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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Docklands News recently reported on a proposal by company FCT Flames in conjunction with Avant-Garde de Studio to build a 'giant fountain and flame show'. According to the report the fountain and flame show would attract more than five million people to Docklands annually and generate at least $230 million for Victoria's economy every year.

From the <a href="http://www.docklandsnews.com.au/editions/article/docklands-offered-major-attraction_10532/">Docklands News report</a>:

<blockquote>
The fountain, which could also be transformed into a floating performance and event stage, would be located in Victoria Harbour, at the end of Central Pier.

Choreographed to music, the fountain would be programmed to music during the day and flames, pyrotechnics, video projection and lasers could be added at night for an even more awe-inspiring show.

With each show running for around 15 minutes, the fountain could be programmed to run multiple times per day or just a few nights per week.

It could also be programmed to match particular themes or special events.
</blockquote>

The populist view of Docklands is one of failure, wind-swept streets, and a lack of reasons for people - other than those who live or work there - to visit. My own view is not necessarily for or against the populist viewpoint, but it does involve various feelings which could be best described as moderate disappointment with a dash of faint positive hope for the future.

We've seen many attraction ideas for Docklands over the years with the most recent prior to the fountain and light show being a wave pool and urban beach at the end of Central Pier. To be frank, Melbourne isn't a beach city.

Sure, the metropolitan area wraps around an enormous body of water, but we're not a surfie city. Likewise the way Melbourne positions itself outside the typical koala, kangaroos and life's-a-surf-beach 'brand Australia' is our greatest strength.

The aspect I like the most with this proposal as reported in Docklands News: it's a robust outdoor space which can be adapted as needed and it would be accessible from multiple precincts within Docklands.

Victoria Harbour, the stadium precinct, Central Pier itself, Newquay and Waterfront City would all benefit from increased visitor activity and the impact on retail and hospitality facilities would have a more profound impact than an enclosed beach and wave pool.

The Docklands news report explores the proposal in more detail including looking at potential residential impacts and I recommend reading it. The video below is linked from the report.

Could this be the ticket for Docklands?

<iframe allowfullscreen="" frameborder="0" height="315" scrolling="no" src="https://www.youtube.com/embed/R_5zugCFij4" width="100%"></iframe>

Lead image credit: <a href="http://en.wikipedia.org/wiki/The_Dubai_Fountain">The Dubai Fountain, Wikipedia.</a>
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Alastair Taylor

A giant fountain in Docklands: could it be the ticket?

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Despite a drop in Sydney and Melbourne listings for January, property listings Australia-wide increased last month, according to SQM Research.
There was a marked increase in Darwin and Perth in particular, who have seen price downturns in the past year, which <a href="https://www.sqmresearch.com.au/" target="_blank">SQM Research</a> attributes to a slowdown in local mining industries.
<img src="/images/2015/02/09/sqm-feb-9-one.jpg" alt="">
Source: SQM Research
Across Australia, stock on the market was up 1.9% over January to 351,509 homes. The result was 2.7% higher than in January 2014.
Both Sydney and Melbourne recorded a drop in listings for the month, with Melbourne stock on the market down 0.8% and Sydney's listings down 3.1%.
Louis Christopher, managing director of SQM Research, said: "The Sydney market remains strong and we expect a very strong opening to the Sydney auction season this weekend. However this localised market strength is not really being experienced anywhere else outside Sydney. I would even argue that Melbourne remains patchy.
"Going forward, this week's rate cut should boost demand at the national level but we must remember local economic conditions are taking precedence in certain cities, namely those cities exposed to the mining downturn. As one can see with our listings and asking prices indexes, Perth and Darwin appear to be in deep trouble."
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jrichardson-uRX5hFdKfN

