National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more internation and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

Joel Robinson

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

<section data-scroll-anchor="false" data-testid="conversation-turn-5" data-turn="user" data-turn-id="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" data-turn-id-container="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" dir="auto">Time &amp; Place’s plans to transform the former David Jones factory building in Surry Hills into a mixed-use residential precinct have gone on exhibition through the NSW Government’s In-fill Affordable Housing pathway.</section>

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" data-turn-id-container="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" dir="auto">
The Marlborough House proposal, lodged for the <a href="https://www.apartments.com.au/new-apartments/marlborough-house-47-97-marlborough-street-surry-hills-nsw-2010">47-97 Marlborough Street</a> site, would see the adaptive reuse of the heritage-listed warehouse building alongside the construction of new residential additions and a separate apartment building on the northern portion of the site.

The proposal seeks approval for 172 apartments across three buildings, including 15 per cent affordable housing managed by a community housing provider for at least 15 years from occupation.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="5d1d3c2a-bf13-47d6-a335-7c01102cdee1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.36%E2%80%AFAM.png?VersionId=cjMYrbR.BLUlWH4dar0RVDDo0bG.u2YT" />

Interior view from the Northern Building Penthouse overlooking the park

&nbsp;

The redevelopment is planned for the prominent 3,413 sqm site bounded by Marlborough Street, Goodlet Street and Lansdowne Street, directly opposite Eddie Ward Park and around 200 metres from the Surry Hills light rail stop.

Time &amp; Place acquired the former David Jones building in 2024, marking the first time the property had changed hands in around 50 years.

Designed by Wardle, the proposal centres around the adaptive reuse of the former David Jones factory, originally constructed between 1913 and 1935 in the Inter-War Chicagoesque architectural style.

Wardle noted in its Architectural Design Report that the building “occupies a significant place in the industrial and cultural history of Surry Hills” and at its peak was “the largest department store manufacturing facility in Australia, employing over 800 people and fuelling the growth of Sydney’s fashion and retail industries.”

The practice said the project positions itself “not as an isolated intervention, but as a contributor to the civic, social, and architectural grain of the precinct.”

The proposal would deliver 75 apartments within the retained southern heritage building, 59 apartments within the central addition, and a further 38 apartments within the new northern building fronting Lansdowne Street.

Planning documents show the scheme would comprise a mix of heritage apartments, new-build apartments, townhouses and penthouses.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="57758518-40a3-4b83-958c-d06e96a2cffa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.42%E2%80%AFAM.png?VersionId=VerlX9ST5xgBi8.1_YRsqdWTJeT6ygjs" />Interior View of the Heritage Building Apartment

The development would also include a ground-floor retail tenancy on the corner of Marlborough and Lansdowne streets, rooftop communal open space, a landscaped pedestrian link along the western edge of the site, and basement parking accessed from Lansdowne Street via a car stacker system.

&nbsp;

The scheme emerged from a competitive design process run by Urbis, with Wardle ultimately selected as the winning architect ahead of FJC Studio, TZG, Architectus and Wilkinson Eyre.

The Design Integrity Panel later described several aspects of the Wardle scheme as fundamental to the project, including “the stepped character of the new addition to the north of the site”, the landscaped western pedestrian link, and the “garden arrival” experience separating the original Marlborough House from the heritage addition.

Wardle’s design heavily references the site’s industrial and heritage history, while also responding to the surrounding Surry Hills streetscape.

The Architectural Design Report describes Surry Hills as “a finely grained neighbourhood with beautiful and expressive brickworks throughout the suburb,” with the proposal introducing a material palette intended to sit comfortably alongside the existing warehouse fabric and neighbouring terraces.

The report also outlines the project’s relationship with Eddie Ward Park and the broader landscape context of the area.

“Marlborough House occupies a site of deep cultural memory and the neighbouring Eddie Ward Park is of local ecological significance, where natural systems, topography, and stories have long shaped human experience,” Wardle noted in the report.

The architects said the proposal sought to “rebind built form to Country” through landscape, materiality and the adaptive reuse of the heritage structure.

<img alt="Marlborough House" data-entity-type="file" data-entity-uuid="9ae3f2f9-c85f-477a-a6f8-b43f6cb97c41" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.53%E2%80%AFAM.png?VersionId=B.qUCLqRvJOR.n9CvYcTpaknIX9LuqKZ" />

The project is also being progressed under the NSW Government’s in-fill affordable housing provisions, allowing developments that include affordable housing to access additional height and floor space incentives.

Under the plans, 2,593 sqm of the project’s floor space would be dedicated to affordable housing, slightly exceeding the required 15 per cent threshold.

In its Design Excellence Strategy, Urbis said the project aimed to “sensitively adapt and enhance the heritage-listed building on site through alterations and additions that preserve its historical significance” while delivering “high-quality market and infill affordable housing development in Surry Hills.”

Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in&nbsp;<a href="https://www.apartments.com.au/developments/south-melbourne-vic-3205">South Melbourne</a>, and have future projects, <a href="https://www.apartments.com.au/new-apartments/the-wilmot-173-burke-road-28-hope-street-glen-iris-vic-3146">The Wilmot</a>&nbsp;in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>, the redevelopment of the Northcote Plaza, and another tower in South Melbourne.

The developer broke into Sydney just a few years ago with Two Tides in Manly. They have another project nearby, which is at the ultra-luxury end of the market on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach.

