, the councils and building certifiers, is extremely important and a welcome update.
While the state and territory revenue offices now need to outline the final details of how applicants will apply for the grant and timing of payment, the new information clearly addresses key concerns HIA had raised with Government.
HIA has been working closely with state and territory revenue offices and we look forward to receiving these details soon, which will assist home buyers and builders begin taking full advantage of the grant. 
The HomeBuilder grant provides the incentive and the support needed to maintain housing activity in the second half of 2020.
Kristin Brookfield is the HIA Chief Executive Industry Policy
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Final touches add certainty to HomeBuilder scheme: HIA's Kristin Brookfield

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EXPERT OBSERVATION
The announcement of the HomeBuilder stimulus from the federal government in early June has been met with a mixture of excitement and criticism.
The scheme grants $25,000 dollars for new home builds and renovations where:
<ul>
<li>The recipient is an owner occupier;</li>
<li>The recipient earns no more than $125,000 per annum as a single applicant or $200,000 for a couple;  </li>
<li>The contract is signed between June 4 and December 31; and</li>
<li>Construction commences within 3 months of the contract date</li>
</ul>
For renovations, the existing property value must be no more than $1.5 million, and the renovation must be worth between $150,000 and $750,000. For new builds, the house and land value must not exceed $750,000.
While potential home owners are likely to be keen to take advantage of the scheme, many have noted that the policy largely creates stimulus for those that were planning to build and renovate anyway.
So instead of creating additional demand for construction work, it may just bring construction forward. This side-effect from housing stimulus has actually been seen before – and it has a name: a vacuum effect.
A vacuum effect describes housing stimulus bringing forward a planned decision to purchase property. It reflects a surge in buyer activity soon after housing grants are made available, and a significant drop in activity thereafter.
The implication is that rather than stimulating sustained, new demand, stimulus is simply bringing forward activity to a certain date, where it would likely have occurred over time anyway.
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The term was used by researchers from the City Futures Research Centre, in a publication analysing the impact of past housing stimulus on dwelling markets and first home buyer activity.
The phenomenon is prominent around the first home owner grant in 2000. 
This was a $7,000 grant, designed to soften the blow for first home buyers around an introduction of the GST.
The ‘boost’ to the first home owner grant, which was a temporary, additional $7-14,000 grant in the wake of the Global Financial Crisis, showed a similar outcome.
The image on page 1 shows the number of first home buyer loans secured each month off the back of the introduction of these policies from the retired ABS series 5609.
Despite the first home owner grant being in place since 2000, its uptake is concentrated up to November 2001. Following this, first home buyer participation fell away between 2002 and 2004. It is also evident around the first home owner grant ‘boost’, where the number of loans secured began to fall away before the program ended.
However in both of these instances, It is worth noting that any ‘vacuum’ effect here was likely compounded by a strong surge in dwelling values, which is when first home buyer participation is typically stunted due to affordability constraints. 
The implication for the HomeBuilder scheme is that rather than creating additional demand for property purchases and renovations, the scheme would just bring forward works that were already planned.
This is amplified by the timeframes of the HomeBuilder scheme. The kind of planning and financing that needs to be organised for a six-figure renovation means that it would largely be taken up by those who have already started the process.
Similarly for home owners, and first home buyers in particular, those looking to commit to a property purchase within the next 6 months would already have been saving a deposit and primed to buy.
However, where this policy may create additional construction lies in the fact that it is pivoting decision making from established property to new housing, likely to be skewed towards house and land projects. This is opposed to the first home owner boost (FHOB) in 2008. Even though the grant provided additional incentive for newly built property, 85% of those temporary grants were awarded for established purchases.
The HomeBuilder package may be limited in its ability to deliver new construction work, because it relies on decisions to purchase and renovate property in a highly uncertain economic climate. This is one of the reasons consensus is mounting around social housing being a more efficient use of government expenditure on housing, because it guarantees the upgrade and building of homes through direct expenditure.
