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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Terracedale, the 1873 Northcote home, sold at mid-week auction for a record $2.782 million when offered through hockingstuart Northcote.
The property at 3 McLachlan Street has easy access to Merri Creek.
The bluestone and brick residence has wide lace-trimmed verandahs.
It sits on a land holding of 1650 square metres, shaded by towering peppercorn trees.
Terracedale was <a href="https://www.hockingstuart.com.au/3_MCLACHLAN_STREET_NORTHCOTE_VIC_3070" target="_blank" style="line-height: 1.3em;">built in 1873 for the pioneer engineer William Brown</a>, one of Northcote's original grand houses.
It was the site of Melbourne's first private telephone service, from the home to church. 
Close to Westgarth Village and Rushall Station, the property had been tipped to fetch $2.5 million-plus by hockingstuart's Sam Rigopoulos and Luke Maloney. 
It has been on and off the market since 2007, with $2.65 million sought on its 2012 relisting.
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Terracedale, Northcote's $2.78 million record setting mansion

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Evolve Development and Hassell architects have come together to create South Melbourne’s ‘Jewel’, a 65 apartment development at 244 Dorcas Street.
The seven levels of apartments at <a href="https://jewelsouthmelbourne.com.au/" target="_blank">Jewel</a> are expected to attract 60% owner occupiers and 40% investors. New residents are likely to move into the $45 million project by late-2016.
All apartments come with a storage and bicycle space, while all apartments except for all 19 one bedroom apartments and five of 15 ‘premium’ one bedroom apartments have car spaces.
In total, nine one bedroom plus study apartments and 22 two bedroom, two bathroom apartments will include parking.
A retail tenancy, with a car space, will also be featured in the development.
<img src="/images/2014/12/11/south-melbourne-dec-11-one.jpg" alt="">
The one bedroom apartments, spanning 45.1 square metres internally plus a further 4.9 square metre terrace, have price indications of $395,000 to $440,000.
The ‘premium’ one bedroom apartments will be priced from $450,000 to $575,000. They range from 48.5 square metres to 52.3 square metres internally with a 5.4 square metre to 24 square metre terrace.
One bedroom plus study apartments, spanning 56.4 square metres to 58.1 square metres internally, plus a 5.2 square metre to 28 square metre terraces, will be priced from $540,000 to $620,000.
The two bedroom, two bathroom apartments will range from $685,000 to $960,000, with internal sizes of 61.5 square metres to 93.9 square metres. They will feature terraces spanning from 7.0 square metres to 69.2 square metres.
The development is expected to achieve a 4 star/green star sustainability rating. Some of its features include solar power for the common areas’ electricity and a 15,000 litre rainwater tank in the basement.
Evolve director and founder Ashley Williams said that they are a Melbourne-only developer and the Jewel apartments are in a sought after location.
“Given the high quality of architecture and finishes we expect Jewel to appeal mostly to owner occupiers looking for an oasis to call home, with commanding sea and city views, with  the popular South Melbourne lifestyle at the doorstep,” said Williams.
Evolve Development has completed $11.8 million Keilor project The Orchard, $190 million Southbank project The Guilfoyle and $127 million Melbourne CBD Queens Road project Monarc. They are currently working on other projects in Epping, Williamstown and Mickleham. Future projects are expected to be seen in Southbank, Clyde, Hillside and Wollert.
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South Melbourne's 65 apartment Jewel development launched

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Recent housing finance figures from the Australian Bureau of Statistics show positive signs for new home building moving into early 2015.
Comparing October 2013 and October 2014 in Tasmania, the increase is 61.5%. Meanwhile, the Northern Territory and the ACT also scored double figures with 35.1% and 12.3% increases.
Victoria, Western Australia, Queensland and New South Wales all recorded increases of 9.5%, 8.5%, 4.2% and 1.2% respectively.
South Australia, however, declined by 3.3%.
The Housing Industry Association’s economist Diwa Hopkins noted that comparing the results from 12 months ago some big gains have been realised, particularly when looking at the total number of owner occupier loans for new housing.
 “While total lending to owner occupiers, excluding refinancing, eased by 1.4% during the month of October, loans to those constructing a new home expanded by 1.5% to a level that is 14.6% higher than 12 months previously,” said Hopkins.
“On the investor side of the ledger, lending for the construction of rental housing or housing for resale remained strong during the month. The value of lending edged higher by 0.5% to be 24.3% higher than a year previously,” she said.
Hopkins pointed to APRA’s updated guidelines on supervision of lending practices and the flexibility of their approach, and expressed that it is important that residential construction is affected as a result.
“There has been a string of disappointing data updates to the wider economy in recent weeks, but the residential construction sector has remained fairly resilient. Policymakers should be working to ensure that the sector can continue to be a key source of strength in the wider economy as the re-balancing of domestic growth continues to take effect,” she said.
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New home building activity set for a strong 2015: HIA