It is also continuing to work through the <a href="https://www.apartments.com.au/news/nsw/first-look-time-place-settles-on-design-for-the-chimes-potts-point-redevelopment">redevelopment of The Chimes building</a> on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as a project on <a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Mosman's Redan Street</a>.
</section>

First look: Time & Place unveils Marlborough House redevelopment designs for former David Jones warehouse in Surry Hills

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

Stamp Duty

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Some Victorian home buyers will pay less stamp duty until June next year.
The Victorian State Treasurer Tim Pallas announced the cut in stamp duty would apply to home sales under $1 million only.
The duty will be paid at a rate of 50 per cent for new build homes and 25 per cent for existing properties, from Wednesday until the end of June 2021. 
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<div class="styles__Container-sc-1ylecsg-0 goULFa">New residential builds valued under $1 million will receive a 50 per cent waiver on stamp duty up to $27,500.</div>
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Buyers on existing residential properties will secure a 25 per cent saving of up to $13,750.
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The discounted rate is aimed at stimulating Victoria’s housing market after coronavirus pandemic-related restrictions.
“With a waiver on stamp duty, we’ll help more Victorians find their home and get more Victorians back to work,” Treasurer Tim Pallas said.
All purchases of more than $1 million will pay the full stamp duty amount. 
The budget measure was part of the government’s “Big Housing Build”.
The state government forecasts an 11 per cent peak-to-trough fall in house prices, with the lowest point being next in June.
They forecast that prices will only recover to pre-COVID-19 levels in 2022-23.
The budget papers revealed a 25 per cent drop in stamp duty revenue to $4.6 billion in the 2020-21 financial year.
“Land transfer [stamp] duty is expected to recover from 2021-2022 and grow by an average of 15.4 per cent a year, over the forward estimates, but is not expected to reach the 2018-2019 level until 2022-23,” the budget papers stated.
“It’s about equity and putting the support and effort where it can best have effect,” Pallas said.
“The aim is to get as many people in that price bracket [$1 million] and below back into the market.”
 
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jchancellor-FAypfDUnLy

Some Melbourne home buyers will pay less stamp duty until June next year

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GUEST OBSERVATION
In tax as in many endeavours, it’s easy to work out how things should be; harder to work out how to get there.
In NSW, Treasurer Dominic Perrottet wants to replace the one-off stamp duty on real estate transactions with an annual <a href="https://www.treasury.nsw.gov.au/sites/default/files/2020-11/NSW%20TSY%20TF%20-%20Glossy.pdf">land tax</a>.
In the long run, this one single reform could produce the biggest possible gains of any tax reform, state or federal.
This graph from the federal treasury’s 2015 <a href="https://treasury.gov.au/sites/default/files/2019-03/c2015-rethink-dp-TWP_combined-online.pdf">tax discussion paper</a> makes the point.
It says the “marginal excess burden” (damage) done by real estate conveyancing taxes amounts to 70 cents for each dollar raised.
It means people and businesses change addresses less often than they should. Households live further away from their work than they would like to, are reluctant to move to where there is better work, and spend money extending houses instead of moving to better ones.
Businesses resist changing property location and type when changes in markets and costs suggest they should.
<a href="https://images.theconversation.com/files/370724/original/file-20201123-19-16bujkx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/370724/original/file-20201123-19-16bujkx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://treasury.gov.au/sites/default/files/2019-03/c2015-rethink-dp-TWP_combined-online.pdf">Tax discussion paper, Australian Treasury March 2015</a>
In contrast, the treasury found the marginal excess burden of land tax was negative. By that it means every dollar raised actually makes things better off by making land more likely to be used for its best purpose and making land less likely to be not used at all.
Swapping the worst tax the treasury modelled for the best tax it modelled ought to have a huge economic payoff for use of property, for productivity and for living standards.
It’d also be fairer.
The NSW <a href="https://www.treasury.nsw.gov.au/sites/default/files/2020-10/FFR%20Final%20Report%20-%20200828%20%281%29.pdf">Thodey Review</a> of federal financial relations commissioned by Treasurer Perrottet notes that 26% of owner-occupiers have remained in the same property for at least 20 years.
Most of these long-term same property owners have benefited “not only from the services provided by the state over that time, but also from a once-in-a-generation land price windfall”.
In exchange for these gains, they have contributed very little towards essential services and critical infrastructure via property taxation. Others who have moved more often than the average to find a job, to be closer to schools, or to match housing size to changes in their family situation have picked up the tab.
Thodey also identifies other reasons for making the switch. Land tax revenue is more stable and predictable than revenue that soars and dives at times when people are buying or are not buying properties.
How you get there matters
The Australian Capital Territory is well on the way.
In 2012-13 it began a <a href="https://www.allhomes.com.au/news/cbr-how-act-home-owners-are-affected-by-the-act-tax-reform-program-new-report-982274/">20-year transition</a>. Stamp duty and insurance duty are being wound back (for everyone) and replaced by <a href="/news">increases to general rates on land</a>.
The transition is roughly revenue-neutral.
NSW is proposing a different approach. It is considering asking new buyers to “<a href="https://www.treasury.nsw.gov.au/sites/default/files/2020-11/NSW%20Treasury%20property%20tax%20proposal%20Consultation%20Paper.pdf">opt in</a>” to an annual land tax in return for escaping stamp duty. Once a buyer has opted in, future buyers of that property won’t be able to opt out. They will pay land tax instead of stamp duty.
It’ll mean no property owner, new or old, need be a loser in the first instance.
But it will stretch out the transition and involve very large reductions in revenue for years to come, with smaller but still-substantial losses over decades.
As an illustration, assume that in year one, rather than paying $100 of stamp duty, the buyer chooses to pay a much smaller annual land tax.
NSW is going the long way
On average about 5% of properties change hands each year, meaning on average each is transferred once every 20 years. That means that to be revenue neutral in the long term the annual land tax should be set at 5% of the stamp duty.
If all the buyers in the first year switch over to land tax, the government will lose 95% of the money it would have got from stamp duty in that year.
With the passing of time and a larger share of owners paying land tax the shortfall will get smaller. But even after a decade, it might be as much as 50%.
Some buyers will never opt-in
And the voluntary opt in will give buyers who expect to hold a property for longer than average, for more than 20 years, an incentive to turn down the offer of land tax and pay (the lesser) stamp duty as before; while those who expect a short stay will opt for the (lesser) land tax.
This entirely rational behaviour will further reduce government revenue, aggravate the inequity of the system we’ve got, lock some owners into the properties they already own in order to avoid paying for government services, and postpone the benefits of moving to a system in which tax doesn’t distort the use of land.
It’s easy to see why Perrottet has gone for a voluntary switchover.
There are better ways to avoid double taxation
Without some sort of concession, recent buyers would find themselves taxed twice, once through stamp duty and then again through annual land taxes.
The ACT’s 20-year transition is one way to get around the problem.
Despite concerns, it has <a href="https://grattan.edu.au/submissions/nsw-should-swap-stamp-duties-for-a-broad-based-property-tax/">proved popular enough</a>.
Eight years in, the ACT Labor government has just won it’s <a href="https://www.news.com.au/national/nsw-act/politics/act-votes-will-labor-secure-a-sixth-term/news-story/fb16a95da53cb48cc31f1591b54abd66">sixth consecutive election</a>.
A quicker way of realising the gains from switching while reducing double taxation would be to introduce land tax immediately and give recent buyers a partial credit for the stamp duty they’ve paid.
As an example, stamp duty paid in the past one, two, three, four and five years could receive a credit of 100%, 80%, 60%, 40% and 20%, respectively.
It would cost revenue over the transition period, but not as much as the opt in arrangement proposed by the NSW treasurer, and after that short period the switch would be revenue-neutral. Importantly, it would reap the full efficiency benefits from day one, and ensure everyone paid the tax they should.<img src="https://counter.theconversation.com/content/150629/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/john-freebairn-90">John Freebairn</a>, Professor, Department of Economics, <a href="https://theconversation.com/institutions/university-of-melbourne-722">University of Melbourne</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/axing-stamp-duty-is-a-great-idea-but-nsw-is-going-about-it-the-wrong-way-150629">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Axing stamp duty is a great idea, but NSW is going about it the wrong way

