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;

Joel Robinson

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

<a href="https://www.apartments.com.au/developers/mrcb">MRCB International</a> has commenced construction on its latest Gold Coast apartment development, Maris, on the site of the former Sundale Motel in Southport.

The start of construction by <a href="https://www.apartments.com.au/builders/binah-constructions">Binah</a> follows an exceptionally strong sales campaign, with more than 90 per cent of apartments sold since launch. Every purchaser has been local, an&nbsp;indicator of confidence in both the development and Southport's evolution into a thriving CBD.

<a href="https://www.apartments.com.au/new-apartments/maris-southport-20-queen-street-southport-qld-4215">Maris</a> will deliver 192 residences across 20 levels. The project forms part of MRCB's Australian and New Zealand development pipeline now exceeding $1.6 billion in gross development value, alongside a growing portfolio of projects globally.

[smartcode_project:default project_id=134403 project_image_fid=350663]

The company also commenced construction on its $600 million 26 Vista residences in Surfers Paradise last year, following strong sales momentum, with over 70 per cent of residences sold.

Maris has been designed to meet evolving buyer demand, offering architecturally designed layouts suited to long-term liveability. The approach reflects a growing preference for quality and adaptability among Gold Coast buyers.

Positioned next to the Broadwater in the <a href="https://www.apartments.com.au/developments/southport-qld-4215">Southport</a> CBD, Maris sits directly opposite the Broadwater Parklands light rail station and within easy reach of retail, dining and lifestyle precincts, placing residents at the centre of one of the Gold Coast's most connected and rapidly maturing urban centres.

[smartcode_project:default project_id=134403 project_image_fid=372756]

Maris will offer a full suite of resort-style residential amenities, including a pool, gym and sauna, along with a rooftop level featuring decks, lounges and dining and yoga areas that command sweeping views across the Broadwater and out to the ocean.

Binah, a New South Wales headquartered company co-founded by Amen Zoabi and Khalil Hafza in 2008, has expressed its excitement at establishing its first partnership with MRCB.

Binah's Managing Director Khalil Hafza said partnering with MRCB on Maris is a significant moment for Binah.

"MRCB's financial strength and a track record that speaks for itself give this project a solid foundation, and this marks the beginning of what will be a long and successful relationship.

"With the right people, systems and partnerships behind it, Maris is set to become a significant addition to the Gold Coast's premium residential market."

[smartcode_project:default project_id=134403 project_image_fid=350664]

MRCB International CEO Ravi Krishnan said the project's progression to construction reflects both sustained demand and tightening conditions across the apartment sector, as well as MRCB's continued confidence in the Gold Coast market.

"Commencing construction at Maris is a significant step and reflects the depth of demand for quality apartments in well-connected urban locations," said Krishnan.

"Across Southeast Queensland, new apartment supply remains constrained, particularly in established precincts with infrastructure and amenity already in place. Projects like Maris are increasingly critical in meeting that demand, especially on the Gold Coast and in the city's CBD precinct."

[smartcode_project:default project_id=134403 project_image_fid=372761]

Krishnan said Southport's ongoing transformation, supported by infrastructure investment and long-term planning, was underpinning renewed buyer confidence.

"We're seeing a clear shift back towards well-located urban centres where infrastructure, connectivity and amenity are already established," said Mr Krishnan. "Southport is evolving into a more mature CBD environment, and that is being reflected in buyer behaviour."

Construction at Maris is anticipated to be completed in 2029.

[smartcode_project_cta:default project_id=134403]

Construction commences on MRCB’s $200m Maris Residences in Southport

Moonee Valley Park’s latest residential release <a href="https://www.apartments.com.au/new-apartments/the-eveline-at-moonee-valley-park-moonee-ponds-100-thomas-street-moonee-ponds-vic-3039">The Eveline</a>, has achieved a new benchmark for off-the-plan apartment sales in the suburb, with the sale of The Alexandra penthouse selling for $5,435,000.

