Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

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.

Staff Writer

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?

Roberts Co has entered a new phase of growth following its acquisition by Arada, one of the world’s fastest-growing property developers in Australia.

The acquisition is supported by a $50 million capital injection into Roberts Co’s Australian balance sheet, consisting of the previously announced $25 million recapitalisation and an additional $25 million in new funding from Arada.

This investment strengthens Roberts Co’s financial position, stabilises operations, and provides the foundation for strategic expansion beyond its New South Wales base, with a focus on new opportunities in Queensland, including the Brisbane and Gold Coast regions.

With Arada’s international resources and financial backing, Roberts Co will broaden its portfolio across residential, commercial, and infrastructure sectors, reinforcing its strong market position in New South Wales and setting itself to capture growth in one of Australia’s most dynamic construction markets.

Ahmed Alkhoshaibi, Group CEO of Arada, said Roberts Co has a proud Australian heritage, an outstanding delivery record, and a strong reputation for collaboration with clients and partners.

"By combining this expertise with Arada’s global scale and financial capacity, we are creating a platform for sustained growth in the Australian market,"&nbsp;Alkhoshaibi said.

“Our $50 million capital injection, including new funds from Arada, underlines our commitment to both stabilise and expand Roberts Co’s operations, particularly into the fast-growing Queensland market. We see significant potential in South-East Queensland’s pipeline and are confident Roberts Co is well placed to deliver lasting value for clients and communities.”

George Kostas, CEO of Roberts Co, said Queensland, and particularly South-East Queensland, is one of the most active and opportunity-rich regions in Australia right now.

"The lead-up to the Brisbane 2032 Olympic Games will bring unprecedented investment across housing, transport, and infrastructure. Roberts Co is eager to play a major role in that transformation and secure a meaningful share of this fast-growing market.”

Arada pours more funds into Roberts Co, flags expansion into South East Queensland construction market

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Lachlan Murdoch, the Channel Ten boss, has not yet confirmed the 2012 return of The Renovators series after its ratings failure. 
He has noted some of the sponsors of the $25 million series were keen for its return, “with reset expectations”.
“If we bring it back it will be in a different format and with different expectations,” Murdoch says.
Ratings for Channel Ten's The Renovators did not come close to the similar Channel 9 show The Block.
The ratings of The Renovators finale topped 1.26 million across the five cities, its best result since its 1.25 million August debut.
Some 56% of the $725,000 average nightly audience over the past three months were women.
The series was created by the television production house Shine Australia. The Renovators finale was October 12.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our e-book Lights, Camera, Auction!</a>
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The Renovators will not return in same format, and possibly not at all: Lachlan Murdoch

