For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

Joel Robinson

The inflation result the property market was waiting for

Commercial property group FiveX is doubling down on its move into the residential space.

The group, founded by Joshua and Marko Berger more than five decades ago, has followed up its plans for a 39-storey tower on North Sydney's Alfred Street with a proposed 61-storey tower in Chatswood.

The new tower at <a href="https://www.apartments.com.au/new-apartments/815-pacific-highway-chatswood-nsw-2067">815 Pacific Highway</a>, which would be one of the tallest proposed in Chatswood in recent years, will comprise 490 apartments, 76 of which will be dedicated affordable housing and managed by Evolve Housing for a minimum of 15 years.

The project will replace the long-standing Panorama Building, originally known as the BMA Tower, a 14-storey office building completed in 1972 and designed by Hungarian-born architect Hugo Stossel. At the time of its completion, the building was the tallest structure in Chatswood and became a local landmark due to its distinctive curved form and external glass lift.

<img alt="FiveX" data-entity-type="file" data-entity-uuid="956bd299-3864-47a0-8ea6-162b5524c5d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.02.03%E2%80%AFPM.png?VersionId=EWx7teUr7RcYrI9mgRytwppwt5AdUDtb" />

fjcstudio is behind the designs. Its Architectural Design Report argues the ageing commercial building no longer reflects Chatswood's role as one of Sydney's key strategic centres and that the site is ideally positioned to support significantly higher residential density.

"The site is located at the heart of Chatswood, within the TOD accelerated rezoning area that supports higher density development around the new Metro station," the report states.

"The site's role within a walkable 400-metre radius catchment is where housing, employment, retail and community uses are encouraged to cluster in support of transit-oriented living."

<img alt="fjc" data-entity-type="file" data-entity-uuid="8d198f5e-cc71-4175-9357-be6ec7207473" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.18.27%E2%80%AFPM.png?VersionId=5WUFc3IYBPvhQMBUYLCsjJhzdcVeYodE" />

The proposal has undergone two rounds of review by the NSW State Design Review Panel, with the design evolving through an extensive assessment process focused on design excellence, public realm outcomes, residential amenity and the integration of affordable housing.

fjcstudio says the residential component provides a diverse mix of apartment typologies, supporting a broad demographic and contributing to housing supply in a highly accessible location close to major transport, employment and retail infrastructure.

The application follows FiveX's plans for a 39-storey tower at <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">275 Alfred Street</a>, which it <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">submitted through the same NSW Government pathway</a> in December. That's for 184 apartments.

Recent activity in Chatswood includes Hyecorp launching its Archer Street project, Celine, and Develotek securing approval for a 34-storey tower.

First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans

Bridgewell Capital and SLD Development seem to be bullish on the Killara apartment market, filing plans for a second new development next to the Killara Golf Club.

The new plans are for 79 apartments across an amalgamated 4,989 sqm site on Buckingham Road.&nbsp;The project has been designed by BKA Architecture and is being assessed under the NSW Government's Low and Mid-Rise Housing and Infill Affordable Housing reforms. It is just 300 metres from&nbsp;Killara train station.

The majority of the apartments are three-bedrooms (46), with 23 two-bedroom apartments, seven one-beds, and three four-bedroom apartments. 17 of the apartments&nbsp;are proposed as affordable housing, representing 15 per cent of the project's gross floor area, allowing the development to access additional floor space and height incentives available under the NSW Housing SEPP.

There will be 131 resident and visitor car spaces, and more than&nbsp;1,450 sqm of communal open space. Landscaped areas would account for approximately 45 per cent of the site.

<img alt="Killara" data-entity-type="file" data-entity-uuid="75ef5ef7-a53b-4932-a8f1-38f63169eec9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%2011.04.00%E2%80%AFAM.png?VersionId=d_lG1A1StDaMQilljy25Fr8SF1BnAmKE" />

The site currently contains three detached dwellings and occupies a prominent position on the eastern side of Buckingham Road, with frontage to an area that has already begun transitioning towards higher-density housing. Existing apartment buildings of up to six storeys surround the site, while the Killara Golf Club forms its southern boundary.

The application has been lodged as a State Significant Development due to the affordable housing component and the scale of the project.

According to the design report, the proposal has been shaped by the area's evolving planning framework, which is encouraging greater housing density around transport infrastructure.

"The site sits along a growth area anticipated to undergo transformation in line with broader trends across New South Wales, driven by the implementation of the Low and Mid-Rise and Transport-Oriented Development State Housing Policies," the report states.

"Being within 800 metres walking distance to Killara Train Station, the project seeks to provide high-quality apartments designed for various family sizes, located in a vibrant landscaped setting."

The Upper North Shore suburb has become one of the most closely watched testing grounds for the NSW Government's housing reforms. A number of developers have moved quickly to consolidate sites around railway stations across suburbs including Killara, Lindfield, Gordon and Roseville, where the new planning settings are creating opportunities for apartment developments that would previously have been difficult to achieve.

The likes of Aqualand, Hyecorp, Holdmark and Vermont Property Group have projects in the region.

Bridgewell has several developments in the pipeline. Last September they submitted plans for <a href="https://www.apartments.com.au/news/nsw/bridgewell-capital-seeks-55-apartment-project-in-killara">55 new apartments</a> at&nbsp;23-25 Lorne Avenue in Killara, just the other side of Regimental Park from their new project. In May they filed for <a href="https://www.apartments.com.au/news/nsw/first-look-bridgewell-plots-120-apartments-and-childcare-centre-in-maroubra-town-centre">120 apartments in Maroubra</a>.

&nbsp;

&nbsp;

&nbsp;

First look: Bridgewell, SLD Development double down on Killara Golf Club

Sydney developer&nbsp;<a href="https://www.apartments.com.au/developers/central-element">Central Element</a>&nbsp;is doubling down in Drummoyne, lodging plans for a boutique apartment development on St Georges Crescent, only one-kilometre down the road from its first Drummoyne development, Bianca.

The new project at 15A-21 St Georges Crescent,&nbsp;a&nbsp;1,701sqm north-facing site overlooking Iron Cove, will have 45 apartmnts across 10 levels. Eight of the units will be dedicated to affordable housing.

The site sits within walking distance of Drummoyne Village, Birkenhead Point, ferry services and the Bay Run, and offers harbour views towards the Sydney Harbour Bridge and CBD skyline.

Designed by MHN Design Union, the development will deliver a mix of one, two and three-bedroom apartments, alongside resident amenity including a gym, landscaped communal open space and three levels of basement parking.

