Since the plans were established in 2014 to create the new Maroochydore CBD—transforming the former Horton Park Golf Course into a thriving greenfield city—both local and interstate investors have been drawn to the growing centre of the Sunshine Coast.

While holidaymakers argue Noosa is the heart of the Sunshine Coast, those seeking a city with strong employment opportunities and thriving sectors in education and healthcare are increasingly flocking to <a href="https://www.urban.com.au/developments/maroochydore-qld-4558">Maroochydore</a>.

The multi-billion dollar investment is turning what was once a retirement town into a thriving city with a self-sustaining economy.

Local property investor Andrew&nbsp;knew what the infrastructure pipeline for Maroochydore would do to the property market. Over the years he's secured four apartments with builder developer <a href="https://www.urban.com.au/developers/habitat-development-group">Habitat Development Group</a>, one of the biggest apartment developments on the Sunshine Coast for the last two decades.

First he bought two apartments in a previous development by Habitat. Now he has just settled on two more apartments in the newly completed <a href="https://www.urban.com.au/buildings/the-corso-maroochydore-20-south-sea-islander-way-maroochydore">The Corso</a>, one of only two new apartment developments in the evolving Maroochydore CBD.

"I am constantly staying up to date on the market, and looking for locations that are likely to outperform the greater market, plus of course developers who deliver value and a reliably good product," Andrew says.

"I have strong trust in <a href="https://www.urban.com.au/developers/habitat-development-group">Habitat Development Group</a>, and I believe Maroochydore will perform well in terms of capital growth and rental growth in the medium to long term."

Andrew secured a three-bedroom penthouse apartment in The Corso, driven by the high-end finishes, high ceilings which made it feel more like a house than an apartment, and the large floorplan on offer.

[smartcode_project:default project_id=100708 project_image_fid=294387]

Holding equal importance for Andrew as an investor are the facilities in the building

"Having amenity that will attract good quality tenants is one of the biggest drawcards to an apartment development," Andrew says, adding that the pool and lawn area, barbecue facilities, high-end private dining room, and work-from-home-space in The Corso would assist in securing great tenants.

He says that he always looks for locations with a&nbsp;high walkability score and significant amenity that is close.

"The Maroochydore CBD cannot be beaten in terms of its proximity to amenity and future government investment, and so the location really ticked all of my boxes."

[smartcode_project:default project_id=100708 project_image_fid=291147]

Ultimately however, it came down to the reputation of Habitat.

"There are always risks in buying off the plan, and that is why I am such a big believer in Habitat," Andrew says, noting that the way they operate with their inhouse construction arm should fill any prospective buyer with confidence in their apartments.

"Most developments have to sell 50 per cent or so of their development before a bank will lend them money to start building. Habitat is not one of these developers."

Andrew bought his apartments just as the project launched back in 2022. Since then, according to CoreLogic, the Sunshine Coast unit market has boomed nealy 18 per cent, taking the new median unit value to $859,000.

[smartcode_project:default project_id=100708 project_image_fid=291166]

Situated in the heart of the new Maroochydore CBD, The Corso comprises 158 apartments across two towers.&nbsp;

Only three-bedroom units, including a sub-penthouse and penthouse, remain on the market, with prices just below $1.7 million.&nbsp;

Andrew took part in Urban's Buyer Q&amp;A series which focuses on the driving factors behind&nbsp;<a href="https://expert-insights/buying/the-top-eight-considerations-when-buying-off-the-plan" target="">buying off the plan</a>&nbsp;property in Australia

[smartcode_project_cta:default project_id=100708]

Local property investor Andrew knew what the infrastructure pipeline for Maroochydore would do to the property market

Joel Robinson

Why a Maroochydore investor has bought four apartments with Habitat: Urban Buyer Q&A

The Grand Residences in Eastlakes has been the focal point of new development in the suburb since its completion in 2022.

No doubt the best apartment complex to be developed in Eastlakes, <a href="https://www.urban.com.au/buildings/the-grand-residences-eastlakes-16-evans-avenue-eastlakes">The Grand Residences</a> embody the connectivity of inner-city living, matched with the luxury finishes the Eastern Suburbs market expects.

We recently sat down with the team at McGrath Projects and Crown Property Agency to find out more about The Grand Residences, how it has shaped <a href="https://www.urban.com.au/developments/eastlakes-nsw-2018">Eastlakes</a> , and what buyers love about the new development.

<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/Btr0G2cpTJk?si=0seFuVBp8WQuWojB" title="YouTube video player" width="560"></iframe>

Crown Group completed The Grand Eastlakes in 2022 but kept a significant portion of the 133 apartments that were developed.&nbsp;

"We still have an amazing selection of apartments available, particularly one-bedroom apartments and sub-$1 million two-bedroom options, with prices starting at just $750,000," Adam Sparkes, Associate Director of <a href="https://www.urban.com.au/project-marketer/mcgrath-projects">McGrath Projects</a>, said.

"Many of our buyers have come from the immediate Eastlakes area, transitioning from older apartments that lack the modern floor plans, spatial planning, and amenities of a brand-new development."

The facilities, proximity to train and light rail stations, and immediate convenience of a Woolworths Metro downstairs, have too been key contributors to the successful relaunch of the project, developed by the respected Crown Group.

"I think the standout feature is the location of the project compared to others in the area," McGrath Projects agent Sam Noakes says.

"You’re a bit further from the main city, but still close enough to the airport, universities, and beaches."

The surrounding area is set for further growth, with plans for over 70 specialty stores and a medical centre across the road.

[smartcode_project_cta:default project_id=7652]

The facilities, proximity to train and light rail stations, and immediate convenience of a Woolworths Metro downstairs, have too been key contributors to the successful relaunch of the project, developed by the respected Crown Group

Inside The Grand Residences, Eastlakes: What the agents say

It takes a team to deliver a new apartment development, and experience across every stakeholder in the project counts for a lot in today's off the plan space.

Boutique developer <a href="https://www.urban.com.au/developers/sma-projects">SMA Projects</a> has had several key collaborators they have worked with going back decades.

Where some developers focus on volume, SMA has had a concentrated approach, predominantly in the mid-rise market, with a mix of new design with a heritage twist.

While working in the likes of Elwood, <a href="https://www.urban.com.au/developments/brunswick-vic-3056">Brunswick</a> and <a href="https://www.urban.com.au/developments/hawthorn-vic-3122">Hawthorn</a>, the majority of their craft has been applied within a few kilometres across Fitzroy and <a href="https://www.urban.com.au/developments/collingwood-vic-3066">Collingwood</a>.

Several developments they've undertaken have been in the adaptive reuse space, converting old buildings like breweries into striking residential developments that offer something far past the ordinary.

SMA Projects, led by Martin Strode, has had a long relationship with award-winning architecture firm Hayball Architects, another business well-versed in putting together design plans that incorporate heritage features.