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We are often asked about the impact of maintenance and capital improvements on direct residential property returns. More specifically, what are the annual performance leakages attributable to these costs? Today’s column will try and shed some analytical light on this murky subject. 
As an aside, I will not examine how the same issues afflict the far smaller “commercial property” sector – there is less than $300 billion of commercial, industrial and retail real estate compared with circa $3.6 trillion of housing – which nevertheless assumes far higher weights in institutional investor portfolios to the latter’s detriment. 
The very poor performance reported by Australian super funds in recent years has been in part driven by unnecessarily high exposures to risky listed property trusts (or REITs) and unlisted commercial property. As but one illustration, my first chart below compares the performance of Australian houses (capital growth plus 50% of gross rents to control for costs), which is the red line, with the ASX/LPT Accumulation Index, which captures all REITs and is denoted by the blue line.
Click to enlarge
<a href="/images/stories/oct251.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct251thumb.gif"></a>
For some reason, Australian super funds have loaded up on the blue line but completely overlooked the red one. Go figure. And which of these two lines gives more pause in relation to the perennially emotive “bubble trouble” question? We read so much crap about “house price bubbles”, but almost never hear about the far bigger bubbles that one finds in commercial property prices. The hard data suggests that the real “irrational exuberance” was attributable to institutional investors, like super funds, chasing too much commercial, as opposed to residential, property. 
Commercial property advocates try to dismiss the highly liquid “market pricing” afforded by the ASX LPT index and point to the much lower volatility (risk) numbers that derive from indices that purport to track “unlisted” portfolios of commercial real estate. The problem with these measures is that they are heavily influenced by “non-market” human valuations that typically ignore distressed sales (i.e., those properties selling at discounts during times of crisis) and thus artificially smooth returns. That’s akin to saying, “We are going to remove all the really badly performing companies listed on the ASX because they are distressed.” 
But enough venting. Let’s return to my central task today: quantifying the impact of capex and maintenance on residential property returns (the results are similar for commercial property). Some house price proxies, such as “median price” or “stratified median price” indices – of the kind reported by APM and the ABS – make no attempt to control for the bias induced by capital improvements (viz., renovations) and the other maintenance required to preserve the value of the underlying assets included in the index to mitigate depreciation. 
The repeat-sales indices reported by Residex are probably hampered by similar problems: rather than plucking the median or middle sales observation every quarter, Residex only looks at homes for which it can find both a purchase and sale, and then measures buy-and-hold returns via a regression-based index. This approach has the obvious drawback of excluding all newly built homes. Another problem is that over the average owner’s holding period of seven to eight years, many will carry out some structural improvements in order to boost the value they extract from that asset, and/or to offset the effects of the inexorable depreciation of the dwelling. 
Standard repeat-sales indices do not directly deal with this problem, and are therefore biased measures of house price changes over time. In the academic research literature, there are a number of modifications one can make to the basic repeat-sales methods used by the likes of Case-Shiller in the <country-region><place>US</place></country-region> to statistically control for non-linear changes in a dwelling’s value, which, it is assumed, arise as a function of capex (or depreciation in the absence of capex). But these are inherently imperfect. 
Unfortunately, we cannot know exactly what Residex does because, unusually for a supplier of house price indices, it has historically refused to provide specific details on the methodology it uses. 
Within Rismark’s library of house price index products, we privately produce all of the known techniques, including adjusted repeat-sales models that control for the abovementioned biases. 
By far the best, and most direct, way to address the problems induced by capex on time-series measures of housing costs is through the use of “hedonic” indices. These benchmarks are RP Data-Rismark’s preferred tools for evaluating changes in housing costs over time, and have become the gold standard for the RBA and most banks. 
Critically, a hedonic index explicitly controls for the exact attributes of all the homes included in the index, ranging from their precise location, number of bedrooms, number of bathrooms, the property’s type and land size, whether it has a garage or pool, and its view, among other things. 
As a filter in RP Data and Rismark’s data processing method, we also insist on being able to confirm the specific attributes of all homes within six months of the sales data that is used in the index. In this way, we know that the characteristics that the index relies upon – such as number of bedrooms, bathrooms, land size, etc – are up-to-date. 
Hedonic indices are designed to very explicitly compare like with like. They effectively take the highly heterogeneous “apples and oranges” that are the homes that transact over time, and normalise them such that we can identify the true underlying rates of capital growth attributable to regions, cities and the national market. 
This brings me back to my original question about the return leakages deriving from both high-value structural capital investments (i.e., development application-approved renovations), and other lower value, or non-DA approved, maintenance. 
 
<hr class="system-pagebreak">
 
In what follows, I will try and quantify these for you. It is important to bear in mind that these costs need to be weighed against the asset’s total returns: that is, both capital growth and normal or imputed rental incomes. They should not be deducted exclusively from one or the other. 
The ABS reports two measures of the value of alterations and additions (A and A) on a quarterly basis. The first is the Construction Work Done Series and leverages off the ABS’s Building Activity Survey. The Building Activity Survey (BAS) supplies estimates of the value of work done on alterations and additions with an approval value of $10,000 or more as collected via DAs submitted to Australian councils. 
In the ABS National Accounts a second, far broader measure of residential A and A is published. In particular, the National Accounts upwardly adjusts the BAS estimates to reflect the fact that a substantial amount of alterations and additions activity is not covered in the BAS survey (eg, work under $10,000, and work not done with permits). The National Accounts also boost the BAS A and A by an “undercoverage adjustment” to control for some reporting biases (eg, DAs tend to be undervalued). 
Our previous correspondence with the ABS suggested that the overall National Accounts adjustment factor, which varies on a state-by-state basis, is between four and five times. 
In the chart below we show the <personname>sma</personname>ller BAS estimate of A and A as a share of the value of the total private residential housing stock since 1986. This is calculated by multiplying the number of private dwellings each quarter with RP Data-Rimark’s measure of the all regions, all property types median dwelling price. Since 1986 the average BAS A and A has been 0.26% per annum. Click to enlarge
 
<a href="/images/stories/oct252.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct252thumb.gif"></a>
In the next figure we move to the more comprehensive A and A proxy reported in the National Accounts. Consistent with our prior correspondence, this total A and A estimate is on average 4.95 times larger than the BAS result (see the penultimate figure below). That is, the ABS believes that all forms of dwelling maintenance and capital investments, excluding the construction of new buildings, amount to about 1.26% per annum. Click to enlarge
<a href="/images/stories/oct253.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct253thumb.gif"></a>
<a href="/images/stories/oct254.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct254thumb.gif"></a>
A useful sanity test of these A and A estimates is to look at the value of depreciation as a share of the housing stock. In its National Accounts, the ABS spends considerable time computing the annual value of the depreciation of the private residential dwelling stock owned by individuals. In the final figure we have taken this depreciation proxy and divided it by the same estimate of the total housing stock value used above.
<a href="/images/stories/oct255.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct255thumb.gif"></a>
Unsurprisingly, depreciation, which averaged 1.2% per annum between 1986 and 2011, is almost exactly the same as average capital expenditure. In fact, it also tapers off during the 2000s, just as capex appeared to do. And it reconciles almost perfectly with the ABS’s estimate of the average dwelling life of 88 years. 
To summarise, this analysis suggests that the total value of maintenance and A and A as a share of the value of the dwelling stock is around 1.2% per annum (rounded down), all else being equal.
Christopher Joye is a leading financial economist. The above article is not investment advice.
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How much value renovating adds to your home