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The most expensive capital city in the country looks like it'll stay that way for a while.
According to the September Quarter Bendigo Bank/REIA Real Estate Market Facts report, the other capital city housing markets are slowing down, while Sydney's growth forges ahead.
Over the quarter, Sydney's median house price increased by 3.8% to $843,994. All other capital city prices were down for the quarter.  Hobart saw the biggest house price drop of 5.3% down to a median price of $360,000 – less than half of Sydney's median house price.
Bendigo Bank and the Real Estate Institute of Australia (REIA) recorded no change in Melbourne's median house price over the September quarter, which stayed constant at $640,000.
REIA chief executive Amanda Lynch said the cooling market conditions in conjunction with the interest rate climate should provide buying opportunities.
"The release of these figures is very timely given the recent developments last week that saw analysts shift from expectations of a rate rise in 2015 to the possibility of a rate cut," said Lynch.
"The prospect of not only continuing low interest rates throughout 2015 but also the possibility of a cut should stimulate much activity in the housing market with this report by Bendigo Bank and REIA showing the cooling market provides an ideal time for investors and first home buyers alike."
"With moderating prices in all capital cities except Sydney and Melbourne, first home buyers in particular should feel confident in being able to enter the market,” she noted.
Bendigo Bank and REIA's median house figures for the September quarter:
<ul>
<li>
Sydney  - Up 3.8% to $843,99
</li>
</ul>
<ul>
<li>
Melbourne  - No change to $640,000
</li>
</ul>
<ul>
<li>
Brisbane  - Down 1% to $465,500
</li>
</ul>
<ul>
<li>
Adelaide - Down 1.8% to $412,500
</li>
</ul>
<ul>
<li>
Perth - Down 1.8% to $535,000
</li>
</ul>
<ul>
<li>
Hobart - Down 5.3% to $360,000
</li>
</ul>
<ul>
<li>
Canberra - Down 1.9% to $525,000
</li>
</ul>
<ul>
<li>
Darwin - Down 1.7% to $610,000
</li>
</ul>
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Sydney stays hot as other housing markets cool: Bendigo Bank/REIA 

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National auction clearance rates are struggling to find the same heights as earlier in the year, off the back of a huge weekend for the property market.
According to RP Data, a massive 3,692 properties went under the hammer over the weekend, notching up the <a href="https://www.smartcompany.com.au/growth/economy/44845-former-genetic-technologies-chief-jailed-for-market-manipulation-merry-christmas-ahead-for-property-buyers-at-auctions-midday-roundup">same 66.6% national clearance rate as last week</a>, with the two biggest auction cities battling to find the demand for greater supply.
Sydney struggled in the face of greater supply, with only 71.7% of 1,378 homes selling at the auction block – the lowest level in 18 months, <a href="https://www.theaustralian.com.au/subscribe/news/1/index?sourceCode=TAWEB_WRE170_a&amp;mode=premium&amp;dest=https://www.theaustralian.com.au/business/property/auction-clearances-point-to-cooling-housing-market/story-fniz9vg9-1227147757900&amp;memtype=anonymous">according to The Australian</a>.
On a substantial Super Saturday in Melbourne, which saw 1,823 properties up for auction, Melbourne cleared 67.1%.
Frank Valentic, buyers advocate from Advantage Property Consulting, said the two week drop in clearance rates is “not evidence of a crash” and not something to concern sellers.
“It’s a sign of the large volume we’ve had over the last two months,” says Valentic.
“The market is just catching up with itself. It’s a natural thing when we see greater supply and each week we are seeing a large volumes of auctions.”
Valentic says around 10,000 properties have gone to auction in the last eight weeks, with considerably more Super Saturdays in Melbourne than last year.
“This shows there is confidence in the market and in the auction method,” he says.
“There is confidence that if you put your house on the market, you’ll get a sold sticker on it and a reasonable price.”
While Valentic says there are signs the Melbourne apartment market is softening due to an oversupply in inner suburbs, he says house prices are still “bulletproof”.
But he believes the clearance rate drops are not a sign the market swinging back in favour of buyers, saying there are still opportunities for both sellers and buyers to find excellent results.
“There are always opportunities to buy well and buy badly in any market. Anything with a wow factor will always be in demand,” Valentic says, giving the example of a property in Montague Street Albert Park, which sold for $675,000 above reserve at the weekend.
Valentic says the market is showing solid and sustained growth, unlike the heights and troughs of previous years, such as the boom of 2010.
He believes 2015 will begin with solid clearance rates in the mid-70’s, after the market takes a break for the Christmas period.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Property clearance rate drop is “natural” as auction volumes surge, says expert

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Ingenia Communities is an Australian stock exchange-listed property group that owns, operates and develops seniors’ communities across Australia.
Its chief executive officer Simon Owen talked to Property Observer about the company’s new direction. 