Positioned on the top floor of a 16-level residential building, the three-bedroom, three and-a-half-bathroom penthouse features uninterrupted city skyline views across the future Valley racetrack.&nbsp;

The landmark sale comes as momentum at the precinct continues to build, with the Moonee Valley Racing Club progressing works on its new racetrack ahead of the 2027 Cox Plate. The transformative development will see MVRC reimagine the beloved Valley as a vibrant year-round entertainment and lifestyle destination.

Alongside a world-class racing experience, the historic precinct will be activated with events, hospitality and public green spaces designed to attract broader audiences, while breathing new life into one of Melbourne’s most iconic destinations.&nbsp;

[smartcode_project:default project_id=142519 project_image_fid=372786]

Development partners <a href="https://www.apartments.com.au/developers/hamton">Hamton Property Group</a> and Hostplus have delivered five residential stages over the past four years, the most recent in November 2025 with Trackside House and Stonepine House. The flourishing community is now home to almost 500 families.&nbsp;

The latest residential release, The Eveline, has recorded strong demand since launching publicly last July, securing more than $200 million in sales to date, satisfying its pre sales hurdle for construction to commence.&nbsp;

Hamton Founder and Executive Chairman, Paul Hameister OAM said, the sales&nbsp;team have been overwhelmed by demand for these unique homes in this unique project.

"Buyers continue to be predominantly hyperlocal and attracted by the 40 hectare botanic masterplan in Melbourne’s inner north west," Hameister said.

[smartcode_project:default project_id=142519 project_image_fid=372788]

Hamton’s Sales and Marketing Director Fergus Humphries said the team has achieved more than 70 sales over the past eight weeks, including the penthouse purchase by a local buyer.

"These results reinforce that, even in a challenging market, purchasers continue to be drawn to quality projects that offer more than just a home, they offer a lifestyle.”

Designed by Cera Stribley, the penthouse has been created with entertaining in mind, spanning close to 400 sqm of indoor and outdoor living space, including multiple terraces designed to capture sweeping views across Melbourne’s skyline, the new Valley racecourse and sunset views over Moonee Ponds.

Moonee Valley Park is one of Melbourne’s largest urban renewal projects, transforming the iconic racecourse site into a vibrant mixed-use neighbourhood integrating homes, parklands, retail, racing and community amenities.

[smartcode_project_cta:default project_id=142519]

Moonee Valley Park penthouse sets suburb record as sales surge clears construction benchmark

A company linked to one of Australia's largest privately owned cattle businesses has lodged plans for a new residential tower in <a href="https://www.apartments.com.au/developments/newstead-qld-4006">Newstead</a>, continuing the rapid transformation of one of Brisbane's most sought-after, inner-city precincts.

Bottletree Holdings, an entity associated with Stanbroke Managing Director Brendan Menegazzo, has submitted a development application for a 28-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/9-longland-street-newstead-qld-4006">9 Longland Street</a>, a site that made headlines last year when it changed hands in an off-market transaction that reportedly set a benchmark land rate for the suburb.

The proposal would replace an existing two-storey commercial building on the 1,510 sqm corner site with a Bureau Proberts-designed tower comprising 76 apartments, ground-floor retail, office space and a suite of resident wellness amenities.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="c710a836-568e-4382-bc91-3c34b8e80a8b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.41.45%E2%80%AFAM.png?VersionId=Vy.mQWBc7GA_a.vIBdxKqRC9XGjWalo2" />

According to planning documents lodged with Brisbane City Council, the development would comprise a mix of 36 two-bedroom apartments, 24 three-bedroom apartments and 16 four-bedroom residences, positioning the project firmly at the premium end of the market. The apartments would sit above a podium containing retail and commercial space, with three levels of communal recreation facilities spread throughout the tower. The proposal also includes 198 car spaces and 95 bicycle spaces.

Bureau Proberts has drawn heavily on Newstead's industrial heritage in developing the architectural response.

"Occupying a prominent corner in the heart of Newstead, the proposal draws from the area's industrial lineage of robust brick warehouses to deliver a distinctly contemporary response," the architects said in the design statement.

"It is conceived as a subtropical sanctuary and elevated private retreat embedded within one of Brisbane's most vibrant lifestyle precincts."

