<p>Repeat buyers are one of the strongest measures of confidence in any apartment development.</p>

<p>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.</p>

<p>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.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe></p>

<p>"I had some boxes I wanted to tick," he says.</p>

<p>Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.</p>

<p>“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.</p>

<p>He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356818]</p>

<p>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.</p>

<p>"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."</p>

<p>Today, Keith says the move has completely changed how he experiences Newcastle.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356828]</p>

<p>Beyond the location, he says it's the sense of community that has surprised him most.</p>

<p>"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."</p>

<p>For Aimee and Lyle Goodman, the journey started almost by chance.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe></p>

<p>The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.</p>

<p>"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."</p>

<p>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.</p>

<p>"We actually catch up more as a family now," Aimee says.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356829]</p>

<p>Lyle says their confidence came from GWH's reputation within Newcastle's building industry.</p>

<p>"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."</p>

<p>That confidence only grew throughout the buying process.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351104]</p>

<p>Aimee says one moment stood out.</p>

<p>"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."</p>

<p>The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356822]</p>

<p>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;</p>

<p>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;</p>

<p>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.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356826]</p>

<p>For Keith, the appeal remains straightforward.</p>

<p>"You feel at home even before you've moved into your home."</p>

<p>For Aimee, the change is measured in time.</p>

<p>“I just felt like I had more time,” she says.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351102]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=135096]</p>


Joel Robinson

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

<p>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.</p>

<p>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.</p>

<p>"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.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372549]</p>

<p>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.</p>

<p>"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.</p>

<p>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."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=314259]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372550]</p>

<p>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.</p>

<p>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.</p>

<p>The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.</p>

<p>"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."</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=4661]</p>


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

<p>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.</p>

<p><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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355297]</p>

<p>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.</p>

<p>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.</p>

<p>"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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355293]</p>

<p>The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.</p>

<p>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.</p>

<p>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;</p>

<p>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;</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355303]</p>

<p>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.</p>

<p>"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355304]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=102717]</p>


Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=372394]</p>

<p>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.</p>

<p>"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.</p>

<p>"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=953]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=925]</p>

<p>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.</p>

<p>Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.</p>

<p>"The Lennox is where aspirational living becomes attainable," Hamblett said.</p>

<p>"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."</p>

<p>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.</p>

<p>"At The Lennox, lifestyle is not an afterthought, it is the foundation."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=5374]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>"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."</p>

<p>[smartcode_project_cta:default project_id=5743]</p>


The apartment price gap drawing Sydney buyers west

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.</p>

<p>Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.</p>

<p>"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.</p>

<p>"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."</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.</p>