Property listings increase over January: SQM Research

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Residential property developer AVJennings Limited has achieved a strong profit result on increased revenue of $118.5 million, up 13.7% on the corresponding period.
Increased production levels in improving market conditions were the catalyst for the strong first half results. It has previously advised affordability is an ongoing challenge but has been assisted by the benign interest rate outlook for the foreseeable future, only moderate price growth on the urban fringe of most capital city markets and Government incentives. 
It has also recently noted strong interest in purchasing lot equivalents shown by third party builders and developers across the states. 
AVJennings Chairman Simon Cheong advised today he expects contract signings for the year ending 30 June 2015 in the range of 1,700 to 1,900 lots; previously to was 1,500 to 1,700 lots.
Highlights for the half year ended 31 December 2014 were: • Profit up 34.9% to $16.8 million before tax and $11.9 million after tax • Revenue up 13.7% to $118.5 million • Work in progress levels up 58% to 1,539 lots compared to 31 December 2013 levels • Settlements up 22% to 660 lots (contract signings higher at 872 lots)
AVJennings CEO Peter Summers said consumer confidence was highest in New South Wales, and that Sydney remained the strongest market in the country with a continuing supply shortage and strong demand. The Sydney strength was pushing through to the Central Coast market too.
“Demand in Brisbane continues to rise with positive knock-on to the Noosa, Caloundra and Coomera markets, which are now also firmly in recovery," said Summers.
"The Melbourne residential land market remains stable, with the company generally experiencing good demand on its projects in the east and north-east of the city.
"The South Australian residential market remains stable but subdued overall.”
Lots under development continued to grow reaching 1,539 (1,264 lots as at 30 June 2014 and 974 lots as at 31 December 2013), which Summers said is a key indicator of future positive performance. The level of completed unsold stock remains stable and low.
AVJennings controlled 9,418 lots at balance date.
It recently contracted to purchase two new land parcels at Cobbitty, New South Wales comprising approximately 227 lots contiguous with its <a href="https://www.avjennings.com.au/NSW/DevelopmentProfiles/Arcadian_Hills.aspx?ShowMap=true" target="_blank">existing</a><a href="https://www.avjennings.com.au/NSW/DevelopmentProfiles/Arcadian_Hills.aspx?ShowMap=true" target="_blank"> Arcadian Hills project</a> (pictured above).
Arcadian Hills' first residents movied in during October 2014 as stage one of the estate had nearly sold out and the release of stage two brought forward due to demand. 
Just two years ago it cut the value of its Cobbitty, NSW project where bureaucratic red tape had been costly on getting approvals at its then 43 hectares of residential-zoned land in Sydney's south-west, where it hoped 470 lots could be developed.
Peter Summers told AV Jennings shareholders that market fundamentals remained positive, with strong consumer confidence to transact in housing bolstered by low interest rates and inflation, underlying housing shortages in some markets (especially Sydney and Auckland), strong population growth and a stable domestic macroeconomic outlook over 2015-2016.
 
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jchancellor-FAypfDUnLy

AVJennings profits up so buys more land for house and land packages at Cobbitty Arcadian Hills 

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The most affordable Sydney property reported sold at the weekend was a two bedroom unit on Equity Place at Canley Vale (building pictured above).
It sold for $307,000 through <a href="https://www.century21.com.au/property/314025/" target="_blank">Century 21 Southwest Fairfield agent Nick Dilles</a> to an owner occupier.
It last sold at $175,000 in 2009, having sold for even more in boom time 2004 at $195,000.
It was available for rent at a $260 asking rent of a week in 2011. It was most recently rented at $290 a week.
"It was a second floor unit in a modern block with great long term tenants on an expired lease," Dilles told Property Observer.
 It had two large bedrooms, large lounge/ dining area, eat-in kitchen, internal laundry, plus one bathroom.
The most expensive property reported sold at auction at the weekend was a three bedroom home at 27 Riverside Drive, Sans Souci (pictured below) that sold for $2,700,000 by Raine and Horne Sans Souci.  
<img src="/images/2015/02/09/sans%20souci%20feb%209%20one.jpg" alt="">
 
The 873 square metre waterfront reserve block sits opposite the water.
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Sydney's weekend cheapest, but big bounce back for Canley Vale offering