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Kevin McCloud, the star of the increasingly popular TV series Grand Designs, fronted the decor home show Grand Designs Australia Live in Sydney today.
Crowds hovered as the cult television star cashed in on his international acclaim.
"I'm just a whinging Pom," he suggested, then spoke on what made great, rather than grand designs.
Judging unusual housing projects, Grand Designs first screened in Britain in 1999, airing in Australia on the LifeStyle Channel six years later, then on ABC1 a year later.
Earlier this month its 11th season premiered in the UK. Naturally the couple involved in the transformation of a derelict mill cottage in Northumberland, Stefan Lepkowski and Annia Shabowska, who began work in 2006, had a £250,000 budget, which was completely inadequate.
The series reportedly rates better in Australia than on Channel 4 in Britain.
McCloud told an Australian audience earlier this week that the biggest mistake people made renovating or building a home was "not planning enough" and "failure to work with good professionals."
McCloud said technology was making the home simpler, not more complicated.
McCloud admits his own house is typicall messy and says the kitchen is the centre of the home.
The exhibition space is filled with stalls highlighting interiors and home decor ideas for non-televised home grand designs.
It follows recent exhibitions that take place annually in London and Birmingham.
Grand Designs Australia Live will take place in Melbourne in September 2012.
While in Australia McCloud will catch up with one of his two brothers, who lives in northern NSW.
The show continues until Sunday. 
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Kevin McCloud talks grand designs in Sydney

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.Mistake #1 – Getting emotionally involved
Many homeowners undertake a home renovation for emotional reasons. Very often they fall ‘in love’ with the property. This emotional issue applies to both home owners and investors. One of the biggest mistakes homeowners make when undertaking a home renovation is to overcapitalise their property. 
Mistake #2 – Failing to understand the meaning of overcapitalisation
According to the Royal Australian Institute of Architects; many homeowners are paying thousands of dollars only to devalue their homes. One of the ways they do this is by overcapitalising which means to improve a property beyond its resale value. Overcapitalisation means you spend too much money on the property and are not be able to recoup these monies if you decide to sell it. A simple example would be if a homeowner spends $150,000 on home renovations and then decides to sell the property. The homeowner may find that the value of the property has only increased by $75,000 meaning that they have effectively lost $75,000 through the renovations. In effect, they have over-capitalised the property by $75,000. 
Mistake #3 – Not doing your homework on comparable market pricing
Unfortunately, it is important to recognise that most suburbs have a median sale price and an upper sale threshold specific to your suburb. Even different streets in your suburb have different price thresholds; that’s because your neighbour’s houses and the general streetscape have considerable influence on the value of homes in your street. Before renovating it is important to consider the housing styles, demographics of your suburb, and sale prices achieved of other homes in the area that have recently sold.
Mistake #4 – Under-estimating all of the costs involved in building
This is one of the biggest mistakes that homeowners make when renovating their homes. Homeowners typically under-estimate the costs involved in building. Such as; demolition costs, professional fees, contingencies for variations, foundation changes due to soil conditions, fit-out and landscaping, kitchens and bathrooms, escalation of building costs and delay and acceleration costs to finish the project on time. 
Mistake #5 – Poor selection of a builder
Property owners who decide to employ a builder to undertake home extensions also encounter problems because they have not undertaken sufficient research on the experience of the builder, and their past record in undertaking renovations. Especially their “variation claims” history, often Builders locks unsuspecting homeowners into building contracts which cost homeowners thousands in variation costs. Another common mistake is to let the Builder provide the design, and therefore restrict the homeowner from getting competitive quotations upon the Builders design. 
 
Mistake #6 – Doing it DIY to save money
Some people also make the mistake of trying to undertake home renovations themselves. This can prove costly in time and is financially unwise because a poor standard of work will only devalue the property. Character homes, in particular, require a higher standard of renovation work and you may need to carefully select tradesmen with past experience in this area to ensure that the work is properly completed. If you decide on a major renovation don’t cut corners doing it yourself. There is no such thing as a cheap renovation. Ultimately, it will impact on the resale value of the property or you will spend more funds at a later date to fix the original faulty work. Always seek competent, professional advice and trades people before undertaking a major renovation.
 