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NSW stamp duty is set to be reformed for the first time since 1985 when the rates were amended.
The government <a href="https://www.treasury.nsw.gov.au/sites/default/files/2020-11/0920-01_NSW%20TSY%20Consultation%20Paper_v6.pdf" target="_blank">is seeking public feedback</a> on the proposal to replace stamp duties with a broad-based land tax.
The change was mooted in the New South Wales state budget.
Treasurer Dominic Perrottet revealed plans to reform the “inefficient property tax system” currently in place, but will await the feedback before any implmentation.
The discussion will centre around transitioning from the current model of a mandatory upfront stamp duty, to one where buyers have the choice to instead pay an annual land tax on new property purchasers based on the value of their land.
The rates are set to vary for owner-occupiers, investors and commercial tenants.
"If implemented, the proposed changes could give you the freedom to choose between paying stamp duty upfront or paying a much smaller annual property tax, when you buy your next home," reads the NSW Treasury website. 
"Removing the upfront cost of stamp duty could remove tens of thousands of dollars from the home purchase process and make it easier for first home buyers, families looking to upgrade and others looking to change their property to save what is needed to purchase their next home.
"Unless you are buying a property, there would be no change. If you have already paid stamp duty on your existing property, you would not be subject to an annual property tax. There would be no double taxation."
The HIA executive director David Bare noted stamp duty was impeding the ability of the population to shift to pursue education and employment opportunities elsewhere. 
“Stamp duty is an inequitable tax which falls on a small cohort of taxpayers who need to move for varying reasons including for employment, education and training, health or financial reasons," Bare said.
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NSW Government seeks to reform property stamp duty

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On the 27th of July, the New South Wales government announced eligible first home buyers could access stamp duty exemptions on new home purchases worth up to $800,000.
New home builds will also see stamp duty discounts available for purchases between $800,000 and $1 million, where the discount reduces with a higher purchasing price. The policy is a temporary, 12-month extension of existing stamp duty concessions from the 1st of August 2020.
Based on housing market trends that emerged from the initial introduction of stamp duty discounts and other first home buyer incentives, there a few trends we may expect to emerge from the new round of stamp duty discounts.
First home buyer demand will increase
Previous research suggests that first home buyer grants and incentives have had a ‘vacuum’ effect, where first home buyer incentives are followed by large, but temporary, spikes in first home buyer activity. This suggests the incentives bring forward purchases that may have happened anyway. The fact that the new stamp duty discounts on offer will only be available for 12 months is likely to exacerbate this effect.
The increase in first home buyer participation over a limited time window may actually lead to an increase in values up to the cut off values for stamp duty concessions. This is because buyer competition could be increased in this segment while added incentives are on offer. Furthermore, the reduced transaction costs associated with stamp duty exemptions mean borrowers have higher purchasing capacity, which may just be added onto the purchase price while first home buyer demand is elevated.
One important mitigating factor is that the demand shock created by COVID-19 may not be enough to increase first home buyer demand.
However, at the very least, first home buyer participation would be higher than it otherwise would have been as a result of the stamp duty discount.
Price ‘clustering’ could move up to the $800,000 mark
Research of sales volumes by price suggests that sales volumes tend to ‘cluster’ just under the cut-off point for complete stamp duty exemptions, so that first home buyers can avoid paying the tax.
CoreLogic sales volume data across NSW shows that there is a bunching of sales between the $640,000 and $650,000 price point between July 2017 and June 2020.
$650,000 was the cut off point for stamp duty exemption for first home buyers in this period. This is demonstrated in the charts on the following page, which show the volume of sales across NSW by value range for the two years before and after the introduction of stamp duty discounts for sales up to $650,000.
While the $650,000 price point seemed to be an anchoring point for buyers before the introduction of stamp duty exemptions, the difference in sales volumes is exacerbated after exemptions are introduced.
The number of sales at $640-650,000 was 32% higher than the band below, and is 49% higher than sales in the value band above. This is a greater divergence than was observed between these value bands in the two years before the introduction of stamp duty exemptions.
As the stamp duty exemption increases to $800,000, this could see a broader range of properties increase in value up to this level. This price inflation would be skewed toward new home builds where the discounts apply.
The incentive to avoid tax could increase turnover now, but dampen it later
An interesting feature of the stamp duty discounts for first home buyers is that they extend to property values worth up to $1 million. This is likely to be beyond the typical first home buyer purchase point across NSW.
Deriving the average borrowing amount by first home buyers from ABS housing finance data suggests that a typical first home buyer purchase price averaged closer to $625,000 between July 2019 and May 2020.
By raising the threshold to $1 million, there is more diversity in the housing stock that first home buyers can access with stamp duty discounts, particularly across Sydney where property values are higher than in other capital cities.
<img src="https://www.urban.com.au/images/2020/7/30/CL%20stamp%20duty%20concessions.JPG" alt="">
But by incentivising first home buyers into a more expensive, and presumably larger home earlier in life, first home buyers may stay put for longer, in order to avoid paying stamp duty on upsizing down the line. This could extend hold periods, thus potentially reducing the amount of turnover that takes place in future.
Overall, the expected impact of this temporary discount in stamp duty should bring forward the purchase of property among first home buyers, and skew more first home buyers to new property. This is good news for those in the construction industry, and, considering the broad range of industry sectors involved in residential construction, there should be a positive flow through to economic activity.
However, considering the potential for higher housing prices, stamp duty exemptions may be limited in helping first home buyers access cheaper housing. 
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pchatterjee-seVgoiQgz5