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Not too much has been happening at the top end of Sydney’s market, estate agent John McGrath candidly advised last week.
But things could be about to change, he suggests joining the long queue of forecasts following the global financial crisis that took a swath through toppy prices across Sydney.
"I’m betting the prestige market will perform very well in 2015, thanks to increasing money coming in from overseas, the continued strengthening of the financial services and banking sectors, returning ex-pats, and the declining Australian dollar," he summed up.
Anecdotal evidence can be seen in sales data, with McGrath Mosman, on Sydney’s Lower North Shore, recording $60.3 million in sales in December last year, a 167% increase when compared to December 2013.
He widens his blue-chip popularity prospects - especially with wealthy Chinese buyers - to Sydney's eastern suburbs. 
"Chinese interest in Australian property remains high but the next big trend is going to be India. 
"Like China, it has a rising middle class and trade is increasing between our two countries," he noted on his Switzer blog. 
One in five migrants entering Australia in FY13 were from India, according to the Department of Immigration; and private business investment from India has actually increased at a faster rate than China. (
"It is up 75.8% 2008-2013 compared to China 41.7%," McGrath indicated.
McGrath's migration outlook is a little more bullish than Macquarie Wealth Management research which suggest after a stellar run up, there are some early signs of moderation in net overseas migration, with the latest figures easing slightly back to an annual pace of 231,500, down 3% from its mid-2013 peak.
Macquarie noted the pace of migration remains high by historical standards, being 74% above the 30-year trend of around 133,000.
"These firm levels of net overseas migration continue to be the dominant driver of demand, as newly arrived immigrants tend to have more urgent housing needs than other forms of population growth, such as a new birth," Macquarie noted.
While 2014 saw more transactions, there was no noticeable price growth, McGrath conceded. Records show the group sold 27 properties above $7 million in 2014, or 42 properties above $6 million.  
In 2013, the group sold 18 properties above $7 million, or 34 properties above $6 million.
"An increase in transactions is always a positive sign that growth is on the way." 
Property Observer notes the two recent Point Piper listings that come after a busy year last year, and a $28 million sale already this year.
David Trew, the former Australian chief executive of CFD providers CMC Markets and City Index, has put his <a href="https://www.domain.com.au/property/for-sale/house/nsw/point-piper/?adid=2011485536&amp;sp=2" target="_blank">harbour front trophy home up for sale</a>. The three-level 1920s Hardy Wilson-designed cosy cove home was bought by Trew’s wife paid $25 million on Wolseley Road in 2009. It has been listed by Elliott Placks, of Ray White, who has been telling inspectees that there had been five sales above $30 million in Point Piper in the past year.
The one with gun barrel views is by McWilliam family who have listed <a href="https://www.domain.com.au/property/for-sale/house/nsw/point-piper/?adid=2011755677&amp;sp=1" target="_blank">their hillside offering through Brad Pillinger</a> (pictured above), seemingly with plans to move elsewhere on the peninsula.
In late December 2014, RP Data released a report showing the highest median value suburbs in every capital city for the year to September 2014. These are the prestige markets where the big money was being spent last year. 
Here are the top three suburbs in each state and territory for median house prices in 2014.  
Sydney 
1. Centennial Park - $5.494 million
2. Point Piper - $5.427 million
3. Elizabeth Bay - $4.834 million
Melbourne 
1. Toorak - $2.922 million
2. Kooyong - $2.104 million
3. Canterbury - $2.100 million
Brisbane 
1. Teneriffe - $1.520 million
2. New Farm - $1.259 million
3. Ascot - $1.235 million
Canberra 
1. Forrest - $2.151 million
2. Red Hill - $1.372 million
3. Yarralumla - $1.320 million
Perth 
1. Peppermint Grove - $3.741 million
2. Dalkeith - $2.551 million
3. Cottesloe - $1.867 million 
Adelaide 
1. Springfield - $1.642 million
2. Medindie - $1.486 million
3. College Park - $1.476 million 
Hobart 
1. Battery Point - $818,000
2. Sandy Bay - $659,000
3. Tolmans Hill - $622,000
Darwin 
1. Larrakeyah - $1.289 million
2. Fannie Bay - $1.125 million
3. Bayview - $1.089 million 
Source: RP Data 
"When activity in prestige property increases, it bodes well for the whole market," he concluded.
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Betting on a prestige market price recovery: John McGrath

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The January CoreLogic RP Data Home Value Index results show that combined capital city home values have increased by 7.9% over the 2014 calendar year. 
Taking the rate of inflation into account over the same period, the rate of value growth has been more moderate at just 6.1% due to annual inflation of 1.7%.
Nominal home value growth has been strong in Sydney and Melbourne and moderate across all other cities while Canberra saw values fall over the year.  
<img src="/images/2015/02/05/data-feb-5-one.jpg" alt="">
<img src="/images/2015/02/05/data-feb-5-two.jpg" alt="">
When you adjust for inflation, the weak growth outside of Sydney and Melbourne is more prominent with values falling over the year in Darwin and Perth.
In real terms, Sydney was the only city to see home values increase in double digits over the year, rising by 10.6%.  In Melbourne, real home values rose by 5.8% over the year and along with Sydney, was the only city to record real home value growth of more than 3.0% in 2014.  
Across the combined capital cities, home values reached a quarterly peak in September 2010 and fell by as much as -11.9%. 
As at December 2014, combined capital city home values were still -1.3% lower than their previous peak. 
Sydney is the only city where home values are higher than their previous peak; up 10.4% from the previous peak which occurred all the way back in the first quarter of 2014.  Home values in Melbourne are nearing a new record high while in all other capital cities home values remain well below previous peaks.  
<img src="/images/2015/02/05/data-feb-5-three.jpg" alt="">
It’s worth noting just how long ago the previous inflation adjusted peaks were in Brisbane (March 2008), Perth (September 2007) and Hobart (December 2007).
An ongoing trend in the capital city housing market has been the higher levels of growth in Sydney and Melbourne compared to the other cities.  After home values reached a peak in early 2008 they fell by more than -6% to the end of 2008 during the height of the financial crisis.  After that time home values once again started to rise however, the rate of growth has been much greater in Sydney and Melbourne than in any of the other capital cities.
<img src="/images/2015/02/05/data-feb-5-four.jpg" alt="">
Sydney and Melbourne have recorded real home value increases of 34.4% and 26.9% respectively over the six years to December 2014.  Each of the remaining capital cities has recorded cumulative real home value increases of less than 10%. 
The results show that real home values have fallen over the past six years in each of Brisbane (-6.5%), Adelaide (-3.5%) and Hobart (-14.6%).  The growth in home values over this period has been very narrow-based focussed mainly on Sydney and Melbourne which have continued to be the strongest markets in 2014.
Although overall combined capital city home value growth has been strong over the past few years it has been heavily influenced by Sydney and Melbourne.  The reality is that outside of the two largest cities there has been very little real home value growth for more than six years. 
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tlawless-5VLUrbAk9s