<p>"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.</p>

<p>"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."</p>

<p>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.</p>

<p>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>.</p>


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

Stamp Duty

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<p>First home buyers should pay attention to market conditions, not the incentives on offer.</p>
<p>According to recently released housing finance data from the Australian Bureau of Statistics, the volume of new loans to first home buyers in New South Wales and Victoria has climbed substantially over recent months as value growth has slowed and even begun to fall in Sydney and Melbourne. </p>
<p>First home buyers must be vigilant about purchasing homes and not just be lured into buying at the peak of the market because of attractive incentives.</p>
<p>In New South Wales, from 1 July 2017 first home buyers don’t have to pay stamp duty for both new and existing homes for properties up to $650,000.</p>
<p>Stamp duty payable is reduced for buyers paying between $650,000 and $800,000.  In Victoria, if you buy a new or established home from July 1 2017 no stamp duty is payable on homes worth less than $600,000 and stamp duty is reduced for properties worth between $600,000 and $750,000.</p>
<p>The removal of stamp duty has resulted in a substantial increase in first home buyer housing finance commitments. </p>
<p>Over the six months from July to December 2017 there were 14,279 first home buyer finance commitments in New South Wales and 18,675 in Victoria.  To put this into some sort of perspective, over the six months prior to the new incentives going live there had been 7,891 first home buyer housing finance commitments in New South Wales and 12,683 commitments in Victoria.  This represents an increase in first home buyer volumes over the two six month periods before and after the changes to incentives of 81.0% in New South Wales and 47.2% in Victoria.</p>
<p>Since the stamp duty changes, average loan sizes have increased by 1.3% in New South Wales compared to an increase of 1.1% over the previous six months.  This seemingly suggests that the first home buyers entering the market are not using the removal of the stamp duty barrier to borrow more. </p>
<p>In Victoria, it is a bit of a different story with average first home buyer loan sizes increasing 7.0% over the past six months compared to a 2.7% increase over the previous six months.  This would seem to suggest in Victoria, the stamp duty concessions are leading to mortgagees borrowing more.</p>
<p>The most concerning thing for any potential first home buyer in the current New South Wales and Victoria markets should be the lure of entering a market which has been growing rapidly for many years.  In fact, recent data for Sydney and Melbourne indicates that values are now declining. </p>
<p>Across all of New South Wales, values have fallen -2.4% from their August 2017 peak to January 2018 with values -3.1% lower in Sydney and not yet declining in regional New South Wales.  In Victoria, values are -0.1% lower than their November 2017 peak with declines of -0.4% in Melbourne and no declines as yet in regional Victoria.  An important point to note is that the rate of value growth is slowing in regional areas of New South Wales and Victoria although the slowdown is greater in regional New South Wales to-date.</p>
<p>While those declines may sound quite minor, first home buyers are generally most sensitive to changes in interest rates.  Although the cash rate is expected to be on hold until early 2019, the combination of already falling dwelling values and potentially higher mortgage rates in the medium-term, these factors should raise some alarm bells for potential buyers. </p>
<p>For first home buyers there may be a sense that the removal of stamp duty along with the falling share of investors in the market creates the opportunity for entry however, ideally you do not want to be buying into a market which has only recently entered a downturn. </p>
<p>The best bet for potential first home buyers may not be to jump at the incentives which are currently available.  With values declining and investor demand continuing to trend lower a better option may be to remain on the sidelines somewhat longer as values potentially continue to slide.  By doing this you potentially avoid going into negative equity immediately, you potentially buy at a lower price and you have time to save an even larger deposit for your mortgage. </p>
<p>Furthermore, for well qualified borrowers with substantial deposits banks are competing heavily and offering substantial discounts for owner occupiers taking out principal and interest mortgages so if you take time and shop around you may be able to get a really good mortgage rate.</p>
<p><em>Cameron Kusher is head of research for CoreLogic. You can contact him <a href="https://www.propertyobserver.com.au/https://www.corelogic.com.au/taxonomy/term/28"><span class="s2">here</span></a>.</em></p>
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Market conditions more important than incentives on offer for FHB's