The impact of NSW stamp duty discounts: CoreLogic's Eliza Owen

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First home buyers and the construction industry will benefit greatly from the elimination of stamp duty on newly-built homes below $800,000 and a reduction in thousands of dollars for properties up to $1 million.
Premier Gladys Berejiklian said the change to stamp duty thresholds would also support new home construction and create jobs as part of the Government’s COVID19 Recovery Plan.
“Thousands of people will see their bank balances benefit from this change - it will help get more keys into more front doors of more new homes,” Ms Berejiklian said.
“It will also boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before.”
<img src="https://www.urban.com.au/images/2020/7/27/Tax%20Threshold.JPG" alt="">
Under the changes the threshold above which stamp duty will be charged on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million.
The Government forecasts more than 6,000 first home buyers will benefit from the changes, saving eligible first homebuyers thousands of dollars.
Under the changes the stamp duty threshold on vacant land will rise from $350,000 to $400,000 and will phase out at $500,000. The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes, and will last for a 12-month period, commencing on 1 August 2020.
The NSW Government will also continue to offer a $10,000 First Home Owner Grant, which is available to people buying a new first home worth no more than $600,000, or buying land and building a new first home worth no more than $750,000 in total. This means the maximum amount of benefit a home owner could be entitled to is $32,335 if purchasing a new home and accessing the grant.
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NSW FHB stamp duty to be slashed as part of COVID-19 recovery plan

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Urban Taskforce Chief Executive, Tom Forrest, today congratulated NSW Premier Gladys Berejiklian and Treasurer Dominic Perrottet for taking the lead by extending the exemption of stamp duty for first home buyers which will now apply to new homes worth up to 800,000.
Stamp duty relief will also apply, on a scaled basis, to newly built homes valued between $800,000 and $1 million as well as to vacant land worth up to $400,000.
Today the Commonwealth Treasurer called for Dominic Perrottet to put his cards on the table. Unbeknown to Josh Frydenberg, the NSW Government had already taken the decision to slash stamp duty on newly built homes worth up to $800,000. This will make a big difference to the struggling property market and to new buyers.
The problem with stamp duty and payroll tax is they are distortionary. The have the effect of creating a bias in the property market which slows down property transactions and payroll tax is simply a tax on employment – it is nuts.
Today’s announcement to increase the stamp Duty threshold from $650,000 to $800,000 is recognition by Treasurer Perrottet that housing prices are higher is Sydney than in the rest of the nation. The Urban Taskforce calls on the Commonwealth to apply these new thresholds to the HomeBuilder package and make it relevant to the biggest market in the nation – that of Greater Sydney.
Mr Forrest said the new National Cabinet approach to decision making has worked well to date in dealing with COVID-19, but the same approach needs to be adopted in relation to the vexed issue of tax reform. The NSW Government has been at the forefront of calling for taxation reform.
The Thodey Report (2020) into NSW-Federal Financial Relations called for the abolition of Stamp Duty and Payroll tax. At a Commonwealth level, the Henry Report (2009) made the same recommendation and has been gathering dust for a decade.
The Urban Taskforce has publicly called for the abolition of stamp duty and its replacement with a broadly based land tax or an extension of the application of the GST.
The GST was supposed to apply to all goods and services, thus creating enough revenue to fully compensate the unemployed, the poor and those on social security benefits as well as enabling the states to get rid of high inefficient taxes like Stamp Duty and payroll tax. The Urban Taskforce said that changes to the Tax system could stimulate the economy and help drive Australia our of recession.
Now is the time for the States and Commonwealth to come together and support: 
<ul>
<li>Progressive phase out of Stamp Duty to be replaced with a broad-based land tax or widening of the GST </li>
<li>Abolition of Payroll Tax </li>
<li>Removal of the additional stamp duty and land tax currently applied to all foreign investors </li>
<li>Broaden and extend the application of HomeBuilder to make it relevant to NSW homes and apartments.</li>
</ul>
TOM FORREST is the Urban Taskforce Chief Executive Officer
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Stamp duty relief is a ‘win-win’ for first home buyers and jobs: Tom Forrest

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Almost 2 months ago the property industry was abuzz with talk of the <a href="/expert-insights/buying/why-axing-stamp-duty-will-help-everyone">removal of stamp duty</a> on property transactions. The NSW Treasurer announced he was seriously contemplating such a move and was being advised by a high-powered advisory board. At the time, no one asked the obvious question – when has any Government voluntarily given up such a significant revenue contributor without replacing it with another way to collect the same amount (if not more) revenue or relying on bracket creep? I cannot recall one time in the last 30 years.

On the 20th anniversary, David Thodey and the NSW Treasurer did a song and dance routine at the <a href="https://www.smh.com.au/politics/federal/nsw-calls-on-other-states-to-back-recession-busting-gst-plan-20200701-p55820?ref=rss&amp;utm_medium=rss&amp;utm_source=rss_feed">National Press Club</a> calling on a broad-based land tax amongst other things.

When you view the public statements since then, it now makes perfect sense.