<ul>
<li>What is the outlook for demand in the segment of the property market that you target?</li>
</ul>
We are firmly focused on the more affordable segment of the property market for seniors’ living. We all know about the aging population but the segment we are focusing on is seniors’ accommodation and manufactured homes under $300,000 – there’s a limited supply of that type of property so the level of demand we are experiencing is quite strong.
We expect demand from seniors to continue to be very strong over the next five years. Some of our challenge is that there is limited awareness of the markets we operate in, the lifestyle parks and manufactured homes, so we have to build up that awareness that you own the home but not the land. That means you can maintain a comfortable retirement while usually maintaining your full pension with rent assistance.
Bringing a product to the market that’s affordable means seniors can sell their home and don’t have to spend more than 60 to 70% of the proceeds to buy a manufactured home.
In Sydney for instance, in the local government areas in which Ingenia has lifestyle parks, average property prices are $450,000, while a senior can buy a manufactured home for $300,000. They have the surplus from the sale plus the full pension of $900 a fortnight, which means they have that $150,000 surplus to spend on other things.
<ul>
<li>Your business concentrates on retirement living but you have been branching into tourism properties too, why is that?</li>
</ul>
There were 1779 tourism parks in Australia in 2003-04, according to IbisWorld but over the last 10 years that number has reduced to around 1600. These have been closed for a variety of reasons such as flooding or being converted to other land uses but at the same time revenue from the remaining parks has increased.
Cash flow from lifestyle parks is strong and they are highly complementary to our seniors business with the highest users of the parks being grey nomad. That provides an opportunity for us to cross sell to people. The number of registered caravans is rising. When a senior buys into a manufactured home park, they receive a 25% discount at our 19 parks along the east coast.
When we started our manufactured home strategy four years ago we identified tourism as a business where long term we would want to turn the tourism component of the lifestyle parks that we invest in into permanent living.
But we realised that in many parts of the country, the highest and best use of the land was tourism. Tourism generates very strong cash flow which supports our roll out of developments.
A best in class manufactured home community that has been purpose build with no tourism is going to deliver a cap rate of about 9%. We can buy mixed use parks at cap rates of 10% or more. The opportunity for us to buy those parks on attractive terms is quite compelling.
I don’t think we would ever be looking to be a tourism operator but we are comfortable using it where it’s the highest and best use of the land.
<ul>
<li>How competitive is the market for buying lifestyle parks?</li>
</ul>
Over the last six to 12 months there are more participants out there but we are ahead of the competition. We have seven people out there concentrating on acquisitions. We don’t rely on agents for deal flow. We have two people out door knocking having informal discussions with prospective sellers.
<ul>
<li>You have started to move out of investing in deferred management fee (DMF) retirement villages, where seniors buy the right to occupy a home, then pay annual fees and an exit charge. Why?</li>
</ul>
DMF is a great model. There are three reasons we are looking to exit that over time, and we are only going to exit if we can get appropriate values for the properties.
We want to focus on the affordable segment and DMF is no longer affordable because we can’t build a DMF home for under $350,000 and get a return. We want to focus on the affordable market and we are building manufactured homes and rental villages in some markets for $180,000. We don’t want to be all things to all people and we have identified that DMF is not consistent with affordability.
There are other pure-play DMF operators out there and this is also about differentiating our business.
Lastly, while we have about $70 million worth of DMF properties that are earning attractive development returns, if we strip out the development returns, it is a return of less than 3% per annum. Yields will grow over time but I can put that capital to work better now and buy a lifestyle park and get an immediate 10% yield. It’s about more efficient utilisation of capital.
<ul>
<li>What assets do you own and where does your revenue come from?</li>
</ul>
Ingenia’s portfolio includes about $120 million worth of Garden Villages (our rental properties for seniors), $70 million in DMF, and with acquisitions made and announced, about $170 million in lifestyle parks.
I would expect that over the next two to three years as we divest out of DMF and move into lifestyle parks we will be at a split of 75% in lifestyle parks to 25% in Garden Villages.
In the current financial year about a third of our revenue will be rental villages, 5-10% from DMF, 10-15% from tourism and the balance from manufactured homes, both rent and development.
<ul>
<li>What are the biggest challenges to your business?</li>
</ul>
The biggest risks and challenges to our business are around planning. We have to deal with a myriad of councils. Some are supportive and some are obstructive. That’s the single biggest challenge. 
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Q&A with Ingenia Communities' chief executive officer Simon Owen

