Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

&nbsp;

&nbsp;

&nbsp;

Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place

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>
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Ellen Walker

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

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As Covid-19 travel restrictions have eased, property sellers and real estate agents in Byron Bay have heaved a collective sigh of relief, according to the August Herron Todd White (HTW) residential report. 
The valuation firm presented an 'investor playbook' of real estate performance within each service area this month. 
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"Property sales have kicked upward over the last month in the Byron Shire as intrastate and interstate travel brought non-local buyers back into the fold. But in the blink of an eye, we are faced with border closures on the Murray River and hot spots in Sydney restraining the market once more," the valuation firm said. 
It is truly a fluid situation and one that will develop further as rates of Covid-19 infections wax and wane, the report noted. 
The COVID-19 issue is of particular relevance to the Byron Shire market as many of the transactions that occur are for investment purposes with many of those investors originating from Sydney, Melbourne and Brisbane with a smattering of buyers from overseas. 
The absence of these buyers from the market because of coronavirus has caused much angst to sellers. 
"In turn, some absentee investors have resorted to purchasing properties sight unseen in what must be an indication of their strong desire to invest in the Byron Bay area. Maybe it’s a bit of FOMO?" the valuation firm said. 
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There are some locally-based investors active in the area as well. 
There is very little new land being released in the Byron Shire but with a growing population there’s increasing pressure on housing affordability, particularly for first home buyers, and with a large portion of the population unable to afford a unit or house (see last month’s topic “lazy $700,000”) and a steady turnover of short- to-medium stay holiday makers utilising AirBnb style properties, there is consistent, if not strong, demand for rental accommodation.
Because of the high buy-in prices of property in the area, investors are looking to maximise returns by utilising the holiday market or by purchasing properties with multiple letting opportunities such as dual occupancy properties, the report noted. 
A three bedroom house in Mullumbimby with possibility for dual occupancy development has been sold for $857,000.
Set on a 854sqm block, the home at <a href="https://www.realestate.com.au/sold/property-house-nsw-mullumbimby-133587634" target="_blank">8 Myokum Street</a> (pictured below) is only two blocks from Mullumbimby town centre. 
It comprises three bedrooms, open plan lounge and dining, and huge backyard. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/9/14/mullumbimby.jpg" alt="">
Yields for investors in the area can appear to be relatively modest. For example, a one-bedroom unit in a new development on the northwest fringe of Byron Bay recently sold for $610,000 and was leased for 12 months at $550 per week, or $28,600 per annum, gross income.
That reflects a gross yield of 4.68 per cent. Costs such as rates, body corporate fees, management fees and incidentals will eat away at that before the buyer has to meet their mortgage payments.
A one bedroom loft apartment in Byron Bay has been listed for rent with a price guide of $570 per week.
The <a href="https://www.realestate.com.au/property-unit-nsw-byron+bay-430095174" target="_blank">39 Easy Street</a> top floor home (pictured below) comes with one bedroom with built-in, mordent bathroom, kitchen and private balcony. 
It is situated within close proximity to cafes, restaurants and the beach. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/9/14/byron%20bay.jpg" alt="">
The relatively modest return is a reflection of the popularity of the area, the report noted. 
"In the more central and beachside locations of Byron Bay, yields are firmer still. It’s a good thing we still have negative gearing, right?
"Many of those absentee buyers are not, however, investing for the rental returns alone. The properties they buy are seen by many investors as a future retirement destination or as a holiday home, so rental return is but one facet of some investor’s decision process," the valuation firm said. 
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j.ballantyne1990-6AQqhLzZaK

Yields in beachside Byron Bay remain firm: HTW

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The master developers of Springfield City are seeking a joint venture partnership to deliver a flagship project within the Brookwater Golf Course and residential estate.
The opportunity is available via expressions of interest and is being managed by Ray White Special Projects Queensland Directors Mark Creevey and Tony Williams.
“With a substantial 3.7248ha land area, the elevated site has 430m of direct frontage to the ninth and 18th holes of one of Queensland’s best championship golf courses.
“It offers a range of development possibilities including townhouses, terraces, apartments, hotel or resort - all subject to council approval," Mr Creevey said.
Expressions of interest close on October 1.
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Springfield City Group seeking development partner for Brookwater site