The project has been lodged under the NSW Government's Low and Mid-Rise Housing reforms, with Drummoyne Village identified as a town centre capable of accommodating additional housing supply.

Central Element acquired the site earlier this year as part of its continued expansion across Sydney's eastern suburbs, lower north shore and inner west.

The developer's current pipeline includes luxury apartment projects Pearl Bondi and a separate development on Lamrock Avenue in Bondi, a residential project in Barry Street, Neutral Bay, and a mixed-use seniors living community in Greenwich.

Central Element Managing Director Nathan Chivas said the project would address a shortage of new owner-occupier housing opportunities in Drummoyne.

"While we're seeing a significant shift across Canada Bay as major infrastructure investment, population growth and planning reform drive a new chapter for the region, in suburbs like Drummoyne there remains a genuine shortage of new boutique luxury housing opportunities for owner occupiers," Chivas said.

"Sites of this nature are increasingly difficult to secure, particularly those that combine a north-facing aspect with direct water outlook. Our St Georges Crescent project responds directly to the market demand, offering a level of exclusivity, outlook and lifestyle in the highly sought after suburb."

The development application has been lodged with the City of Canada Bay Council, with the project expected to launch to market in early 2027.

&nbsp;

Central Element seeks second Drummoyne apartment development

The NSW Government has unveiled plans that could deliver around 1,300 new homes across Nowra and Kiama, continuing its push to unlock housing in well-located regional centres along the South Coast.

The proposals, now on public exhibition, would pave the way for around 830 homes in Nowra and a further 450 homes in Kiama, while also introducing affordable housing requirements and increased building heights in key locations.

The larger of the two proposals is centred on Nowra, where the NSW Government is seeking to rezone land within the Mandalay and Riverfront precincts.

The Mandalay sub-precinct, located close to Shoalhaven Memorial Hospital, Nowra Library and the city's aquatic centre, could accommodate around 530 new homes. Around 30 per cent of housing delivered on Homes NSW-owned land would be dedicated to social and affordable housing, equating to roughly 100 homes. Building heights would increase from the current two-storey limit to between three and six storeys.

A separate rezoning proposal for the Nowra Riverfront Precinct would unlock a further 377 homes while creating stronger connections between the Shoalhaven River and the CBD. The plans include building heights ranging from five to 12 storeys, floor space ratios of up to 2:1 and a requirement for two per cent affordable housing.

Together, the two proposals would deliver more than 900 homes across the broader Nowra area, reinforcing the city's role as one of regional NSW's key growth centres.

The housing push builds on previous infrastructure commitments in the Shoalhaven, including government funding aimed at supporting thousands of future homes in West Nowra through upgrades to water and wastewater infrastructure.

Further north, the NSW Government is also progressing plans for the former Kiama Depot site, a two-hectare parcel near Kiama's town centre.

The rezoning proposal would transform the former industrial site into a residential community capable of delivering up to 450 homes. Buildings would range between six and eight storeys, with at least 10 per cent of homes allocated as affordable housing. The proposal also includes approximately 600 parking spaces and improved walking and cycling connections.

Planning Minister Paul Scully said the proposals are designed to increase housing supply in locations close to jobs, transport and services.

"For too long, families have struggled to find somewhere to live, and activating underutilised sites allows us to deliver the new homes these families need," Scully said.

"The Minns Labor Government is getting on with the job of unlocking well-located sites close to transport, jobs, and town centres and building the homes our communities need.

"These rezonings are about removing barriers to housing delivery and making sure land is put to better use so more people can find a place to call home within the communities they choose."

The latest rezonings form part of the Minns Government's broader strategy to accelerate housing delivery across NSW, particularly in established centres where existing infrastructure can support additional population growth.

Community consultation on the proposals is now underway, with feedback set to inform the final planning controls before the rezonings are determined.

Around 1,300 new homes earmarked for Nowra and Kiama as NSW Government pushes housing supply

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>

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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?

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Auswin TWT has emerged as the $96 million buyer of the Surry Hills Shopping Village.
Located at the corner of Cleveland and Baptist Street, Redfer, the sale reflect a yield of 4.48%.
The local, but Chinese-backed developer Auswin TWT are also converting Tabcorp’s long-standing Sydney headquarters in Ultimo into a $78 million Woods Bagot-designed apartment and retail complex.
The Surry Hills neighbourhood shopping mall is anchored by Coles. The 1.519 hectare site has mixed use zoning and has redevelopment potential for 300 apartments with a ground floor shopping complex.
Property Observer reported it had been sold for around $100 million late last month.
The vendor bought it for $6.3 million 30 years ago when it was a mall on the old Wunderlich factory site.
It was listed through Scott Timbrell and Jeff Moxham of <a href="https://www.realcommercial.com.au/property-land+development-nsw-surry+hills-501482783" target="_blank">Ray White Commercial</a> with a current gross passing income from a number of tenancies of $4.3 million a year.
It was 1992 when the shop owners at Redfern Mall voted to change the name to Surry Hills Shopping Village.
Although the site is technically in Redfern, shop owners believed they were missing out on business because of geographical confusion.
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jchancellor-FAypfDUnLy

Auswin TWT spend $96 million in Surry Hills, Sydney

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Sydney is still leading national quarterly growth with a further 3.18% rise in the March quarter, with its median house at $929,000.
The trend data released by property analyst Eliza Owen at Onthehouse.com.au highlights the divergence in the growth between Sydney houses and units, with units up 2.21% to $620,000.
It is also obvious in the growth in value of Melbourne houses increased, while units have been trending down to almost 0%, <a href="https://blog.residex.com.au/2015/05/06/may-property-market-update-3/?utm_source=membersNewsletter&amp;utm_medium=email&amp;utm_campaign=Cid=ResiMayNews15" target="_blank">the Residex data showed</a>. 
This month has seen a "drastic change" in Melbourne house growth, which shot up 2.27% in March to $672,500 median, bringing the annual growth rate to 8.68%.
Melbourne units declined 0.08% in value last quarter to $470,000.
<img src="/images/2015/05/07/Graph-1_Sydney-and-Melbourne-trends.jpg" alt="">
Eliza Owen noted it was understandable that investors have been tempted into the high returns of the Sydney property market.
"However, I would say that continued investment in units is not favourable," she said.
"Historically, houses have outperformed units, and have suffered less in periods of correction.
"Well built houses on large blocks of land will retain value because they come with land and present all sorts of potential for development, extensions and spacious living." 
She also commend on the "unusual volatility" in this boom.
"Property is a long term investment that has historically trended upwards, but the increase in the range of returns in the last 20 years suggests they are becoming less safe," said Owen.
"For example, in the period 1990 to 1995, the Sydney market saw losses of 1% per annum and highs of 10% per annum.
"The range of returns in this period is 11 percentage points. Between 1995 and 2000, this range widened to 15 percentage points, and between 2000 and 2005 it widened further to 29 percentage points.
"Over the past five years, the range of returns has remained at 23 percentage points with growth ranging between minus 3% and 20%.
"These sustained, higher ranges point to larger volatility in housing returns.
"Furthermore, household debt is at record highs, and growth in the New South Wales and Victorian economies are currently heavily reliant on continued construction of infrastructure and dwellings.
"Such growth is not sustainable, and should be kept in mind as we cautiously move forward over the next few months."
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Melbourne's "drastic" house price jump, but Sydney leads nations still: Onthehouse/Residex