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The Westpac-Melbourne Institute Consumer Sentiment Index has fallen 5.7% in the latest December release. 
"This is a very disturbing result," its chief economist Bill Evans said.
The Index is now at its lowest level since August 2011 and prior to that you have to go all the way back May 2009 to see a period when the Index printed consistently below today’s level, he advised.
"Optimism around the housing market has evaporated," he said.
The index tracking assessments of ‘time to buy a dwelling’ fell 10.8% and is now down 19.3% over the year to the weakest level since November 2010.
"Consistent with that shift in sentiment, the outlook for house prices has also deteriorated sharply," Evans said.
"The Westpac-Melbourne Institute House Price Expectations Index fell 8.3% to be down 22.5% over the year, though more consumers still expect house prices to rise than fall."
But respondents have become more risk averse in their preferences for their savings.
"The proportion of respondents nominating ‘bank deposits’ as the wisest place for savings increased from 34.3% in September to 37.0% in December.
"That is the third highest proportion of respondents favouring bank deposits since 1979.
"Those preferring to pay down debt jumped from 13.7% to 17.6% while the proportion favouring real estate fell from 25.7% to 20.0%."
Evans noted in conclusion that respondents had sharply lowered their assessments of the economic outlook and their spending intentions.
"They remain extremely nervous about job security while adopting a more cautious attitude towards both their finances and the outlook for housing."
Last week, following the release of the national accounts, Westpac revised its interest rate forecast.
It now expects the RBA board to approve a 0.25% cut in the cash rate at its February meeting with a further 0.25% cut in March.
"The messages from this survey are certainly consistent with the assessment that the Australian economy needs even lower rates," Evans added.
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Housing optimism evaporates in December's disturbing Westpac Consumer Sentiment index 

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North Ryde development Ryde Garden features a number of apartments, some with views to the city, and architecture and interiors by Bates Smart Architects.
CBRE is now advertising the “last chance” to get up to $12,000 off when purchasing a one, two or three bedroom apartment in <a href="https://www.rydegarden.com.au">Ryde Garden</a> priced from $530,000.
The three apartment buildings that make up Ryde Garden come with rooftop gardens. It notes that the current advertised prices are "discounted" by $12,000.
Developed by Hong Kong listed development company Country Garden, who also <a href="/expert-insights/buying/ryde-garden-debut-for-country-garden-australia">previously expressed interest in buying Harry Triguboff’s Meriton</a>, it is their Australian debut and features around 830 dwellings.
In<a href="/expert-insights/buying/strong-off-the-plan-sales-at-country-gardens-ryde-garden-project"> June, it was reported that they’d had strong off the plan sales</a>, achieving $186 million in a six hour launch spree. Prices for one bedroom apartments started at $488,000, with two bedroom apartments from $688,000 and three bedroom apartments from $888,000.
Country Garden purchased the site in late-2013 and the project is slated for completion in 2017.
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Apartments at Ryde Garden 'discounted' by up to $12,000

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There was a $1.2 million sale of the 7/1 Printers Lane, Darlinghurst offering, which was listed with $1.1 million plus hopes.
The one-bedroom loft apartment had 102 square metres space at the late 1990s conversion of The Printery.
The block of nine apartments retains its interior and exterior industrial feel.
Scott Aggett of <a href="https://www.belleproperty.com/44P1084" target="_blank">Belle Property Surry Hills</a>, marketed the apartment with a secure parking space.
It last traded at $750,000 in 2011 and for $605,000 in 2002.
It first sold in 1998 for $410,000.
The prices when first offered in 1997 was ranged between $220,000 and $390,000 as empty shells - or apartments without walls - in the Shepherd &amp; Newman warehouse.
All floors were hardwood. All walls were painted brickwork. Windows were steel-framed timber.
The warehouse shells were offered through agent Sam Elbanna of City Project Marketing.
Built early in the last century, the Shepherd &amp; Newman warehouse served as a printing works for many years situated in a quiet lane off Yurong Street.
The Shepherd &amp; Newman warehouse was developed by MWI Property with its configuration designed by Peter Gerhard and Brian Tetu of Sunspot Design. 
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Printers Lane, Darlinghurst warehouse apartment sale