House price peaks and troughs - only minimal growth outside of Sydney and Melbourne after inflation: Tim Lawless

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Way back in 2013 there were a slew of articles doing the rounds warning us that Sydney's housing market was set to slow imminently.
Some commentators were wrong-footed by the regular mid-year falls in CoreLogic RP-Data's home value index. Others felt banks would be unable to fund further growth due to inadequate deposit growth leading to a dearth of credit availability.
As I noted back at that time, you can study charts until the ink falls off the page, but unless you are in the market buying properties, there is always a risk that you will miss a key intangible - sentiment - and as noted on this blog I felt that 2013 and 2014 would be very strong years for Sydney property. December 2013 was perhaps the most marked month of buyer mania that I experienced - with fear of missing out abounding - but generally the market has remained very robust throughout. Sydney's home values have been rising at a rate of well over $2,000 per week for more than 18 months.
<img src="https://1.bp.blogspot.com/-YFWkDFQTu_A/VNco0X3VXKI/AAAAAAAAS_g/R8Ih_7ujW9E/s1600/SYd1.jpg">
Will the market stall?
It's a truism, of course, to say that the market will stall eventually, for trees don't grow to the sky. But will this eventuate this year?
Two main reasons have been given by commentators as to why the market Sydney's market may now stall. Firstly, market regulators might stamp on lending practices, killing off demand. And secondly, it has been said that there aren't enough owner-occupiers in the market to keep upwards pressure on prices.
It is certainly the case that the monthly number of owner-occupier loans being written in the Sydney market has been looking peaky for a long time - since Q2 2013.
<img src="https://1.bp.blogspot.com/-AqOjWGUcIMY/VNco0k34quI/AAAAAAAAS_c/5UByv9BHFLs/s1600/Syd2.jpg"> 
However, movements in dwelling prices are set at the margin, and both average mortgage values written and the price that home buyers are prepared to pay for Sydney dwellings have been soaring since around February 2012.
<img src="https://2.bp.blogspot.com/-5QjVB_rShPA/VNco0RLmbjI/AAAAAAAAS_Y/XZSOrBAkPmE/s1600/SYD3.jpg"> 
Markets are forever granular. I feel that 2015 will be a bumper year for Sydney's inner ring suburbs where investors are running riot; the outer suburbs it's more difficult to say, for I have less first-hand evidence with which to work. 
Below are seven other reasons why the Sydney inner ring market may continue to fire through this calendar year.
<img src="/images/2014/07/04/yellow-one.jpg" alt="">Reserve needs a consumption boom
In its <a href="https://www.rba.gov.au/publications/smp/2015/feb/html/index" target="_blank">Statement on Monetary Policy</a> (SOMP) released on Friday, the Reserve Bank of Australia (RBA) detailed its latest growth forecasts. The growth forecasts seem remarkably optimistic, with GDP growth expected to rebound quickly towards 4% by 2017.
 
 <img src="https://3.bp.blogspot.com/-U3qUyY0VwMg/VNaD0ACtstI/AAAAAAAAS-I/tDQ82nJLtm4/s1600/RBA1.jpg">
 