 
Mistake #7 – Failing to stick to a budget
A common problem is that home renovators do not operate with a strict budget and are unable to complete planned renovations because of a lack of money. This mistake results in homeowners financially overextending themselves through a lack of financial planning. The “Catch 22” is that renovators often can’t then sell their ‘half completed’ renovation and end up in severe financial hardship. 
Mistake #8 – Poor functional design layout and design
A very common problem is that home renovators end up spending too much on a poor functional layout because of the limitations of the existing building. In many cases the homeowner would have been better off, to have demolished the existing house and start all over again. Another common problem is where the style of the renovation is inconsistent with the rest of the house; you’ll often see houses for sale with a modern extension that clash with the rest of the house which is still stuck in the 1970’s. These properties are “lemons” on the market and typically homeowners lose money on these renovations.  
Mistake #9 – Spending money on the wrong things
If you are living in $100,000 house you will not get a good return on an investment in a $35,000 bathroom. Swimming pools are a good example of additions to a property that often doesn’t add value. Many buyers do not want the work, expense, and potential for accidents that come with a pool. The general rule is that you should not spend more than 25 per cent of the value of your home on home improvement renovations. 
Mistake #10 – Underestimating the disruption to your lifestyle
Undergoing a major renovation and living through it, is often overlooked by most home owners. The disruption to your lifestyle, the mess, the noise and restrictions is something that should not be discounted. If you are having major renovation (especially if you are a family with young children) consider moving out and renting elsewhere during the construction phase. 
Before you make the decision to renovate or buy a new house, carefully ask yourself the following questions: 
1. Decide what it is you are looking for in a final result and ask yourself if it will be cheaper to buy a different home or to renovate your old one. 
2. What is the average selling price of homes in your area? 
3. Will renovations alter the appearance of your home so that it appears out of place in the neighbourhood? Check the styles of other homes in the area. Keep in mind it might be a better idea to match or keep in step with the styles of other homes in the area. A poor design could devalue your home by thousands of dollars. 
4. How much will renovations cost compared to what you paid for your home. What is the expected increase in value as a result of the renovations? Will the renovations actually cause your home to lose value?
The decision to buy a new home or to renovate is not one to be taken lightly. It is recommended that you think through every aspect of the project prior to getting started. Seek the advice of a local professional architect/building designer as well as a real estate professional if necessary to determine how the proposed renovations will affect the value of your home. 
Gary Pemmelaar is a co-principal of <a href="https://www.rhglenelg.com.au/" target="_blank">Raine &amp; Horne Glenelg</a>. Gary is a civil engineer and hold a builder's licence in SA. He has considerable experience in both property develoment and renovations.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a href="https://register.propertyobserver.com.au/lights-camera-auction/" target="_blank">download our e-book Lights, Camera, Auction!</a> 
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Top 10 mistakes home renovators make

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With all the renovation shows on television there’s currently a lot of interest in buy, renovate and sell projects.  Here’s a real example of why would-be renovators should consider a buy, renovate and hold strategy rather than choosing to sell off their asset.
 
Property summary:
 
Location: <a href="/news">Cremorne</a>, Sydney
Property type: Three-bedroom, two-bathroom apartment 
A three bedroom apartment was purchased in <city><place>Sydney</place></city>’s <place><placename>North</placename><placetype>Shore</placetype></place> in original condition. The property boasted <place><placename>Sydney</placename><placename>Harbour</placename></place> views from the kitchen, lounge and dining rooms. 
The apartment was gutted with walls removed between the kitchen and dining and lounge rooms. This opened up the living space and increased the natural light in the apartment. A false ceiling and down lighting were added to the kitchen to define the space. 
Both bathrooms were gutted and redone from scratch. A brand new kitchen was installed complete with a washer/dryer in a cupboard, allowing the tenants to do their laundry without leaving the apartment. The renovation was completed with new paint, blinds and light fittings over a six week period. 
The numbers:
<ul>
<li>Purchase price: $805,000</li>
<li>Post renovation value: $1,025,000</li>
<li>Total added equity: $220,000</li>
<li>Renovation costs: $101,500 (includes project management fees and holding costs)</li>
<li>Manufactured equity: $118,500</li>
<li>Pre renovation rent: Estimated $675 per week (owner-occupied at time of purchase)</li>
<li>Post renovation rent: $850 per week</li>
</ul>
After renovation the owner had the option to hold onto the property as an investment or sell the property and pocket any profit.  Both options are examined below using the figures from this real example.
 
Renovate and hold:
The benefits of holding onto this property after renovation are twofold.  Firstly, the increased equity of $118,500 can be used as security to borrow against to buy another property or invest elsewhere. 
Secondly this renovate and hold strategy example resulted in an increased rental rate of $175 per week.  This rental increase ($9,100 per annum) more than covers the interest cost of the funds required to undertake the renovation ($101,500 x 7% = $7,105 per annum). In this example the renovation increased the return on investment both in capital value and cashflow. 
It’s important to note that under a buy and hold strategy the purchasing costs are apportioned over the period the property is held and are only realised upon the sale of the property.
 