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A Wentworth Falls home in New South Wales’ Blue Mountains has been listed for sale by mortgagee.
Situated at <a href="https://www.propertyobserver.com.au/realestate.com.au/property-house-nsw-wentworth+falls-134400130">70 Bate Street</a>, the property was advertised as mortgagee on realestate.com with a price tag of $735,000.
The home overlooks the Blue Mountains National Park and offers panoramic views into Jamieson Valley.
<img src="https://www.urban.com.au/images/Screen%20Shot%202020-09-17%20at%2011.07.37%20am.png" alt="">
Its offerings include four bedrooms and two bathrooms, high ceilings and slow combustion wood fire.
Set on an expansive 2,370sqm block of land, the home comes with a versatile studio with kitchenette and separate laundry.
According to CoreLogic data, the median house price for Wentworth Falls is $735,000
The home last traded for $335,000 in 2006.
Richardson &amp; Wrench Wentworth Falls is marketing the listing. 
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Blue Mountains home in Wentworth Falls listed for mortgagee sale

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Sydney saw a preliminary clearance rate at 72.2 per cent after 435 reported results were received.
Of these, 67 properties withdrawn from auction and there are further results yet to be be advised from the 610 scheduled auctions on Saturday in Sydney.
One of the big sales saw a non-harbourfront Vaucluse semi (above and below) sell for $5.5 million.
Domain reported the two-bedroom home at 10 Coolong Road, on the market for the first time in 45 years, was knocked down to near neighbour, estate agent Alexander Phillips.
There were nine registered parties who took the bidding at the Sotheby's auction to $2 million over reserve.
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CoreLogic figures had a 72.4 per cent clearance from the 562 reported results of its 679 scheduled auction tally.
It was up on the previous week's preliminary 70.4 per cent rate which was revised down to 65.9 per cent after late results.
Canberra saw a preliminary clearance rate of 89 per cent after 65 reported results of its 74 scheduled sales.
It was 64 per cent in Adelaide and 61.9 per cent in Brisbane.
There were only 13 auctions scheduled across Victoria on Saturday, with in-person auctions resuming in regional Victoria.
An older-style home in Edithvale sold under the virtual hammer with 84 Rae Avenue fetching $963,500.
It sold to a developer, Domain reported.
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Sydney auction success rates sits in the 70s

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The Melbourne-based Deague family is suing over its recent $3 million investment in a $150 million Brisbane apartment project.
Deague Capital has sued the Australian arm of Alvarium and its local managing director Bernard Treacy.
The Brisbane Times reported a Supreme Court of Victoria writ was filed last month.
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The Deague's investment arm alleges Alvarium informed it of a development opportunity in the Ambrose apartment complex in Milton (above and below) shortly before the envisaged $48 million to $50 construction contract was set to be signed in February this year.
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Designed by architects, Cottee Parker, and Glam Studios, the 19-storey development will have 181 apartments.
The Deague investment was $3 million via a cash loan and the purchase of shares.
The Deagues allege they were misled into investing in the project which had a much larger signed $62 million construction cost signed off in July.
Tracey and Alvarium are yet to file their defences in the proceedings, The Brisbane Times advised.
The Brisbane Courier Mail reported in April it was a $150 million project.
It was in July last year when the 19 McDougall Street development got its current approvals.
The pricing was advised as from $400,000 for one-bedders and up to $2.4 million for three-bedroom apartments,
The developer purchased the 2000 square metre site for $12.75 million in 2017.
There has been an initial proposal by Kokoda Property, when it was known as the Obsidian site, in early 2017 with an $87 million estimated value.
Construction had been scheduled on the initial proposal to start in mid-2018 and completed in 2020.
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Deague family sues over Ambrose, Milton apartment investment 