The design seeks to reinterpret the traditional Queensland vernacular through wraparound verandahs, deep shading elements and permeable facades that respond to Brisbane's subtropical climate.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="25524f59-395c-4825-8fad-9b639822fa8a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.09%E2%80%AFAM.png?VersionId=dlWlbpCc_g3Y6yTLGqRVKvGJvO2ubMJ3" />

Planning documents describe the building as embodying the principles of "buildings that breathe", a design approach increasingly favoured in Brisbane's apartment market as developers focus on natural ventilation and outdoor living spaces.

The tower itself would rise above a heavily landscaped podium designed to reference the woolstore architecture that helped define Newstead and neighbouring Teneriffe for generations. At ground level, fine-grain retail tenancies would activate Longland Street, Wyandra Street and the existing Wyatt Street laneway, further extending the pedestrian network that has become a hallmark of the Gasworks precinct.

The application notes that more than 54 per cent of the site would be dedicated to landscaping and deep planting, while approximately 1,750 sqm of communal recreation space would be delivered across multiple levels.

<img alt="Planning" data-entity-type="file" data-entity-uuid="fed3b189-1054-4b68-af5f-b0befc4a66e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.19%E2%80%AFAM.png?VersionId=gqeE3cjsbnLAfeTUKA1HtPZfqDs6S4Xa" />

Bottletree paid $22 million for the 1,510 sqm development site, equating to more than $14,500 per sqm, a reflection of the strong demand for development opportunities in Newstead. The suburb continues to attract both developers and buyers, underpinned by the ongoing evolution of the Gasworks and Teneriffe precincts into some of Brisbane's most sought-after lifestyle destinations.

Brisbane City Council's Sustainable Growth Strategy and Inner City Strategy both identify Newstead as a priority growth precinct capable of accommodating additional housing density due to its proximity to employment hubs, public transport and lifestyle infrastructure.

The proposed tower joins a growing pipeline of high-end apartment developments in the suburb. Fortis recently launched <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a>, a 65-apartment owner-occupier-focused development on Kyabra Street, while Consolidated Properties Group is preparing to launch <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a 227-apartment waterfront project on Skyring Terrace.

Meanwhile, builder-developer BPG is planning its own Newstead project on Maud Street, comprising just over 100 apartments and more than 1,380 sqm of dedicated wellness and resident amenity spaces, further highlighting the shift towards lifestyle-driven apartment developments in Brisbane's inner-city market.

Newstead apartment boom continues with Longland Street tower plans

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

<html><body>
Acacia Gardens in Sydney's north-west has recorded its first $1 million plus residential house sale.
Kent Pilkington of Laing+Simmons Quakers Hill has negotiated the sale.
The Acacia Gardens house sold for $1.05 million – the first time a house in postcode 2763 has broken the $1 million barrier.
The 13 Gannet Place had four large bedrooms each with its own ensuite and walk-in robe.
The block cost $300,000 in 2009.
The previous record was $870,000 on Hibiscus Close.
</body></html>

jchancellor-FAypfDUnLy

Acacia Gardens notches up first $1 million plus house sale

<html><body>
The Green Building Council of Australia (GBCA) has awarded the first 6 Star Green Star – Communities rating to a residential masterplanned development at Alkimos Beach, north of Perth.
The first stage of the development, to be delivered by Lend Lease and LandCorp, will comprise 2,000 homes over 240 hectares. Upon completion, the master-planned development will cover 710 hectares.
LandCorp chief executive Frank Marra said the company intends to develop Western Australian residences sustainably.
"We encourage innovation and are delighted that our Alkimos Beach project has been recognised by the nation's authority on sustainable buildings and communities and acknowledged as a world leading development with global significance," said Marra.
The <a href="https://www.alkimosbeach.com.au/" target="_blank">Alkimos Beach development</a> was assessed by GBCA according to innovation, design, environmental sustainability, economic and liveability criteria. The result was announced at the Green Cities conference 2015.
Upon completion, the project will have six hectares of conservation reserves and 41 hectares of dune and foreshore reserves. According to LendLease, houses will be at most 800 metres from the local centre and transport links and 200 metres from a park space.
The masterplanned development will also include WiFi in public spaces.
While Lend Lease has been recognised for sustainability measures in its developments previously, these have largely been in single buildings and fitouts, said GBCA chief executive Romilly Madew.
"This 6 Star Green Star rating for a community project sets the bar for world leadership community development and demonstrates a long-term commitment to sustainability at scale," Madew said.
"We applaud the range of initiatives – from education campaigns to financial incentives to technology – that will help the residents of Alkimos Beach embrace more sustainable living."
"The importance of this rating cannot be understated. Lend Lease, LandCorp and the people of Alkimos Beach now have independent proof that this community will deliver economic, social and environmental sustainability. And the industry has proof that 'world leadership' benchmarks in community development are achievable."
</body></html>