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<p>GUEST OBSERVER</p>
<p>Since October 2016, all foreign buyers and developers are subject to a 3% stamp duty surcharge on the acquisition of residential property in Queensland known as Additional Foreign Acquirer Duty (AFAD). The Commissioner has now updated conditions under which ex gratia relief from AFAD can be sought.</p>
<p>This relief is available to foreign persons, as defined in the Duties Act 2001, carrying out ‘significant’ residential development. Relief from AFAD may be granted by the Commissioner on a case-by-case basis. Foreign Persons must also meet regulatory requirements such as complying with the Corporations Act 2001 and complying with Queensland taxation laws. AFAD will only apply to the acquisition of residential land in Queensland by those who are either: </p>
<ul>
<li>a foreign individual - individuals without Australian citizenship or permanent residents (permanent residents include New Zealanders with either permanent visas or special category visas both defined by the Migration Act 1958 (Cth); </li>
<li>a foreign corporation - companies incorporated outside Australia, or Australian companies where at least 50% interest is with a foreign person/s or related person/s (ie relatives/spouse or partners in a partnership); or </li>
<li>a trust where at least 50% of its interests are held by a foreign person/s. </li>
</ul>
<p><strong>RESIDENTIAL LAND</strong></p>
<p>“Residential land” is land that is or will be solely or primarily used for residential purposes. This includes established houses and apartments, vacant land where a home or apartment will be built, land for development for residential use (ie smaller unit block developments, housing subdivisions, and major developments with a residential component), and/or refurbishment, renovation, or extension of a building for residential use. </p>
<p>“Residential land” does not include land that will be or is currently used for hotel and motel purposes. </p>
<p><strong>WHEN EX GRATIA RELIEF CAN APPLY</strong></p>
<p>The Commissioner has announced a number of guidelines and conditions that will be taken into account when determining whether ex gratia relief from AFAD will be granted.</p>
<p>1. The foreign developer undertaking the transaction must be Australia based: </p>
<p>In order to satisfy the conditions of AFAD relief, a foreign developer will need to use a range of factors to establish that they are ‘Australian based’, including:  </p>
<ul>
<li>whether the foreign entity has a head office or principal place of business situated in Australia; </li>
<li>if the foreign entity has significant management staff and office presence in Australia; </li>
<li>whether its employees are Australian citizens or permanent residents; </li>
<li>any past business dealings within Australia; </li>
<li>the input that the foreign entity’s Australian management staff and employees have toward the operation of the foreign entity in Australia, and; </li>
<li>whether the foreign entity primarily engages with Australian building contractors and suppliers in construction work. </li>
</ul>
<p>2. The foreign developer will need to have complied with any Foreign Investment Review Board (FIRB) requirements in relation to the acquisition of land.</p>
<p>3. The foreign developer must also meet regulatory requirements, such as complying with the Corporations Act 2001 (Cth) and complying with Queensland taxation laws.</p>
<p>4. The development must be significant, or the developer has significant development status.In order for relief from AFAD to apply, the development being carried out must be established as ‘significant development’. This condition will automatically be met if the foreign developer is commencing development or re-development of 50 or more residential lots.</p>
<p>In instances where fewer than 50 lots are being developed, such as in regional areas, the status of ‘significant development’ can still be established if the foreign developer is able to demonstrate that the development makes a significant contribution to the economy, population and social development of that region.</p>
<p>‘Significant developer’ status will also be satisfied if the developer will undertake development or redevelopment of 50 or more residential lots in a 12-month period or, alternatively, the developer averages 50 or more residential lots per year taken on average over a period of up to five years.</p>
<p>5. The foreign developer must primarily employ or contract Australian building contractors and suppliers to engage in the development. This requires that over 50% of the value paid by the developer for goods and services must be paid to Australian contractors and suppliers, or over 50% of the foreign developer’s employees for the development are Australian.</p>
<p><strong>WHAT DO YOU NEED TO DO?</strong></p>
<p>Foreign investors or developers looking to undertake significant development in Australia are able to apply for ex gratia relief from AFAD through the Commissioner. A statutory declaration must be lodged to the Office of State Revenue detailing the basis on which the foreign developer satisfies conditions for relief along with any supporting evidence.</p>
<p>By submitting a request for relief, a foreign developer will also be acknowledging their obligation to inform the Office of State Revenue within 28 days if it no longer satisfies the conditions for relief.</p>
<p><em><strong>Paul O'Dea</strong> is a partner with ClarkeKann, Brisbane.</em></p>
<p><em>You can contact him <a href="mailto:p.odea@clarkekann.com.au" target="_blank">via email</a>.</em></p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Where foreign buyers can seek relief from Queensland's added stamp duty surcharge: Paul O'Dea