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There are 968 capital city auctions being tracked by CoreLogic this week, increasing on the previous week when 816 auctions were held.
Over the same week last year, 1,983 homes were taken to auction across the combined capitals.
There are 726 Sydney homes scheduled for auction this week, increasing on both last week when 600 Sydney homes were taken to auction, and one year ago, when 646 auctions were held across the city. 
Melbourne auction volumes remain at levels usually only seen over the seasonally quiet early January period with just 14 auctions on the radar this week, compared to 13 last week. Over the same week last year 1,020 auctions were held across the city.
The REIV is expecting about 20 auctions this week, only slightly more than CoreLogic's figures.
Across the smaller auction markets, Canberra is set to hold the most auctions this week (74), followed closely by Adelaide (73). Brisbane is expecting to host 66 auctions, while Perth has 13 auctions on the radar. Once again, Tasmania is set to see just 2 properties up for auction.
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Australia’s largest property market is shaking off the cold weather as spring selling season continues to bring in premium stock for the leading agency.
In Sydney’s inner city suburbs, Ray White Surry Hills | Alexandria | Glebe | Erskineville Associate Director Matthew Carvalho said first home buyers have been lining up to inspect 5/191-195 Bridge Rd, Glebe (pictured in title).
The auction will be called by Ray White NSW CEO Jason Andrew. Mr Carvahlo noted that feedback has been at the $1 million to $1.1 million mark.
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The successful buyers may need to cool off at Bondi Beach after what is expected to be a hot auction 5/312 Bondi Rd.
The two bedroom apartment is being sold through Ray White Woollahra | Paddington Director of Sales Clay Brodie who said he has overseen roughly 100 inspections on the home.
“Buyers are interested in the beachside location but have also been really impressed by the scale and quality of the renovations the owners have done,” Mr Brodie said.
The Bondi Road apartment has a price guide of $1,100,000 and the auction will also be conducted by NSW CEO Jason Andrew.
Ray White Petersham Director Nicholas Arena has also had a huge amount of interest on 38a Constitution Rd, Dulwich Hill (pictured above) after more than 120 groups inspected the four bedroom home. Mr Arena said he is confident of a great result this weekend.
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Spring selling season is starting to show results in Sydney

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Residential property prices fell -1.8 per cent in the June quarter 2020, according to the latest figures released today by the ABS.
Melbourne (-2.3 per cent) and Sydney (-2.2 per cent), were the nation's worst performers over the quarter, but all capitals apart from Canberra saw declines.
Over the 12 months however to the June quarter 2020, property prices across the country jumped 6.2 per cent.
Only Perth and Darwin didn't record a rise.
According to the ABS Melbourne led the way with 8.8 per cent gains, followed by Sydney's 8.1 per cent rise.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/9/17/Price%20indexes.png" target="_blank">click here</a>.
<img src="https://www.urban.com.au/images/2020/9/17/Price%20indexes.png" alt="">
The ABS advised that the total value of Australia’s 10.5 million residential dwellings fell by $98.2 billion to $7,138.2 billion in the June quarter 2020. 
The mean price of residential dwellings in Australia in the June quarter 2020 was $678,500. 
Sydney's decline over the June quarter was driven by houses, which saw declines of -2.6 per cent, back from its March quarter gains of 2.6 per cent.
The ABS say the falls in Sydney's housing market were most evident in the middle to upper market segments, which they calculate at $940,000 and above.
Houses prices are 9.2 per cent higher over the last 12 months.
Units fell back -1.4 per cent, after a 0.8 per cent gain in the March quarter. Over the 12 months unit values are up 6.1 per cent.
The larger declines were in the middle to upper market bracket, $670,000 and above.
It was a similar story in Melbourne with houses the hardest hit in the June quarter. Prices were down -2.8 per cent following a 2.3 per cent March quarter gain.
The ABS say price falls were most evident in the middle to upper segment of the market, which they calculate is $8100,000 and above.
Melbourne's house values are up 8.9 per cent over the last 12 months, just shy of Sydney.
Unit prices over the June quarter dropped one per cent, from a 1.5 per cent gain in the March quarter.
Price falls were most evident in the upper segment of the market, which the ABS say is $670,000 and above.
 