jrichardson-uRX5hFdKfN

Alkimos Beach gets tick from Green Building Council

<html><body>
Held by the one family for nearly 100 years, the latest Paddington cottage listing fetched $1.2 million tonight.
Close to Five Ways, the 6 <a href="https://bradfieldcleary.com.au/4862721/6-Broughton-Street-Paddington" target="_blank">Broughton Street offering</a> is as Paddington was back in 1915 within the two bedroom cottage.
The time capsule went auction through BradfieldCleary agent Georgia Cleary.
It was too hard for picky Paddington home buyers it seems.
Instead it was left to three builders to compete for the Victorian workers' cottage when it was auctioned by Damien Cooley who was reluctant to accept the $900,000 opening bid.
They could probably undertake the necessary works for around $400,000, whereas non-builders would probably face $800,000 easily spent.
More than $1 million was tipped to be pocketed by the current day Christensen family members.
Title records show it last traded when a tramway worker purchased it from a local labourer for £400 around 100 years ago.
 
</body></html>

Paddington's 1915 time capsule sells for $1.2 million

<html><body>
An old-time Longueville boat shed with a $3 million plus bayside home has been listed for March 21 McGrath auction.
The view from the <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-longueville-nsw-2066/249649" target="_blank">14 Dunois Street offering</a> are towards the yachts on Woodford Bay.
There is a 31 metre frontage to the Lane Cove River.
<img src="/images/2015/03/17/logueville_0000_1.jpg.jpg" alt="">
</body></html>

Idyllic old-time Longueville, Sydney boat shed listed for auction

<html><body>
Vacancy rates across Australia were down last month with Melbourne and Canberra's markets tightening the most, according to SQM Research. Meanwhile, vacancy rates continue to escalate in Darwin and Perth.
The national vacancy rate was down to 2.2% with 66,094 vacancies, from 2.3%, with 69,847 vacancies recorded in January.
Click to open in new window:
<a href="/images/2015/03/17/sqm-mar-17-one.jpg" target="_blank"><img src="/images/2015/03/17/sqm-mar-17-one.jpg" alt=""></a>
Source: SQM Research
SQM Research attributes Melbourne's vacancy rate drop of 0.5 percentage points between January and February to workers and tertiary students commencing the year after summer holidays. The research house recorded a 2.3% vacancy rate, down from 2.8% in the previous month. At the same time last year, Melbourne's vacancy rate was at 2.4%.
The same post-holiday influx of student and workers was credited with Canberra's vacancy rate downturn, with the rate dropping from 2.0% in January to 1.6% in February. Canberra has recorded the biggest decline in its vacancy rate over the past 12 months of any capital city, with the rate at 2.1% in February 2014.
In Perth and Darwin, SQM Research managing director Louis Christopher predicts that vacancies are likely to continue to climb throughout the year. While Darwin's vacancy rate was down slightly for the month, from 3.3% to 3.2%, in February of last year it was at just 1.3%. Likewise, in Perth the vacancy rate has remained stable at 2.6% over the past two months, but is up from February 2014's 1.9% result.
However, Christopher does not think escalating vacancy rates are necessarily quarantined to Perth and Darwin.
"Ongoing weakness in commodity prices will filter through to the jobs and property markets in Perth and Darwin," says Christopher.
"Nationally, a continuation in below-trend economic activity will likely push the unemployment rate up towards 7%, which will ultimately work to keep a lid on vacancy rates and rents in other capital cities, though Sydney rents may prove more resilient, having grown at close to 8% for housing over the year to March 10, given the city's tight vacancy rate."
Of all the capital cities, Hobart has the tightest rental market, with a 1.3% vacancy rate and just 358 vacant properties in February.
</body></html>