<html><body>
<p class="p1"><span class="s1">The REIQ is urging candidates for the Queensland state election next month to consider</span><span style="font-size: 12.16px;"> of the state’s biggest employers and one of the government’s largest single sources of revenue, the real estate sector.</span><span class="Apple-converted-space" style="font-size: 12.16px;"> </span></p>
<p class="p1"><span class="s1">REIQ CEO Antonia Mercorella said the election offered voters an opportunity to cast a vote for a candidate who recognises the importance that the real estate sector plays in the state’s economy.</span></p>
<p class="p1"><span class="s1">“Real estate employs around 50,000 Queenslanders and this makes it of huge significance to the future fortunes of Queensland," she said.<span class="Apple-converted-space"><br></span></span></p>
<p class="p1"><span class="s1">“Improving the health of the sector is at stake and voters should keep this in mind when casting their votes on November 25."</span></p>
<p class="p1">Mercorella outlined three changes that should be made. </p>
<p class="p1"><span class="s1"><strong>FIRST HOME OWNER GRANT:</strong> The grant can help more young Queenslanders get their foot on the property ladder by being broadened to include all properties, established </span><span class="s2">and</span><span class="s1"> new-builds. As it stands, only those first-home buyers who are building their first home or buying off-the-plan are eligible for the grant, which locks out thousands of equally-deserving young Queenslanders from the property market. Broadening the grant, especially in regional Queensland where take-up hasn’t been as strong due to the fact that it’s cheaper to buy an established home than to build new, will bring thousands of young Queenslanders to the property market, bringing buyers to oversupplied markets and helping those local economies.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1"><strong>STAMP DUTY: </strong>The REIQ urges the Government to abolish stamp duty. This inefficient and disproportionate tax stymies housing mobility and delivers uneven revenue to the Government. When house prices are up, revenue is up, and when house prices are low the Government’s revenue is low. The Henry Tax Review in 2011 identified this onerous tax as one that should be replaced with a more efficient system and the REIQ echoes this well-founded view. This would give the industry a much-needed shot in the arm, giving those buyers a nudge who need to move but are putting it off for expense reasons.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1"><strong>MANDATORY CPD:</strong> Consumer protection is at the heart of the REIQ’s push for the Government to introduce mandatory continuing professional development for all real estate practitioners. Our goal is to ensure real estate agents are as qualified, as educated and as professional as other professions that handle people’s wealth, such as accountants and solicitors. There is no legitimate reason to continue delaying introducing this measure.<span class="Apple-converted-space"> </span></span></p>
</body></html>

jrobinson-rf4aSBido9

REIQ hopes for real estate sector improvements with state election looming

<html><body>
<div class="tg-tlc-storybody_intro">
<p>State Government stamp duty cuts have saved first-home buyers in Victoria more than $76 million.</p>
</div>
<p>Around 4500 new homeowners have benefited from the concessions between July 1 and October 12, including 3711 who paid no stamp duty at all.</p>
<p>The cuts, announced in March and introduced in July, scrapped the property tax on homes that cost less than $600,000.</p>
<p>First-home buyers purchasing property between $600,000-$750,000 also received reduced discounts.</p>
<p>Premier Daniel Andrews said the average first-home buyer was $8000 better off.</p>
</body></html>