These forecasts seem particularly upbeat when one considers the component parts of demand and output growth as at the end of Q3 2014.
Although exports are clearly ramping up at speed and housing construction activity is solid, mining investment had collapsed by more than 15% over the preceding year, and 5% in the latest quarter alone. 
Our chart packs show that this <a href="https://petewargent.blogspot.com.au/2015/01/capex-bustlook-out-below" target="_blank">will continue</a> through 2015.
<img src="https://4.bp.blogspot.com/-tCivMyc7VwM/VNaD0ZZ10ZI/AAAAAAAAS-Q/iR5HrnpWOoo/s1600/RBA2.jpg"> 
How then, is the RBA hoping to restore growth to the economy aside from rising export volumes and hopefully a spurt in non-mining capex? 
Two of the planned drivers of growth feature house prices implicitly. 
Firstly, rising house prices are expected to keep the residential construction boom ("dwelling investment") running stronger for longer, although this alone will only comprise perhaps 3.5% of GDP.
And secondly wording of the SOMP is quite explicit in that the Reserve Bank expects rising house prices "should provide further support to consumption growth" via the associated wealth effect.
In fact, the SOMP notes that investor credit growth is likely to continue at its current pace, while also highlighting that mortgage prepayments "are at a high level".
Realsitically, the RBA needs a consumption boom, and the desire to constrain mortgage lending appears very muted, almost an after-thought. 
<img src="/images/2014/07/04/yellow-two.jpg" alt=""> Interest rates have been falling anyway
Mortgage rates are not set by the RBA, but by lenders, and funding costs for Australia's banks fell through 2014.
The average interest rate on outstanding housing loans has continued to slide over recent months - even prior to the February cash rate reduction.
This trend has largely been driven by the replacement of more expensive pre-existing fixed rate loans written prior to 2013.  Over the past year there also have been reductions in advertised interest rates on fixed rate and variable rate loans, in particular the 5 year fixed rates on offer from the majors.
Competition for lending is clearly very strong and both interest rate discounting and broker commissions have increased over the past year.
 <img src="https://4.bp.blogspot.com/-ANPexV15AWg/VNaD1WU_kLI/AAAAAAAAS-Y/rnMnDjxZxqw/s1600/RBA4.jpg">
 <img src="https://2.bp.blogspot.com/-jE6YOzM0C8E/VNaD1urnMlI/AAAAAAAAS-c/e71pXbz4vBc/s1600/RBA5.jpg"> 
On top of this, less than a week ago, the cash rate was cut to just 2.25%. 
Major lenders passed on the full 25bps cut, while Westpac passed on 28bps on its standard variable mortgage rates.
Moreover, analysis of averages often leads to average conclusions. Remember, housing markets are frequently driven by trends at the margin. 
By way of an example of products available to new market entrants, U-Bank announced that it had cut its variable rate to just 4.68%, with a 0.33% discount for new customers. 
If variable mortgage rates from 4.29% don't light a fire under Sydney's housing market I don't know what will.
<img src="/images/2014/07/04/yellow-three.jpg" alt=""> Interest rates will fall even further
One thing we can be certain of is that the RBA would not have cut interest rates in the past week had it felt that only one cut was needed - rate cuts tend to come in pairs. 
In fact, for those paying close attention, the SOMP signalled loud and clear the RBA's intention to cut rates further. 
The key wording is here:
"In preparing the domestic forecasts, a number of technical assumptions have been employed. 
"The forecasts are conditioned on the assumption that the cash rate moves broadly in line with market pricing as at the time of writing."
In short, GDP growth is expected to rebound, but with the help of a cash rate falling to 2% or lower. Markets are pricing in another interest rate cut in the first half of 2015, with implied yields on January 2016 cash rate futures contracts dipping as low as 1.88%, representing some 37bps of further cuts priced in.
 <img src="https://3.bp.blogspot.com/-QR3jiQQbx1w/VNdLdgjmcRI/AAAAAAAAS_4/ZoGm8Do_Hec/s1600/CRF.jpg">
Just in case this wasn't clarity enough, the RBA even marked a line on its cash rate chart to match what cash rate futures markets have already been foretelling - that interest rates are likely to be cut again in due course to 2%. 
<img src="https://3.bp.blogspot.com/-A5H1zPjWRhU/VNaD0lKX1gI/AAAAAAAAS-M/QdBb4xV3LkI/s1600/RBA3.jpg"> 
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
<img src="/images/2014/07/04/yellow-four.jpg" alt=""> Investor loans are exploding
The potential peak in the number of owner-occupier loans written is one thing - what is happening with Sydney's property investors is quite another.
The $5.26 billion of loans written in the last month of available data was by some margin the greatest month of investor lending in any state in Australia's history.
<img src="https://3.bp.blogspot.com/-hEcu8sGi144/VNaGryGMk1I/AAAAAAAAS_I/YxPEELHwh4g/s1600/ILBS.jpg"> 
Cheaper lending rates are only set to be more fuel for the bonfire. <img src="/images/2014/07/04/yellow-five.jpg" alt=""> Nobody's leaving Sydney any more
Sydney's housing market has just about gotten away without building very much for the best part of a decade because in years gone by 20,000 to 30,000 persons per annum typically departed the state, bound for cheaper or sunnier climes.
Not any more. Net interstate migration from New South Wales has fallen to the lowest level on record as Sydneysiders opt to stay put for superior employment prospects.
 <img src="https://4.bp.blogspot.com/-5RwDFcVMSYw/VNaFAFPV4TI/AAAAAAAAS-8/2b-05yuOKSI/s1600/NIM.jpg">
<img src="/images/2014/07/04/yellow-six.jpg" alt=""> There's no stock overhang
Vendors in Melbourne sensing a market peak have been ploughing stock onto the market for some time now, and with an inherent stock overhang 2015 appears likely to be a slower year for dwelling price growth in the Victorian capital.
However, <a href="https://sqmresearch.com.au/pdf/StockmarketJanuary2015.pdf" target="_blank">SQM Research</a>'s figures show that Sydney's stock on market has tightened yet further, falling below 20,000 in January 2015.
<img src="https://2.bp.blogspot.com/-x5ynSdB6S34/VNaD17WJ4MI/AAAAAAAAS-k/-EwQ5mUhHXQ/s1600/SQM.jpg"> 6 - Foreign buyer 'crackdown'?
What about the mooted foreign buyer 'crackdown'? 
Mr Hockey has noted that: "We are actually delivering tougher laws on foreign investment at the same time as ensuring we continue to welcome record levels of foreign investment into Australia”.
Hardly convincing, and the kind of double-speak that would make even Winston Smith blanch - and it's been three decades since 1984.
Hockey has also pointed out that he will soon announce the introduction of an agricultural land register, and a requirement for all purchases of such to be subject to "approval over a certain financial point".
Ditto.
<img src="/images/2014/07/04/yellow-seven.jpg" alt=""> Risk on
Finally, term deposit rates are now at previously unthinkably low levels in Australia, with most products featuring a "three handle" and deposit rates looking set to decline yet further.
If you're looking for a bellwether for risk asset appetite, check out the share price performance of Commonwealth Bank (CBA) or other yield plays over the past three weeks.
Meanwhile the ASX 200 (XJO) has recorded 12 positive trades on the bounce, the longest such run in its history. Inner suburban rents have <a href="https://petewargent.blogspot.com.au/2015/01/inflation-mixed-bag" target="_blank">continued to rise</a> in Sydney, and investors do not need to look too hard to find gross yields of 4.5% on attached dwellings.
The Wrap
Commentators have been calling a slowdown in Sydney's markets for at least 18 months now, but it looks more than likely that 2015 will be another year of strong capital growth in the inner ring suburbs.
Expect Sydney auction clearance rates to kick off in the high 70% range in 2015 as the market finds its feet. Consistent readings of above 80% are typically indicative of boom-like growth.
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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pwargent-M4siyDbqQY