National rental market tightens over February: SQM Research

<html><body>
The award winning Haddow House sold for $3,571,000 at auction last weekend, a rare feat for Fitzroy North.
Nelson Alexander sales agent Arch Staver, who marketed the property with Rick Daniel, says the sale "really did test the market".
"North Fitzroy is not full of warehouse conversions," Staver told Property Observer, noting that renovated industrial sites are more common in the neighbouring Fitzroy, or the inner-eastern suburb of Richmond.
"It really was a stand out property".
The six bedroom home at <a href="https://www.realestate.com.au/property-house-vic-fitzroy+north-119046907" target="_blank">11 Tucker Place in Fitzroy North</a> certainly does stand out, even among its fellow warehouse conversions.
The vendors commissioned Belgian architect Daniel van Cleemput to design the renovation of the home for their blended family. On the 545 square metre former factory site, van Cleemput designed the cleverly structured house, surrounded by gardens. Its design saw the home awarded the ARCHITEAM 2012 award for Best Design, Residential, New, and featured in architect and commentator Stuart Harrison's 2013 book New Suburban.
When van Cleemput was commissioned, the warehouse had no roof, just external walls.
{qtube vid:=hXPu9VE_2Tg}
The house, while offering flow between both the interior living spaces and between the interior and exterior, also provided privacy for its residences.
The home's enclosed bedroom spaces are all on the upper level, with the teenagers and the two adults living in separate parts of the building, connected by an outside deck. The parent's retreat includes a hydraulic-doored "pod" with a kitchenette, wardrobe and study, and opens directly to the hilltop garden. Meanwhile, the children's area has five double bedrooms, each with a view to the gardens, two shower rooms and a separate toilet.
On the lower level, there are open plan living, dining and kitchen areas, with full height sliding doors opening the interior to the surrounding gardens. The exterior is further invited in through translucent walls, which draw in the natural light. The outdoor spaces include a landscaped garden "hillside", a spa and deck and plant covered high walls.
Despite the house's connection with nature, it still retains many industrial features, including raw finishes and a structure exposed by its translucent panelling.
At Saturday's auction, there were around 200 observers, with three active bidders. Bidding for the warehouse conversion off a cobbled laneway began at $3 million with a bid from the eventual buyer, and came onto the market at $3.4 million. The $3,571,000 result makes it the most expensive known sale of a warehouse conversion in Fitzroy North, with the second highest known to Property Observer being a brick double fronted single level home at <a href="https://www.realestate.com.au/property-house-vic-fitzroy+north-114997019" target="_blank">7 Tranmere Street</a>, which sold for $1,105,000 in October 2013.
According to CoreLogic RP Data, <a href="/news">Fitzroy North</a> houses recorded 10.3% capital growth over 2014, with a median house price of $1.5 million in January 2015.
</body></html>

Fitzroy North's Haddow House warehouse conversion sells for more than $3.5 million