Victorian stamp duty cuts cost $76 million since July

<html><body>
<div>AFG released its mortgage index for the September 2017, and it too showed a switch towards first homebuyers. </div>
<div> </div>
<div>First homebuyer activity has been buoyed by stamp duty concessions in New South Wales and Victoria. </div>
<div> </div>
<div>The average mortgage size rose to an all-time high of $491,952, up from $479,101 a year earlier.</div>
<div> </div>
<div>However, regulatory intervention has slowed the pace of the increase. </div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-cDne2REAVJI/WeBUKQ-ez0I/AAAAAAAAmmI/56Y6ViVGspc7IB05l26LtM7zEAeqhF8awCEwYBhgL/s1600/AFG2.jpg"><img src="https://3.bp.blogspot.com/-cDne2REAVJI/WeBUKQ-ez0I/AAAAAAAAmmI/56Y6ViVGspc7IB05l26LtM7zEAeqhF8awCEwYBhgL/s640/AFG2.jpg" width="640" height="384" data-original-height="830" data-original-width="1380"></a></div>
<p> </p>
<div>The increase in mortgage size was driven by Victoria, Queensland, and South Australia.</div>
<div> </div>
<div>Elsewhere, macroprudential measures have evidently slowed the mortgage market.</div>
<p> </p>
<div class="separator"><a href="https://4.bp.blogspot.com/-10_x__ClhRU/WeBULX4Q45I/AAAAAAAAmmQ/cIzsSH9pYfUExKK7Xc1yWqfkHP76ANnnACLcBGAs/s1600/AFG1.jpg"><img src="https://4.bp.blogspot.com/-10_x__ClhRU/WeBULX4Q45I/AAAAAAAAmmQ/cIzsSH9pYfUExKK7Xc1yWqfkHP76ANnnACLcBGAs/s640/AFG1.jpg" width="640" height="392" data-original-height="826" data-original-width="1345"></a></div>
<p> </p>
<div class="separator"> </div>
<div>The figures for total lodgement volumes at the state level are necessarily seasonal, but simply underscore the sheer strength of the lending growth in Victoria. </div>
<div> </div>
<div>Victoria appears to be the only state where cooling measures have not had a material impact. </div>
<p> </p>
<div class="separator"><a href="https://1.bp.blogspot.com/-PgbEKU0aL5c/WeBULOvd8AI/AAAAAAAAmmM/f9ZXSkoQD5geXz_-Sp6VXvi7UUlHDkC4wCLcBGAs/s1600/AFG3.jpg"><img src="https://1.bp.blogspot.com/-PgbEKU0aL5c/WeBULOvd8AI/AAAAAAAAmmM/f9ZXSkoQD5geXz_-Sp6VXvi7UUlHDkC4wCLcBGAs/s640/AFG3.jpg" width="640" height="386" data-original-height="819" data-original-width="1353"></a></div>
<p> </p>
<div>There has been a massive shift away from investors, down to just a 29 per cent market share, from above 40 per cent at the peak.</div>
<div> </div>
<div>The other notable trend was the shift away from the major market lenders.</div>
<div> </div>
<div>Market share was down to 64.4 per cent for the main players, the lowest such result since the global financial crisis. </div>
<p> </p>
</body></html>