The pair worked together on several developments before its flagship project, Yorkshire Brewery in Collingwood, which they completed in 2015. Soon followed the Lyric which sits prominently on the corner of Gore and Johnston Streets in Fitzroy capping off three developments now located in Gore Street, <a href="https://www.urban.com.au/developments/fitzroy-vic-3065">Fitzroy</a> all completed by SMA Projects.&nbsp;&nbsp;

The Lyric spans two sites, the Lyric Theatre, renowned as one of Melbourne's first theatres, and MacRobertson Chocolates. The grandeur and cinematic glamor of the site heavily informed the design. SMA and Hayball decided on keeping the original red brick facade from MacRobertson Chocolates factory to pay homage to the site's former life, also preserving the original pressed metal ceiling panels in the lobby.

When the opportunity arose to acquire the former site of The Regent Theatre in Fitzroy, it presented the opportunity to create something similar.

[smartcode_project:default project_id=24824 project_image_fid=304614]

While not adaptive re-use in its entirety given the site is now a low-rise commercial building after <a href="https://www.urban.com.au/new-apartments/the-regent-fitzroy-340-fitzroy-street-fitzroy-vic-3065">The Regent</a> was demolished in 1983, the brief was essentially to create a building that echoed The Regent's former life, but crafted in a way that focused on design principles that translated into elevated living.&nbsp;

A true Art Deco building in its design, with arched ceilings and period details throughout, The Regent will comprise just 65 one, two and three-bedroom apartments.

[smartcode_project:default project_id=24824 project_image_fid=304606]

SMA has brought on another industry stalwart, Studio Tate, to craft the interiors, offering buyers the choice of two distinct colour palettes; the light and airy Classic Collection, influenced by Nordic minimalism, or the Fitzroy-esque, more dramatic, Arthouse Collection.

Residents will also have access to a commanding rooftop terrace overlooking the city, a workshop, a dog wash, and even a guest suite, bookable for when friends and family come to stay.

[smartcode_project:default project_id=24824 project_image_fid=304613]

The Regent is the perfect example of why collaboration is of upmost importance in the new apartment development industry.

Those developers who can point to their former projects completed to a high level, not only by themselves, but the same team that is delivering the current one, stand in significantly better stead to deliver the future aspirations of those who seek out the same.&nbsp;

[smartcode_project_cta:default project_id=24824]

A true Art Deco building in its design, with arched ceilings and period details throughout, The Regent will comprise just 65 one, two and three-bedroom apartments

When architecture and development combine: Inside the relationships that will drive the success of The Regent Fitzroy

The Gold Coast new apartment market is showing no signs of slowing down.

The latest Colliers Market Overview for September revealed that the average price of a new apartment has surged to a new high of $1.77 million.

The latest price for the June quarter has risen from almost $1.4 million compared to the same period last year as the market continues to be driven higher by high demand and constrained supply, amid rising construction and debt costs.

However, Colliers says it’s not only buyers at the luxury end of the market that are feeling the price pinch as most houses on the <a href="https://www.urban.com.au/developments/gold-coast-qld">Gold Coast</a> are currently selling between $1 million and $2 million – a massive increase over the past four years as the Gold Coast construction sector struggles to keep pace with interstate and intrastate migration.

“Apart from the record median price for new apartments, the key findings in our latest report reveal the dramatic price growth of residential property on the Gold Coast since the pandemic,” said Steven King, the Gold Coast Director in Charge at Colliers.

“Just a few short years ago, the dominant price bracket for house sales on the Gold Coast was between $400,000 and $700,000 whereas now it is $1 million to $2 million.

“Price growth has effectively been supercharged on the Gold Coast although we are now seeing affordability, particularly for homes, beginning to temper that growth.”

[smartcode_project:default project_id=107928 project_image_fid=234102]

The Colliers research reveals that Gold Coast home prices have increased 76 per cent since the pandemic in 2020 and 12 per cent in the 12 months to the end of June.

In 2024, houses that sold for $1 million or more accounted for 59 per cent of total sales, which is up from 18 per cent in 2020, as population growth intensified the pressure on prices. House sales above $2 million have increased their share of total transactions from 3 per cent to 13 per cent during the same period.&nbsp;

Apartment prices in general have also grown at a heady pace over the past four years - although not as quickly as houses - at 60 per cent to a median price of $761,000. Colliers points out that apartment prices on the Gold Coast are now comparable to house prices in 2020 and early 2021.

[smartcode_project:default project_id=113271 project_image_fid=290033]

“While the latest median price for new apartments of $1.77 million has been driven by sustained demand and limited supply at the top end of the market, it actually reflects what is happening across the broader property market on the Gold Coast,” King added.

“Certainly, prices at the very top have pushed new highs and clearly set this sector apart from the broader market, but it’s also a bellwether of where the Gold Coast market, in general, is heading as affordability issues hamper some sectors.

“For the moment, we are not seeing a lot of push-back from buyers at the premium end of the market but, if this sector of the market slows, we could expect this to eventually impact the broader market.”

[smartcode_project:default project_id=107928 project_image_fid=234096]

The Colliers report points out that the Gold Coast economy has grown strongly since the pandemic and so has its appeal that has led to more visitors, residents, and investors, who have supported the steady increase in property prices.&nbsp;

Migration has also driven a changing demographic on the Gold Coast since the pandemic, led by an influx of professionals and investors drawn to the region’s modern facilities and expanding infrastructure.

Colliers Residential Director David Higgins says rising&nbsp;costs are playing a part in overall price growth on the Gold Coast, but so is a shortfall in supply with the latest dwelling approvals showing the Gold Coast is failing to deliver enough homes to meet the targeted population growth of the next two decades.

Colliers notes that the rise in the median price for new apartments shows that underlying demand has yet to wane, which continues to support prices for available development sites, especially those in prime locations with protected view corridors that facilitate premium residential offerings.&nbsp;

“The values for these transactions have remained relatively stable while developers of premium boutique projects are passing on higher construction costs to buyers,” Higgins said.

Colliers says that luxury developments that command premiums are particularly attractive to downsizers by offering exclusivity, quality and prime locations.&nbsp;

The development of new apartments is currently focused on the central Gold Coast precinct, which comprises Southport, Surfers Paradise, and Broadbeach.

The June quarter saw 331 new apartment sales, with V&amp;A at Broadbeach and Imperial Square at Southport contributing nearly 50 per cent of these sales.&nbsp;

Colliers points out that the Gold Coast economy has grown strongly since the pandemic and so has its appeal that has led to more visitors, residents, and investors, who have supported the steady increase in property prices.

Gold Coast new apartment prices hit record high

Busy apartment developer Mosaic Property Group is going through its site acquisition phase, securing yet another development site on the Gold Coast.

Fresh off the back of buying prime sites in Broadbeach and Palm Beach, the <a href="https://www.urban.com.au/developers/mosaic-property-group">Brook Monahan-led developer</a> has purchased again, in an area they know all too well.