Seven reasons why the Sydney inner ring market may continue to fire: Pete Wargent

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Sydney's 82% weekend auction success rate was right up there.
The weekend was the second with reasonable 2015 auction offerings, with the results from Domain Group's Australian Property Monitors up from the initial revised 69% of last weekend, January 30.
There were 297 offerings in Sydney, with results in for 272.
Melbourne's weekend auction success rate was a bit more pedestrian at 67%, which was not too dissimilar to the 65% of last weekend.
The REIV reported a catchup clearance rate of 61% had been recorded between 22 December 2014 and 7 February 2014.
The APM dearest February 7 weekend auction sales results
<table style="width: 460px; height: 119px;" border="0" cellspacing="0" cellpadding="5"><tbody align="left">
<tr id="ecxrpMostExpensive_trMostExpensiveRow_0">
<td id="ecxrpMostExpensive_tdMostExpensiveCity_0" align="left">Sydney</td>
<td id="ecxrpMostExpensive_tdMostExpensiveLocation_0">27 Riverside Dr, Sans Souci NSW 2219, 3 br House, R&amp;H Sans Souci $2.7m</td>
</tr>
<tr id="ecxrpMostExpensive_trMostExpensiveRow_1">
<td id="ecxrpMostExpensive_tdMostExpensiveCity_1" align="left">Melbourne</td>
<td id="ecxrpMostExpensive_tdMostExpensiveLocation_1">6 Bishop Ct, Mount Waverley VIC 3149, 2 br House, Jellis Craig $1.48m</td>
</tr>
<tr id="ecxrpMostExpensive_trMostExpensiveRow_2">
<td id="ecxrpMostExpensive_tdMostExpensiveCity_2" align="left">Adelaide</td>
<td id="ecxrpMostExpensive_tdMostExpensiveLocation_2">22 Preston Av, Brighton SA 5048, 3 br House, Gary J Smith RE Glenelg $908,000</td>
</tr>
<tr id="ecxrpMostExpensive_trMostExpensiveRow_3">
<td id="ecxrpMostExpensive_tdMostExpensiveCity_3" align="left">Brisbane</td>
<td id="ecxrpMostExpensive_tdMostExpensiveLocation_3">7 Rule St, Hendra QLD 4011, 6 br House, RW Ascot $1.52m</td>
</tr>
</tbody></table>
The APM most affordable sales 
<table style="width: 460px; height: 96px;" border="0" cellspacing="0" cellpadding="5"><tbody align="left">
<tr id="ecxrpMostAffordable_trMostAffordableRow_0">
<td id="ecxrpMostAffordable_tdMostAffordableCity_0" align="left">Sydney</td>
<td id="ecxrpMostAffordable_tdMostAffordableLocation_0">6/20 Equity Pl, Canley Vale NSW 2166, 2 br Unit, C21 Southwest Fairfield $307,000</td>
</tr>
<tr id="ecxrpMostAffordable_trMostAffordableRow_1">
<td id="ecxrpMostAffordable_tdMostAffordableCity_1" align="left">Melbourne</td>
<td id="ecxrpMostAffordable_tdMostAffordableLocation_1">4/32 Birdwood St, Frankston VIC 3199, 2 br Unit, C21 Home Port $215,000</td>
</tr>
<tr id="ecxrpMostAffordable_trMostAffordableRow_2">
<td id="ecxrpMostAffordable_tdMostAffordableCity_2" align="left">Adelaide</td>
<td id="ecxrpMostAffordable_tdMostAffordableLocation_2">5/56 Northcote Tce, Gilberton SA 5081, 2 br Unit, LJH Modbury $365,000</td>
</tr>
<tr id="ecxrpMostAffordable_trMostAffordableRow_3">
<td id="ecxrpMostAffordable_tdMostAffordableCity_3" align="left">Brisbane</td>
<td id="ecxrpMostAffordable_tdMostAffordableLocation_3">12 Hope St, Kingston QLD 4114, 4 br House, Professionals Logan Lifestyles $248,000</td>
</tr>
</tbody></table>
On the same weekend last year Sydney had a strong 78% clearance rate from 301 listings. Melbourne had 261 offerings and a 67% success rate this time last year. 
APM's senior economist Dr Andrew Wilson noted the "super strong" clearance rate in Sydney at 82.4% was achieved from significantly higher listings than last weekend's 97. 
"The market remains white hot as interest rates fall," <a href="https://twitter.com/docandrewwilson" target="_blank">he tweeted</a> to his 933 followers.
AMP Capital economist Shane Oliver had a different interpretation suggesting yes the auction clearances were solid: But he tweeted "Syd 82% (likely 78% after revisions), yr ago 79%; Melb 67%, yr ago 68%." "Can't see big impact from rate cut though," he tweeted.