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While the media has been indulging its obsession with Sydney real estate, other parts of New South Wales have been delivering value to property owners but largely going ignored.
The regions generally are overlooked by analysts, journalists and investors - and that means the best opportunities to buy affordably, while getting superior rental returns and great prospects for future capital gains, are being missed.
Economists and journalists think Sydney’s over the top with 14-15% annual growth in median house prices, but the City of Gosford on the Central Coast is out-performing its big brother.
Most of the Gosford suburbs have delivered median house price growth between 15% and 20% in the past 12 months and some of the apartment markets are up by 20%-plus.
Kariong’s median house price has risen 19% and so has Wyoming’s. North Gosford is up 17%, Narara 18% and East Gosford 17%.
Terrigal and Wamberal have risen 15% and Umina Beach is up 16%.
I hesitate to place too much emphasis on median price data for apartments markets, because they are highly susceptible to aberrations. The marketing of an up-market new project can create an astronomical rise, which is deceptive - it doesn’t mean values are rising to that degree. Ettalong Beach in the City of Gosford provides a current example, with its median price up 83% in the past 12 months.
A little less crazy, but still major, is the 28% annual rise in the median unit price for Avoca Beach and the 25% increase for Umina Beach. The suburb of Gosford has recorded a 16% rise in its median unit price.
All of this has come on the back of significant rises in sales activity which Hotspotting has been tracking for the past 2-3 years. A dozen suburbs in the City of Gosford still have rising trajectories in terms of sales volumes, so the price growth isn’t over, but the best time to buy there has well and truly passed.
There are many other upwardly-mobile regional markets in the state. The City of Wyong is another big improver – I count eight suburbs with rising markets and another 10 with consistent sales levels.
The City of Newcastle and neighbouring municipalities like Lake Macquarie and Port Stephens are all going well. Port Stephens is showing signs of life after a decade of poor performance.
The Hunter Valley, which has been weighed down by over-supply for the past 2-3 years, looks to be recovering. The municipality of Maitland in particular is starting to produce growth markets and so too is Cessnock.
Port Macquarie, another coastal market which has shown little growth over 10 years, is now pumping. It would rank in a national top 10 for consistently strong sales levels over the past couple of years – dwelling sales in the past seven consecutive quarters have been 358, 378, 388, 369, 335, 360 and 390. It’s amazing what some serious spending on infrastructure can do to a property market.
The Blue Mountains has plenty of growth suburbs and south of Sydney there’s momentum in a number of municipalities, including Wollongong, Shellharbour, Kiama and Shoalhaven.
Further afield in the state, Dubbo continues to be one of the strongest regional economies and property markets in the nation, and there is plenty of life also in Goulburn, Orange, Tamworth, Wagga Wagga, Albury and Coffs Harbour.
In the far north at the Queensland border, the Tweed area is going well.
There is no shortage of choices for Sydney-centric investors unhappy with the competition and the prices in the big city. You can buy well and achieve stellar growth by shaking loose from that Sydney obsession and broadening your horizons, without having to travel too far.
TERRY RYDER is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
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No need for investors to be Sydney-centric: Terry Ryder