The site, at 166 The Esplanade, Burleigh Heads, will be their fifth project in the sought-after suburb. They've previously completed&nbsp;<a href="https://www.urban.com.au/new-apartments/grace-by-mosaic-4-second-avenue-burleigh-heads">Grace by Mosaic</a>&nbsp;(January 2023),&nbsp;Augusta by Mosaic,&nbsp;(August 2024), and&nbsp;<a href="https://www.urban.com.au/new-apartments/florence-by-mosaic-42-the-esplanade-burleigh-heads" target="_blank">Florence by Mosaic&nbsp;</a>(completed September 2024). Their fourth Burleigh Heads apartment development,&nbsp;<a href="https://mosaicproperty.com.au/buying/isabel-by-mosaic/" target="_blank">Isabel by Mosaic</a>, is due&nbsp;for completion mid-2026.

The new development will form part of Mosaic's Masterpiece Series, a collection of developments aimed at the premium end of the market.

EMK Architects has drawn up the plans for 28 half and full-floor apartments and skyhomes across an 18-level building,

The building will replace a 1970s block of 10 apartment on 1,012 sqm. GV Property Group's Antonio Mercuri amalagamted the site that has 20 metres of frontage to The Esplanade.

Last month Mosaic <a href="https://www.urban.com.au/news/qld/first-look-exclusive-mosaic-file-plans-for-fifth-broadbeach-apartment-development">filed plans for their fifth apartment development</a> in Broadbeach. The site, on Mary Avenue, also put together by GV Property Group, sits opposite the Broadbeach State School.

They're planning 59 apartments across a 38-level towert designed by <a href="https://www.urban.com.au/architects/elenberg-fraser">Elenberg Fraser</a>.

Mosaic is&nbsp;currently delivering sister towers&nbsp;<a href="https://www.urban.com.au/new-apartments/lily-by-mosaic-4-rosewood-avenue-broadbeach">Lily by Mosaic</a>&nbsp;and&nbsp;<a href="https://www.urban.com.au/new-apartments/marella-146-surf-parade-broadbeach">Marella&nbsp;by Mosaic</a>&nbsp;in the area, after previously completing Bela and Dawn nearby.

Read more:&nbsp;<a href="https://www.urban.com.au/news/qld/first-look-exclusive-mosaic-file-plans-for-fifth-broadbeach-apartment-development">First look exclusive: Mosaic file plans for fifth Broadbeach apartment development</a>

Mosaic's next Gold Coast development to hit the market will be <a href="https://www.urban.com.au/new-apartments/sophia-by-mosaic-1357-gold-coast-highway-palm-beach">Sophia by Mosaic</a>&nbsp;at 1357 Gold Coast Highway, Palm Beach. That will have 32 apartments designed by BDA.

The developer is also busy in Brisbane, preparing to launch <a href="https://www.urban.com.au/new-apartments/the-bedford-by-mosaic-25-ferry-street-kangaroo-point">The Bedford by Mosaic</a>, a site bought from Woolworths' development arm Fabcot, who had secured approval for 128 apartments.

Mosaic tweaked the plans, dropping the one-bedroom apartments and increasing the number three and four-bedroom apartments which is more akin to their development ethos. They're keeping the full-line Woolworths at street level.

On the site purchase, Monahan emphasised the long-term significance of the acquisition.

"This iconic site has been on our radar since 2016, known to many as a dormant opportunity burdened by years of challenges," Monahan said.

"After a thorough 12-month process, we are honoured to have been entrusted by Woolworths to bring this landmark site to life. It is a truly special location."&nbsp;

Monahan said Kangaroo Point has long awaited a project that introduced essential amenities while further elevating the area's architectural landscape.

"Our collaboration with Woolworths is rooted in a shared vision—to seamlessly integrate luxury living with retail convenience, ultimately enriching the lives of residents and the broader community."&nbsp;

The new development will form part of the Masterpiece Series, a collection of developments aimed at the premium end of the market.

First look exclusive: Mosaic secure another Gold Coast apartment development site

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Urban Editorial

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

A number of people ask - what is the settlement process when buying off the plan property?

The simple answer is that the process is one part of the off the plan buying journey that isn't too dissimilar to buying in the established market.

The major difference is the time from exchange to settlement, given the off the plan property isn't built yet. The standard settlement for established property is around six to eight weeks.

This however has a number of pros for off the plan buyers.

One of the biggest is that the price paid for the property at the time of exchange doesn't change. Even if the value of the apartment has risen during construction, buyers will still settle on their apartments at the same price agreed.

The settlement date will be forecasted in the contract, as to when the developer believes the building will be complete, and the certificate of occupancy is obtained. Then settlement can start to occur and buyers can move in.

The settlement date forecast is another pro for buyers. While this date can chop and change due to a number of reasons, least of all delays in construction, labour, and materials, it gives the buyer a ballpark future date where they need to have their finances in shape to settle.

By paying a deposit you lock in that price, and you might not be required to pay the rest of the deposit for two or three years, if the construction timeline is that far away. This allows buyers years to save up the rest of the money while their yet-to-be-built property potential grows in value.

The settlement date estimate also puts a time limit on buyers as to when they should either vacate their current rental, or put the wheels in motion to sell their current home.

If you're thinking of purchasing an off the plan apartment, it's a good idea to speak to a conveyancer or solicitor who can advise you on the settlement process and help ensure that everything goes smoothly.

A number of people ask - what is the settlement process when buying off the plan property?

Off the plan property settlement - how does it work?

Arguably floor plans matter more in off the plan property than any other type of property.

In established markets, the floorplan is the floor plan. That's it, barring renovations.

But in the off the plan market, there a number of factors to consider when analyzing floor plans, and a number of questions to ask agents and developers when discussing buying an off the plan property.

First there's the floor plan size.

Floor plan sizes advertised by agents or developers can differ hugely state by state, so it's important to understand whether you are being pitched a property's internal size, or total size.

Internal size is the measurement of the internal floor area of an apartment, and is typically measured in square metres (m²). External size is the measurement of the external dimensions of an apartment, be it a courtyard or a balcony, but sometimes it can include a parking space or storage cage.

Generally, off the plan apartments are advertised with their internal size, as this is the size that you will have to work with when furnishing and decorating your new home. It's important to be aware of external size, however, as this will give you an indication of the overall size of the building and how much outdoor space you will have access to.

When considering internal vs external size, it's important to keep in mind that internal size may vary slightly from the advertised size due to the internal walls of the apartment. External size, on the other hand, is usually accurate to the advertised size as it's based on the overall dimensions of the building.

Another thing to consider when analyzing floor plans in off the plan property is that floor plans aren't necessarily set.

The majority of developers, providing construction is still at its early stages, will allow buyers to customize their floor plan to suit their lifestyle.

