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

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A preliminary weighted average clearance rate of 70% was recorded this week across capital cities compared to 67.3% last week and 70.2% this time last year.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Capital-City.jpg" rel="wp-prettyPhoto[g4273]"><img class="aligncenter size-large wp-image-4274" src="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Capital-City-580x431.jpg" alt="National auction review - Capital City" width="580" height="431"></a>
The market performed to recent trend this week and results between now and the Labour Day long weekend should provide a clearer indication as to the state of the auction market this year.
In Sydney a preliminary clearance rate of 77.9% recorded compared to 80.6% last week and 80.2% last year. The Sydney auction market has not shown any sign of weakness following the stand out year in 2014.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Sydney.jpg" rel="wp-prettyPhoto[g4273]"><img class="aligncenter size-large wp-image-4275" src="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Sydney-580x376.jpg" alt="National auction review - Sydney" width="580" height="376"></a>
In Melbourne the auction market improved following the lowest clearance rate in 26 months last week. The preliminary clearance rate was 67.4%, compared to 60.7% last week and 69.2% this time last year.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Melbourne.jpg" rel="wp-prettyPhoto[g4273]"><img class="aligncenter size-large wp-image-4276" src="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Melbourne-580x378.jpg" alt="National auction review - Melbourne" width="580" height="378"></a>
In Brisbane a preliminary clearance rate of 50.6% was recorded compared to 47.6% last week.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Brisbane.jpg" rel="wp-prettyPhoto[g4273]"><img class="aligncenter size-large wp-image-4277" src="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Brisbane-580x375.jpg" alt="National auction review - Brisbane" width="580" height="375"></a>
In Adelaide a preliminary clearance rate of 72% compared to 58.2% last week.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Adelaide.jpg" rel="wp-prettyPhoto[g4273]"><img class="aligncenter size-large wp-image-4278" src="https://blog.corelogic.com.au/wp-content/uploads/2015/02/20150216-Adelaide-580x387.jpg" alt="National auction review - Adelaide" width="580" height="387"></a>
In Canberra a clearance rate of 72.2% was recorded compared to 67.9% last week.
In Perth a clearance rate of 33.3% was recorded.
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rlarocca-zWhvjay44N

National clearance rate of 70% recorded for the weekend: Robert Larocca

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The cheapest weekend sale at Sydney auction was $380,000 for a Merrylands apartment.
The 7/23 St. Ann Street, Merrylands flat was leased for $360 per week for the past year or so.
The vendor was moving overseas, the Century 21 listing agent Nick Papas said. It sold prior to auction to a mum and dad investor.
The first floor, two bedroom, one bathroom apartment was marketed as a property "ideal for the first home buyer or smart investor". Century 21 South West Fairfield secured the sale with Papas telling Property Observer he thought the 4.9% yield was pretty good for the market.
There was an 83% weekend clearance rate according to Australian Property Monitors.
Sydney's north west reported a perfect score at the weekend with a 100 percent clearance rate, APM senior economist Dr Andrew Wilson said.
 Next best was the neighbouring upper north shore with 92 percent, followed by the inner west with 91.4 percent and the highest sales at 53. 
The city and east recorded a clearance rate of 89.4 percent with the lower north 86 percent, the northern beaches 85 percent, Canterbury Bankstown 80 percent, the south 78.4 percent, the west 69.4 percent, the south west 67.9 percent and the central coast 50 percent. 
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jchancellor-FAypfDUnLy