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GUEST OBSERVATION
It is budget time again and, like on many previous occasions, the voices seeking easy publicity are calling louder and louder for the abolition of negative gearing. Housing affordability is a hot topic in an environment where property prices are rising, in some places quite significantly, so the media is happily running with this agenda without questioning the basis of various claims.
But how can you have an honest debate on the issues involved if none of those commenting against negative gearing demonstrate enough knowledge on the topic they are talking about?
Dispelling myths about negative gearing is like trying to convince a 3 year old that "spinach is good for you"… It requires some maturity to comprehend the topic of the discussion before one is able to participate without any prejudice.
It may appear as a harsh and provocative assessment of those criticising negative gearing and Australia’s current tax arrangements - especially since the anti-negative gearing voices include prominent economists, managers of investment funds, various social think-tank organisation and media personalities. But if you scrutinise what they are saying it is very obvious they are just repeating overheard phrases without any understanding of the meaning of what these words really mean. Just like the aforementioned 3 year olds…
Just to illustrate, the prevailing theme is that negative gearing is a "cost to taxpayers"… Really? How about taking a class in basic accounting to understand the principles of cash flow before making any such statements publicly? Then the commentator would understand the negative gearing is all about cash flow and not about profit and therefore, that it is neutral from an overall tax perspective. (I explained the mechanics in my earlier article if you care to read - <a href="/news/negative-gearing-the-three-facts-that-will-challenge-your-assumptions">Negative gearing: The three facts that will challenge your assumptions</a>).
Then there are ideas about changing the provisions to allow negative gearing on new properties only, to increase new build. Yeah, right, great idea. Let’s keep all those people unable to buy isolated in renter ghettos, or relegate them to city fringes, and keep the suburbs pristine and free from temporary drifters. Let’s repeat those social housing experiments from 1960’s and 1970’s (this time round with private money) which legacy is still haunting parts of our capital cities half a century later.
Of course I am exaggerating the possible consequences but only to highlight that those who call for such arrangements did not think through the full consequence of what may happen. Ask yourself, where is the greatest demand for rental accommodation? Of course, in city centres and along major transport routes. This is where investors are providing the bulk of rental stock - because this is where the demand is. And of course this is, in the great majority of instances, second-hand and not brand new stock for a very obvious reason.
“But” they say, “if properties were cheaper in those convenient locations, more people could afford to buy there and would not need to rent”. Great logic. Sure, let’s implement policies that will allow converting everything in such locations to cheap owner-occupier housing – and then we will end up with a real housing affordability problem for those who prefer or are forced to rent. But sure enough, taxpayers will be very happy to spend billions of dollars to address it, no worries.
The premise that renters will buy “cheap houses” rather than continue renting would be amusing if it was not promoted so seriously by those prominent commentators. The naivety of such thinking, on such a large scale (mind you, without any evidence and/or testing the assumptions), is staggering.
One only needs to look to late 1990 to understand why such thinking has no merit whatsoever. In particular, towards the end of 1990’s, the cost of owning a property was at a historically low level and in many locations renting was costing more than paying off a property and still, not everybody was prepared to buy, even if they could afford it easily.
All those commentators are forgetting the basic logic that drives people’s decisions – if prices are cheap, they are so for a reason. That is, owning is perceived by the majority as unattractive and without a merit, and cheap prices in relation to rental expenses only reinforce this perception. People need to perceive a positive outlook for the property market to want to own the place of their residence - this outlook can only be reinforced by a history of rising prices. It’s as simple as that, yet so difficult to comprehend for many.
Then we have such pearls of wisdom like grandfathering negative gearing on existing purchases but, at the same time, allowing for the writing-off of operational loses against capital gains. Great, let’s make tax affairs so complicated that nobody will be able to figure out whether they are making money or losing it. Accountants will love it and growth of employment at the Tax Office will propel Australia’s economic growth for the next few decades.
Or how about proclaiming that before 1986 there were no property investors in Australia (because this is what housing finance statistics “show”) and that the “current property investment boom crisis” is the fault of Keating and Hawke re-introducing negative gearing and Howard and Costello halving the capital gains tax on investment properties? This position conveniently disregards the fact that the proportions of rental stock remained relatively static for many, many decades. So what is really going on?
<img src="/images/2015/05/04/Occupied_private_dwellings.png" alt="">
Those commentators simply don’t comprehend that there was a shift in the investor profile from, a situation where a single person owned entire blocks of flats, to that where now many individual investors only own one flat each. Those aforementioned policies were just a catalyst enabling this transition to happen.
And because of these policies, people now have a choice to either live where they are and invest their extra money in the long term rental accommodation business (yes, it is a business after all) or upgrade their primary residence - and the financial outcome is the same at the end. Unbelievable but true, once you do the math.
But the biggest fable of all is that negative gearing is the reason prices are “so high” today. So, by removing negative gearing, we will restore “housing affordability” - whatever that means. Pity not many can understand what is really driving property prices in Australia.
It doesn’t fit in these people’s agendas that the cost of buying and renting in Australia is close to its historically best level, and that housing is more affordable now than at many points in time in the last three decades. Even in Sydney – the apparent “epicentre of housing speculation”.
<img src="/images/2015/05/04/Long_term_purchase_affordability_Sydney.png" alt="">
Interestingly enough, NSW’s share of net rental income losses was only 5.7% in the 2012-13 financial year (or $312 million out of $5.5B claimed by investors – as per Table 15 of recently published statistics that show all income and expense items from rental property schedules, by the state/territory location of the property). This means that just two years ago, in aggregate, profits from long term rental accommodation business in NSW almost matched losses.
In other words, negative gearing was not as widespread in NSW as everybody is led to believe. No surprise here at all since purchases with gross rental yields of 6-7% were not that uncommon in Sydney in 2012. But why bother with facts that spoil a “good story” for media attention.
By the way, where were these commentators in 1997-99, 2005/6, 2009 or 2012-13 when there were ample opportunities to buy property cheaply? Why they were not heralding those opportunities then as loudly as they now voice their opposition to negative gearing? (As a side note, did you notice how regularly these opportunities come about?) There is a simple answer - because back then they were chasing media headlines with another favourite crowd pleaser - the upcoming Armageddon.
My, in many ways, aggressive and ironic commentary serves the purpose of mobilising you - the reader - to start confronting these commentators and questioning their understanding of a concept they are so outspoken about. And secondly, treating what you read and hear on the news about negative gearing with a fair dose of scepticism.
After all, in the whole scheme of things, negative gearing is inconsequential for individual property investors – sure, it helps with cash flow but it does not impact profitability and certainly, it does not make houses more expensive. So, its abolition would not change a thing – but that point of view is missing from the public debate.
Journalists are failing in their duty to present information objectively by not offering contrasting opinions and, most importantly, by not questioning individual commentators on merits of their points of view.
I have a tip for anybody who wants to know whether a particular commentator has any idea about the topic of negative gearing - check if they consider negative gearing to be a cost to taxpayers, or offering extra profit for investors, or none of the above. If they do consider it a cost or extra profit opportunity, then you know you cannot take seriously anything they say, no matter what other credentials they present.
Arek Drozda is an independent property market analyst. Follow on Twitter @arekdrozda.
 
 
 
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Are publicity stunts driving the negative gearing agenda? Arek Drozda

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Just eight Sydney properties sold at weekend auction under $500,000.
The cheapest was a<a href="/expert-insights/buying/cabramatta-had-sydneys-cheapest-auction-offering-what-you-get-for-400-000"> two bedroom Cabramatta flat</a> at $400,000.
Leaving Sydney is the stark reality facing many of its residents who can't afford to buy house or apartment.
Regional NSW is far cheaper for what has been recently dubbed as "economic housing refugees".
Onthehouse Residex put the Sydney house median a $917,000, while country NSW is $394,500.
Units are cheaper, but the gap not as wide with the median Sydney unit value at $613,500 and $330,500 in NSW country.
Realestate.com.au has around 5200 listings of houses priced between $200,000 and $300,000, from Aberdare, near Cessnock, to Yass.
CoreLogic RP Data recently noted just how rampant Sydney's increase in home values has been among all Australian capital cities with values, most recently increasing by 13% annually.
Although Sydney home values are increasing at a faster pace than all other capital cities, the 13% annual rise is below the peak annual growth rate of 16.7% in April 2014.
Over the five years to January 2015, Sydney home values have increased by a total of 35.6%, which is the strongest rate of growth of any city over that period.
The recent growth comes on the back of total value growth of just 14.4% over the previous five years, which was the lowest amongst all capital cities.
Between January 2000 and January 2005, Sydney home value growth was greater than it has been over the past five years with values rising 62.3%.
Sydney house values have recorded a higher level of growth than units, increasing by 13.8% over the year as opposed to 9.9% for units.
So where outside of Sydney is the price growth tamer for houses over the past year?
CoreLogic RP Data says it is the Richmond Tweed district followed by the Murray district.
But closer to Sydney it is the Illawarra rather than the Hunter.
<img src="/images/2015/05/05/core-may-5-one.jpg" alt="">
Source: CoreLogic RP Data
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Sydney or the bush: Where should housing economic refugees head? 