<html><body>
Strong Sydney weekend auction results included 1 Stansell Street, Gladesville (pictured above) which sold at $2.85 million through Paul Tassone &amp; Ahmad Malas of Professionals Ermington.
Auctioneer Rob Trovato of Auction Services saw a huge crowd of around 300 people with 28 registered bidders for the small cottage nestled between a unit block and a service station.
I<a href="https://www.domain.com.au/property/sold/house/nsw/gladesville/?adid=2011759011" target="_blank">t had a zoning of R4 Mixed Use</a> for its 714 square metre holding.
There were reports the property - described as a highly sought after opportunity in the marketing - sold at $1.1 million above the out of line reserve to a developer who plans to rent it out before eventually redeveloping the site.
Even before Saturday's auction, Gladesville agents were having serious issues with getting their pre-auction price estimates close to final sale price.
February results saw Gladesville top the list across Sydney in February when they studied price guidance against sold price.
RealAs advised 60% of home auctions in metropolitan Sydney suburbs were "underquoted" in February 2015 with buyer price guidance.
<table style="width: 460px;">
<colgroup>
<col width="22">
<col width="150">
<col width="90">
</colgroup>
<tbody>
<tr>
<td> </td>
<td>
Top 10 NSW gaps
</td>
<td>
Sold Price vs
Agent Quote
</td>
</tr>
<tr>
<td>
1
</td>
<td>
Gladesville
</td>
<td>
28%
</td>
</tr>
<tr>
<td>
2
</td>
<td>
Ryde
</td>
<td>
23%
</td>
</tr>
<tr>
<td>
3
</td>
<td>
Marsfield
</td>
<td>
21%
</td>
</tr>
<tr>
<td>
4
</td>
<td>
Cammeray
</td>
<td>
20%
</td>
</tr>
<tr>
<td>
5
</td>
<td>
Wahroonga
</td>
<td>
18%
</td>
</tr>
<tr>
<td>
6
</td>
<td>
Carlingford
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
7
</td>
<td>
Balmain
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
8
</td>
<td>
Beecroft
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
9
</td>
<td>
Manly
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
10
</td>
<td>
Lilyfield
</td>
<td>
15%
</td>
</tr>
<tr>
<td> </td>
<td>
Source: realAs.com
</td>
<td> </td>
</tr>
</tbody>
</table>
The site said low price guidance wasted home buyers’ time, money and causes heart ache.
"Home buyers and property investors spend their time attending open for inspections and auctions, money on building inspections, legal fees and rental appraisals only to have their hearts broken on auction day when their dream home sells for way higher than what their budget allowed," realAs director Josh Rowe said.
The New South Wales Government has said it will crack down on underquoting behaviour.  
</body></html>

Gladesville price quotes at way below actual selling prices: realAs

<html><body>
Cooley Auctions has reported the eastern suburbs pre-auction sales rate jumped to plus 50% this week.
There were seven pre-auction sales - most at undisclosed prices - among the 13 Monday night offerings.
The highest was $4.1 million at <a href="https://www.realestate.com.au/property-apartment-nsw-double+bay-118099391" target="_blank">Cross Street, Double Bay</a> (pictured above) through 1st City.
Set in The Gallery, it last sold at $3.85 million in 2008.
<img src="/images/2015/03/17/auctions-results-mar-17-one.jpg" alt="">
Source: Cooley Auctions
"This is the strongest market I have seen in my 15 year real estate career and the highest percentage of pre-auction sales ever experienced by Cooley Auctions," auctioneer Damien Cooley told Property Observer. 
"Buyers are relentless with their bullish tactic of buying before auction." Damien Cooley proffered there are two main reasons why property sells before auction in the current market. 
"First is the fear of missing out given the competitive sales. 
"It's possible the buyer has missed out at other auctions and in frustration they attempt to secure the property before. 
"Secondly and more commonly is the fear of paying more at auction."
Pre-sales typically run at between 20% and 25%.
During February Cooley noted it was running at 38%.
</body></html>