Merrylands Sydney's cheapest sells on 4.9% yield

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Apartment number 18 at 85 Caroline Street in South Yarra - better known to the public as the apartment Josh and Charlotte renovated on The Block - was passed in at auction on the weekend.
<a href="https://www.domain.com.au/property/sold/apartment-unit-flat/vic/south-yarra/?adid=2011650147" target="_blank">The apartment</a>, owned by buyer advocate and upcoming Block judge Frank Valentic through his company Advantage Property Consulting on behalf of investor clients, was passed in at $390,000 and sold after auction for $445,000, according to Fairfax reports.
Valentic's company bought entire block of 18 one bedroom apartments at 85 Caroline Street – unrenovated – for $6.35 million in June last year, meaning that each apartment on average cost Valentic and his clients $352,778.
While apartment 18 is the first to sell after The Block renovations, it isn't the first to be offered to residents to live in.
Since the complex was purchased by Advantage Property Consulting (in December 2013, presumably settling in June 2014) half of the apartments have been listed to rent – some of which came with The Block makeovers, prior to the series even coming to air.
Here's how the apartments at 85 Caroline Street have paid off for investors:
<ul>
<li>2/85 Caroline Street:</li>
</ul>
The apartment renovated by Tim and Anastasia on The Block was advertised to rent on 4 December for $410 per week. It no longer appears on online rental listings, so has presumably been secured by a tenant. Taking an average price of $352,778, the apartment would yield 6.0% at $410 per week.
<ul>
<li>4/85 Caroline Street:</li>
</ul>
Advertised to rent at $380 per week in November 2014. Potential rental yield: 5.6%
<ul>
<li>6/85 Caroline Street:</li>
</ul>
Advertised to rent at $300 per week in November 2014. Potential rental yield: 5.6%
<ul>
<li>8/85 Caroline Street:</li>
</ul>
Advertised to rent at $350 per week in mid-July 2014. By the end of July, the asking rent had been adjusted to $290 per week. Potential rental yield: 4.2%
<ul>
<li>9/85 Caroline Street:</li>
</ul>
Advertised to rent at $390 per week in early December 2014. By 24 December, the asking rent had been lowered to $365 per week. Potential rental yield: 5.7%
<ul>
<li>11/85 Caroline Street:</li>
</ul>
Advertised to rent at $330 per week in November last year. Potential rental yield: 4.9%
<ul>
<li>13/85 Caroline Street:</li>
</ul>
Advertised to rent at $370 per week in October 2014. Potential rental yield: 5.4%
<ul>
<li>14/85 Caroline Street:</li>
</ul>
Advertised to rent at $360 per week in December 2014. Potential rental yield: 5.3%
<ul>
<li>17/85 Caroline Street:</li>
</ul>
The apartment made over by eliminated contestants Luke and Ebony is currently advertised to rent at <a href="https://www.domain.com.au/property/for-rent/apartment-unit-flat/vic/south-yarra/?adid=9563511" target="_blank">$400 per week on Domain</a>, though listed at<a href="https://www.realestate.com.au/property-apartment-vic-south+yarra-415048003" target="_blank"> $395 per week on realestate.com.au</a>. At $395 per week, it would yield 5.8%.
<ul>
<li>18/85 Caroline Street:</li>
</ul>
The apartment renovated by remaining contestants Josh and Charlotte. Passed in at auction and sold after auction for $445,000 - a gain of $92,222 or 26%, before taking into account renovation costs.
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jrichardson-uRX5hFdKfN