Eliza Owen is the Head of Research Australia at CoreLogic
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The ‘vacuum’ effect and its implications for the HomeBuilder Scheme: Eliza Owen

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GUEST OBSERVATION
The government’s <a href="https://treasury.gov.au/coronavirus/homebuilder">HomeBuilder</a> scheme allows <a href="https://www.corelogic.com.au/news/homebuilder-renovations-where-are-most-owner-occupied-dwellings-below-15-million">certain</a> home owners to apply for a tax-free grant of A$25,000 if they are spending between $150,000 and $750,000 renovating a home or building a new home. Eligibility criteria are strict.
The scheme has boosted renovation talk in some circles (although, as CoreLogic has <a href="https://www.corelogic.com.au/news/vacuum-effect-and-its-implications-homebuilder-scheme">pointed</a> out, it may merely bring forward works that were already planned).
Here are some questions to ask yourself when trying to decide between renovating and moving – and how to add value to your existing home.
What adds value to a house?
Property market observers <a href="https://www.domain.com.au/advice/how-to-make-your-home-stand-out-when-selling-932031/">advise</a> updating or renewing bathrooms or kitchens – even small fixes such as replacing a cracked or dated splashback, replacing a bath or adding skylights can go a long way.
Think about easy repairs that create an invaluable good first impression – a fixed-up fence, a new carpet or resurfaced flooring or even good old decluttering.
But remember you’ll only qualify for HomeBuilder if you plan to spend at least $150,000 on an owner-occupied home worth no more than A$1.5 million (CoreLogic has <a href="https://www.corelogic.com.au/news/homebuilder-renovations-where-are-most-owner-occupied-dwellings-below-15-million">listed</a> which suburbs have the most owner-occupied properties under A$1.5 million).
Factors to consider if you’re thinking of renovating
How long till you retire? How secure is your employment? Thinking carefully about your earning potential between now and retirement will help you understand how what you can borrow and afford. If you are planning to stay, you will get the benefit and enjoyment of the renovations.
Do you need to stay close to school or work? If that’s a consideration, renovating may be worth more to you than buying further out.
Look closely at what your property is worth (there are plenty of online calculators) and keep track of how much similar local properties with one extra bedroom or bathroom sell for. That will give you a sense of the value-add to your home equity that a renovation might represent.
Be honest with yourself about the total cost of renovation. There are myriad expenses not always initially apparent. These may include:
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planning fees (the cost of getting a development assessed by council)
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the cost of architectural drawings
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consultants’ fees for environmental impact statements or arborists’ reports
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extra costs due to a heritage listing
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renting, if it’s not possible to live at home during renovation
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the cost of protecting underground public assets such as water or sewerage pipes
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extra costs caused by poor access or other limitations.
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Consider the possible long-term savings of retrofitting your home to be more energy-efficient. Proper insulation, secondary glazing, draught excluders and solar PV energy are expensive upfront but will save on long term running costs. It’s likely, as energy costs increase, homes that are at least partially off grid will be more attractive and valuable over time.
And remember that for some, even with help from HomeBuilder, renovation won’t stack up economically.
Some older people may eschew home renovation to put money aside to help children get a foot on the property ladder.
Others may decide potentially expensive renovation is worth it to hold onto a family home to which children return as they get older. It might sound sentimental but the idea of Christmas in the family homestead is worth it, for some.
Tax considerations
Find out what tax breaks, if any, you might be eligible for if you renovate to divide the family home into a smaller space (if you’re keen to downsize, or enhance the accessibility of your home, for example) and adding a self-contained granny flat.
However, if the granny flat is leased out, this section of the home would be considered income-producing. Your “main residence” is generally <a href="https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Your-main-residence/">exempt</a> from capital gains tax when it comes time to sell, but you may not qualify entirely for this exemption if a section of the property is income-producing.