It might be that you want to move a bedroom or bathroom, or re-orientate the living area. This generally isn't a problem for developers as long as the moving of internal walls doesn't impact the building structurally, and the redesign all occurs within the same floor plate size of the original apartment.

In the off the plan market, there a number of factors to consider when analyzing floor plans, and a number of questions to ask agents and developers

How to read a floor plan, what questions to ask, and why it's important for off the plan property buyers

In Australia, a significant percentage of real estate transactions involve properties bought off the plan, yet this approach remains unfamiliar to many buyers.

Purchasing a property before it’s built can offer several opportunities, but it also comes with unique risks and considerations. Understanding the ins and outs of the off the plan buying process is crucial for making an informed decision.

In this article, we’ve highlighted the key factors to consider when buying off the plan, ensuring you’re well-prepared for this important investment.

<h2>1. What does "buying off the plan" mean?</h2>

Buying off the plan refers to purchasing a property, such as an apartment or house, that has not yet been constructed or is currently under construction.

Instead of viewing a finished property, buyers base their decision on building plans, designs, and artist renderings provided by the developer.

<h2>2. What are the advantages of buying off the plan?</h2>

<ul>
	<li>Potential Price Savings: Developers often offer competitive prices and incentives to secure early buyers, particularly before construction begins.</li>
	<li>Extended Saving Time: You typically only pay a deposit upfront, giving you more time to save for the remaining balance due upon completion.</li>
	<li>Capital Growth Potential: The property's value may appreciate during the construction period.</li>
	<li>Modern Design and Features: Enjoy new, contemporary designs and the latest amenities.</li>
	<li>Stamp Duty Savings: Some states and territories offer stamp duty concessions or exemptions for off-the-plan purchases, especially for first-home buyers.</li>
	<li>Tax Advantages for Investors: There can be potential tax deductions for investors, such as depreciation benefits.</li>
</ul>

<h2>3. What are the disadvantages and risks of buying off the plan?</h2>

<ul>
	<li>Project Delays: Construction timelines can be unpredictable, potentially leading to extended settlement periods.</li>
	<li>Potential for Value Fluctuations: The property market can change during construction, and the final value may be lower than the purchase price.</li>
	<li>Developer Bankruptcy: If the developer goes bankrupt, completion of the project may be jeopardized, and deposit recovery could be difficult.</li>
	<li>Limited Customization: Changes to the design or finishes might be restricted once construction has commenced.</li>
	<li>Unforeseen Costs: Be cautious of potential hidden costs or variations that can arise during the development process.</li>
</ul>

<h2>4. How does financing work for off the plan purchases?</h2>

Lenders may grant conditional loan approval (pre-approval) based on the projected value of the completed property. However, the final loan approval and amount are contingent upon a valuation conducted closer to settlement.

This final valuation ensures the property's value aligns with the loan amount and assesses any changes in your financial situation.

<h2>5. What is a sunset clause, and why is it important?</h2>

A sunset clause is a provision in the contract that allows either the buyer or the developer to terminate the agreement if construction has not reached a specific stage by a predetermined date. This clause protects buyers from indefinite delays and allows them to potentially recoup their deposit if the project faces significant setbacks.

<h2>6. Can I negotiate the price when buying off the plan?</h2>

Negotiation is possible, especially in the early phases of a development when the developer is seeking to attract initial buyers.

Be prepared to do your research and make a reasonable offer.

<h2>7. What should I check before signing an off the plan contract?</h2>

<ul>
	<li>Developer Reputation: Research the developer's track record and financial stability.</li>
	<li>Contract Terms and Conditions: Carefully review all clauses, paying close attention to payment schedules, sunset clauses, potential variations, and dispute resolution processes.</li>
	<li>Inclusions and Finishes: Obtain a detailed list of inclusions and specifications, including the quality and brand of fixtures and appliances.</li>
	<li>Seek Legal Advice: Consult with a solicitor or conveyancer to ensure you understand the legal implications of the contract before signing.</li>
</ul>

<h2>8. How is my deposit protected when buying off the plan?</h2>

Deposits for off the plan purchases are held in a trust account until settlement. This protects your funds in case of developer insolvency or project failure.

Be sure to understand the specific deposit protection regulations in your state or territory.

Buying off the plan refers to purchasing a property, such as an apartment or house, that has not yet been constructed or is currently under construction

The top eight considerations when buying off the plan

In the dynamic world of insurance, there is a product that has been quietly making waves across the globe for decades – Latent Defects Insurance (LDI).

Originating in Europe, this innovative insurance coverage has now found its way into the Australian market, promising a brighter future for the construction industry.&nbsp;

Latent Defects Insurance, also known as structural defects insurance or building warranty insurance, provides the most comprehensive protection to property owners, covering them against any hidden defects in construction projects. These defects may not be immediately apparent but could manifest months or even years after the completion of the project, leading to costly repairs and legal disputes.&nbsp;

Read more:&nbsp;<a href="https://www.urban.com.au/expert-insights/building/the-advantages-of-first-resort-strict-liability-latent-defects-insurance-for-off-the-plan-property-buyers">The advantages of first resort, strict liability, Latent Defects Insurance for off the plan property buyers</a>

The history of Latent Defects Insurance can be traced back to the mid-20th century when it was first introduced in Europe to address growing concerns surrounding construction defects. As the construction industry evolved and became more complex, the need for comprehensive, structural insurance coverage became increasingly apparent.&nbsp;

Over the years, Latent Defects Insurance gained popularity in countries like the United States, Canada, and the United Kingdom, where it became a standard requirement for large-scale construction projects. The insurance industry recognised the value of this product in mitigating risk and fostering a culture of accountability among construction stakeholders.

Now, Latent Defects Insurance is gaining traction in Australia, with nationwide availability transforming the construction landscape. This development marks a significant milestone for the Australian construction industry, offering newfound security and peace of mind to property owners, investors, developers, and builders alike.

Read more:&nbsp;<a href="https://industry.urban.com.au/updates/how-resilience-ldi-helps-off-the-plan-apartment-developers">How Resilience LDI helps off the plan apartment developers</a>

The introduction of Latent Defects Insurance in Australia is already having a transformative impact on the industry, promoting higher construction standards, reducing disputes, and enhancing overall project quality. With this innovative insurance coverage now widely accessible, the future of construction in Australia looks more promising than ever before.

The evolution of Latent Defects Insurance, from a niche product to a mainstream offering, is a testament to its effectiveness in addressing the complex challenges of the construction industry. As latent defects insurance continues to expand its reach, the future of construction worldwide, and especially in Australia, looks brighter and more secure than ever.

<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/uV-8Z3O3qH4?si=B-LsOmHGJeBM4JHj" title="YouTube video player" width="560"></iframe>

The pioneering insurance firm, the only insurer who can offer Latent Defects Insurance in Australia, is Resilience Insurance.