The ABC reported on a Port Hedland auction where the fibro cottage was passed in at auction for $360,000 unsold - its highest offer reflecting 2006 price levels.
It last traded four years ago for $1.3 million, and before that at $870,000 in 2009 and at $350,000 nine years ago in 2006. 
The three bedroom, one bathroom 1960s house sits in the heart of the Western Australian mining town. It is within the business and commercial district, opposite developments and not far from the boat ramp, Marapikarrinya Park, and fishing wharf.
<img src="https://i1.au.reastatic.net/456x342/49a5c01f21af367a5de7fb681e52e33ab038ed15221a465a6c2527b549f59a26/main.jpg" alt="18 Edgar St, Port Hedland, Port Hedland" title="18 Edgar St, Port Hedland, Port Hedland" data-index="0">
Real estate agent Barry Walsh at Jan Ford Real Estate told the ABC the top bid was a sign the mining boom's construction phase had tapered off.
Negotiations continue for the sale of the cottage with 145 square space on its 600 square metre block.
It was initially listed for private treaty sale in June 2013 at $1.42 million.
Property Observer understands its most recent rental asking price was $800 a week in mid-2014, having been in excess of $2000 a week in 2008 and 2011, when it was last sold.
Last month the controversial research body, Demographia noted the affordability of <a href="/expert-insights/buying/karratha-one-of-australias-most-affordable-towns-as-prices-decline">WA mining </a><a href="/expert-insights/buying/karratha-one-of-australias-most-affordable-towns-as-prices-decline">towns had improved</a>.
Last July Property Observer Terry Ryder wrote<a href="/expert-insights/port-hedland-and-karratha-the-best-places-to-buy-dont-get-roped-into-that-one"> Port Hedland and Karratha</a> "the best places to buy"? Don't get roped into that one, he advised a year after an earlier warning.
In 2012 Property Observer reported <a href="/news/qld/moranbah-and-port-hedland-unsustainable-single-industry-mining-boom-hotspots-westpac">Westpac viewed Port Hedland as an "unsustainable" single industry mining boom hotspot</a>.
Back in Sydney Cooley Auctions weekend clearance rate was 88% selling 21 of 24. It included two at Caringbah South which collectively sold at $120,000 over reserve.
Rocky Bartolotto at Auction Services secured seven from seven on the day reporting registered buyer numbers were strong across Sydney with an average of eight per property. 
"This is up from 6 buyers compared to February 2014," he advised.
CoreLogic Rp Data advised a preliminary weighted average clearance rate of 66.9% was recorded this week across all the capital cities compared to 61.6% last week and 68.2% this time last year. "This week's result compares well to the 2014 market when an overall clearance rate of 67.8% was recorded," spokesperson Robert Larocca said.
"It also reflects the moderate growth recorded in home values this year. "The positive impact of the rate cut will take a few weeks to be apparent on a national wide scale as volumes are still low. 
"If the rate cut is to encourage a few more active buyers and sellers it will also take a few weeks to be obvious." In Sydney a preliminary clearance rate of 80.5% recorded compared to 77.9% last week and 79.5% last year. In Melbourne a preliminary clearance rate of 61.4% was recorded compared to 66.3% last week and 67.5% this time last year. In Brisbane a preliminary clearance rate of 45.6% was recorded compared to 43.3% last week. In Adelaide a preliminary clearance rate of 61.1% compared to 52.7% last week. In Canberra a clearance rate of 62.8% was recorded compared to 72.7% last week. In Perth a clearance rate of 35.7% was recorded.
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Sydney's weekend auction clearance rate soars to 82%, but Port Hedland highlights how the mighty can fall