You may also consider remodelling the family home into a duplex and, depending on council planning laws, convert the title into dual occupancy. However, these suggestions may complicate eligibility for the HomeBuilder grant (which seems to exclude property investors, although there’s no mention of partly converting the main place into a dual occupancy).
The best option here is to seek advice from a tax specialist.
Factors to consider if you’re thinking of selling up and buying elsewhere
Use a <a href="https://www.realestate.com.au/home-loans/stamp-duty-calculator">stamp-duty calculator</a> and <a href="https://www.localagentfinder.com.au/selling-costs-calculator">cost-of-selling calculator</a> to get a rough idea of those costs.
How important is proximity to work? Particularly if the coronavirus pandemic has opened your (or your employer’s) eyes to working remotely, would you consider a move to a more remote area where you can afford a bigger house?
Chat with a range of real estate agents and get into the habit of reading market media coverage. Have a sense of what houses sell for that featured your desired attributes (such as more bedrooms or off-street parking).
As a chartered building surveyor, I’d advise would-be downsizers to be cautious when buying a brand new high-rise apartment, due to risks of potentially costly defects that might become apparent over time.
And remember, even if you do sell and buy a new place, very few are able to find the perfect home. You may decide to make renovations anyway.
There are no easy answers. It comes down to your individual circumstances, your attitude to risk and ensuring you have a good grasp of the relative costs of each option.
Talk to a financial adviser, tax accountant, real estate agents, builders, architects and others who have been through each process about what they’d do differently next time.
<a href="https://theconversation.com/profiles/sara-wilkinson-14186">Sara Wilkinson</a>, Professor, School of the Built Environment, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> and <a href="https://theconversation.com/profiles/hera-antoniades-229521">Hera Antoniades</a>, Associate Professor, School of the Built Environment, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-adds-value-to-your-house-how-to-decide-between-renovating-and-selling-140627">original article</a>.
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What adds value to your house? How to decide between renovating and selling

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GUEST OBSERVATION
<a href="https://treasury.gov.au/coronavirus/homebuilder">HomeBuilder</a> is a good idea gone bad. It is possibly the most complex and least equitable program the government could have devised to deliver construction jobs.
It gives $25,000 to people who already own a home or already have enough money to buy one while delivering a minimal stimulus to extra construction. It isn’t a program to create jobs, it is a way of making people who are reasonably well off richer.
It does not address homelessness, precarious rental or any of the other pressing problems that are caused by our current housing mix.
It might build more nice decks for sipping Chardonnay (most already planned), it might deliver ritzy new bathrooms with imported taps or even new kitchens with the latest European appliances, but it won’t help those suffering housing stress.
Construction is Australia’s <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/6291.0.55.003">third-biggest employer</a>, after retail and health care and social assistance. It employs one in every 11 Australians, and it generates other jobs in the building supplies industry and in design and engineering.
The Master Builders Association says construction is facing a decline of <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-06-03/government-coronavirus-construction-stimulus-renovations-25k/12317786">40%</a>, with potentially horrendous implications for employment.
The industry has three main components:
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residential – apartments and houses
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commercial – including offices, airport terminals, retail, tourism, education and factories
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engineering – including roads, railways and airport runways.
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Engineering construction is doing reasonably well.
Across the country, governments are delivering a veritable infrastructure <a href="https://iview.abc.net.au/show/utopia">Utopia</a>. Continuing projects include the <a href="https://bigbuild.vic.gov.au/projects/melbourne-airport-rail">Tullamarine Airport Rail Link</a>, the second stage of the <a href="https://www.sydneymetro.info/citysouthwest/project-overview">Sydney Metro</a>, the <a href="https://northeastlink.vic.gov.au/">North East Link</a> motorway in Melbourne, the <a href="https://www.westconnex.com.au/">WestConnex</a> motorway in Sydney, the <a href="https://www.metronet.wa.gov.au/">Airport Metro</a> in Perth and <a href="https://crossriverrail.qld.gov.au/">Cross River Rail</a> in Brisbane.