Curse of The Block? How the other Caroline Street apartments have performed

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Moonee Ponds had the weekend's top auction sale in Melbourne.
The $2.44 million trophy home - a simple Calirfornian bungalow at 26 Ardmillan Road - last sold at $915,000 in 2003.
The 1920s house came with 275 square metre one level space on its 805 square metre block.
It was renovated in 2004.
David Vaughan at Nelson Alexander secured the weekend sale having offered buyers a $2.2 million to $2.4 million price guidance.
The next highest was a likely knockdown house on a 1,736 square metre corner site at 112 Winmalee Road, Balwyn through Peter Dixon and William Chen of Jellis Craig.
A clearance rate of 74% was recorded on the Valentine's Day weekend compared to 65% last weekend and 70% the same weekend last year.
There were 458 auctions reported to the REIV, with 338 selling and 120 being passed in, 61 of those on a vendor bid.
TOP 5 HOUSES
<ol>
<li>26 Ardmillan Road, Moonee Ponds $2,440,000</li>
<li>5 Winmalee Road, Balwyn $2,344,000</li>
<li>6 James Street, Surrey Hills $2,218,000</li>
<li>38 Manning Road, Malvern East $2,115,000</li>
<li>37&amp;39 Bradley Street, Newport $1,850,000</li>
</ol>
TOP 5 BARGAIN HOUSES
<ol>
<li>24 Marie Street, Doveton $265,000</li>
<li>45 Middleton Drive, Woori Yallock $276,000</li>
<li>191 Werribee Street, Werribee $285,000</li>
<li>28 Piccolotto Drive, Melton West $315,000</li>
<li>20 Citronelle Circuit, Brookfield $330,000</li>
</ol>
TOP 5 APARTMENTS
<ol>
<li>1/721 Toorak Road, Malvern $1,620,000</li>
<li>36A Anne Street, Mckinnon $1,231,000</li>
<li>1/19-21 Ormond Esplanade, Elwood $1,230,000</li>
<li>17A Dickmann Street, Richmond $1,195,000</li>
<li>1B Hamilton Avenue, Blackburn $1,055,000</li>
</ol>
TOP 5 BARGAIN APARTMENTS
<ol>
<li>2/18 Third Avenue, Dandenong North $255,000</li>
<li>3/44 Type Street, Richmond $270,000</li>
<li>6/62 Snell Grove, Oak Park $290,000</li>
<li>340 Grand Boulevard, Craigieburn $310,000</li>
<li>9/52 Caroline Street, South Yarra $310,000</li>
</ol>
Source REIV
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Moonee Ponds tops Melbourne's Valentine's Day auctions

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GUEST OBSERVATION
With all of the growth that property in Sydney experienced last year, you would expect there to be a correction over the coming year. A halt, a significant slowdown, anything to balance out the growth that saw the New South Wales capital experience value growth far and away beyond any other capital city in the country.
However, it seem there may be more to come. For anyone who has bought investment property in Sydney or is thinking of doing so, the latest releases from several experts indicate that capital gains can still be made in droves in the Harbour City.
Boys cry wolf while Sydney carries on 
In the 27 January SQM Research newsletter from sterling commentator Louis Christopher, he put paid to those decrying the Sydney market and anticipating its failure.
"Sooner or later they will be right but right now, a slowdown currently happening in Sydney? Hardly," he wrote. He says he spent the entire Christmas period meeting and speaking with agents and industry experts, all of whom had a busy holiday period for property.
Christopher does not see property growth dropping below 8% this year, especially if the interest rates fall. And given the Real Estate Institute of Australia's enthusiasm for a cash rate cut from the RBA because of the Consumer Price Index, this may just happen.
However, Christopher doesn't expect heavy growth to go on forever. While the predicted downturn hasn't happened yet, it may still happen in the coming years. This suggests that the near future could still be a good time to engage a buyers' agent and make an investment in Sydney property, while there are still gains to be made.
Brisbane behind, but Sydney's growth unbeatable
According to the Domain Group Home Price Report for the December quarter, Sydney's median house price rose 4.1%, while the median unit price rose 2.9%. This brought the final annual growth figures for homes and apartments to 14.1 and 10.4% respectively, head and shoulders above the competition.
Andrew Wilson, senior economist with Domain also noted that Sydney shows no signs of stopping this growth. Wilson is forecasting growth of between 7% to 10% for 2015.  Sydney’s median house price is now $873,000 and median apartment price $597,000. 
Not all suburbs will experience significant growth.  While low interest rates continue to support strong borrowing activity, investors and home buyers need to be careful to look at the long term value of the property they are buying.  Look for suburbs where there are good transport options, excellent schools, close to shops and where there is limited potential for over-development.  Many suburbs in Sydney could be rezoned for higher density so you don’t want to buy in areas where there is any possibility of over-supply.
While increasing prices means great returns on dwelling investment, the flipside is that buying a property becomes more expensive. 
Rich Harvey is an economist, investor and the CEO and founder of buyer's agency <a href="https://www.propertybuyer.com.au%20" target="_blank">Propertybuyer</a>.
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rharvey-JMQneTqnM9

Is Sydney really still going strong?