pwargent-M4siyDbqQY

The return of the first home buyer: Pete Wargent

<html><body>
<p class="p1"><span class="s1">GUEST OBSERVER</span></p>
<p class="p1"><span class="s1">First home buyers are close to record lows in many of Australia’s states and they are below the long term average in every state except Western Australia.  </span></p>
<p class="p1"><span class="s1">As at the end of April 2017, first home buyers comprised just 13.9 percent of all owner occupier mortgage demand nationally.  The situation is worse in New South Wales, where first time buyers comprised only 8.4 percent of the market over the first four months of the year so far; based on the long term average, first home buyers ‘normally’ comprise around one fifth of owner occupier demand across New South Wales.</span></p>
<p class="p2"><a href="https://www.propertyobserver.com.au/images/2017/06/29/Screen%20Shot%202017-06-29%20at%2011.51.30%20AM.png" target="_blank">Click to enlarge </a></p>
<p class="p2"><img src="https://www.urban.com.au/images/2017/06/29/Screen%20Shot%202017-06-29%20at%2011.51.30%20AM.png" alt=""></p>
<p class="p1"><span class="s1">With first home buyer participation declining as prices rise, it’s an easy connection to suggest that housing affordability is to blame for the low participation rate, but that is probably only part of the reason.  South Australia, for example, doesn’t have the same affordability challenges as New South Wales, yet first time buyers are the second lowest of any state at 12.2 percent and first time buyer activity in Victoria (16.6 percent) is more substantial than participation in Tasmania (15.2 percent) where housing is the most affordable of any state.</span></p>
<p class="p1"><span class="s1">Availability of jobs is an important factor for first home buyers and this is likely to be one of the factors supporting first time buyer demand in Victoria, even though stamp duty rates (prior to July 1) are high and affordability measures are the second highest of any capital city outside of Sydney.   </span></p>
<p class="p1"><span class="s1">Over the past five years 39 percent of the jobs created nationally have been in Victoria which is substantially higher than the long term average of 24 percent.</span></p>
<p class="p1"><span class="s1">The two states where first time buyers are most active, at least on a proportional basis, are Western Australia, where first time buyers comprise 28.4 percent of owner occupier mortgage demand, and Queensland at 21.5 percent.  </span></p>
<p class="p1"><span class="s1">First home buyers are higher than the long term average in Western Australia and Queensland first timers are close to the long term average participation rates.  Jobs growth has been mild across both states over the past five years, however housing prices have been tracking lower in Perth and increasing roughly in line with incomes in Brisbane.  </span></p>
<p class="p1"><span class="s1">The dwelling price to income ratio in Brisbane is 5.9 and in Perth its 6.0; substantially lower than the larger capital cities.  </span></p>
<p class="p1"><span class="s1">It’s likely that the healthier affordability of housing in these regions, despite the mild jobs growth, is a primary factor in supporting first time buyer demand.</span></p>
<p class="p1"><span class="s1">Other factors come back to transaction costs, particularly the cost of stamp duty and deposit.  </span></p>
<p class="p1"><span class="s1">There is a high likelihood that stamp duty exemptions for first home buyers, which go live on July 1</span><span class="s2">st</span><span class="s1"> in Victoria and New South Wales will temporarily boost first time buyer numbers in the market.  <br></span></p>
<p class="p1"><span class="s1">While the exemptions are likely to drive first home buyer demand, it’s likely that additional demand concentrated across the lower priced end of the market could simply push prices higher over the short to medium term. </span></p>
<p class="p1"><span class="s1"><em>Tim Lawless is head of the CoreLogic research and analytics team and can be contacted </em><a href="https://www.corelogic.com.au" target="_blank"><span class="s2"><em>here</em></span></a><em>.</em></span></p>
<p class="p1"><span class="s1"> </span></p>
</body></html>

tlawless-5VLUrbAk9s

First home buyers at record lows

<html><body>
<p>National Property Buyers is offering special offers to first home buyers as the end of the financial year approaches and New South Wales and Victoria legislate stamp duty changes in the coming weeks.</p>
<p>The property agency’s special offer for first home buyers includes a house-warming gift of up to $1,000 off conveyancing and the flexibility to pay success fee over an agreed time frame.</p>
<p>The average loan size for first home buyers rose $300 to $317,100 between March 2017 and April 2017, according to ABS data. The average loan size for all owner occupied housing commitments rose $3,700 to $371,700 for the same period.</p>
<p>ABS data showed that the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 13.9 percent in April 2017 from 13.5 percent in March 2017. </p>
<p>Meanwhile, NSW has scrapped stamp duty for property up to $650,000 from July 1, while homes up to $800,000 will also see a discounted stamp duty.</p>
<p>The Victorian government has also proposed to completely abolish stamp duty for new and existing properties that are up to $600,000. Properties that are between $600,000 and $750,000 will have their stamp duty discounted. Queensland has extended FHB grants. </p>
<p>For more information from National Property Buyers, <a href="https://www.nationalpropertybuyers.com.au" target="_blank">click here</a>.</p>
</body></html>