Since the initial announcement, we have seen numerous kites being flown. The first one in the air was a <a href="https://www.parliament.nsw.gov.au/committees/DBAssets/InquiryOther/Transcript/8810/Additional%20information%20Tenants'%20Union%20of%20NSW%20Land%20tax.pdf">broad-based land tax.</a> From a pure public policy perspective, this isn't such a bad idea and has been around since the late 1800s. There’s only one issue, and that is that in New South Wales there is an unimproved capital valuation regime for all properties – so valuations only relate to land and not improvements. Hence, as it relates to the land alone, a whole range of economic distortions will emerge. 

In addition, when all things are considered a broad-based land tax under the current conditions have the impact of increasing <a href="/guides/top-10-hidden-costs-of-buying-a-house-or-apartment-in-2021">Council rates </a>(it would be levied on a rather similar basis). Raising $9 billion per annum from a broad-based land tax could have the impact of almost doubling local rates.

Other questions also emerge such as, should homeowners that have already paid stamp duty still be liable for new broad-based land tax? If they are liable, then they are being double-taxed – if they are not, the imposition of the new tax may have a lock-in effect and reduce potential revenue collections.

The ACT has started a program to replace stamp duty with a broad-based land tax. The ACT has no private ownership of land and has a 99-year leasehold. The Government is largely responsible for land release and its population is about the size of the Northern Beaches of Sydney. Sure, lessons should be learned but differences should be acknowledged.

By far the scariest proposals are betterment taxes and value capture. This has been the topic du jour of the Sydney Morning Herald (SMH). Many Government agencies are enticed by the prospect of capturing the uplift created by a pen stroke without taking any risk. The SMH reported that the Government could <a href="https://www.smh.com.au/national/nsw/value-capture-adored-by-academics-and-despised-by-developers-its-time-may-have-finally-come-20200604-p54zch">capture 75% of the value uplift.</a> Such methods of taxation are lauded as international best practice. What they fail to mention, is the contention surrounding the drawing of tax increment financing boundaries and the community division it creates in the United States. They also fail to mention the small contributions to the <a href="https://www.crossrail.co.uk/">CrossRail project</a> from value capture as it also included reimbursements for value decrement. Admittedly, value capture did work rather well in Hong Kong with the development of the <a href="http://www.mtr.com.hk/en/customer/tourist/index.php">Mass Transit Railway (MTR)</a> but that was for a discrete and continuous piece of infrastructure where value could be clearly demonstrated.

You don’t replace one <a href="/expert-insights/buying/what-do-we-want-stamp-duty-changes-when-do-we-want-them-now">distortionary tax </a>(stamp duty) with another distortionary tax. There are pros and cons of all proposals. But the trick will be in the design. A broad-based land tax appears the best way to go but it should be levied on the improved capital value of land.  This will incorporate elements of all the taxes discussed and will tax the marginal improvement in value throughout the lifecycle of the development. There is far more work needed by policymakers before we accept the removal of stamp duty as a Trojan Horse. 
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vivian_48447

Beware of Politicians Bearing Gifts – Let’s Start the Stamp Duty Discussion

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The NSW Government will provide stamp duty relief for people who lost their homes during the bushfires and who choose to purchase a replacement home elsewhere rather than rebuild.
People purchasing replacement homes will only begin paying stamp duty once the amount payable exceeds $55,000. Stamp duty will therefore be paid on homes with a value $1.3 million or higher.
Deputy Premier and Minister responsible for Disaster Recovery John Barilaro, and Treasurer Dominic Perrottet, said the latest NSW Government assistance would enable people to get back on their feet and back into a new home faster.
“This is about ensuring people have the ability to buy a home to replace the one destroyed by fire and not have to worry about the substantial cost of stamp duty which can be tens of thousands of dollars,” Mr Barilaro said.
Mr Barilaro said 2448 homes were destroyed during the bushfires, with the Government-funded clean-up now well underway across the State.
Treasurer Dominic Perrottet said the stamp duty relief package would allow people much more flexibility and financial freedom as they made one of their most important decisions in the recovery process.
Information on how to apply for a refund and eligibility requirements will be available from Service NSW and Revenue NSW websites from March 10. Eligible people who have already paid duty will be able to apply for a refund.
HIA applauded the NSW Government for this decision.
“The Housing industry Association (HIA) welcomes the NSW governments announcement it will provide stamp duty relief for those people who have been directly impacted by the tragic bushfires that have swept across the state”, Executive Director NSW HIA David Bare said.
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NSW Government providing stamp duty relief for homes lost in bushfires

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Placing an offer on your dream home is an exciting process, especially if you’re a first home buyer. As with any significant purchase, doing thorough research is vital before putting your pen to paper, and having a greater understanding of the buying process could help boost your confidence and bargaining power.

In this article, you’ll learn more about:

<ol>
<li>Considerations for getting your finances in order</li>
	<li>Due diligence you could consider undertaking</li>
	<li>The different sale types in the market</li>
	<li>The pros and cons of unconditional vs conditional sales</li>
	<li>How to determine how much you should offer</li>
	<li>Tips to help you place your offer with confidence</li>
</ol>
<h2>1. Getting your finances in order </h2>

Firstly, it is important to determine your budget from the outset before you place an offer on a property. This will help mitigate issues such as offering too much for a home you can’t afford or taking on a mortgage you are unable to service. If you’re a first home buyer, it could also be a good idea to research whether <a href="/guides/how-to-navigate-australias-first-home-buyer-grants"><ins cite="mailto:Shay%20Waraker" datetime="2019-10-21T10:30">any government grants</ins></a> may apply to you.

In the current Australian property market, a minimum deposit on a house can cost anywhere from 5% to 20% of the sale price. You will also need to factor in additional fees such as legal costs, building reports and Stamp Duty*. <a href="http://www.canstar.com.au/home-loans/what-are-the-real-costs-of-buying-a-house/">Additional costs</a> will vary from buyer to buyer, so it is best to consult with a property lawyer about which ones apply to you.

[smartcode_project:default project_id=28314]

*Stamp Duty is the tax associated with buying property in Australia. If you’re looking to purchase a new apartment which will be your primary residence, then you may be eligible for an off-the-plan stamp duty concession. While Stamp Duty concession policies vary state to state, the concept generally means that the duty you’re required to pay on the property you’re purchasing is heavily subsidised to account for construction costs.