Resilience Insurance CEO Corey Nugent says the insurance benefits both the purchaser and the developer.

“Ultimately what we’re trying to do is build better buildings the consumers can have trust in, but more importantly improve the post-completion and settlement process, so that when buyers take possession, they have full insurance protection, from day one, for 10 years” Nugent says.

“The insurance protects the buyer from any structural defects in the building, and developers who have taken Resilience LDI have reported an uptick in both sales volumes and sale values compared to competing developments that don’t have Resilience LDI.”

To find out more about Resilience Latent Defects Insurance, <a href="https://www.urban.com.au/news/resilience-latent-defects-insurance">click here</a>.

Latent Defects Insurance provides the most comprehensive protection to property owners, covering them against any hidden defects in construction projects

The evolution of Latent Defects Insurance worldwide and its nationwide availability in Australia

Three years ago, credit reporting giant Equifax identified a need to provide transparency to the development market in Australia.

In 2022 they launched iCIRT, a voluntary rating tool in which developers, builders and construction consultants all over Australia could apply to become a credited iCIRT rated company.

Since then the likes of Sekisui House, Stockland and Deicorp have all become an iCIRT rated developers.

We recently caught up with Brad Walters, Head of Product and Rating Services at Equifax, to talk more about iCIRT.

<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/8j54HtqZzBY?si=X5veMco56yCkOT-v" title="YouTube video player" width="560"></iframe>

<h2>What is iCIRT?</h2>

iCIRT stands for the&nbsp;Independent Construction Industry Rating Tool.

iCIRT ratings were developed in consultation with the government, regulators, industry and market associations to help purchasers find trusted residential building professionals.

<h2>How does it help buyers?</h2>

"iCIRT was designed to support and improve transparency and to provide buyers and investors with independent information that they can turn to that could give them confidence," Walters says.

The iCIRT rating system is voluntary for any developer, builder or construction consultant&nbsp;in Australia.&nbsp;

The process of becoming iCIRT-rated involves Equifax undertaking a detailed assessment of the company, from previous developments and experience to financial records and company structure.

Following the assessment, Equifax provide an iCIRT rating for the company between zero to five stars - the more starts, the more confidence in the developer.

A 3-gold star rating or higher indicates a trustworthy business with a demonstrated ability to honour its commitments and fix defects.

<h2>How do I find iCIRT-rated businesses?</h2>

iCIRT has a register&nbsp;<a href="https://www.urban.com.au/news/nsw/how-icirt-is-changing-the-off-the-plan-industry-for-the-better-the-sydney-developers-to-first-secure-the-accreditation">of all property professionals</a>, including developers and builders, who are iCIRT rated.

Some 130 companies now have an iCIRT rating.

Michael Bird

How iCIRT is helping build confidence in the off the plan apartment market

For the first time since the Reserve Bank of Australia began hiking rates in May 2022, markets are pricing in four interest rate cuts within the next 12 months. 
 
At the end of each trading day, the ASX publishes its&nbsp;RBA Target Rate Tracker&nbsp;which calculates the probability of changes in the overnight cash rate based upon the implied yields of very short-term (30-day) interest rate futures.&nbsp; 
 
The ASX’s Tracker as at yesterday’s close shows that markets are predicting the RBA will first cut interest rates by 25 basis points in February 2025, with three more in the run-up to August. The RBA meets eight times in 2025 (February, April, May, July, August, September, November, and December). 
 
The RBA’s official cash rate sits at 4.35 per cent.

Any movement in the official cash rate, and most importantly banks passing on those interest rate changes, will help address several challenges in the off the plan apartment space.&nbsp;

The first one is demand. A lower interest rate environment means buyers will have more money to spend due to increased serviceability. Buyers haven't had an opportunity to extend their serviceability in over two years.

For a prospective buyer wanting to take out a $641,000 mortgage, the average mortgage size across Australia according to the ABS, four rate cuts would translate to over $5,000 in savings per year on average, Finder analysis suggests.

On top of lower repayments, there's increased serviceability, meaning a buyer can spend more than they could if the interest rate is higher.&nbsp;

Average Aussie mortgage repayments

<table>
	<thead>
		<tr>
			<th>&nbsp;</th>
			<th>Cash rate</th>
			<th>Average home loan rate*</th>
			<th>Average monthly repayment</th>
			<th>Average monthly decrease</th>
			<th>Average annual repayment</th>
			<th>Average annual decrease</th>
		</tr>
	</thead>
	<tbody>
		<tr>
			<td>September 2024</td>
			<td>4.35%</td>
			<td>7.07%</td>
			<td>$4,296</td>
			<td>-</td>
			<td>$51,552</td>
			<td>-</td>
		</tr>
		<tr>
			<td>1 rate cut</td>
			<td>4.10%</td>
			<td>6.82%</td>
			<td>$4,189</td>
			<td>$107</td>
			<td>$1,284</td>
			<td>$1,284</td>
		</tr>
		<tr>
			<td>2 rate cuts</td>
			<td>3.85%</td>
			<td>6.57%</td>
			<td>$4,083</td>
			<td>$213</td>
			<td>$2,556</td>
			<td>$2,556</td>
		</tr>
		<tr>
			<td>3 rate cuts</td>
			<td>3.60%</td>
			<td>6.32%</td>
			<td>$3,977</td>
			<td>$319</td>
			<td>$3,828</td>
			<td>$3,828</td>
		</tr>
		<tr>
			<td>4 rate cuts</td>
			<td>3.35%</td>
			<td>6.07%</td>
			<td>$3,873</td>
			<td>$423</td>
			<td>$5,076</td>
			<td>$5,076</td>
		</tr>
		<tr>
			<td colspan="5">Source: Finder, RBA, ABS. *Owner-occupier variable discounted rate. Repayments based on the average loan of $641,143 (ABS data analysed by Finder).</td>
			<td colspan="2"><img alt="" data-bit="iit" data-entity-type="" data-entity-uuid="" height="31" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXco5HuNAjqBICpVCvo3HzWGg4p7cL4LNNgRMBhoA67KYJfOqqJQa7ZSRA71Ju988qgvPsCeSbWhwDfAV4E8iSpKXp6wBkUPMclLxe1_IMfwemjiI4eU8l9Q_QrMukqJYMAzm_jSHgst3qtOzFkqULeIMf8?key=iigATMhksU1ODdPeSGzwIA" width="170" /></td>
		</tr>
	</tbody>
</table>

Not only will buyers have more money to spend due to increased serviceability, but the supply of new apartments is likely to increase if borrowing costs for the developers are reduced.

Many developers across the country have new apartment projects ready to launch but are waiting for more favorable news on interest rates. It seemed at the start of the year that rates would be going down by mid-2024; however, inflationary pressure has led the RBA to maintain a hold on rates in each of the five meetings this year.

The Board will meet again next week, expecting to hold the official cash rate again at 4.35 per cent.