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The Blacktown, Sydney vendor - who advertised a $1 reserve price ahead of today's auction - secured $565,000 on his investment property.
Vendor Neil Tyagi purchased the four bedroom 1960s Blacktown home 11 years ago, for $310,000 in November 2004, reflecting 6% annual price growth.
It was $5000 more than what he wanted - $560,000 - when it was initially listed unsuccessfully in early November last year.
The opening bid was, no surprise, $1, then jumping to $30.
The eventual buyer first bid at $400,000. There were 35 registered parties, with around 14 managing a bid, in what proved to be a marketing masterstroke by the relieved selling agent Raj Bhandari who said he didn't want a "textbook auction."
With 384 of the results reported, Domain Group's APM put the preliminary clearance rate at a strong 83.2 per cent, up from the revised 81.2 percent of the prior Saturday.  The Blacktown suburb's median house price sits at $537,000, <a href="/news">according to CoreLogic RP Data</a>, up 3.8% annually on the $355,000 median in 2004, so an above trend growth price was secured at the auction.
"It is a high risk," the agent proffered about the stunt, adding he hoped there would be over 100 in attendance.
The taxi business owner and vendor Neil Tyagi suggested the $1 reserve was intended to inject some fun back into auctions, although the NSW Fair Trading sent a stern letter advising it must be sold.
"Buying a property should be fun. I wanted to do something different, and I've never heard of a property setting a $1 reserve. Sydney home buyers attend so many boring textbook auctions. I want the auction of my home to have a lively, exciting atmosphere that everyone will enjoy and remember – not just the lucky buyers on the day," he said.
Starr Partners Fairfield auctioned the property.
Agent Raj Bhandari throught "with a reserve of just $1, bidding on the day is likely to start out low and pick up quickly."
"We are confident with our marketing and sales strategies and know that there will be plenty of competition on the day to help the vendor achieve an optimum result," he said pre-auction.
Some industry players suggested the $1 dollar disclosed reserve was underquoting to get buyers in, which Raj Bhandari said misrepresented the listing motive. Other suggested unless surrendered, it was possible despite the reserve, for the vendor to place a vendor bid at a price that could see the property passed in.
"This is the first time in NSW that the home is going to auction with a $1 reserve," Raj Bhandari said.
"It means that after the first bid of $1.00 the home will be out of the hands of the vendors and into the hands of the bidders.
"The home will sell to the highest bidder on the day, no ifs no buts."
At busy <a href="https://www.realestateview.com.au/Real-Estate/230-blacktown-road-blacktown/Property-Details-buy-residential-8224634" target="_blank" style="line-height: 1.3em;">230 Blacktown Road</a> has four bedrooms and two bathrooms, with a double garage, and is set on a 571 square metre block.
The property is currently rented at $440 per week. It was first available for rent at $425 a week in late 2012.
A nearby three bedroom brick house on 575 square metres fetched $568,000 late last year.
Its late 2004 purchase price came as the Sydney boom was flagging out west, it having been listed at $395,000 in early 2004.
The 2004 listing agent Con Koulendianos advised Property Observer it was a "pretty flat time."
"Prices had hit a wall and didn't really recover until 2009," he said.
Now selling at Rouse Hill, he said many Blacktown vendors have relocated there over recent years. The current vendors have relocated to Quakers Hill.
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Smart gimmicky $1 Blacktown reserve Valentine's Day auction sells for $565,000