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jrobinson-rf4aSBido9

Melbourne and Sydney lead 1.8 per cent June quarter decline: ABS

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Sales results from 195 projects representing a sample of 23% of active apartments surveyed across Perth, Brisbane, The Gold Coast, Sydney and Melbourne study areas. 
2,300 projects monitored across all stages of potential new supply.
Data in the second quarter of 2020 (April to June) represents the first full quarter of COVID-19 trading in Australia following measures introduced in March to contain the virus.
Impact on off the plan sales can be seen with the clearance of available stock dropping to 10% as a national average. Whilst this represents a 5 percentage point drop on the previous quarter (which registered 15%), the speed of sale for the quarter remains comparable to the average over the last 18 months (10%).
Prior to COVID19 the apartment market was showing signs of momentum on the back of wider housing market growth. The first signs of impact from COVID-19 are visible in the second quarter, although demand levels have remained at similar levels seen this time last year in Q2 2019 data. 
New Apartment Rents
Data from the Urbis Rental Tracker shows well located new apartments continue to attract a premium over the wider market rent but have also been impacted in the short term by restricted people movement and economic challenges.
New product rents peaked in February in most markets nationally.  Rapid drops in rent were seen in March (6%) and April (3%) as inner-city markets were hit by a halt to in-migration and a spike in listings (average listing volume is 14% up on this time last year).  However, this quickly stabilised in June and July indicating the rental market has been able to adjust to supply and demand conditions rapidly. 
New Apartment Supply
New Project Launches have continued to decline, enabling existing stock to be absorbed. Only 23 new projects launched nationally in Quarter 2 2020 – compared to 60 projects a year ago in Quarter 2 2019.
Data for the first half of 2020 follows a continued downward trend. If the current rate of launches were to continue for the remainder of 2020 this would bring the annual total to around half the volume of projects launched in 2019, which was already half the average of the previous four years.
With the volume launching, in marketing and under construction all diminishing, market attention switches to absorbing newly completed stock. This offers buyers the advantage of viewing the finished product and suits those residents seeking a move in the short term. Owner occupiers were the most active purchaser group in each state surveyed in the quarter.
Across all projects there is an overall reduction in volume selling of 8% compared to this time last year with further reductions in volume to come given the declining launch rate.
Change in volume of apartments selling nationally by project status
While the apartment market adjusts to changing conditions, any associated reduction in housing delivery impacts upon economic activity in the short term and housing supply and affordability in the longer term.  Therefore, we expect stimulus and innovation to be in focus in the year ahead as industry and government seek to sustain housing production throughout the cycle.
This presents opportunities to stimulate build to rent housing supply and more diverse tenure options that help meet the absorption of current stock and affordability needs of customers.
The Melbourne market
Like the national results, speed of sale dropped in Melbourne from 11% of available stock clearing in Q1 2020 to 9% in Q2 2020 as prices held firm.
The apparent resilience of the market, much like the people of Melbourne will continue to be tested throughout the lockdown periods of 2020.
The supply story in Melbourne was mixed for the quarter. The volume of new project sales launches continued to trend down, with only 6 new projects launched in the quarter, compared to a quarterly average of 19 throughout 2019. However, approvals increased in the quarter to levels last seen in Q4 2018.
This bucking of the trend on approvals reflects the proactive response from government in fast-tracking shovel ready projects and the confidence of the development industry in Melbourne’s future.  This is encouraging for supporting future supply as the market recovers ground from the pause on demand placed by border and movement restrictions.
We expect further engagement will benefit housing delivery in this part of the cycle to drive economic activity in the short-term and speed up Melbourne’s response to future changes in demand.
National Build to Rent Insights
There has been an inverse between the build to sell apartment pipeline and that for Build to Rent, with build to sell supply declining and build to rent gaining momentum. 
We have seen decreasing rates of sale of available stock (exacerbated by COVID 19), leading to the increasing supply in apartments. 
Developers are shifting to Build to Rent, as an option to diversify their portfolio and reduce financial risk, while also moving sights quicker while there is minimal traction in the build to sell market.