Cooley Auctions see eastern suburbs pre-auction sales rate jump to 50%

<html><body>
An Armadale house designed by late Melbourne architect Wayne Gillespie has sold.
The three bedroom home secured $3.55 million when sold through RT Edgar Boroondara last week.
Atypically, <a href="https://www.realestate.com.au/property-house-vic-armadale-118788407" target="_blank">7A Flete Avenue</a> has an in-ground pool located at the front of the plot, rather than the back - residents pass the north-facing pool and the sandstone terrace as they enter the house through the side.
The house has open plan living and dining areas on its lower levels, with a conservatory area at the rear. On the upper level, there are three bedrooms, including a master with a north-facing balcony overlooking the pool.
At $3.55 million, the house was the eighth most expensive to sell last week, according to CoreLogic RP Data.
The most expensive was a $6.5 million Rose Bay house at 22 Kent Road, which sold after 25 years of ownership.
CoreLogic RP Data's top 10 sales of the week ending 15 March:
<ol>
<li>22 Kent Road, Rose Bay, NSW 5 bed, 3 bath, 2 car house $6,500,000 McGrath Estate Agents 
</li>
<li>26 Strickland Street, Rose Bay, NSW 5 bed, 5 bath, 5 car house $5,200,000 Sydney Sotheby's International Realty 
</li>
<li>28 Rowland Street, Kew, Vic 4 bed, 2 bath, 1 car house $3,840,000 Marshall White Real Estate Hawthorn 
</li>
<li>58 Narrak Road, Balwyn, Vic 5 bed, 4 bath, 2 car house $3,800,000 RT Edgar Boroondara 
</li>
<li>13 Palmer Street, South Coogee, NSW 4 bed, 2 bath, 2 car house $3,700,000 Ellison Zulian Property Maroubra 
</li>
<li>433 Bronte Road, Bronte, NSW 4 bed, 2 bath, 2 car house $3,650,000 McGrath Estate Agents 
</li>
<li>78 Carrington Parade, Curl Curl, NSW 4 bed, 3 bath, 4 car house $3,600,000 Smyth Estate Agents Freshwater 
</li>
<li>7 Flete Avenue, Armadale, Vic 3 bed, 2 bath, 2 car house $3,550,000 RT Edgar Boroondara 
</li>
<li>175 Raglan Street, Mosman, NSW 3 bed, 3 bath, 2 car house $3,320,000 Ray White Lower North Shore 
</li>
<li>2/43 Tobruk Avenue, Cremorne, NSW 4 bed, 2 bath, 2 car unit $3,275,000 Belle Property Neutral Bay</li>
</ol>
</body></html>