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When running your feasibility on a development project, it's important to make sure all costs are covered off.  There are set up costs, design costs, planning costs, construction costs, selling or leasing costs and of course, the dreaded holding costs.
You must calculate holding costs correctly. I've spoken to many novice property developers about their holding cost calculations. The most common mistake is to simply calculate the interest cost over the total cost of the project for the total time a project will take. 
This results in a gross over calculation of interest costs. In addition, they then don't take into consideration the tax benefits on the interest payments.
Admittedly, It's not an easy calculation because of the various timeframes and draw downs applicable over the life of the project. So I thought I'd put a case study together to demonstrate the holding costs on a dual occupancy project.
I was discussing this with my friend Shukri Barbara, who is a property tax specialist accountant at the aptly named <a href="https://www.propertytaxspecialists.com.au/" target="_blank">Property Tax Specialists</a>.
I asked Shukri if he would help me with a case study showing what the holding costs and the tax advantages on a typical dual occupancy project would be.
"The basic rule is that when an expense is incurred in earning income, it will be allowed as a deduction as long it is not capital in nature or private." Shukri said.
With this clarified, I gave him the details and assumptions for the case study. It is based on a dual occupancy development.
A property investor is buying as an 'individual' (i.e. not in a trust or company structure). The investor's taxable income is $95,000 per annum and she has purchased land that will be developed and once completed, be income producing.
Exchange on land took place on the 1st February 2015 using $5,000 deposit.
Settlement on the land occurs 1 May 2015.
The development will be completed 1 of December 2015 when tenants will move in.
Interest rate is 4.5%, and we assume the project will be 100% financed.
The land cost is $265,000 and stamp duty is $7,765 but after a NSW government grant it is reduced by $5,000 and is $2,765. Legal fees are $1,800.
The builder's contract is $460,000 and includes all costs relating to design, planning, subdivision and construction. 
The draw downs occur as follows:
<ul>
<li>1 April 2015 -  $5,000 deposit paid</li>
<li>1 Aug 2015 - slab down</li>
<li>15 Aug 2015 - Frames and trusses completed</li>
<li>15 Sept 2015 - Brickwork completed</li>
<li>1 Nov 2015 - Interior linings completed</li>
<li>1 Dec 2015 - Completion</li>
</ul>
Below is the builder's drawdown schedule:
<table style="width: 460px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="272">
DESCRIPTION
</td>
<td valign="top" width="134">
PERCENTAGE
</td>
</tr>
<tr>
<td valign="top" width="272">
Deposit paid after concept plans agreed on
</td>
<td valign="top" width="134">
$5,000
</td>
</tr>
<tr>
<td valign="top" width="272">
Installation of concrete slab (less deposit paid)
</td>
<td valign="top" width="134">
20%
</td>
</tr>
<tr>
<td valign="top" width="272">
Erection of Timber Frame and Trusses
</td>
<td valign="top" width="134">
20%
</td>
</tr>
<tr>
<td valign="top" width="272">
Brickwork, Windows and Roof Coverings to Main Section
</td>
<td valign="top" width="134">
25%
</td>
</tr>
<tr>
<td valign="top" width="272">
Interior Linings and Mouldings
</td>
<td valign="top" width="134">
25%
</td>
</tr>
<tr>
<td valign="top" width="272">
Completion
</td>
<td valign="top" width="134">
10%
</td>
</tr>
</tbody></table>
I asked Shukri what the tax benefits on the interest holding costs may be.
He explained "Interest expenses incurred while constructing properties which will produce rental income will be allowed as a tax deduction in the year it is incurred.
In the case study provided, even though the construction won't be completed until the following tax year, the interest incurred in financing the land and any progress payment will be deductible. Also deductible will be any council and water rates.
Using the case study details, we have calculated the
<ul>
<li>Amount of interest which can be deducted and </li>
<li>Tax savings which can be obtained at the end of 2015 – assisting with cash flows.</li>
</ul>
So what were the results? 
Deductible interest expense for 2015 financial year is estimated at $2,015 with tax benefit of $786.
For the 2016 financial year, the deductible interest amount is estimated at $28,197 with tax savings estimated at $10,997
The total interest holding costs for the project is $18,429 for the eleven month period that the project will take to complete. 
This particular dual occupancy project was projected to create approximately $153,000 in equity. Even after the holding costs are deducted it's not a bad return for just under a year's work. What do you think?  
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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jochivers-wq5Bp59R5a