APARTMENT SALES DOWN IN Q2 BUT SHOWING SIGNS OF RECOVERY New Apartment SalesSales results from 195 projects representing a sample of 23% of active apartments surveyed across Perth, Brisbane, The Gold Coast, Sydney and Melbourne study areas. 2,300 projects monitored across all stages of potential new supply.Data in the second quarter of 2020 (April to June) represents the first full quarter of COVID-19 trading in Australia following measures introduced in March to contain the virus.Impact on off the plan sales can be seen with the clearance of available stock dropping to 10% as a national average. Whilst this represents a 5 percentage point drop on the previous quarter (which registered 15%), the speed of sale for the quarter remains comparable to the average over the last 18 months (10%).Prior to COVID19 the apartment market was showing signs of momentum on the back of wider housing market growth. The first signs of impact from COVID-19 are visible in the second quarter, although demand levels have remained at similar levels seen this time last year in Q2 2019 data. New Apartment RentsData from the Urbis Rental Tracker shows well located new apartments continue to attract a premium over the wider market rent but have also been impacted in the short term by restricted people movement and economic challenges.New product rents peaked in February in most markets nationally.  Rapid drops in rent were seen in March (6%) and April (3%) as inner-city markets were hit by a halt to in-migration and a spike in listings (average listing volume is 14% up on this time last year).  However, this quickly stabilised in June and July indicating the rental market has been able to adjust to supply and demand conditions rapidly. New Apartment SupplyNew Project Launches have continued to decline, enabling existing stock to be absorbed. Only 23 new projects launched nationally in Quarter 2 2020 – compared to 60 projects a year ago in Quarter 2 2019.Data for the first half of 2020 follows a continued downward trend. If the current rate of launches were to continue for the remainder of 2020 this would bring the annual total to around half the volume of projects launched in 2019, which was already half the average of the previous four years.With the volume launching, in marketing and under construction all diminishing, market attention switches to absorbing newly completed stock. This offers buyers the advantage of viewing the finished product and suits those residents seeking a move in the short term. Owner occupiers were the most active purchaser group in each state surveyed in the quarter.Across all projects there is an overall reduction in volume selling of 8% compared to this time last year with further reductions in volume to come given the declining launch rate.Change in volume of apartments selling nationally by project statusWhile the apartment market adjusts to changing conditions, any associated reduction in housing delivery impacts upon economic activity in the short term and housing supply and affordability in the longer term.  Therefore, we expect stimulus and innovation to be in focus in the year ahead as industry and government seek to sustain housing production throughout the cycle.This presents opportunities to stimulate build to rent housing supply and more diverse tenure options that help meet the absorption of current stock and affordability needs of customers.The Melbourne marketLike the national results, speed of sale dropped in Melbourne from 11% of available stock clearing in Q1 2020 to 9% in Q2 2020 as prices held firm.The apparent resilience of the market, much like the people of Melbourne will continue to be tested throughout the lockdown periods of 2020.The supply story in Melbourne was mixed for the quarter. The volume of new project sales launches continued to trend down, with only 6 new projects launched in the quarter, compared to a quarterly average of 19 throughout 2019. However, approvals increased in the quarter to levels last seen in Q4 2018.This bucking of the trend on approvals reflects the proactive response from government in fast-tracking shovel ready projects and the confidence of the development industry in Melbourne’s future.  This is encouraging for supporting future supply as the market recovers ground from the pause on demand placed by border and movement restrictions.We expect further engagement will benefit housing delivery in this part of the cycle to drive economic activity in the short-term and speed up Melbourne’s response to future changes in demand. National Build to Rent Insights There has been an inverse between the build to sell apartment pipeline and that for Build to Rent, with build to sell supply declining and build to rent gaining momentum. We have seen decreasing rates of sale of available stock (exacerbated by COVID 19), leading to the increasing supply in apartments. Developers are shifting to Build to Rent, as an option to diversify their portfolio and reduce financial risk, while also moving sights quicker while there is minimal traction in the build to sell market. 
 