All governments have to do is keep this pipeline going, which, by and large, they are doing.
On the other hand, commercial construction will be in deep trouble by the end of the year as current projects finish without new projects to replace them.
Outlook bleak, then COVID
The outlook for residential construction is desolate, although for some people with secure jobs working from home, COVID-19 appears to have ignited a mini home renovation boom.
Prior to COVID-19, commercial construction was <a href="https://www.masterbuilders.com.au/MediaLibraries/MB/Forecasts/Australia-Forecast_August-2019.pdf">forecast</a> to shrink from A$48.77 billion in 2020-11 to $41.3 billion in 2023-24.
Residential construction was forecast to bottom out in 2021-22 with only 168,000 dwelling starts, down from a peak of 233,872 starts in 2016-17.
Now, both forecasts will be slashed.
The tourism sector is dead, the education sector is near death and the multi-unit residential market, already badly impacted by confidence issues around <a href="https://theconversation.com/to-restore-public-confidence-in-apartments-rewrite-australias-building-codes-126678">construction quality</a>, is in terrible shape with many projects on hold.
Not big enough, not broad enough
The HomeBuilder scheme is not big enough or broad enough to do much to reignite residential construction. To be useful for jobs, it would need to deliver an extra 60,000 housing starts.
Given the only people who will benefit from the grant will be those some way down the track to either buying or building, it is hard to guess what the additional outcome will be, but it would be surprising if the scheme generated much additional activity.
Even if the full budget allocation of the scheme is taken up, it would fund only about 25,000 projects. Many would have gone ahead anyway.
Among the peculiarities of HomeBuilder are that it won’t work in much of Sydney where many houses are likely to be valued above the <a href="https://treasury.gov.au/coronavirus/homebuilder">$1.5 million</a> limit and it won’t work in regional towns where the required spend will overcapitalise existing houses.
Complexities aplenty
It will encourage people to build in fridges, microwaves, coffee makers and washing machines (many of them tastefully European) to bump the contract price up above the <a href="https://treasury.gov.au/coronavirus/homebuilder">$150,000</a> minimum.
It is a potential administrative nightmare for state governments that are already stretched administering existing emergency relief programs.
Who will establish that the value of an existing house is less than the $1.5 million upper limit? Will it be the value now in the middle of the COVID downturn or the value last year, or the value used to set local government rates?
Contracts are meant to be arms-length, but who will ensure the builder is not the cousin or the in-law of the owner, something that might be impossible to avoid in a small country town? If a garage is built on the side of a house, rather than as a separate structure, will it comply with the rules? And on and on and on.
Few extra homes
While these are legitimate questions, they ignore the big, central problem with the scheme: the opportunity to deliver a substantial program of social housing that would address real problems, including homelessness, has been missed.
And the government has done it in a way that will minimise the jobs created and maximise the wealth transfer to Australians who are relatively well off.
For a government that has mostly managed to do the right thing ever since COVID-19 hit, this has been a terrible policy clanger.
It will encourage everyone who cannot afford to buy a home, or who is homeless, to believe the government has forgotten them.<img src="https://counter.theconversation.com/content/140162/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/geoff-hanmer-90647">Geoff Hanmer</a>, Adjunct Professor of Architecture, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/homebuilder-might-be-the-most-complex-least-equitable-construction-jobs-program-ever-devised-140162">original article</a>.
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HomeBuilder might be the most-complex least-equitable construction jobs program ever devised

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The HomeBuilder scheme announced in early June is intended to boost activity in the construction sector.
Dwelling construction is expected to see a lagged decline in activity off the back of COVID-19, as the recently recovering trend in dwelling approvals began to slip in April, led by a decline in unit approvals.
However, the $25,000 incentive for building a new home, or renovating an established one, comes with a set of extensive eligibility criteria.
Part of the eligibility for the renovation component of the scheme is that properties must be owner-occupied, and not exceed more than $1.5 million in value.
So where are the most owner-occupied properties under $1.5 million? 