Renovate and sell:
Most people who undertake a buy, renovate and sell project complete the transaction within a 12-month period.  Therefore they receive no tax concessions on the profit unlike the owner who chooses to hold the property for more than 12 months. 
Under this strategy, the owner must account for the buying and selling costs as the asset is being realised with the major expenses in this example totalling $65,971 as outlined below:
<ul>
<li>Marketing - $1,500 (web, signboard, floor plan, brochures) </li>
<li>Selling fees - $22,550 (2.2%)</li>
<li>Stamp duty - $41,921 </li>
</ul>
After costs the owner is left with a profit of $52,529 which is then taxed at their marginal tax rate resulting in a modest return for the work invested.
 
The final word:
The example above illustrates the difficulty in making a reasonable profit when undertaking a buy, renovate and sell project in comparison to the financial gain and flexibility provided under a buy, renovate and hold strategy. 
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a href="https://%20www.epspropertysearch.com.au" target="_blank">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction and The Insider’s Guide to Profitable Property Investing.  
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our e-book Lights, Camera, Auction!</a> 
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After you renovate, sell or hold? A case study

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
<a href="https://www.propertyobserver.com.au/developments/fender-katsilidis-ever-changing-place-in-melbourne-s-skyline/2011101351927?source=flicker4" target="_blank">With the success of the Melbourne Terrace Apartments</a>, a newly established firm and several landmark buildings under its belt, the big-ticket commissions began rolling in for Fender Katsalidis.
<img src="/images/stories/richmondsilos.jpg">
There was the Richmond Silos (pictured above), converted from old grain silos and built in 1996, the Ian Potter centre (1998), the Republic Tower, HM@S Tower (pictured below) and Bendigo Art Gallery (1999), and New Quay at Docklands (2004).
<img src="/images/stories/hmas.jpg">
But one building would say more about the ambition of Fender Katsalidis than any other – a gleaming, gold-tipped pillar called the Eureka Tower, which at 92 storeys Nonda Katsalidis insists is “still the tallest building in the country”, despite that title officially belonging to Q1 on the Gold Coast. (To set the record straight, Katsalidis says the roof height of Q1 is 275 metres, Eureka’s is 297, he reckons Q1 cheated by adding a 45-metre spire on top, “but let’s not start that argument again!”.)
<img src="/images/stories/eurekafka.jpg">
Katsalidis says designing the Eureka Tower (pictured above), which turns five years old this month, was always about creating “an iconic, huge thing”, and the firm certainly achieved that.
When awarding Eureka Tower the Royal Australian Institute of Architects Harry Seidler Award for Commercial Architecture in 2007, the jury said it “clearly demonstrates that commercial architecture can be about more than the ‘bottom line’ – it can contribute a broader value to the life and character of the city”.
And Eureka Tower’s bottom line is still doing just fine. According to end-of-financial-year reports for 2010 compiled by Harcourts City Residential, the average selling price for apartments in the Eureka Tower in 2010 was just under $1.047 million, up from $707,685 the previous year. The median sale price for Southbank apartments in 2010 was $602,900.
Katsalidis is coy about Eureka’s financial success. “It’s still the slickest-looking building in Melbourne,” he says. “It’s a very striking building; it’s used as the backdrop in the news and is a symbol for <city><place>Melbourne</place></city>.”
With Eureka under its belt and its stamp firmly placed on Melbourne, Fender Katsalidis set about looking for opportunities outside the city where the firm made their name.
<img src="/images/stories/monafka.jpg">
Katsalidis says his most recent highlight was designing entrepreneur David Walsh’s “adult <place>Disneyland</place>” MONA (the <place><placetype>Museum</placetype> of <placename>Old</placename></place> and New Art) in <city><place>Hobart (pictured above)</place></city>, carved into the sandstone cliffs of the <place><placename>Berriedale</placename><placetype>Peninsula</placetype></place>. Some have called it Katsalidis’ masterwork and it’s even been labelled the “Bilbao of the South” a reference to Frank Gehry’s Guggenheim.
MONA aside, the majority of Fender Katsalidis’ work is still focused on creating new residential possibilities, with much of its work being on large planning projects, even designing entire cities.
<img src="/images/stories/fkakl.jpg">
In <city><place>Kuala Lumpur</place></city> the firm has designed luxury apartments near the <place><placename>Petronas</placename><placetype>Towers</placetype></place> and in the millionaire’s precinct of Taman Duta (pictured above). In Thailand the firm designed several luxury resorts in Phuket and on the east coast of Gibraltar, an entire residential estate on the waterfront.
In Dubai, the firm consulted on the much talked-about Palm Jebel Ali, a reclaimed island designed to resemble the fronds of a palm tree, which developer Nakheel still hopes will house more than 250,000 people by 2020 although construction on the development has stalled. The firm was involved in some of <city><place>Dubai</place></city>’s most ambitious projects, but most stalled or were abandoned when in the 2008 property crash, when house prices plummeted 64%.
Karl Fender, quoted in a 2009 article about the Dubai crash in The Age, said “Dubai was a place in a hurry. It was based on a hard-to-define marketplace, and built on a frenzy of speculation.”
Despite Dubai’s well-documented property crash, its initial boom gave Fender Katsalidis architects the chance to push their design skills and imagination to a new level.
Today, the firm hires nearly 100 staff, but Katsalidis says he and Fender are still personally involved in every project and they are still as ambitious as ever. Their reach is now global, but they still call Melbourne home and aren’t done there yet.
<img src="/images/stories/phoenix.jpg">
Not just happy to build the tallest skyscraper in Melbourne, now the pair want to design the slimmest. <city><place>Phoenix</place></city> 82 (pictured above)looks set to make quite an impact on <street><address>Flinders Street</address></street>, with a unique trail of blue light “snaking” down its side. The site is only 6.7 metres wide and 24.3 metres deep. The 28-storey building will rise 88.5 metres, with one apartment on each floor.
Maxx Apartments in St Kilda has just begun construction and will be a mixed-use development incorporating two commercial storeys and 11 residential. Apartment prices range from $387,000 to $640,000.
<img src="/images/stories/bendigoart.jpg">
Fender has also been invited back to the Bendigo Art Gallery (pictured above) to assist with a $7.55 million expansion it hopes will give it more room to host big-name exhibitions.
Fender, who over the years has called the Melbourne Terrace Apartments, the <place><placetype>Republic</placetype><placetype>Tower</placetype></place> and <city><place>Eureka</place></city> home, says he had no trouble believing high-rise living would take off in <city><place>Melbourne</place></city>. As an expat from 1975 to 1995 he lived in high-rise apartments in London, Hong Kong and Rome and his many years as a happy apartment dweller would help shape his strong belief that high-density living is not only the answer to burgeoning population growth, but that it can provide the same sense of community, even more, than the long sprawl of the outer suburbs, which he calls “anonymous” and a place where “every man is an island”.
Fender Katsalidis’ most ambitious, or at least tallest, building is still to come. Katsalidis is tight-lipped on details, but confirms the firm has been commissioned to design a 100-storey, 500-metre skyscraper in Kuala Lumpur in mid-2012. It will be the firm’s tallest yet and just scrape through to be the second tallest building in the world. Further proof perhaps that Fender Katsalidis’ rising ambition is far from satisfied.
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Onwards and upwards in Kuala Lumpur for Fender Katsalidis after Eureka moment