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GUEST OBSERVATION
Latest dwelling price data shows continued solid growth nationally in early 2015 with some measures even indicating a slight pick-up over the last six months.
Beneath the surface though the city and segment detail shows strong gains are confined to Sydney houses, Sydney units and Melbourne houses with much more subdued price gains everywhere else and some notable areas of weakening.
Our preferred metric for dwelling prices is the six month annualised growth rate due to excessive volatility in the monthly and quarterly data. On this basis, as at 1 May the main ‘all dwelling’ price measures are showing (all series seasonally adjusted by Westpac):
<ul>
<li>CoreLogic RP Data monthly to April: 11.8% six month annualised (8.1% year);</li>
<li>APM figures to Q1: +8% year six month ann’d (7.4% year);</li>
<li>Residex monthly to February: 6.3% year six month annualised (7.2%year);</li>
</ul>
Note the ‘official’ ABS price data, which was the least timely to begin with is now being published six weeks later, with Q1 preliminary estimates not due until 23 June(!).
To control for volatility issues across different measures, Westpac tracks a composite of the four main providers. These highlight the degree to which performances are now diverging across the major capital cities.
Not surprisingly, at the top end, the Sydney market continues to track a strong 13.8% annualised pace, in line with that seen throughout 2014.
Melbourne is tracking a more subdued 5.5% pace, in line with the second half of 2014 but down on the previous 12 months. Notably, within the Melbourne market, houses are significantly outperforming ‘units’ with growth tracking in the 5-10% and 0-5% ranges respectively.
Brisbane and in particular Perth are notably weaker. Prices have virtually stalled flat in Brisbane (with just a 1.1% annualised rate of growth the last 6mths) and are showing significant declines in Perth (falling at a 3.8% annualised pace over the last 6 months).
The same lacklustre price picture is evident across Australia’s smaller markets. Indeed, on a combined basis six month price growth is flat across both the smaller capital cities and regional areas of the major states.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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po-LsXgBTHBmX

Australia's smaller markets paint a lacklustre picture: Matthew Hassan

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GUEST OBSERVATION
For decades, the concept of the Great Australian dream of home ownership was a guiding premise for Australians. To buy a quarter-acre block with a yard was a seemingly universal aspiration across the country.
Of course, home ownership is still the goal of many Australians - the dynamics have just changed. Urbanisation has brought us reduced block sizes and the prevalence of apartments, while people are having fewer and fewer children, and later. At the same time, you can't ignore that property prices have increased - the median price of the five big capitals is now $686,590, according to RP Data CoreLogic.
However, I don't think these are barriers, but rather obstacles to home ownership, whether you're a first time buyer or first time investor. And obstacles can be surmounted. Unfortunately, certain mindsets hold us back.
The attitudes that limit our options
For some people, it's the lifestyle factors that cloud their judgement. They want to live closer to the city or to their job, or even to certain lifestyle areas, at all costs - even if that dream home means they're lumped with a nightmare loan. Others say they want a place of their own where they can hang up their photos and really make the property their home.
When it comes to both of these mindsets, realising you can be a tenant and an Australian property investor all in one is the key. There's even a name for it now - a "professional renter". Some people say rent is a waste of money. I think interest can be an even bigger waste.
Rather than striving for a property they could never afford, these individuals continue renting in the area they want to live while purchasing an investment property - or two, or three - elsewhere. They can then use their investment income to help them pay rent and the mortgage, while eventually capitalising on their equity to fund a home purchase. More and more first home buyers are going down this road. According to Digital Finance Analytics, around 30% of first time buyers in August 2014 were investors.
And for anyone who thinks they can't make a rental property their home, they should know they can hang up photos when they're renting as well. Some landlords are happy to have good tenants who will add value to a property through some minor renovations, and they find they can live in a place for many years without moving. At the same time, they're not paying council rates or other expenses, money that can be put to work elsewhere.
Affording the deposit
Of course, at the end of the day, you still have to save for a deposit and get into the market when buying an investment property. Like I said before, the situation is far from hopeless.
Affordability isn't insurmountable - you just need to be open to adjusting your strategy. If you don't get an affordable investment property in the area you were looking at, be flexible enough that you can look at another. You're not buying this house to live in.
Remember, also, that there are many property markets. You can't solely focus on one area. Particularly with today's ability to access better financial products, you will be able to find the right property eventually - it just may not go exactly how you imagined it.
Finally, one of the most encouraging trends I've seen is that younger people are more open to seeing a financial planner or advisor now, early on in life. This is good, because not only can they make use of their greatest asset - their age - they can also set themselves up with a vision and strategy, which can make budgeting and financial sacrifices much easier.
The fact is, not only can first home buyers afford one property, they can afford multiple. The sooner they start, the more of a chance they have to put together a property investment plan and start a portfolio. It might be a challenge, but the younger generation today could well end up with more wealth than their parents - with the right attitude.
Sam Khalil is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
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First home affordability isn't insurmountable: DPN's Sam Khahil

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Greville Pabst, CEO and director of <a href="https://www.wbpproperty.com/" target="_blank">WBP Property Group</a> and a judge on The Block Triple Threat, answered some of Property Observer's questions on the state of the current state of the market.
<ul>
<li>
How would you describe the auction market? The auction market is highly competitive. Today you can expect anywhere between four and six bidders at an auction in Melbourne, particularly in popular inner suburbs. This has meant strong growth for quality properties. This year we’ve also seen softening in the western suburbs with both auction volumes and clearance rates dropping slightly across the region. Standout areas for performance are the eastern and south-eastern suburbs. Total transaction volumes are down by about 10% when compared with this same time last year, however, as a percentage of overall transactions auctions have increased slightly, accompanied by an increase in clearance rates - Melbourne averaging 76% this year compared with 72% at the same time last year.</li>
</ul>
<ul>
<li>
Is the private treaty market likewise? Transaction volumes demonstrate there is greater confidence buying at auction this year, which may prompted by record low interest rates and strong competition among bidders. But, the key take away is that fewer properties are passing in at auction. At this time the clearance rate for auctions is at 76.3% - this time last year it was at 71.6%.</li>
</ul>
<ul>
<li>
What tips would you give home buyers? Given current levels of competition it’s important buyers don't make hasty decisions. The key to securing well-performing property is research, and, if needed, getting independent expert advice.  It’s also important to consider that whether buying a home or investment property, a sound selection now will have a significant impact on your personal wealth well into the future. Securing a property with high capital growth potential is crucial.</li>
</ul>
<ul>
<li>
What tips would you give investors about the timing of their buying in the 2015 market? When asked this question I always recall the proverb, “'The best time to plant a tree is 20 years ago, the second best time is now.” In truth, there’s no right or wrong time to buy a property. The best time is when you’re financially ready.  The crucial factor with any property investment is the amount of time in the market – that is, unlike with some shares, property growth is realised over time, not overnight. The high cost of transacting property means investment of this kind is typically a long-term commitment. </li>
</ul>
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Melbourne auction market highly competitive: Q&A with WBP's Greville Pabst