Using CoreLogic’s extensive property database, we have put together a count of properties by region. The count of properties are those that we estimate are owner-occupied, and have a high confidence valuation of less than $1.5 million.
The top and bottom 10 regions by number of these properties is listed below.
<img src="https://www.urban.com.au/images/2020/6/9/PP%20CL%20JUNE%2011.JPG" alt="">
The list also includes the median dwelling value for all properties across the region of measurement (not just the owner-occupied properties valued below 1.5 million), and a rough estimate of the portion of all family households that are below the $200,000 income limit for the HomeBuilder scheme.
These additional data points are not factored into the count of properties generated, but provide some context around typical market values and household income.
What to make of the data
The data suggests that the highest number of owner-occupied properties is located in the Melbourne - South East region, which spans from Mount Waverly out to Bunyip. In fact, there are four Melbourne regions that have over 100,000 owner-occupied properties estimated to be valued under $1.5 million.
These regions represent the fringe of the metropolitan area, and include some relatively low income areas compared to the inner-city regions of Melbourne.
The Perth - North West region has the second highest volume of properties. The Perth - North West region spans from part of Glendalough, up to the Yeal Nature Reserve in the north. The ‘Bottom 10’ list of regions reflects one of two characteristics.
For Sydney’s Northern Beaches and Eastern Suburbs, many properties surpass the $1.5 million property value cap to qualify for a renovation grant. For parts of outback and regional Australia, there is just a low population of dwellings.
Even where dwellings fall well below the $1.5 million threshold for a renovation grant, many of these owner occupiers will not take up the homebuilder incentive for renovations.
In fact, CoreLogic estimates there are about 4.4 million owner-occupied properties across Australia with a high confidence valuation below $1.5 million, but the federal government estimates the scheme may only support about 7,000 renovations.
While part of this is the income cap put on the scheme, it is also due to the high value of renovations that is set in the eligibility criteria. The renovations qualifying for the HomeBuilder Scheme must be worth between $150,000 and $750,000.
For areas where dwelling prices and incomes are relatively low, this may lead to owners over-capitalising on renovations, where they cannot recoup the cost of upgrades to the property.
ELIZA OWEN is CoreLogic's <a href="https://www.corelogic.com.au/news/early-market-indicators-show-first-signs-housing-market-slowdown?utm_medium=email&amp;utm_source=newsletter&amp;utm_campaign=20200420_propertypulse" target="_blank">head of research</a>
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HomeBuilder, where are the most owneroccupied dwellings below $1.5 million? CoreLogic's Eliza Owen

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The Federal Government’s $25,000 Homebuilder package for the housing sector will help promote jobs and activity as New South Wales recovers from the economic effects of COVID-19.
That is important as construction is a key pillar of the economy – generating 7.5 percent of the nation’s growth as Australia’s third-biggest employer, after retail and health care and social assistance.
The $688 million package hopes to pull forward activity to avert the jobs cliff that could arise as exisiting projects finish in the second half of 2020 and early 2021.
The industry was not shutdown unlike other industries. But the package is aimed at forward work pipelines, with the time frame requiring quicker state government and council approvals, before any impact on the actual property market and prices and rents.
The program aims to provide 27,000 grants by December this year. It is for owner-occupiers, especially cashed up first home buyers, but not investors.
The means-tested grants will be restricted to large renovations and the construction of new homes as the project cost must be at least $150,000.
Prime Minister Scott Morrison said the scheme would drive a "tradie-led recovery" of the economy, and would support 140,000 direct construction jobs and a million workers in the wider residential building sector.
"The industry is facing a valley of death," the Master Builders Australia chief executive Denita Wawn warned.
The scheme will last until the end of the year, aiming to get 30,000 homes underway by Christmas.
Construction must commence within three months of the contract date.
Those eligible are singles who earned up to $125,000 the 2018-2019 tax year and couples who earned up to $200,000.