For a prospective buyer wanting to take out a $641,000 mortgage, the average mortgage size across Australia according to the ABS, four rate cuts would translate to over $5,000 in savings per year on average, Finder analysis suggests

Markets price in four RBA rate cuts in next 12 months: What it means for the off the plan apartment market

Resilience Latent Defects Insurance is changing the way people buy off the plan property in Australia.

This insurance, currently only available through Resilience Insurance, provides off the plan apartment buyers with a 10-year warranty on their new apartment and the building it's situated in.

The cover is purchased by the property developer/builder (pre-construction) and is designed to protect owners against any immediate or future problems with the structural components of their new property, from leaks to cracks and everything in between.

<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/uV-8Z3O3qH4?si=IHsYgPTGMP5Cb7Td" title="YouTube video player" width="560"></iframe>

<h2>Boosting Confidence in Off the Plan Apartments</h2>

In this evolving market, developers and project managers have a unique opportunity to enhance buyer confidence and drive sales through LDI. Offering a 10-year warranty on structural components of new apartments, LDI covers issues from leaks to cracks, providing a robust solution that has been a global staple for over seventy years.

<h2>Advantages for Developers and Buyers</h2>

LDI is a game-changer for the off-the-plan market. By incorporating LDI, developers ensure buyers receive comprehensive protection from the moment they take possession. This coverage not only addresses post-completion structural defects but also issues arising during the construction phase. Leading developers like Abadeen, Deicorp, Kanebridge, and Coronation Property have adopted LDI, witnessing increased sales and property value.

[smartcode_project:default project_id=112966 project_image_fid=213736]

<h2>Building Market Confidence</h2>

Corey Nugent, CEO of Resilience Insurance and a pioneer of LDI in Australia, emphasises that LDI enhances the construction process and post-settlement phase. With expert partners involved from the beginning, LDI ensures quality and reliability, alleviating concerns about structural integrity. This proactive approach is crucial in a market where trust in delivery quality is paramount.

[smartcode_project:default project_id=114189 project_image_fid=272865]

<h2>Economic Impact and Market Leadership</h2>

According to a survey by MatterFact, 60% of potential buyers are willing to pay over 1.5% of the apartment price for LDI coverage, making it a cost-effective investment for developers. Projects with LDI have reported a 4-5% price increase compared to those without, highlighting the financial benefits for developers. NSW Building Commissioner David Chandler supports LDI, viewing it as a pivotal reform aligned with the state's commitment to improving construction standards and reducing litigation.

For property developers and project managers, integrating LDI into their offerings is not just about insurance—it's about positioning themselves as industry leaders dedicated to quality and buyer assurance. LDI boosts buyer confidence, enhances project marketability, and contributes to resolving Australia's housing crisis by making off-the-plan purchases more attractive and secure.

<h2>Read more about Resilience Insurance Latent Defects Insurance</h2>

<a href="https://www.urban.com.au/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?</a>

<a href="https://www.urban.com.au/news/nsw/dcn-group-to-develop-first-bankstown-apartment-development-with-latent-defects-insurance">DCN Group to develop first Bankstown apartment development with Latent Defects Insurance</a> 
&nbsp;

For property developers and project managers, integrating LDI into their offerings is not just about insurance—it's about positioning themselves as industry leaders dedicated to quality and buyer assurance

Everything an off the plan developer and buyer needs to know about Resilience Latent Defects Insurance

First home buyers are shrugging off the recent interest hikes with a spike in new mortgages for those looking to enter the market for the first time.

Data from the ABS Lending Indicators showed a 25.8 per cent increase in the value of new loan commitments for first home buyers, up to $5.25 billion nationally.

The value of new loan commitments for investors was rising higher than owner occupier borrowers. Investment lending increased by 18 per cent to reach $9.72 billion while owner occupier new loan commitments were up only 10.6 per cent over the year to reach $17.86 billion in loans.&nbsp;&nbsp;

A total of $27.58 billion in new home and investment property loans were taken out in November, up by a modest one per cent from October and 13.1 per cent over the year.&nbsp;&nbsp;

Investors are up for the month by 1.9 percent, which compares to an increase of only 0.7 percent for owner occupiers.

"You could say investors are back," Canstar’s lending expert Steve Mickenbecker says, with new lending up by 18 percent year-on-year, suggesting they hold a healthy expectation for property prices over the coming few years.

“It’s first home buyers who are leading the way with new lending commitments up by 2.8 percent for the month and 25.8 percent for the year,"&nbsp;Mickenbecker says.

"Looking at the number of buyers, first home buyers’ participation represents 37 percent of all new loans."

The biggest spike in first home buyers was in Queensland, where number of loans issued jumped 10.8 per cent in November. Victoria rose 1.2 per cent and Sydney fell 4.8 per cent, unsurprisingly given the cost of buying property in much higher in the harbour capital.

First home buyer new mortgages spike as "investors are back"

ASX-listed developer Stockland has spent just over $1 billion buying 12 masterplanned communities from Lendlease.

The communities will be part of the&nbsp;Stockland Residential Communities Partnership (SRCP) with Thai real estate development company Supalai. Stockland will hold a 50.1% interest in SRCP, with Supalai holding a 49.9% interest.

They've secured masterplans across Victoria, Queensland and New South Wales, totalling over 27,000 lots. The biggest acquisition is by far Yarrabilba in Queensland, near Logan, which has 10,400 lots.

<img alt="Lendlease" data-entity-type="file" data-entity-uuid="3f291554-0aab-4722-86d4-e78c45ad8d0c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-12-19%20at%207.07.26%20pm.png?VersionId=9HKtuB2gixixMkaa5JQ_xx7zzQjLX4k1" />The&nbsp;Yarrabilba masterplan. Image credit: Lendlease

Stockland Managing Director and Chief Executive Officer, Tarun Gupta, said the acquisition represents a step change in the reshaping Stockland's portfolio.

"[It] accelerates the execution of our strategy by increasing our capital allocation towards residential sectors while scaling our capital partnership platform and generating new sources of recurring income," Gupta said.

“We are pleased to be forming the Stockland Residential Communities Partnership with our existing partner Supalai, who has a strong track record of investing in residential developments across Australia, and is aligned with our strategic ambitions. SRCP achieves immediate scale with this acquisition, and we are excited to further develop the partnership alongside Supalai.”

Supalai Public Company Limited Chairman and CEO, Dr Prateep Tangmatitham said the investment further demonstrates their confidence in the underlying drivers of the market and provides them with exposure to a high quality, well-located portfolio of communities in partnership with one of Australia’s leading residential developers.

The recent acquisitions take Stockland's landbank to around 95,600 lots. They have the potential to increase settlement numbers to around 2,500 lots per annum.