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The Australian Bureau of Statistics (ABS) released building approvals data for March 2015 yesterday. 
The data showed that over the month there were 19,419 new dwelling approvals which was a record high and 2.8% higher than levels in February. The data highlights that approvals and subsequently new housing construction is continuing to surge across the country.
<img class="aligncenter size-full wp-image-4655" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-1.jpg" alt="Chart 1" width="500" height="158">
In March there were more units (9,767) approved for construction than there were houses (9,651). Although this may not sound like a big deal, this has only occurred on two previous occasions. 
House approvals were 0.5% higher over the month and are 1.3% higher year on year. In comparison, unit approvals rose 5.3% over the month and are 57.9% higher year on year. Keep in mind that the number of unit approvals tend to be more volatile than houses however, the surge coupled by the fact that there were more approvals for units than houses shows a growing tendency toward new unit construction.
<img class="aligncenter size-full wp-image-4656" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-2.jpg" alt="Chart 2" width="500" height="159">
Over the past 12 months, there have been a record high 210,484 dwellings approved for construction which is 11.2% higher than at the same time last year. Over the period, there have been 114,874 houses approved and 95,608 units. Although house approvals outnumber unit approvals on an annual basis, unit approvals accounted for a record high 45.4% of all dwelling approvals over the past year.
<img class="aligncenter size-full wp-image-4657" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-3.jpg" alt="Chart 3" width="500" height="180">
While there is a growing prominence of units approvals, so too is there a growing prominence of these approvals being for high density stock. Over the 12 months to March 2015, a record high 60.5% of all unit approvals were for units in a block of four or more storeys. To put this surge into perspective, 10 years ago just 39.7% of unit approvals were for units in these higher density buildings. You only have to drive through inner city areas of Sydney, Melbourne or Brisbane to see that there is a current shift towards much higher density living and today’s data shows there is plenty more in the pipeline.
<img class="aligncenter size-full wp-image-4658" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-4.jpg" alt="Chart 4" width="500" height="158">
The capital city data isn’t seasonally-adjusted so it doesn’t line-up with the national data however, over the month there were 15,349 dwellings approved for construction across the combined capital cities. Like the national figures, this was also a record high number of approvals following a 9.7% monthly increase and a 33.5% year on year increase.
<img class="aligncenter size-full wp-image-4659" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-5.jpg" alt="Chart 5" width="500" height="159">
Looking at the split between capital city house and unit approvals there were 6,709 houses and 8,640 units approved for construction over the month. House approvals were 7.5% higher over the month and 9.0% higher year on year. Unit approvals increased by 11.5% over the month and by 61.8% over the year. Although total approvals were at a record high neither houses or units recorded their highest month for approvals.
Across the capital cities, dwelling approvals increased over the month in all capital except for Melbourne and Darwin. year on year approvals are higher in each capital city except for Canberra.
<img class="aligncenter size-full wp-image-4660" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-6.jpg" alt="Chart 6" width="500" height="157">
Looking at annual approvals across the capital cities, annual approvals are at a record high in Sydney, Melbourne and Brisbane as well as being just shy of a record high in Perth. Hobart (40.4%), Melbourne (25.5%), Brisbane (25.1%) and Darwin (12.1%) have recorded the greatest increases in approvals over the year. Dwelling approvals have fallen -36.8% in Canberra over the year, while increases in Sydney (4.9%), Adelaide (10.3%) and Perth (11.4%) have been relatively moderate.
<img class="aligncenter size-full wp-image-4661" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-7.jpg" alt="Chart 7" width="500" height="156">
Annual house approvals were higher in March 2015 than a year earlier in all cities except for Adelaide (-1.3%) and Canberra (-9.0%). Across the remaining cities the annual increases in house approvals were recorded at: 16.5% in Sydney, 14.6% in Melbourne, 29.6% in Brisbane 6.1% in Perth, 54.0% in Hobart and 6.9% in Darwin. What is noticeable from the above chart is that Melbourne (the 2nd largest city) has approved substantially more houses (22,878) than Sydney (the largest city) (13,776). Similarly, Perth (the 4th largest city) has approved far more houses (19,783) than both Sydney and Brisbane (the 3rd largest city) (10,826).
<img class="aligncenter size-full wp-image-4662" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-8.jpg" alt="Chart 8" width="500" height="156">
While annual capital city unit approvals have risen by 15.2% over the year, across the capital cities unit approvals were lower over the year in Sydney (-0.2%), Hobart (-6.9%) and Canberra (-49.9%). Elsewhere the annual increases in unit approvals have been recorded at: 35.2% in Melbourne, 21.7% in Brisbane, 36.5% in Adelaide, 28.4% in Perth and 16.6% in Darwin.
<img class="aligncenter size-full wp-image-4663" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-9.jpg" alt="Chart 9" width="500" height="181">
When we look at the annual approvals picture, more than half of all approvals over the year were for units in Sydney (66.2%), Melbourne (56.9%), Brisbane (58.6%), Darwin (56.2%) and Canberra (53.9%). Over the past 12 months, a record high 52.7% of all capital city dwelling approvals were for units. Unit approvals have accounted for more than half of all approvals in Sydney, Darwin and Canberra for many years however, it is a relatively new phenomena in Melbourne and Brisbane. 
In our opinion this raises some concerns given the rapid ramp-up in unit approvals in these two cities. Although lifestyle preferences are changing we have some concerns about an oversupply of units in these markets. Especially when you consider that unit stock is generally favoured by investors and rents are already growing at their slowest pace in a decade. 
Furthermore, capital growth for units is lower than that for houses across four of the five cities in which there have been more unit approvals than house approvals over the past year, the exception is Darwin. Value growth for units over the year has been particularly sluggish in comparison to house value growth in Melbourne and Brisbane.
The data is encouraging; there remains a large volume of new house and unit developments being approved for construction. Much of the new unit stock is high density which by nature means most of it is taking place in inner city areas. 
Although there is a strong pipeline of construction we continue to have concerns of a new unit oversupply in certain areas, particularly in inner city Melbourne and Brisbane. There are some concerns a record-high level of approvals, should they ultimately end up constructed, should alleviate some of the housing shortages and contribute to a slowing of the escalation in home values. What is somewhat worrying is that the Sydney market, where home values are escalating rapidly on the back of low overall housing supply, is not experiencing as significant a ramp-up of approvals as we are experiencing across most other capital cities. 
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Dwelling approvals hit new record highs in March 2015: Cameron Kusher