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Prime Minister Tony Abbott today said he wanted to enforce the Foreign Investment Review Board (FIRB) residential rules "because, obviously, the last thing we want to be doing is pricing young home buyers out of the market".
He told Alan Jones on 2GB that Kelly O’Dwyer, as the chairman of a parliamentary committee was looking at the fact that the former Labor government never enforced the prohibitions on foreign purchasers of existing residential properties.
"Now, what sort of a government has rules and never actually enforces them?" <a href="https://www.pm.gov.au/media/2015-02-06/interview-alan-jones-radio-2gb-0" target="_blank">he said</a>.
Tony Abbott foreshadowed within a few weeks his government would be putting the policy that he took to the election into action.
The Australian Financial Review wrote earlier this week the government’s response to the ­parliamentary report on the issue was discussed by cabinet on Tuesday and Wednesday. 
“There has been evidence which will emerge over time that there has been a significant increase in the number of foreigners buying Australian residential real estate unlawfully,” Treasurer Joe Hockey told Fairfax Radio.
“It hasn’t been enforced because it never was enforced under the previous government... You’re about to see that change.”
A parliamentary inquiry led by Liberal MP Kelly O’Dwyer, who was recently promoted to Parliamentary Secretary to the Treasurer, handed in its report to the government last November.
The report actually found that foreign investment was, on the whole, of benefit to the country and was not the main cause of any recent steep increases in property prices.
It did, however lash out at the FIRB fair failing in monitoring and enforcing the laws.
There have been no prosecutions made against foreign buyers for illegal residential property purchases since 2006.
One of the inquiry's key recommendations was the creation of a national register linking records of land transfers with citizenship and migration residency status, to better track of foreign investment.
The government’s moves on foreign investment in real estate were heralded in ­Tony Abbott’s speech to the National Press Club last Monday.
“I am a friend of foreign investment but it has to come on our terms and for our benefit,” Abbott said.
Australians were "anxious" about the country's economic sovereignty, especially foreign purchases of agricultural land," Mr Abbott said.
"And better enforcement of the rules against foreign purchases of existing homes so that young people are not priced out of the market."
The national initiative will rely on state government co-operation in amending transfer purchase documentation.
Property Observer gleans all states, barring South Australian, have agreed to the federal government's wishes.
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Tony Abbott suggests foreigners pricing out young home buyers

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Creating a system can be quite simple and helps you achieve more in less time.
Not too long ago I met with one of my builders.  The builder and I started working together when I introduced a particular type of development and in a short period of time we’d already completed five projects together. But I knew we could still fine tune our process.  He’d had some recent staff changes, so it was the perfect time to gently tell him exactly how I wanted my developments to run. 
Before the meeting I prepared a draft procedures document which was based on the way we had been doing things up until then.
But it wasn’t until I started documenting pretty much everything we did that I realised how much was involved in this somewhat basic development strategy.  What started in my mind as a one pager has turned into four. It’s funny how we simplify in our minds a process because we’ve done it time and time again.  But when you really break it down in writing, you can see all the fine details.
Using a system or procedure keeps me on track with our projects .I now literally have a written system for everything I do.  It gives me something tangible to show to my clients and helps explain exactly what I really do when managing their development.   It’s also an important tool to use when training new staff as they have a documented procedure to follow.  
By the end of the meeting with my builder, we had agreed on a three very important changes that impact the bottom line of all my developments:
<ol>
<li>We changed our standard floor plan slightly to make it more cost effective to build, without reducing the size. Now I could offer my clients a cheaper build price that will not impact on the end value or rental return.</li>
<li>We changed the payment schedule so my clients would pay less in the first half of the build phase, saving them valuable holding costs.</li>
<li>We minimised choice to save time. By setting up standard inclusions plus a list of ‘optional extras’ it meant that clients would not feel overwhelmed by choice on fittings, fixtures and colour selections and we could manage this process faster moving to the next step and saving time.</li>
</ol>
I put the new system into action immediately and we started getting more done, in less time.  As they say, time is money.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
This article previously appeared on Property Observer in June, 2014.
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