Wayne Gillespie designed Armadale home sells for $3.55 million

<html><body>
Market outlook: neutral (upgraded to reflect positive turnaround in several indicators).
<ul>
<li>Renting and buying are now equally balanced options (as at March 2015).</li>
<li>Purchase affordability has improved again (as at March 2015).</li>
<li>Confidence in the economy is low but potentially at a turnaround point (as at March 2015).</li>
<li>Housing Credit Impulse points again to a stronger demand for real estate (as at March 2015).</li>
<li>Prices are elevated in relation to mortgage credit flow but can be sustained without problems if flow of funds into the market continues (as at January 2014).</li>
</ul>
National Real Estate Price Forecast
The year has started with a renewed optimism about the Australian residential property market after a period of noticeable slowdown in the second part of 2014.
January property finance figures were very strong, and that was even before the interest rate cut.
In February, RBA reset the overall market conditions by reducing interest rates to a historically low 2.25%.
In an environment where growth in prices was slowing and where incomes were progressing at a steady, albeit moderate, pace it resulted in a significant improvement in purchase affordability.
The reset in purchasing costs increased the attractiveness of buying, when compared to the second half of 2014.
In addition, there are signs that negative expectations about the economy are ready for a reversal (the raw measure turned up in November 2014 and is rising).
All in all, the March quarter estimates point to a very buoyant market. If current enthusiasm can be sustained and continues into the autumn selling season, 2015 can be expected to deliver another year of solid growth in property prices.
We will have to wait until the next set of figures are released to confirm whether this positive turnaround is just a temporary aberration or a more lasting trend.
Detailed Analysis
#1 optimal accommodation choice: renting and buying are equally balanced options
<img src="/images/2015/03/13/BRI_March2015.png" alt="">
The Buy-Rent Indicator (BRI) identifies how cost of buying is changing in relation to cost of renting.
The latest estimate implies a substantial fall in BRI value, indicating that buying costs are now changing at a comparable pace to rental costs.
BRI is constructed based on the simple concept that renting and buying are substitute accommodation options; hence the optimal choice depends on which accommodation cost is rising in relation to the other.
The practical use of this indicator is for identifying market cycles and for timing purchase and sale decisions.
The reversal of the direction of the indicator is the result of the recent slowdown in growth of the national property prices as well as a reduction in mortgage rates. Both those factors contributed to the reduction in growth of purchasing costs which are now changing at the same pace as rental costs.
Cut in mortgage rates so late in the cycle, that is, after two years of rising property prices, is somehow unusual but it is not totally unprecedented.
The reset caused by RBA’s decision gave prospective buyers another opportunity to jump on the property ownership bandwagon.
Although this is not the most optimal time for buying (the optimal timing was at the bottom of the cycle in early 2012), nevertheless if interest rates are cut further and there is only a moderate growth in prices, the cost of buying will be rising slower than cost of renting, making purchasing a more attractive accommodation option. This scenario can be compared to the situation experienced in March 1999.
Only a very substantial rise in prices and/or interest rates can make buying unattractive again, as it happened in 2000.
#2 purchase affordability: at a historically high level and improving again
<img src="/images/2015/03/13/PAI_March2015.png" alt="">
The Purchase Affordability Indicator (PAI) compares changes in the annual cost of buying to changes in average full time adult income; therefore, it identifies how purchase affordability has changed over time.
The March 2015 PAI estimate points to a reversal in the direction of the indicator, and hence, to improvement in purchase affordability.
This indicator explains that, in historical terms and relative to incomes of Australians working full time, property prices are still very affordable.
And thanks to RBA’s February decision on interest rates and continued, modest but steady, growth in incomes, the recent downward trend has been halted and purchase affordability is increasing again.
It may be hard to believe that after two years of price rises it can be the case but recent auction clearance rates leave no doubt how buyers feel about current prices.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
#3 perceptions about economy: still negative but no longer deteriorating
<img src="/images/2015/03/13/EWI_Maach2015.png" alt="">
The Economic Wellbeing Index (EWI) is designed to reflect general perceptions of Australians about the current economic conditions.
The EWI has been falling since June 2013 but the trend is now levelling out. The raw measure recorded a small fall in March 2015 but it has been rising for the last few months.
The key premise behind this indicator is that people are generally less inclined to make big purchases when they are worried about the state of the economy.
The perceptions about the Australian economy, although still negative, are no longer deteriorating. And there are signs they are about to start reversing. However, the overall negative outlook for the economy is keeping the lid on the rate of growth of property prices. Without that restraint, chances are, we would be experiencing a rerun of early 2000’s. We all remember what happened then…
#4 demand: strong and expanding again
<img src="/images/2015/03/13/PHCI_March2015.png" alt="">
The Private Housing Credit Impulse (PHCI) provides an indication of the level of buyer activity in the residential property market in Australia, hence it reflects underlying demand for properties.
The March 2015 PHCI estimate reversed from falling to rising again, resuming the upward trend. PHCI is as its highest level since 2005, implying the highest rate of acceleration in housing credit in a decade.
The practical use of this indicator is to provide early warning about impending changes in housing credit uptake, and hence, changes in the underlying demand for residential property.
The March 2015 PHCI estimated value indicates a substantial rise in the underlying demand for the residential property in Australia. Hence, property prices have potentially much further to run in this cycle as the Australian public embraces the abundance of cheap credit. Perhaps, the scenario of a return of early 2000’s is not totally out of the question...
#5 property price expectation: growth very likely to continue at moderate pace
<img src="/images/2015/03/13/PPG_March2015.png" alt="">
The Property Prices Gauge (PPG) is a proxy of a property price index. It becomes a leading indicator when combined with House Price Index (HPI).
PPG increased in January 2015 but the indicator continues to lag behind HPI.
The fourth in a row rise in the value of the PPG confirms the resumption of an upward trend of the indicator after several months of relatively flat results (that is, between March and September of 2014).
This gives the confidence that prices are reasonable and are well supported at current levels.
However, the gap between PPG and HPI is still large, and therefore, further price growth is expected to be kept in check (that is, at current growth levels or lower rate).
Arek Drozda is an independent property market analyst.
# Caveat - The information is provided in good faith and does not constitute financial advice. Use with caution and at own risk.
# Background information - For more extended description of individual measures and how to apply this information please refer to the first report in this series: <a href="/expert-insights/buying/buying-more-advantageous-than-renting-yet-change-imminent-april-2014-state-of-the-market-analysis">State of the Property Market, April 2014</a>.
</body></html>

Latest Buying Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Buying Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News