Holding cost calculations and considerations: Jo Chivers

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Escalating dwelling values will see fewer opportunities for budget conscious property buyers, especially if their available spend is around $400,000.
January data released in the latest CoreLogic RP Data Home Value Index showed that home values increased by 7.9% in 2014 with the major focus on two of our most expensive capital cities, Sydney and Melbourne.
Auction clearance rates were also high with auction markets tending to reflect conditions across higher priced housing stock.
<img src="/images/2015/02/13/kush-feb-12-one.png" alt="">
Based on 2014 combined capital city sales, properties that sold for between $400,000 to $600,000 accounted for the greatest proportion of both house and unit sales over the year. However, the biggest difference between houses and units is the proportion of sales below $400,000.
Over 2014, 22.2% of all capital city houses sold under $400,000 compared to 35.3% for units. Similarly, only 6.1% of unit sales were over $1 million over the year compared to 16.2% of house sales.
20 years ago, 95.4% of capital city house sales were below $400,000 compared to 3.0% between $400,000 and $600,000, 1.2% between $600,000 and $1 million, and 0.4% over $1 million. Compared with current results where 22.2% of house sales were below $400,000, 33.4% were between $400,000 and $600,000, 28.1% between $600,000 and $1 million and 16.2% were above $1 million.
<img src="/images/2015/02/13/kush-feb-12-four.png" alt="">While not as extreme as the housing result, the results for units were not dissimilar. In 2014, 35.3% of sales were below $400,000, 34.2% were between $400,000 and $600,000, 24.4% were between $600,000 and $1 million, and 6.1% were more than $1 million.
20 years earlier, 95.9% of sales were below $400,000, 2.4% were between $400,000 and $600,000, 1.0% occurred between $600,000 and $1 million and just 0.6% were above $1 million.
<img src="/images/2015/02/13/kush-feb-12-two.png" alt="">
Although the combined capital city data provides an overview of the trends, when you drill down into the individual capital cities you can see some very different trends. 
Looking at the individual capital cities and across the price brackets, there is a divergence in the price point with the most sales over the year.
For houses, the $200,000 to $400,000 price bracket accounted for the greatest number of sales in Adelaide and Hobart while in Sydney it was the $1 million to $2 million bracket and each remaining city recorded the greatest proportion of house sales between $400,000 and $600,000. For units, most sales occurred between $200,000 and $400,000 in Brisbane, Adelaide and Hobart and in each remaining city most sales occurred between $400,000 and $600,000.
<img src="/images/2015/02/13/kush-feb-12-three.png" alt="">
Some of the more interesting results were that Hobart was the only city in which more than 5% of house sales occurred below $200,000 in 2014. In Sydney almost a third of all house sales in 2014 (31.6%) were over $1 million compared to 15.7% in Melbourne, 5.5% in Brisbane and 10.7% in Perth.
The sharp decline in sales below $400,000 over the past 20 years reflects the overall growth in household debt which is attributable to housing. 
It also highlights that a large proportion of Australian’s choose to build their wealth by investing in residential property. Of course, this is a good thing if you own a home but many Australian’s don’t. The sharp rise in home values leading to a decline in more affordable homes available for sale makes it more difficult for those renting to save up necessary deposits to enter in to home ownership.
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ckusher-ujnxiKuFQs