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Stand anywhere in the Melbourne <stockticker>CBD</stockticker> and it’s almost impossible for an upwards-glancing eye not to catch one of Fender Katsalidis Architects’ distinctive residential towers.
<img src="/images/stories/eurekafka.jpg">
There’s the gold-capped peak of Southbank’s Eureka Tower (pictured above), the rocket-like Republic Tower (pictured above) on the corner of Queen and La Trobe streets, the revolutionary Little Hero building and its Lego-style construction method in Russell Place, and just about all of New Quay in the Docklands, to name just a few.
<img src="/images/stories/republic.jpg">
Fender Katsalidis buildings are typically low-impact, high-density designs that aim to create a “vertical neighbourhood” for <stockticker>CBD</stockticker> dwellers.
Both Karl Fender and Nonda Katsalidis are public proponents of high-density living as opposed to the flat urban sprawl embraced by the baby boomers.
“You have to keep your mind open to new housing typologies that use less land, and in so doing give greater community facility,’’ Fender says. ‘‘Because the idea of just building houses cheek-by-jowl and going on forever is just not sustainable”. Although he does add: “You don’t have to go building Eurekas all over town”.
Most of FKA‘s apartments are designed to be relatively affordable, which ties in with the firm’s outspoken intention to convince the average buyer to embrace high-density living. Affordability, Fender says, is the key to encouraging buyers to choose an apartment over traditional house and land.
Apartments in the upcoming <street><address>Fulton Lane</address></street> development for example are being offered at a starting price of $365,000. The development is the first in Australia for Malaysian group SP Setia, which reported in June that 70% of Fulton Lane’s apartments had sold off the plan in just three days.
At <street><address>108 Flinders Street</address></street>, where construction has just commenced on a 12-storey development tucked in behind AC/DC Lane, a one-bedroom can be snapped up for $390,000. Developer Riverlea announced in August that 85% of 108’s apartments were sold before construction began in September.
While FKA’s main focus is on affordable high-density living, the firm does have its trophies. At time of writing, the Eureka Tower’s penthouse, which occupies the entire 84th floor of the building is on the market. It’s expected to fetch upwards of $13 million.
<img src="/images/stories/melbourneterrace.jpg">
Karl Fender and Nonda Katsalidis’ <city><place>Melbourne</place></city> footprint began with the Katsalidis solo project Melbourne Terrace Apartments (pictured above), just near the Queen Victoria Markets on <street><address>Franklin Street</address></street>. Opened in 1994, it was one of the first residential developments to come out of Jeff Kennett’s Postcode 3000 planning policy in the early ’90s, aimed at encouraging Melburnians to live in the <stockticker>CBD</stockticker>. The plan had its critics, – ‘‘where will people buy milk, Myer?’’ was a running joke – but they were ultimately proven wrong as Melbourne was put on a pedestal as an example of how to reinvigorate a city centre so it becomes not only a place of work, but also of entertainment, and for many, a place to live.
Considered an early test case for the ambitious Postcode 3000 strategy, Katsalidis’ Melbourne Terrace Apartments were lauded as a new model for medium- and high-rise living in the <stockticker>CBD</stockticker>. Its success would convince architects and planners that <stockticker>CBD</stockticker> living was not only possible, it had the potential to move <city><place>Melbourne</place></city> towards gaining the ‘‘most liveable city’’ badge it proudly wears now.
It also established Nonda Katsalidis as an architect to watch in <country-region><place>Australia</place></country-region>. In 1996, he would merge with Bob Nation and Karl Fender to create Nation Fender Katsalidis, which would go on to build some of Melbourne’s most recognisable landmarks.
On Monday we will look at the next step for Fender Katsilidis and its projects outside Victoria. 
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Fender Katsalidis' ever-changing place in Melbourne's skyline