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Apartment sales showing signs of recovery: URBIS

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EXPERT OBSERVER
The inner-city Brisbane unit market, already hit hard by unit oversupply, continues to remain a huge danger zone for investors since the advent of COVID-19.
Not only is equity risk the major issue for investors, increased vacancy rates and risk to cash flow are also heavily impacting the market.
According to RiskWise Property Research CEO Doron Peleg, things have not improved in the market since the pandemic hit and, if anything, have become worse.
“RiskWise reported in July 2018 that there were 14,813 units in the pipeline in inner-city Brisbane for the next 24 months, being an addition of 20.1 per cent of the current stock,” Mr Peleg said.
“Two years later and there is still a very high level of supply with 5,431 units in the pipeline, making up an addition of 5.9 per cent of the current stock.”
Pete Wargent, co-founder of Buyers Buyers, a national marketplace now offering affordable buyer’s agent services to all Australians, said that rental demand had been weak for CBD apartments for some time.
“The trend has been exacerbated by the pandemic, and CBD rents have been very soft” Mr Wargent added.
Analysis by RiskWise in 2018 showed unit over-supply in inner-city Brisbane had created weakness in the market leading to an elevated level of risk for investors and, therefore, lower valuations and rising defaults on settlements.
“The issue of oversupply is not a new problem and has been there for a few years and the continuous weakness of the unit market in inner-city Brisbane should raise red flags for developers and lenders,” Mr Peleg said.
“Defaults have been rising and will continue to do so.
“One of the key factors has been developers’ lack of foresight regarding unit oversupply as well as the impact of lending restrictions introduced from 2014. It seems there has been no methodological and structured risk-management approach including identification, assessment, and mitigating action plans to address those risks.
“This takes us back to the feasibility stage which includes the assessment of the projected fair market value and the likelihood of defaults and their potential consequences. Developers and lenders must find the right balance between taking risk and making profit.
“COVID-19 has only served to increase the risk. Currently, there are many high-rise properties being offered to a smaller number of investors. This is because there are less investors in the market due to the pandemic.
“The point is that if developers and lenders had put more proper risk-management practices in place, this could all have been avoided.”
Mr Peleg said it must also be remembered the value of off-the-plan property could decrease between the original contract date and settlement resulting in capital loss, as the equity in the home could be reduced, and this was well known in inner-city Brisbane.
He also stressed that investors buying rental apartments unsuitable for families were taking an enormous gamble, with both equity and cash flow risk expected to materially increase. Serviceability is also a major factor for investors who rely on a stable rental income to cover the costs associated with property and particularly the mortgage.
Mr Wargent of Buyers Buyers said houses for investors often carried significantly lower risk for those with the right budget because renters, especially in the more established suburbs, included families and, in many cases, those with permanent full-time jobs. They were also more likely to deliver good medium and long-term capital growth.
Additionally, as rental properties are not fully substitute products with owner-occupied dwellings, there is inherent risk associated with them as they do not appeal to families looking for three bedrooms, with outdoor space, close to schools, transport, and employment hubs.
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Unit oversupply remains an issue in Brisbane CBD: RiskWise's Doron Peleg

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Investor activity in Warrnambool is currently strong and is forecast to stay strong into the long term, according to the August Herron Todd White (HTW) residential report. 
The valuation firm took a look at investor activity across the nation. 
"Having been crowned Australia’s most liveable region by Ipsos’s annual Life in Metropolitan and Regional Australia report and offering affordable entry into the investment space, especially when compared to other major regional centres, Warrnambool has great prospects moving forward," the valuation firm said. 
Warrnambool provides a bevy of potential investment opportunities, the report suggests. 
Opportunities range from large scale land subdivisions, city infill, renovate and flip, short stay accommodation as well as the relatively affordable new land and house depreciation path. 
"While larger scale development and investment remains dominated by out of town money, the overall investment landscape is still in favour of the local," the valuation firm said. 
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Most recently, Warrnambool has seen a strong investment drive for the acquisition of larger allotments vacant or featuring older, low quality dwellings, the report suggests. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/9/7/warrnambool%201.jpg" alt="">
A prime example of this is the centrally located <a href="https://www.realestate.com.au/sold/property-house-vic-warrnambool-132326478" target="_blank">53E Lava Street, Warrnambool</a> (pictured above).
It was sold for $442,500 on 13 December 2019. 
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Set on approximately 888 square metres and comprising two titles, this property also featured an older, conite clad, two-bedroom dwelling providing a very basic standard of accommodation.
Also representative of this demand is 212 Merri Street, Warrnambool ($400,000 on 18 May 2020). 
This property is situated opposite the Warrnambool train station and features a two-bedroom dwelling of average condition set on an allotment of approximately 1,541 square metres.
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