For example, if you were looking to purchase a $500,000 off-the-plan apartment, but $400,000 of that is to be spent on construction costs, the dutiable value of your home would be $100,000*.

Once you’ve got a budget in mind, if you’re going to require a home loan then you’ll need to decide whether you would like to opt for a fixed rate or variable rate loan. A fixed rate is where the interest rate remains stable for a certain period of time. This can provide you with more certainty and enable you to set up an automatic payment to make weekly or monthly payments of the fixed rate.

However, a variable rate means that as interest rates fluctuate, so does your repayment rate. This option is more unpredictable, with the potential for your rate to increase or decrease depending on the market.

There are also two ways you may be able to pay your loan.

<ol>
<li>
Principal + interest loan: This type of loan will mean you are paying both the principal (the amount you borrowed to purchase the property) and interest at the same time.</li>
	<li>
Interest-only loan: Interest-only loans can reduce the amount you pay weekly, but keep in mind you will only be paying the interest, without contributing towards the principal.</li>
</ol>
If you are unsure which repayment type suits you, it could pay to seek the help of a financial advisor.

You may also choose to apply for <a href="https://www.canstar.com.au/home-loans/get-home-loan-pre-approval/">home loan pre-approval</a>, which could be a useful way to understand how much you are eligible to borrow from a lender.

<h2>2. Undertaking thorough due diligence </h2>

Due diligence is the research required prior to placing an offer to check whether the property is a good investment for you. Due diligence is undertaken throughout many stages of the buying process, but before you make an offer, it can help you to determine if the property has been constructed to a high standard, using safe and healthy building materials – as well as a tool for deciding what the property may be worth. There are a number of things <a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">to look out for</a>, and some of the key due diligence research can include:

<ul>
<li>When considering buying an off-the-plan property, investigate the track records of developers by running a background check online and reading news articles. It could also be a good idea to consult property industry experts (such as town planners, master builders and environmental consultants) to ask for honest opinions of the quality of work produced by the developer. Another option is to arrange a meeting with buyers of the developer’s previous developments via the sales agent, to discuss whether they’re happy with their home and if it was completed on time.</li>
	<li>Research the suburb where the property is located including checking crime rates, public transport options, planned infrastructure, property value increases/decreases over time and local schools. These factors will impact the overall liveability, safety and value of the property.</li>
	<li>Research the architect and builder responsible for the home. Consider their credibility and visit their completed developments to assess whether you’re happy with the quality of their work.</li>
	<li>Acquire all supporting documents for the property you’re interested in and read through them with a fine-tooth comb.</li>
	<li>Study the minutes from past strata/body corporate meetings and find out what will be required from you time-wise and financially as a resident if buying into an owner’s corporation*</li>
	<li>Find out whether the property has a heritage overlay and what renovations and modifications you are allowed to make to the property</li>
	<li>Take a look at Geospatial data (known as GIS maps) to identify any risks posed by sea level rising; property boundaries; the location of water, sewer and stormwater services; and more.</li>
</ul>
[smartcode_project:default project_id=29329]

*An owner’s corporation applies to shared residences where financial decisions need to be made for collective maintenance projects. 

When you’re ready to place an offer 

<ul>
<li>Consult with a conveyancing lawyer who will outline your rights and obligations</li>
	<li>Find out how the sunset clause* could be enacted in your state and whether you’re protected against loss of finances and/or the off-the-plan property you’re purchasing</li>
	<li>Find out what your rights are if your off-the-plan property is not delivered on time</li>
	<li>Ask how you will connect your property to utility services</li>
</ul>
*The Sunset Clause is essentially the ‘expiry date’ of an off-the-plan development which gives both the developer and buyer the opportunity to dissolve a contract if the building has not been completed on time.

Getting your offer contract drawn up by a conveyancing lawyer

An offer placed on a property is a legally binding contract, so by engaging a lawyer in the process will help to mitigate any miscommunication within the agreement. A specialised conveyancing lawyer can also help you negotiate the best deal. For example, your lawyer may suggest including a clause which highlights that you will not proceed with the sale should the property fail any inspections undertaken by a master builder or surveyor. This could include issues surrounding soil contamination, asbestos, structural issues and more.

<h2>3. Understanding the different sale types </h2>

TENDER 

A tender is often considered a silent auction where prospective buyers will submit an expression of interest offer in writing to the real estate agent, at a value they believe the property is worth. There is no suggested sale price apart from a capital value* to work from, but this is a good way for the vendor to assess how much the market is prepared to pay for their home – to which they can accept, provide a counter offer or decline.

*A capital value or CV is the recommended house and land value provided by a property valuer. If the valuation has been carried out over a year ago, it is worth engaging in a re-evaluation as the property market is constantly shifting, and house prices fluctuate.

SALE BY NEGOTIATION/PRIVATE TREATY 

Sale by negotiation or a private treaty is where the vendor sets the price, and prospective buyers will either make an offer or provide a counter offer. If a subsequent counter offer is provided by the vendor, the buyer may engage in a bartering process so both parties reach a sale price and agreement that they are both happy with.

[smartcode_project:default project_id=27839]

This sale type is often a longer process due to there being no set sale date, giving the vendor more time to settle on an offer they are comfortable accepting.

AUCTION 

The auction process is simple – prospective buyers bid in a competitive environment, with the highest bidder often winning the property on the day if the reserve price is met. In some instances, interested buyers may place an early offer before auction day in an effort to secure the property before it goes to auction. In Australia, auction clearance rates are high, meaning many properties will sell on auction day, rather than progress to a tender.

BALLOTS 

If there is high demand for an <a href="/new-apartments">off-the-plan apartment</a> a waitlist ballot could be created. Interested buyers can enter the ballot, and if their name is chosen at random, then they will be given the opportunity to purchase an apartment at a fixed price.