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Michael Smith, Director of architecture firm Atelier Red + Black and Apartments.com.au Industry Hub member, has gone to extraordinary lengths to mark the occasion of his 100th article on his personal blog, <a href="https://theredandblackarchitect.wordpress.com/about/">The Red and Black Architect</a>.

No stranger to regular Apartments.com.au readers, Michael's commentary on all aspects of architecture provides valuable insights and adds another layer of depth to Apartments.com.au's content. So what better way to mark his 100th article on The Red and Black Architect then to glean insight from leading Melbourne figures and fellow industry participants.

Below is an excerpt taken from <a href="https://theredandblackarchitect.wordpress.com/2015/05/04/the-red-black-architect-post-100/">his recent post</a>. The responses below as to why good architecture is so important could not have been answered in a more telling and comprehensive manner.

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<h2>What is your favourite building or space in Melbourne? And why?</h2>

Peter Hitchener – Chanel Nine News Presenter, Melbourne Icon. <a href="https://twitter.com/phitchener9">@phitchener9</a>

It’s hard to decide on one favourite building or space – there are so many in Melbourne… The Royal Exhibition Building, Flinders Street Station and St Paul’s are obvious choices.. Fed Square continues to be hugely popular as a meeting place, but my favourite Melbourne building is the National Gallery in St Kilda Road designed by Sir Roy Grounds, as well as the Arts Centre theatre and concert hall. I find the art gallery in particular induces feelings of calm, reflection and creativity; and I love the famous stained glass ceiling. It’s always worth a visit and I am never disappointed.

Jeff Kennett – Former Premier of Victoria, (Via Twitter). <a href="http://twitter.com/jeff_kennett">@jeff_kennett</a>

The Treasury Gardens in Spring Street, outside my old office. The gardens are a restful place for clear thinking and contentment. There are also many other great open spaces in Melbourne and Victoria as well.

Alison Cleary – Chapter Manager, Victorian Chapter of the Australian Institute of Architects

My favourite place in Melbourne is both a place and a moment in time. Federation Square February 13th, 2008. Standing with 10,000 Melbourneites, black and white, watching the big screen as the Then Prime Minister Kevin Rudd apologised to the Stolen Generations. The feeling of connection and togetherness, standing shoulder to shoulder with 1000s of others who had longed for this moment – the opportunity to say we are sorry and this should not have happened. A quintessential Melbourne moment contained within a quintessential Melbourne space.

Sonia Sarangi – Co-Director Atelier Red + Black. <a href="https://twitter.com/TheSarangi">@TheSarangi</a>

Heide MOMA II (by McGlashan &amp; Everist) is simply magical and one of Melbourne’s hidden gems. Previously a home for the Museum founders, it is now a gallery. It demonstrates beautifully how art, architecture and landscape are intertwined. I cannot do justice to describing it; you have to go there! But it reaffirms my belief that great architecture doesn’t age – it is robust and continues to enrich lives for decades. Heide III by O’Connor &amp; Houle is a fitting addition to this building and a testament to the thriving architectural scene in Melbourne.

Cr Rohan Leppert – Melbourne City Councillor. <a href="https://twitter.com/RohanLeppert">@RohanLeppert</a>

I have so many favourite spaces in Melbourne, but up there would have to be the Meat Market on Blackwood Street, North Melbourne. As a performing arts space, it’s got to be one of the most unusual buildings around – which is one of the reasons why so many emerging and contemporary artists love it. Its long history, which is central to the story of Melbourne’s growth as a city and as a community, continues to evolve in ever more interesting ways, without one ever losing the sense of this building’s remarkable working past.

<h2>Why is good architecture so important?</h2>

Jill Garner – Associate Victorian Government Architect

Utilitas (function? commodity? utility?), firmitas (solidity? materiality?), and venustas (beauty? delight?). Design’s power to make ordinary objects desirable can confuse its (more? equally?) important capacity to make things and places safe, understandable, durable, functional, affordable and energy efficient. The true value of (good) architecture lies in its capacity to integrate a solution to the mundane problems of occupation, with the capacity to change our perception of place, and the very best architecture integrates use with space, material and light in such a way that our senses soar.

Bad architecture – or no architecture – costs so much.

Peter Malatt – Architect, President of the Victorian Chapter of the Australian institute of Architects

Good architecture enriches our lives in ways which make every day a better day

Good Architecture stimulates all the senses of touch, taste, smell, sight and sound.

Good Architecture lasts longer, looks better, smells better, is better for the public and uses less energy.

Good Architecture gets better as it gets older.

Stuart Harrison – Architect, Writer, Broadcaster, Director of Harrison and White Architects. <a href="https://twitter.com/stuartnharrison">@stuartnharrison</a>

Better designed cities, buildings and public spaces make life more productive, satisfying and enjoyable whilst fostering a sense of community. Architecture is central to this, it is a glue to bring together people, spaces and stories. Good architecture should be promoted, debated, tested and understood to become truly good, in the minds of all who use, see and experience it.

Leone Lorrimer – Architect, CEO DWP Suters. <a href="https://twitter.com/LeoneLorrimer">@LeoneLorrimer</a>

I often reflect on the power of good architecture to change behaviour. Historically, churches, town halls and court houses were symbols of civic power. The Sydney Opera House was the first public building to challenge the cultural status quo of an entire city – daring the city to re-evaluate its role on the world stage. The design of the Sydney Opera House was the equivalent of the moon landing; without it the boundaries of technology in design and construction would not have been pushed so hard and so fast. With the Sydney Opera House, innovative architecture took on a new role as the visual identity of a city. Today the Sydney Opera House still creates awe, raises aspirations and changes behaviour. Where else would you stage the Festival of Dangerous Ideas?