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Whenever I have watched reality shows what resonates most with me is an obvious lack of due diligence. How can you have an advertising campaign that any other vendor in Australia would dream of only to see failure and disappointment on auction day?
The other problem is that in the vast majority of cases that I’ve seen the contestants have little to no experience with renovation yet by the end of the series they give the impression that they are master builders.
On top of that the general public gets the impression that they have cut corners given the shows focus on a tight renovation budget. This creates a no-win situation, which has been reflected in the sales evidence.
The contestants keep running down to the local hardware store (which is usually a sponsor) to buy appliances, where they would be paying full retail as against sourcing the products far more cheaply over the internet. With better planning in advance these appliances could be purchased much cheaper – although that does not fit in with the strict timing schedules of the shows.
The problems facing these shows are sourcing the right properties in the right locations. This is nearly impossible, especially given that they have to find multiple properties the fit the criteria. When they find a compromise more often than not they have paid too much acquiring the properties and the cost of renovations combine to deliver over-capitalised properties. It is then very difficult to make the money back at auction.
I don’t see a great future with these reality realty shows given they are not financially viable. It’s an expensive gamble if you are not an owner-builder who is developing the property to live in.
It is well-documented around the country that punting on real estate using that formula is a recipe for disaster – and they keep delivering this conclusive evidence, don’t they?
Robert Simeon is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our e-book Lights, Camera, Auction!</a> 
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Lack of experience, research and planning a problem with reno TV

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
We recently looked at the new draft <a href="https://www.propertyobserver.com.au/news/tips-for-borrowing-through-your-diy-super-for-property-investment/2011101151890" target="_blank">ATO ruling surrounding borrowing via your self-managed super fund and property</a>. The rules are more lenient, but investors still need to be careful.
Understand the difference between repairs and improvements of geared property
 
Detail: Under last year’s amendments, superannuation law specifies that money borrowed by a SMSF under a limited recourse loan arrangement must only be used to buy and maintain an asset – not to improve it.
Draft ruling: An improvement of an asset, in contrast to a repair, will improve its efficiency and/or substantially increase its value. 
Crucially, a fund can use its own money to improve a property – provided those improvements are not so extensive so as create a new asset, according to the ruling. 
The draft ruling stresses that what the ATO regards as the difference between repairs and improvements for tax deductibility is not necessarily the same as its interpretation in relation to SMSF gearing. Meg Heffron, co-principal of specialist SMSF administrator Heffron and a former member of the Cooper superannuation review, says the draft ruling shows the ATO will take a “fairly liberal view” about the difference between a repair and an improvement. 
The draft ruling states that a repair may include restoration to an asset’s former appearance or condition – without changing its character. 
“These issues will always be a matter of degree,” comments Heffron, “but the ATO clearly envisages quite a wide range of activities which might incidentally add to the value of the property falling into the repairs category. 
“This is obviously highly beneficial to funds that have borrowed to acquire real property.” 
Case studies from draft ruling: A SMSF borrows to buy a house with broken windows. Not surprisingly, the ATO would treat the replacement of the windows as a repair, not an improvement. Therefore, the new windows could be financed under a borrowing arrangement.
SMSF trustees renovate a rundown house immediately following its purchase. Under the draft ruling, the ATO would treat renovations that improve the efficiency of the asset and substantially increase its value as an improvement. This means that the renovations could not be financed under the loan arrangement. 
A SMSF renovates a property and adds a bathroom. Property investors, of course, commonly undertake such projects. The ATO would regard the addition of the bathroom as an improvement.
A kitchen is restored following a fire that damages the stove, benches and walls. Under the draft ruling, the ATO would regard the kitchen’s restoration as a repair. But if the kitchen is extended at the same time, the extension would be treated as an improvement. 
A SMSF adds a swimming pool or garage to a geared property. The ATO would view the changes as improvements, which could not be financed under a borrowing arrangement. 
Understand what improvements create a new asset 
 