The scheme will work alongside existing state and territory first-home owner grants programs, stamp duty concessions and other grant schemes, including the federal government’s popular first-home loan deposit scheme and first-home super saver scheme.
The desired economic recovery will be swifter for having a housing that is robust, but there will be many would-be home owners who can't, won't or shouldn't participate.
It comes up against the backdrop that typically less than 20 percent of first-home buyers prefer to buy newly-constructed homes.
There are price thresholds that apply to the Homebuilder package, especially in Sydney which will be restrictive in most suburbs.
If you are building a new home the total value of the completed house and land needs to be less than $750,000.
Or if substantially renovating your existing home the value of your existing property does not exceed $1.5 million.
The package will primarily have an effect in the outer suburbs and its greenfield housing markets. Mostly people some way down the track to either buying or building will likely get to participate.
The scheme also covers buying units off the plan that are construction ready.
Architect academic Geoff Hanmer says no doubt the scheme's structure will encourage people to build in coffee makers, microwaves, fridges and washing machines to bump the contract price up above the $150,000 minimum.
Beware too that there are unscrupulous builders who may take advantage of the scheme, warns the NSW builder broker, Builder Finders' Lynette Manciameli, is concerned that the scheme is vulnerable to exploitation.
“What we are likely to see off the back of the HomeBuilder scheme is dodgy builders coming out of the woodwork." Mrs Manciameli suggests.
Adding it is more important than ever for consumers to do their due diligence when selecting a builder for their project including seeking out testimonials and checking credit scores.
This article was first published in The Daily Telegraph
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jchancellor-FAypfDUnLy

HomeBuilder scheme will drive a tradie-led recovery

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EXPERT OBSERVER
The Commonwealth Government’s $25,000 Homebuilder stimulus package for the housing and construction sector will help promote jobs, wages and activity as Australia recovers from the economic effects of COVID-19, according to the Urban Development Institute of Australia (UDIA).
The Government has today unveiled its housing stimulus plan to encourage homebuyers back into the market, start construction on new housing stock and generate jobs.
Housing and construction is a central pillar of the economy – generating 7.5 percent of the nation’s growth and supporting 750,000 direct and indirect jobs.
The economic recovery will be swifter and stronger for having a housing and construction industry that is robust, so the Government’s focus on stimulating activity is the right one.
Right now, the industry is facing a slowdown in pricing, rents, sales volumes, approvals, construction and forward work pipelines.
The package will help pull forward activity that meets the challenges of the ‘economic and jobs cliff’ facing the industry in the second half of 2020.
It was critical the federal government acted and now we need the states to play their part by applying targeted incentives into the ‘gaps’ in the Homebuilder scheme (such as townhouses and off-the-plan apartments), as well as fixing planning and state taxation barriers to new housing.
“States sit at the coalface of housing markets, and are the custodians of approval systems, state taxes and charges and local government processes. This is their once-in-a-generation opportunity to drive real reform right through the whole housing supply chain.
The federal package represents an important shift from the stabilisation phase of the Government’s response to COVID-19 to one that addresses the need to kickstart activity across the economy.
The Government’s Homebuilder package is modelled around the First Home Owners Deposit Gap Scheme it launched in January this year with the same income caps for singles and couples but applied to all homebuyers.
We encourage the Government to keep an open mind on the income and price thresholds that apply to the Homebuilder package, given the difference between major capital cities and regions. A $750,000 pricing cap, especially in Sydney and Melbourne for house and land, will be restrictive in many areas.
UDIA is also conscious the package will primarily have an effect in greenfield markets, and there is limited benefit to middle ring or apartment development also crucial for creating needed supply and employment.
UDIA believes that a broader spectrum of income caps may be needed to generate the shortfall in demand which we estimate to be up to 50,000 new homes over the near term and we urge the Government to continually review this so the vital objective of stimulating demand in the short term is achieved.