<table>
	<thead>
		<tr>
			<th>Project Number</th>
			<th>Project Name</th>
			<th>State</th>
			<th>Yield</th>
		</tr>
	</thead>
	<tbody>
		<tr>
			<td>1</td>
			<td>Figtree Hill</td>
			<td>NSW</td>
			<td>~1,320</td>
		</tr>
		<tr>
			<td>2</td>
			<td>Calderwood Valley</td>
			<td>NSW</td>
			<td>~2,780</td>
		</tr>
		<tr>
			<td>3</td>
			<td>Springfield Rise</td>
			<td>QLD</td>
			<td>~1,160</td>
		</tr>
		<tr>
			<td>4</td>
			<td>Yarrabilba</td>
			<td>QLD</td>
			<td>~10,400</td>
		</tr>
		<tr>
			<td>5</td>
			<td>Shoreline</td>
			<td>QLD</td>
			<td>~2,760</td>
		</tr>
		<tr>
			<td>6</td>
			<td>Kinma Valley</td>
			<td>QLD</td>
			<td>~2,300</td>
		</tr>
		<tr>
			<td>7</td>
			<td>Atherstone</td>
			<td>VIC</td>
			<td>~1,710</td>
		</tr>
		<tr>
			<td>8</td>
			<td>Aurora</td>
			<td>VIC</td>
			<td>~1,110</td>
		</tr>
		<tr>
			<td>9</td>
			<td>Harpley</td>
			<td>VIC</td>
			<td>~1,720</td>
		</tr>
		<tr>
			<td>10</td>
			<td>Averley</td>
			<td>VIC</td>
			<td>~1,370</td>
		</tr>
		<tr>
			<td>11</td>
			<td>Alkimos Beach</td>
			<td>WA</td>
			<td>~760</td>
		</tr>
		<tr>
			<td>12</td>
			<td>Alkimos Vista</td>
			<td>WA</td>
			<td>~250</td>
		</tr>
		<tr>
			<td>Total</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>~27,600</td>
		</tr>
	</tbody>
</table>

&nbsp;

Stockland CEO of Development, Andrew Whitson said the fundamentals of the residential market in Australia remain compelling, with ongoing land supply constraints amid strong population growth.

"This acquisition has been secured on attractive terms, with active projects that are well positioned to ramp up development activity into a potential recovery in the residential cycle. The size and scale of the acquired projects also present potential development opportunities in adjacent uses, including land lease communities and community real estate assets such as childcare and healthcare centres.”

Stockland recently released one of the <a href="https://www.urban.com.au/news/qld/stockland-release-the-lake-residences-with-private-marina-berth-at-newport-qld">last residential opportunities</a> at their Redcliffe Peninsula masterplan Newport.

Stockland Managing Director and Chief Executive Officer, Tarun Gupta, said the acquisition represents a step change in the reshaping Stockland's portfolio

Stockland buys 12 masterplanned communities from Lendlease for $1 billion

Sydney is predicted to have the highest growth in luxury residential property prices of the Australian cities in 2024, according to Knight Frank research.

Knight Frank’s Global Prime Residential Forecast found the New South Wales’ capital sits in fifth place out of 25 cities globally for predicted prime property price growth next year, with 5% growth forecast.

Prime property is generally defined as the top 5% of property in each market. Melbourne came in at number eight for forecast growth in prime residential property prices over 2024, with an expected rise of&nbsp; 3%.

Globally, Knight Frank’s latest projections for prime prices in 2023 and 2024 were revised upwards by the global research network in its Global Prime Residential Forecast, foreseeing an average growth of 2.4% in 2023 and 2.5% in 2024.

<img alt="Knight Frank" data-entity-type="file" data-entity-uuid="53f3a14e-d1ea-43a3-98c5-e4e2f3b8cdc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-12-07%20at%2011.29.02%20am.png?VersionId=sOnYotq_Va2y8BXJRKfTzXcoz8QVKjEy" />

Both Sydney and Melbourne were in the list of 10 cities in Knight Frank’s Global Prime Residential Forecast that had seen an improvement in the luxury property price growth forecast for 2024. The 5% growth figure forecast for Sydney is a 2% increase on the original forecast for prime property price growth in 2024, made six months ago by Knight Frank, and is the second highest forecast price growth revision for next year behind Auckland.

Melbourne's forecasted price growth has jumped from 1% to 3%.

Both cities have also had better growth in luxury residential property prices than predicted over 2023, with price growth forecasts up to the end of this year also revised upwards.

Sydney’s forecast for luxury residential property growth for 2023 has been revised upward from 0% to 3%, while Melbourne’s forecast has been revised upwards from -1% to 1%, reflecting the better than expected performance of these two cities over 2023.

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Knight Frank Head of Residential Research in Australia Michelle Ciesielski said cautious optimism was emerging in the luxury residential property market globally, with prime buyers appearing confident that economic headwinds were easing.

“In Australia, buyer appetite is strengthening, while supply of prime properties is constrained,” Ciesielski said.

“The limited number of exceptional and most desirable prime residential property listings continues to create a price floor under many luxury Australian properties.

“This undersupply of luxury homes is one of the key factors set to shape the performance of the Australian prime residential market in 2024, with inflation and interest rates also set to play a big role.

“In saying that, in this upper echelon of the market, we are seeing an increasing number of cash buyers, with the proportion being 60% of all prime residential property sales in Sydney and 65% in Melbourne.

“Climate risk, geopolitical tensions and currency shifts are also expected to impact the Australian luxury property market.

“Amongst these risks there are opportunities, however, with property set to continue to appeal as a means to diversify and spread risk, being seen as a safe haven for capital.”

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Prime residential property has outperformed most other asset types over a 10-year period, with 55% growth, according to Knight Frank’s Prime Global Cities Index. It came in second behind oil, with growth of 110% over the same timeframe.

Knight Frank Head of Residential in Australia Erin van Tuil said in pockets of prime suburbs around Australia, record sale prices were being achieved, with some taking place before an advertising campaign takes place.

“Many of these properties are located on the waterfront, large estates and on the upper levels of apartment towers with panoramic views,” she said.

“The super-prime end of the market - especially A$20m-plus - is doing exceptionally well, with no shortage of buyers and limited homes.

“Most buyers are local Australian buyers, with a notable absence of foreign buyers committing to sales, despite enquiries.

“Relative to other Australian cities, Melbourne has counted more prime luxury product built over the past couple of years, which has made prime prices lag the stronger performance in other Australian cities.

“Melbourne is also still recovering from an extended lockdown in the pandemic, with city seeing many residents move interstate to Queensland and the slower return of international investors which the city relies heavily on.”

Knight Frank research shows in Sydney 5% of prime property buyers are foreign buyers, while in Melbourne it’s 10%.

Both Sydney and Melbourne were in the list of 10 cities in Knight Frank’s Global Prime Residential Forecast that had seen an improvement in the luxury property price growth forecast for 2024

Sydney and Melbourne in world top 10 for luxury property market growth in 2024: Knight Frank

Expert commentary from CoreLogic

Australian dwelling values have regained the losses from the recent downturn and surpassed their previous peak to reach a new record high, CoreLogic's national daily Home Value Index shows.