jonathanchancellor-7SQnKwU6yx

National Property Buyers rolls out special offers for first home buyers

<html><body><div>
<div>
<div>
<p>First home buyers in New South Wales will be able to buy property up to $650,000 without having to pay stamp duty.</p>
<p>The policy, which will apply to new and existing homes, will start from July 1 in an attempt to combat the housing affordability issue by the NSW State Government.</p>
<p>The cap had previously been set at $550,000 for first home buyers.</p>
<p>Homes up to $800,000 will also see a discounted stamp duty.</p>
<p>Stamp duty charged on lenders' motgage insurance will also be scrapped by the government which will save around $2,900 on an $800,000 home.</p>
<p>Up to $34,360 will be saved under the package, according to the government.</p>
<p>The move comes despite a warning from the NSW Government property adviser, the former Reserve Bank governor Glenn Stevens, who said in his report to the Premier that he hasn't been a "big fan" of demand side support for first home buyers.</p>
<p>But he suggested the real value of the support has declined as dwelling prices had risen, which suggested to Stevens that thresholds could be reconsidered.</p>
<p>"Done carefully, the extent of help could perhaps be moved up, carefully, to recognise the price rises that have already occurred, without this measure itself materially contributing to further upward pressure on prices," he said.</p>
<p>"The more that additional generosity to some is combined with a tightening up in some other area - such as removing the grant given to anyone buying a new home - such that the changes are more or less budget neutral, the more easily it can be defended against the criticism that it is self-defeating by inflating prices."</p>
<p>Stevens said the government could avoid putting upward pressure on house prices if the support for first home buyers increased in line with the rise in house prices.</p>
<div title="Page 1">
<div>
<div>
<p>Under the NSW Government's plan, from 1 July 2017 first home buyers will also see:</p>
<p>• a $10,000 First Home Owners Grant will be available to builders of new properties worth up to $750,000 and purchasers of new properties worth up to $600,000;</p>
<p>• a doubling of the foreign investor surcharge from four per cent to eight per cent on stamp duty and a rise from 0.75 per cent to 2 per cent on land tax;</p>
<p>• the abolition of the off-the-plan transfer duty concession for residential purchases by investors.</p>
</div>
</div>
<table>
<colgroup>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td>
<div>
<div>
<p>First home purchase price</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>Savings for first home buyers of new dwellings*</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>Savings for first home buyers of existing dwellings*</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>Total stamp duty charges for foreign investors (surcharge plus stamp duty)**</p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div>
<div>
<p>$500,000</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$28,768</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$18,768</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$57,990</p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div>
<div>
<p>$550,000</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$31,451</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$21,451</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$64,240</p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div>
<div>
<p>$600,000</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$34,361</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$24,361</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$70,490</p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div>
<div>
<p>$650,000</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$26,857</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$26,857</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$76,740</p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div>
<div>
<p>$700,000</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$18,786</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$18,786</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$82,990</p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div>
<div>
<p>$710,000</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$17,172</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$17,172</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$84,240</p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div>
<div>
<p>$750,000</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$10,950</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$10,950</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$89,240</p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div>
<div>
<p>$775,000</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$6,922</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$6,922</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$92,365</p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div>
<div>
<p>$800,000</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$2,896</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$2,896</p>
</div>
</div>
</td>
<td>
<div>
<div>
<p>$95,490</p>
</div>
</div>
</td>
</tr>
</tbody>
</table>
<div>
<div>
<p> </p>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Stamp duty scrapped for NSW first home buyers under $650,000 from July 1