UDIA’s “Bounce Back” plan also promoted deeper and broader demand initiatives that UDIA wants to work with governments to enable the industry by advancing: 
Investment in infrastructure in partnership with the states that unlocks the essential trunk infrastructure needed over the next 12 months to service new residential construction and create a double dividend of future supply and jobs.
More efficient planning and environmental approvals, including guaranteed assessment timelines for major projects currently stuck in the system related to the Environmental Biodiversity and Conservation Act.
A pathway to re-establish immigration levels that support economic growth, consistent with health protocols.
SIMON BASHEER is the UDIA National President.
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New Homebuilder Grant is a crucial move to counteract coronavirus: UDIA's Simon Basheer

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Unscrupulous builders may take advantage of the Federal Government’s newly announced HomeBuilder scheme, warns NSW builder broker, Builder Finders.
The $688 million stimulus initiative will provide $25,000 for Australians to spend on building or upgrading their home in a bid to support Australia’s struggling construction sector.
The grants will be means-tested and will be restricted to larger renovations and the construction of new homes at a project cost of at least $150,000.
While pleased swift action has been taken to boost the construction industry, Director at Builder Finders, Lynette Manciameli, is concerned that the scheme is vulnerable to exploitation.
“We welcome the HomeBuilder scheme, as it will give the construction industry a much needed boost in these unprecedented times while allowing Australians to pursue their building and renovation aspirations.
“However, as we saw with the pink batts disaster following the GFC, even the best laid plans can have unintended consequences. Incentivised by the opportunity to make quick cash, several irresponsible operators delivered substandard work, scammed unwitting customers or placed untrained young workers at risk.
“What we are likely to see off the back of the HomeBuilder scheme is dodgy builders coming out of the woodwork. This is bad news for the consumer and bad news for the many reputable builders who are doing the right thing.”
Mrs Manciameli acknowledges that poor construction standards in the past have meant that building issues are extremely common in Australia.
“Over the past decade, new homeowners in Australia have faced a $10.5 billion bill to repair defects such as leaks, cracks, problems with plumbing, guttering issues and more. A lack of regulation and the opportunity for shoddy builders to make quick cash will further exacerbate the problem.”
Mrs Manciameli argues that it is more important than ever for consumers to do their due diligence when selecting a builder for their project.
“There are several builders out there who are doing the right thing and have a sterling reputation for quality. Consumers should do everything in their power to vet builders including seeking out testimonials and checking credit scores. This will help them avoid being saddled with a dodgy builder before it's too late.”
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HomeBuilder scheme may be exploited by dodgy builders experts warn

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Australians will be offered $25,000 grants to build a new home or start a major renovation under a new $688 million federal government housing package.
The government announced the rort-free HomeBuilder program on Thursday after new figures revealed the country dipped into a recession for the first time in three decades.
An estimated $15 billion boost to economic activity will be delivered under the $688m Home Builder stimulus package with the plan restricted to people on middle incomes and to new homes and major renovations valued between $150,000 to $750,000.
The pre-renovation value of the house must not exceed $1.5 million and excludes sheds, pools, granny flats and any other structures not attached to the property.
The $1.5 million cap will exclude many inner Melbourne and Sydney homes as the median house price for each city sits at $918,350 and $1,168,806, respectively, according to Domain figures.
Prime Minister Scott Morrison said the scheme would drive a "tradie-led recovery" of the economy, and would support 140,000 direct construction jobs and a million workers in the wider residential building sector.
The temporary scheme that will last until the end of the year, aiming to build 30,000 homes by Christmas.
Construction of a new home or a substantial renovation must be contracted to begin within three months to prevent a rise in house prices.
Those eligible are singles who earned up to $125,000 the previous financial year and couples who earned up to $200,000.
The scheme will work along existing state and territory first-home owner grants programs, stamp duty concessions and other grant schemes, including the federal government’s first-home loan deposit scheme and first-home super saver scheme.
Treasurer Josh Frydenberg said the package aimed to spark jobs and stimulus for the economy.
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