Sharp drop in home sales under $400,000: Cameron Kusher 

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A Prestons home in Sydney's south-west sold at weekend auction for $600,000.
The mortgagee sale of a three bedroom home in a quiet cul de sac had 11 registered bidders comprising of 50/50 split of first home buyers and investors. 
"The bidding opened at $400,000 seeing seven parties taking part in the bidding," Rocky Bartolotto from Auction Services said.
It was sold to a couple with two children outbid the investors in the listing through Vince Labbozzetta at Raine &amp; Horne Liverpool.
3 Huskisson Street, Prestons fetched $60,000 over reserve. The 1997 built brick home last sold in 2004 at $360,000.
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Home owners beat out investors in Prestons, Sydney mortgagee auction

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CBRE Melbourne residential projects managing director Andrew Leoncelli told the Australia 108 launch last night that the sales scenario had been supremely successful during the soft pre-launch period.
There are whispers, published in the Herald Sun, that more than 300 sales have been secured at the Southbank project.
"This is the most exciting release of an apartment project in Melbourne's history," Andrew Leoncelli said as he opened the display suite set opposite the development site.
"To break the back of the sales is a very proud achievement," he said.
With its envisaged distinctive starburst feature, the 319 metre tall building, at 70 Southbank Boulevard, will be 25 metres higher than the neighbouring Eureka Tower, Melbourne’s highest building.
<img src="/images/2015/01/15/TPA8467_Australia_108_E01_Hero%20Elevated.jpg" alt="">
The tower is being developed by Singaporean company World Class Land, a subsidiary of Aspial Corporation headed by billionaire businessman Koh Wee Seng who sees the rewarding project as "iconic".
“Residents will experience living in the clouds,” Koh added.
It will have 1,105 apartments, including a 790 super penthouse on its 100th floor with a $20 million plus price tag.
Prices for apartments between the first habitable floor at level 14 up to the 68th floor range from $450,000 to $950,000.
Three bedroom and sub-penthouse apartments between the 72nd to 99th floors starting at $1.5 million.
The advance sales saw buyers snapping up 90 of the 165 three-bedroom penthouses and sub-penthouses above level 72.
There will be over $1 billion in revenue, Andrew Leoncelli advised.
Fears of an apartment glut in Melbourne have been rejected, as the project officially goes to public launch tomorrow.
City of Melbourne date shows more units are being built than at any time in the city’s history, with most construction driven by foreign investment.
One of the Australia 108 buyers is <a href="/expert-insights/buying/family-snaps-up-five-79th-floor-apartments-in-australia-108">one local family buying five apartments</a> with intentions of combining them, on the 79th level costing over $9 million.
It was not an entire floor, as Property Observer gleans the 79th floor has eight apartments.
World Class Land engaged <a href="https://infopub.sgx.com/FileOpen/PR_AUSTRALIA_108.ashx?App=Announcement&amp;FileID=319450" target="_blank" style="line-height: 1.3em;">Fender Katsalidis Architects</a> as its building designer, and Carr Design, the firm behind the Triptych and Parque Melbourne developments, to design the interiors. 
Hirsch Bedner Associates (HBA), designers of the St Regis Abu Dhabi, will design the concierge lobbies.
“Australia 108 will be the tallest building World Class Land has ever built and we are exceptionally proud for it to also be the tallest residence in the southern hemisphere,” Koh said.
Architect Karl Fender described it as a mega-project where "the reality was better than the fantasy."
"It is the place for a vertical village," he said, which in suburbs realms would occupy 300 acres.
"I can't wait... this is a game changer for Melbourne," Fender told the launch crowd.
Australia 108 was initially mooted in 2011 for late 2015 completion with slightly higher ambitions for the site set on the corner of City Road and Southbank Boulevard which was then <a href="/news">owned by Katsalidis and property developer Adrian Valmorbida </a>from the Valmorbida family.
Former Victorian planning minister Matthew Guy supported the project viewing such a project as underlining the confidence in Melbourne.
"Australia is coming of age, and our cities are growing upwards," Guy said in 2011. "Taller buildings... are a symbol of a growing nation, a strong economy, and they do have the ability to define a city," he said.
The display suite at 55 Southbank Boulevard, Southbank is open next week from noon to 4pm, Tuesday to Thursday as well as weekends.
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