After reaching a peak in April 2022, national home values fell -7.5%, finding a floor on 29 January 2023.&nbsp; Since bottoming out, the national HVI has risen by 8.1%, taking the market to a new record high on Wednesday 22 November 2023.

CoreLogic’s Executive Research Director, Tim Lawless, said it took around nine months for the National HVI to move from record highs to the recent trough, then roughly 10 months to recover from the short but sharp downturn.

"The 'V' shaped recovery may seem counter intuitive, given high interest rates, deeply pessimistic levels of consumer sentiment and high cost of living pressures, however the recovery can be explained by an imbalance between supply and demand," Mr Lawless said.

<img alt="CoreLogic" data-entity-type="file" data-entity-uuid="a3e91765-dc93-4738-b4df-9f36a6551d6e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-11-22%20at%2012.43.47%20pm.png?VersionId=2eWv.dKdHlT_fwuodMNTtZWFcgITa0LD" />

"From a supply perspective, advertised stock levels have held remarkably low through 2023.&nbsp; Although inventory levels are now rebalancing as vendor activity picks up, listings remain 16.6% below the previous five-year average nationally.&nbsp; At the same time, demonstrated demand, based on the volume of homes sales, is trending roughly in line with the five-year average."

While the national index has reached a new record high, the headline figures hide a growing level of diversity in housing market conditions.&nbsp; Across the capital cities, Perth, Adelaide and Brisbane are all at record highs, with their regional counterparts Regional WA, Regional SA and Regional Queensland also at new peaks.

<img alt="CoreLogic" data-entity-type="file" data-entity-uuid="e55913d9-55cf-4cd8-abea-4e15d93d5c43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-11-22%20at%2012.46.25%20pm.png?VersionId=Mlq9pAMPAzwaaqdOUI2xGBiqzCGae8ni" />

At the other end of the scale is Hobart, where values remain -11.8% below their peak and Regional Victoria, where dwelling values are -7.0% below their record highs.

As housing values continue to trend higher across most regions, Mr Lawless said we are likely to see more areas return to record high housing values.&nbsp;

"While this is great news for home owners, for those looking to buy, affordability pressures are becoming more pressing amid rising values, high interest rates and worsening serviceability challenges.

"The good news for prospective buyers is that the pace of growth is clearly easing in some markets as advertised stock levels rise and purchasing demand remains fragile."

Tim Lawless said it took around nine months for the National HVI to move from record highs to the recent trough, then roughly 10 months to recover from the short but sharp downturn.

CoreLogic's Home Value Index reaches record highs

Expert Commentary - CoreLogic&nbsp;Economist Kaytlin Ezzy

The medium to high-density sector has increasingly become an important part of Australia's residential real estate market, with units steadily making up a larger portion of Australia's housing stock. In August, CoreLogic estimated that units made up 25.9% of national housing stock and around 30.4% of Australia's capital city housing stock, up from 19.6% and 22.9% at the start of 2010, respectively.

The continued reliance on the unit sector to deliver fresh housing stock is particularly evident across some of Australia's largest capitals, including Sydney and Melbourne, as well as the ACT, where limited land supply has made further development of low-density dwellings increasingly difficult.

The medium to high-density sector is increasingly becoming an important tool in delivering additional housing stock for Australia's growing population, especially as households continue to congregate in metropolitan areas.

With a median value of $637,593 (around 30% cheaper than capital city houses), capital city units offer a significantly more affordable entry point for first home buyers, as well as a lower maintenance option for both investors and downsizers. However, the latest National Housing Finance and Investment Corporation (NHFIC) ‘State of the Nation's Housing’ report forecasts a national housing deficit of approximately 106,300 by 2027 (later upgraded to 175,000), with around 59% of the shortfall expected in the unit market.

Below-average unit approvals and completions Figure 1 shows the latest ABS building approvals data by property type. In July, 4,490 units were approved for construction, down -19.9% from the month prior and -39.8% below the decade average. Excluding a handful of volatile months, the trend in new unit approvals has largely held below the decade average since mid-2018 and well below the trend in house approvals since late 2017.

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Unsurprisingly, the latest ABS building activity data, displayed in Figure 2, also shows an easing in unit completions, while house completions have held close to the decade average.

In the past 10 years, units have accounted for approximately 41.7% of total new housing completions nationally. However, over the March quarter of 2023, units made up just 37.1% of completions, holding around -27.1% below the decade average.

<img alt="CoreLogic" data-entity-type="file" data-entity-uuid="64e942f2-c3c1-4f6a-9f31-ffa89eda0a02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-09-18%20at%201.30.39%20pm.png?VersionId=.WXQWWowVnDVEl3YxvSh04nIheeftAeO" />

Despite surging demand, developers and consumers alike are exercising a more cautious approach in light of uncertain economic conditions, weaker capital gains, high construction costs, a tight labour market for trades and rising interest rates.

With fewer unit projects set to move through the construction pipeline, it’s likely completions will continue to ease, with units making up a smaller portion of new housing stock over the coming years. It is worth noting that while completions and approvals are low, the pipeline of unit projects yet to be completed is relatively high.

Unit commencements have shot up from 12,782 in the December quarter of last year to 19,981 through the first quarter of 2023. Constraints across the building sector have meant the number of units approved but yet to be completed have swelled to over 158,000 as of March this year. However, both unit commencements and the total number of approved units in the pipeline yet to be completed, remain below the highs of the mid-2010s. While unit construction fails to reach new highs, demand pressures for housing remain high.

<img alt="CoreLogic" data-entity-type="file" data-entity-uuid="15414574-e22a-4d1a-a823-5d165d1327a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-09-18%20at%201.30.31%20pm.png?VersionId=2gmohdUX7gB18pLn253g35LBENetFEZ4" />

The impact of a short fall on unit values Units have historically been a relatively affordable entry point for owner-occupier buyers looking for a first home, or investors looking for decent rent yields. In a low and declining interest rate environment, the apartment boom of the 2010s contributed to persistently low growth in annual rents across the country (averaging about 2% per year), and through the recent pandemic upswing, detached house values ballooned relative the unit sector.

However, in the face of rising demand and record low interest rates, the early 2020’s have not been marked by the same uplift in unit construction. At the moment, an elevated pipeline of units under construction, high interest rates and low consumer sentiment could temper unit demand and price growth.

But once the pipeline is worked through, Australia faces a relatively low number of approved projects, which may create a temporary vacuum in new unit supply. With the cash rate potentially easing in 2024, greater purchasing demand could fuel a stronger price boom in the unit market at this time.

The medium to high-density sector has increasingly become an important part of Australia's residential real estate market, with units steadily making up a larger portion of Australia's housing stock

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