<h2>How would you like to see the architecture profession change?</h2>

Warrick Mihaly – Architect, director of Mihaly Slocombe Architects, Writer of Panfilocastaldi. <a href="https://twitter.com/MihalySlocombe">@MihalySlocombe</a>

The architecture profession has been in a sustained crisis for as long as I can remember. I’d like to see us respond to this by diversifying our contribution to society into new territory. This will mean accessing segments of the building industry currently closed to us (like volume built housing), as well as generalising our skills beyond it. Our education and training bestow upon us a unique and valuable worldview. We need to put this to use wherever there is need for complex thinking and sophisticated creativity. Politics, strategic planning, finance, the media and entrepreneurial start-ups would be a great start.

Tania Davidge – Architect, Writer, Director of OpenHAUS. <a href="https://twitter.com/taniadavidge">@taniadavidge</a>

The reality is that the profession is already changing. Globalisation and the ever increasing speed of communication have opened up new contexts for architects to practice in. New technologies and the outsourcing of architectural services are changing how architects go about their business. This change is double-edged – it opens up possibilities for architects and broadens the audience for architecture but at the same time it has the potential to decrease architectural agency and relegate architects to the position of spatial image makers if we don’t pay attention.

If we want the profession to change for the better we need to redefine the practice of architecture for ourselves rather than let external pressures shape architecture. Within this context, I would like to see the practice of architecture expand to encompass greater diversity and to make a shift from object-centric preoccupations to incorporate more strategic ways of thinking about the city and the people who inhabit it.

Kim Irons – Architect, Director of Irons McDuff Architecture, Principal Adviser, Architecture + Transport OVGA and Architectural Adviser to Public Transport Victoria. <a href="https://twitter.com/IronsMcDuff">@IronsMcDuff</a>

I would like to encourage the profession to work more collaboratively in all aspects of research, academia, advisory, advocacy, and practice to demonstrate the value of good design – not just as an outcome but as a process. If we measure and demonstrate the value of design both in economic and social terms, we could be better advocates for our contribution to the built environment. Evidence exists for value of design in schools and hospitals, but we need more evidence across other typologies, and the public realm. The evidence for good design could lever our capacity to advocate the role and worth of architects to drive innovation and reduce ‘design risk.’

Timothy Horton – Architect, Registrar Architects Registration Board, New South Wales. <a href="http://twitter.com/timhorton_">@timhorton_</a>

More than anything I’d like the profession to own its own data. Why? Succeeding in advocacy, engagement and change often means having numbers to hand to either give shape to a problem (look at the movement on gender equity that comes from being confronted by the facts), or to sketch out a model of the opportunities on offer. This might mean collecting the data to validate those early promises on how a project will increase workplace productivity, or to put some quantities around the supply chain implications of decisions on materials or assemblies. Without its own cache of data, architecture risks being viewed as unverifiable overspruik.

<h2>How would you like to see Melbourne evolve over the next 20 years?</h2>

Clay Lucas – City Editor at The Age newspaper. <a href="https://twitter.com/ClayLucas">@ClayLucas</a>

Two planners from NSW I had a meeting with this week remarked how, compared to Melbourne, Sydney’s CBD had too many wind tunnels and dark corridors where you felt over-powered by skyscrapers. Over the next 20 years, I hope Melbourne’s CBD can accommodate high-rise residential development without making the central city an unpleasant place to be. More widely, it would be great if affordable, quality housing was created in the middle-ring suburbs – the lack of it drives some of the city’s more serious planning problems. And major transport projects will hopefully henceforth be built based on facts, not propaganda or a vibe; both the East West Link and the Regional Rail Link were supported without a transparent and honest exploration of the city’s needs.

Monique Woodward – Architect, Director of WOWOWA Architecture. <a href="https://twitter.com/WOWOWA_Arch">@WOWOWA_Arch</a>

What if Architects fees were tax deductible? What if the polite but inevitable cocktail party conversation regarding real estate and tax breaks merged into contributing higher quality housing stock for wins at tax time? After all, financial planner fees can be taken from a client’s superannuation fund because the perception is their service contributes to overall wealth. For most, the Australian fiscal dream revolves around money made from renovation after renovation but so few use an architect. What is it about architecture that people have a problem with? I wager a fear of cost blowouts coupled with seemly exorbitant fees. Making our service seem more attractive and accessible starts to address at least part of this issue.

Alastair Taylor – Urbanist and an Editor of the Apartments.com.au website. <a href="https://twitter.com/tayser82">@tayser82</a>

Plain and simple: more urban growth, more walkable, less suburban growth and less auto-centric. We can now safely say the centre of Melbourne fits this bill however the challenge over the next 20 years will to replicate this success to areas further afield, and in an appropriate form. Smaller scale projects like those in the Anstey precinct of Brunswick are the type of development I’d like to see all over Melbourne – medium to high density, 5-7 levels high, right next to existing public transport infrastructure.

And speaking of Anstey, one thing to keep an eye on is how architects will have an impact on the development industry. The Nightingale project might just spawn a whole new direction for the way urban development is undertaken in this city.

Emma Appleton – Director of the Victorian Design Review Panel, Office of the Victorian Government Architect

To retain Melbourne’s cherished live-ability, our transition to a medium density future needs to be supported by sustained and deliberate investment in the green and blue infrastructure of our city.

We must transform the way we think about, design and manage our public realm, and protect and enhance the natural systems which sustain us, to meet the demands of more intensive use, increased consumption and pollution and to support our quality of life.

The streets, boulevards, parks, and public places, and our river corridors and natural landscapes are the lungs and connectors of our city, essential to our well-being and health, and central to the character and identity of Melbourne and who we are as citizens.

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Congratulations to Michael and as always architecture is for everyone! See the remainder of Michael Smith's <a href="https://theredandblackarchitect.wordpress.com/2015/05/04/the-red-black-architect-post-100/">milestone post</a> on the Red and Black Architect blog. You can also follow Michael on <a href="https://twitter.com/Red_Black_Archi">Twitter</a> and <a href="https://www.facebook.com/redblackarch">Facebook</a>.

Lead image courtesy <a href="http://melbournedaily.blogspot.com.au/">Melbourne Fresh Daily</a>.
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