What do all three sale types have in common? Offers are made via a written contract

A contract offer can either be prepared by the buyer or the buyer’s lawyer. This is a legal document which states the amount the buyer is prepared to pay for the property and includes any conditions that need to be delivered in order for the sale to be finalised. It is encouraged that all offers are drafted with the help of a legal professional in order to help protect you against any unforeseen problems such as any hidden fees, unknown building rectification costs or any other issues that could arise between placing your offer to settlement and beyond.  

4. The difference between unconditional vs conditional sales 

Generally, when you make an offer, you can choose whether your offer is conditional or unconditional. This will generally depend on your circumstances and the property you are purchasing. Sometimes unconditional offers can be a more desirable option for vendors as they can result in a quicker, more seamless sale, however conditional sales can give the buyer the chance to negotiate a better deal.

A Conditional Sale is exactly as the name suggests – a sale with conditions attached. These could include (but not limited to):

<ul>
<li>Buyer’s finance is subject to approval</li>
	<li>Building/pest inspections still to be conducted</li>
	<li>The sale of buyer’s current home to be completed without any complications</li>
	<li>A certain fixture or fitting needs replacing</li>
	<li>The house needs to be professionally cleaned</li>
</ul>
Pros of conditional sale: 

<ul>
<li>If there are aspects of the home which need fixing, changing or even upgrading, buyers may include this in the conditions of sale. If the offer is accepted the vendor must honour these conditions before the buyer takes ownership of the property.</li>
	<li>Less risk involved if the buyer wishes to withdraw their offer, as a clause can be written to provide 14 to 21 days to finalise their decision about the purchase.</li>
</ul>
Cons of conditional sale: 

<ul>
<li>A conditional sale can span across a longer period of time while the buyer secures finance, which could result in the vendor accepting an unconditional offer if they’re looking for a quick transaction</li>
	<li>Unrealistic demands in your conditions may lead vendor to accept another offer</li>
</ul>
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An Unconditional Sale means that the buyer is willing to accept the property in its current state and can sometimes secure the home for a lower price point because of this. The buyer will have already secured approval for a home loan and has the deposit ready for immediate finalisation of the sale. It is a good idea to consult with a conveyancing lawyer and a registered builder/building inspector before opting for an unconditional sale, as there may be unforeseen issues with the property that might outweigh the savings you made from the sale. While it is imperative that the vendor’s agent discloses all issues present within the building – it is also important to do your own due diligence.

Pros of unconditional sale: 

<ul>
<li>An unconditional offer provides security for the vendor and therefore is more likely to be chosen preferentially over a conditional offer of a similar value.</li>
	<li>Since finance is already secured, buyers are able to place their highest bid with confidence.</li>
</ul>
Cons of unconditional sale: 

<ul>
<li>No longer able to back out of a contract</li>
	<li>The buyer may overvalue the property if making a hasty offer and won’t be able to change it</li>
	<li>If home loan finance is not approved, the buyer may have to forfeit their deposit</li>
</ul>
<h2>5. Deciding how much you should offer </h2>

You’ve got your budget in mind, you’ve accounted for additional upfront costs, now it’s time to decide whether you can comfortably service your mortgage. A great way to figure out your weekly or monthly repayments is by using a comprehensive mortgage calculator. This will factor in your deposit paid, interest, and home loan rate.

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CASE STUDY: 

NAB have set their principal and interest home loan rate at 4.92% per annum. If a buyer was to borrow $500,000 then their weekly repayments would be $613 p/w over a 30-year term. If the buyer was to borrow an additional $50,000, then this amount would increase to $675 p/w (a difference of $62 p/w).

When determining the price-point of your offer, some factors you may want to consider include how much you believe the property is worth based on market value, the condition of the home and your how attached you are to it. To gauge how much other listing in the area are selling for, you can research market values online, visit open homes in the area and speak with the real estate agents and sign up to mortgage brokering newsletters to stay informed about market trends. But ultimately, you’ve got to be happy with the property and comfortable with price based on your budget.

Depending on the type of sale you’re engaging in, you can generally place a low-ball offer, and have it either accepted or receive a counter offer from the vendor. However, if you’ve found the dream house and have the funds to pay your allocated amount for it, sometimes offering a decent price will avoid the risk of losing the property to a higher bidder if the vendor is looking for a quick sale.

6. Top tips when making an offer 

Know your budget before auction day 

Auctions are generally a high-pressure environment, which may lead some buyers to spend more than they initially intended, however attending an auction with a clear budget in mind is the best way to ensure you don’t exceed your spending capacity.

Seek loan pre-approval 

By securing your home loan before making an offer, your bid will have a stronger chance of being accepted as this provides more certainty to the vendor that you will be able to access the funds.

Have a contingency clause written up 

Worried you’ll get cold feet about the purchase? You can have your conveyancing lawyer write up a contingency clause – a legal document which generally accompanies your offer and is personalised to your requirements. For example, it might allow you 14 days to view the property again before the contract becomes binding. This will give you time to confirm your decision.

Triple check your conditions of sale 

If you’re asking the landlord to fix a window, but also want the property for $10,000 lower than the asking price – you might want to reassess your priorities. Consider the cost of your conditions versus the price you’re offering as the more conditions you can address yourself (and the shorter your list of requests) the more likely the vendor will be to take your offer over someone else's.

Include a personal letter 

Finally, you may like to include a personal letter to the vendor, sharing some background information about yourself and why you have chosen their property. Perhaps you love the house for its Victorian ceiling roses that have been so meticulously restored, or maybe you’re a young family with kids who are going to attend the school nearby. There can be a lot of emotional attachment for both parties when negotiating the sale of a house, so it can be helpful if the vendor is reassured that the property will be going to someone who will appreciate it.
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Olivia Round

Step-by-step guide to placing an offer on a house

One of the many great cost benefits of buying off-the-plan is the ability to save on stamp duty fees. Many home buyers have saved thousands by purchasing a new-build home that meets their state’s concession criteria. In this guide, our aim is to help answer all your stamp duty questions and help you identify whether you could be eligible for a concession when you buy your new off-the-plan home.

Firstly, do you pay stamp duty if you buy off-the-plan?