Detail: A basic challenge for property investors is whether proposed improvements to a geared property are so extensive as to effectively create a new asset. 
Under superannuation law, a fund cannot even use its own cash, let alone borrowed money, to finance improvements to a geared asset that lead to the creation of a new asset. The fund would have to wait until the gearing expired before using its own money to pay for such improvements. 
Drafting ruling: “The ATO has previously taken the view that improving a property will necessarily trigger the replacement of one asset, the unimproved one, with a new asset,” says Heffron. 
“The ruling takes a far more liberal position,” she says, “and indicates that in the ATO’s view, not all improvements will necessarily result in a replacement asset.” 
The draft ruling gives the ATO’s opinion that an improvement that fundamentally changes the character of an asset amounts to the creation of a new asset. 
Case studies from draft ruling: A SMSF owns a geared house and land. The house is then demolished and replaced with three strata units. New assets would be created. 
A SMSF owns a geared house and land. The land is rezoned and the house converted into commercial premises. Again, a new asset would be created. 
A fire destroys a fund-owned, four-bedroom house. The fund uses the insurance payout to build a replacement four-bedroom house. The fundamental character of the property has not changed. The proceeds of an insurance payout could finance the replacement.
For more on self-managed super and property, download our e-book.
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What you need to know about borrowing via a SMSF and property repairs

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Without giving the results away, the auction prices on the Channel Ten renovation series The Renovators were pretty ordinary, because the houses had been seriously overcapitalised within a short period of time.
Flipping property in quick time is a complicated task that tests even the experts.
So spending 20% of the purchase costs on renovation was always going to be a hard ask on resale.
The rule of thumb is to keep the reno spend to less than 10% of the value of a home.
The prices paid by the producers of the Channel Ten series were not excessive, but they went awry in their allowances.
They took the purchase price and then the stamp duty costs into their calculations before adding the 20% renovation outlay.
There were also extra prizes thrown into the mix, making the auction results that little bit more disappointing.
The respected renovation blogger Alex Brooks from RenovationPlanning.com.au says it's easy to spend more on the renovation than the increase it will deliver to the property.
Indeed she suggests that if the renovation will put your house near the top end of local market prices, you’d be better off selling and upgrading rather than paying more in building costs than you will gain in prices.
However, if the house was undercapitalised, it could be perfect for renovation. Brooks suggests undercapitalised houses are worth about 10% less than the area's median house price.
Obviously if the house only needs or gets cosmetic improvements without major structural changes, you are less likely to overcapitalise.
But of course the whole point of the television series was to stretch it out for the full three-month airing timetable duration.
Cutting corners and keeping it cheap wouldn’t have been the drawcard.
Selling Houses Australia, on The LifeStyle Channel presented by Andrew Winter, typically has three days to transform a home - on a budget of only 1% of the property's market price.
While the ratings for The Renovators was well short of expectations, that hasn’t stopped agents experiencing a dramatic increase in buy, renovate and sell project enquiries.
But buyers’ agent Patrick Bright suggests many are blissfully unaware of the true costs involved in renovating property.
“Whilst they are great entertainment, the biggest downfall from programs like The Renovators and The Block is that they don’t reveal to viewers the real cost of labour to make these improvements as well as the total costs associated with buying and selling real estate like stamp duty, legals, marketing and selling agents costs,” he says.
“The concept of buying, renovating and selling property as soon as the paint is dry can be profitable if executed correctly, however for most people is almost a guaranteed way to make a loss,” says Bright.
“Most would-be renovators who try to copy the formula seen on TV hoping to make a quick profit will end up bitterly disappointed and lose a lot of money.”
Following three months of hard work, August, Peter, Luke, Melissa, Natalia and Michael's houses will have their auctions broadcast tonight.

The winner will be the contestant with the property that has increased the most in value. They will take home the combined profit of each of the six houses after auction, which somehow just doesn’t seem fair.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our e-book Lights, Camera, Auction!</a>
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