<html><body>
<p>Rising property prices, onerous deposits and competition from local and overseas investors has driven changes to the first home buyer grant system in New South Wales with a number of changes being introduced July 1, 2017.</p>
<p>Glenn Stevens, former governor of the Reserve Bank of Australia said as incomes have risen and preferences about housing have changed, the prices commanded by land in the most desirable locations have increased a great deal.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.46.43%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.46.43%20AM.png" alt=""></p>
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>"The NSW economy has been outperforming other regions of the country, helping incomes to rise and employment to grow faster than elsewhere, and attracting more people, particularly as the mining investment boom tailed off," he said.</span></p>
<p><span>"This came after a fairly lengthy period of underperformance in NSW following the 2000 Olympics – some of it is ‘catch-up’. </span></p>
<p><span>"So in a way, some of what we see are the sort of challenges associated with a growth economy. </span></p>
<p><span>"Most observers agree that the supply side of the market in general has struggled to keep up with demand. </span></p>
<p><span>"To be sure, construction rates are presently at record highs. </span></p>
<p><span>"But there is a stock issue: the previous period of underbuilding leaves a cumulative shortfall in the number of dwellings, estimated by the Department of Planning to be as large as 100,000 dwellings. </span></p>
<p><span>"If our objective is housing being affordable in an environment of growth in population and income, we need to have the supply side able to respond to demand in a more elastic way. </span></p>
<p><span>"Most importantly, NSW needs a plan for growth. </span></p>
<p><span>"Leaders need to explain what we need to do to accommodate more people, why growth without a plan is a not a good outcome – but why an even worse outcome would be stagnation."</span></p>
<p><span>Change to stamp duty and concessions include:</span></p>
<p>• abolition of stamp duty for all new and existing homes up to $650,000, with stamp duty discounts for homes up to $800,000; </p>
<p>• a $10,000 First Home Owners Grant available to builders of new properties worth up to $750,000 and purchasers of new properties worth up to $600,000; </p>
<p>• abolition of insurance duty on lenders’ mortgage insurance; </p>
<p>• a doubling of the foreign investor surcharge from four percent to eight percent on stamp duty and a rise from 0.75 percent to 2 percent on land tax; </p>
<p>• the abolition of the off-the-plan transfer duty concession for residential purchases by investors. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.35.06%20AM.png" target="_blank">Click to enlarge</a></p>
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<p>In releasing the package, NSW Treasury said given that housing prices reflect supply and demand, this housing undersupply has meant that competition for housing is high and has pushed up prices.</p>
<p>"Over the past 25 years, NSW has experienced significant population growth," it said.</p>
<p>"From 1991 to 2016, the number of people living in the state increased by 31 percent – growing from 5.9 million to 7.7 million residents.</p>
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<p><img src="https://www.urban.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.41.39%20AM.png" alt=""></p>
<p>"Sydney’s population growth was even stronger – rising 36 percent from 3.4 million to 4.7 million people over the same period.</p>
<p>"But as the population grew, the previous government failed to maintain sufficient supply of housing across Sydney and New South Wales.</p>
<p>"Between 2000 and 2010, dwelling completions across NSW declined substantially.</p>
<p>"In Sydney, the decline was even more severe with less than half the number of homes completed in 2010 as there were in 2000.</p>
<p>"NSW Treasury’s 2016 Intergenerational Report estimates there was accumulated undersupply of 100,000 dwellings by the end of 2015. That is, even if no one else moved to Sydney an additional 100,000 dwellings would be needed to meet this pent-up demand.</p>
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<p><img src="https://www.urban.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.44.50%20AM.png" alt=""></p>
<p>"Since 2011, the NSW Government has made housing supply a priority. However whilst there has been a significant recovery in building activity in these last few years, the years of low activity between 2000 and 2010, combined with a growing population, has resulted in demand for housing remaining strong."</p>
<p>"In addition to the undersupply, an extra 725,000 dwellings are estimated to be required in the Greater Sydney area over the next 20 years to cater for projected population growth. </p>
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<p><span><img src="https://www.urban.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.45.44%20AM.png" alt=""></span></p>
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Rising property prices, onerous deposits and overseas competition drive NSW FHB grant changes

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<p>Foreign investors will pay higher surcharges when buying residential real estate in New South Wales following new measures to combat housing affordability to be introduced by the State Government.</p>
<p>From July 1 2017 stamp duty surchage for new purchases by foreign investors will rise from four percent to eight percent.</p>
<p>The surcharge on land tax will rise from 0.75 percent to two percent and foreign developers will be exempt from the increased surcharges.</p>
<p>Investors of any kind will no longer be able to delay paying stamp duty on off-the-plan properties for 12 months.</p>
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