Stamp duty is a mandatory cost associated with purchasing property in Australia. However, because an off-the-plan property is a ‘new build’, buyers may be able to reduce the cost of their stamp duty fees or dissolve the cost entirely. Special rules can also apply to <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">first home buyers</a>, pensioners, and owner-occupiers. To find out which rules apply to you, read on, or check your <a href="#Source">state's revenue website</a>.

When is stamp duty payable on off the plan purchases?

Stamp duty is the taxable amount charged by the State Government for particular transactions including selling assets such as property. This is generally paid to the state revenue office before lodging the title transfer.&nbsp;

How to calculate off the plan stamp duty&nbsp;

Calculating stamp duty varies from state to state and depends on whether you're intending on living in your home or renting it out, as well as the market value of the property. You can use a <a href="https://exactly.net.au/calculators/stamp-duty-calculator/">Stamp Duty Calculator</a> to figure out home much you would be likely to pay for the apartment or townhouse you're interested in. Just bear in mind that you could also be eligible for one of the many concessions available.&nbsp;

How much can you save with off-the-plan concession?

To assist you with your home buying journey, here is a&nbsp;state-by-state guide to understanding some of the concession laws in your city*.

*For an in-depth break down of rules and regulations, visit your state's revenue website.

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<h2>VICTORIA</h2>

<ul>
	<li>You must pay the market value for your property. If the contract price is lower than the market rate, then you will not be eligible for the concession.</li>
	<li>You must be eligible for the principal place of residence concession or the first home buyer duty exemption or concession.</li>
	<li>Ineligible <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Buyer Grant</a> applications (who bought property for $750,000 or more) may still be eligible for the off-the-plan concession.</li>
	<li>All purchasers must be over 18, with the exception of purchasers who are the guardian of a person with a legal disability.</li>
	<li>Stamp Duty concessions are not available to company or trustee purchasers.</li>
	<li>At least one buyer must live in the property for at least 12 months from 12 months after settlement/acquisition of the property.</li>
	<li>For contracts signed before 1 July 2017, if you live at the property, you purchased you may be eligible for the principal place of residence duty concession if the dutiable value of your home is $550,000 or less (after adding the off-the-plan concession to your contract price).</li>
</ul>

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<h2>QUEENSLAND</h2>

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<ul>
	<li>Home concession is available to buyers when buying a second home</li>
	<li>First home concession is available to first home buyers and is a considerable saving, and sometimes can result in the buyer paying no stamp duty</li>
	<li>First home vacant land concession is a rebate given to those buying bare land to build their first home</li>
	<li>First home buyers can claim both a <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Owners’ Grant</a> and First Home Buyer Concession if applicable</li>
</ul>

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<h2>NEW SOUTH WALES</h2>

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<ul>
	<li>Stamp duty will either be abolished or reduced for first home buyers</li>
	<li>First home buyers may be eligible to <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">receive a grant</a> of up to $10,000</li>
	<li>To qualify for the first home buyer concession, you must be buying your first property (including land) valued at less than $800,000</li>
	<li>Homes must be new and not previously lived in</li>
</ul>

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<h2>AUSTRALIAN CAPITAL TERRITORY</h2>

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<ul>
	<li>Deferred duty: If you’re eligible for the <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Owner Grant</a> (FHOG), or the Home Buyer Concession Scheme (HBCS) and the duty amount is $1,000 or more, then you may wish to defer your payment</li>
	<li>Pensioner duty scheme: An eligible pensioner who own a residential property and is moving to a home more suitable for their needs (e.g. A townhome), they may be able to reduce the cost of stamp duty payable</li>
</ul>

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<h2>NORTHERN TERRITORY</h2>

<ul>
	<li>Principal Place of Residence Rebate: You may be entitled to receive a rebate of up to $7,000 for any stamp duty paid on a home that is your principal place of residence, that you haven’t claimed a first homeowner discount or grant on</li>
	<li>Seniors, Pensioners and Carers: A stamp duty concession of up to $10,000, so long as one purchaser is over 60 years old and a holder of an NT Pensioner and Carer Concession Card</li>
	<li><a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Owner Discount</a>: A stamp duty concession is available to purchasers of new and existing homes.</li>
	<li>Zero stamp duty is available to first home buyers of a home priced up to $500,000</li>
	<li>A general stamp duty discount of $23,928.60 will be available to first home buyers</li>
</ul>

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<h2>TASMANIA</h2>

<ul>
	<li>A 50% concession may be available to <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">first home buyers</a> of an old home valued at under $400,000</li>
	<li>A 50% concession could be available to pensioners who sell their former home in Tasmania and downsizes to a new home in Tasmania valued at $400,000 or lower</li>
	<li>These offers are currently only available between the period of 7th Feb 2018 to 30th June 2020 (inclusive)</li>
	<li>Duty exceptions can also be available when a home is transferred from a person to their partner</li>
</ul>

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<h2>SOUTH AUSTRALIA</h2>

<ul>
	<li>According to the Revenue South Australia website, the off-the-plan concession no longer applies to contracts entered on or after 1 July 2018</li>
</ul>

<iframe frameborder="0" height="500px" src="https://www.urban.com.au/developments/sa?embeddable=list-map" width="100%"></iframe>

<a href="" id="Source" name="Source">Sources</a>:&nbsp;<a href="https://www.revenue.act.gov.au/home-buyer-assistance/home-buyer-concession-scheme">ACT Revenue Office</a>&nbsp;| <a href="https://www.sro.vic.gov.au/first-home-owner">State Revenue Office Victoria</a> | <a href="https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/transfer-duty-concessions-exemptions">Queensland Government</a> | <a href="https://www.sro.tas.gov.au/property-transfer-duties/concessions-and-exemptions-for-property-transfer-duties/duty-concession-for-pensioners-downsizing-to-a-new-home">Tasmanian Government</a> | <a href="https://www.revenuesa.sa.gov.au/grants-and-concessions/off-the-plan-concession">Revenue South Australia</a>

Disclaimer: While Urban strives to provide accurate content,&nbsp;we do advise that readers undertake their own research and to only use our findings as a guide.&nbsp;

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