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This week I'm going to take a look at how current housing market conditions compare with the boom in home values between 2001 and early 2004. 
Immediately a point to note is that the current housing market upswing came off the back of dwelling values falling over the previous two years. If we assume that the previous boom period began at the start of 2001, there had actually been no home value falls prior to its commencement, rather the increase in home values had been more moderate at 6.6% over the 2000 calendar year.
<img class="aligncenter size-full wp-image-4089" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-11.jpg" alt="Chart 1" width="500" height="186">
The previous boom ran from the beginning of 2001 until October 2004 across the combined capital cities.  Over that 46 month period, home values rose by a total of 68.1% across the combined capital cities. 
This is a monthly rate of value growth over that period of almost 1.5%.The current rise in capital city home values commenced in June 2012 and up until November 2014 values had been trending higher for 30 months.  Over this 30 month period combined capital city home values have increased by 19.6% or a monthly rate of growth of 0.7%. 
Again it is also important to consider that the current growth phase occurred off the back of values having fallen by -7.4% between October 2010 and May 2012.  After 30 months of growth in the 2001 to 2004 growth period, combined capital city home values were 52.1% higher.
The combined capital city growth really only tells part of the story though.  The capital city housing market isn’t homogenous and growth periods begin and end over different lengths of time.  Because Sydney and Melbourne are the largest cities by some way and given our Home Value Index is weighted to reflect that, the capital city results are influenced much more by these two cities than the other capital cities.
Given there were no home value falls prior to the growth between 2001 and 2004, if we assume that the growth phase stared in January 2001 we see that the growth ran for varying lengths of time. 
In fact in most capital cities, home values continued to rise following October 2004 albeit the rate of growth was more moderate than it had previously been. Looking at home value growth across the cities from January 2001 to October 2004 you can see that the rate of growth varied greatly.  It is interesting to note that Sydney and Melbourne’s rate of value growth over that period was much more moderate than in all other capital cities except Darwin. 
Furthermore, the growth in home values commenced much later and ran for longer in most other capital cities.
Taking a look at the level of value growth over the current growth phase there are quite a few points of note.  Firstly growth has been more moderate than what was recorded over the previous growth phase.  Secondly, while Sydney and Melbourne were two of the weaker growth performers previously, they have been the standout performers across the current growth phase. 
Sydney and Melbourne have been the strongest growth performers, value growth has been moderate elsewhere but particularly weak in Adelaide (3.6%), Hobart (0.0%) and Canberra (4.6%).
<img class="aligncenter size-full wp-image-4090" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-21.jpg" alt="Chart 2" width="500" height="177">
To look at the results another way and by way of direct comparison, we should look at the rate of value growth per month.  To determine this I have divided total value growth by the number of months and the results make for some interesting reading.  Between January 2001 and October 2004, the rate of monthly growth across the cities was recorded at: 1.3% in Sydney and Melbourne, 2.3% in Brisbane, 2.0% in Adelaide, 1.4% in Perth, 3.0% in Hobart, 0.7% in Darwin and 2.1% in Hobart. 
Looking to the current growth phase, monthly value rises have been recorded at: 1.1% in Sydney, 0.6% in Melbourne, 0.4% in Brisbane and Darwin, 0.1% in Adelaide, 0.5% in Perth, 0.0% in Hobart and 0.2% in Canberra.  Clearly the growth in home values has been more moderate over the most recent growth phase.
<img class="aligncenter size-full wp-image-4091" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-31.jpg" alt="Chart 3" width="500" height="179">
While growth has been more moderate, so too have the number of homes selling.  In both growth phases the number of sales has increased however, in the current market the rise in sales has been much more modest than the rise in 2001-04. 
Over the period from January 2001 to October 2014 there was a total of 1,402,217 capital city house and unit sales or a monthly average of 30,481. 
In comparison, over the period from June 2012 to September 2014 there have been 716,908 house and unit sales or a monthly average of 25,604 sales.  Monthly sales volumes over the current growth phase have been -16% lower than they were between 2001 and 2004 despite a high rate of population growth and development of new housing stock.
<img class="aligncenter size-full wp-image-4092" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-41.jpg" alt="Chart 4" width="500" height="178">
Across the individual capital cities the number of monthly sales is lower than over the 2001 to 2004 boom period.  In Sydney monthly sales are -14% lower and elsewhere the differentials are recorded at: -8% in Melbourne, -28% in Brisbane, -12% in Adelaide, -16% in Perth, -35% in Hobart, -4% in Darwin and -31% in Canberra.  So not only has value growth been slower in each capital city this time around, so too has transaction activity.
The lower rate of sales can probably be attributed to the low level of first home buyer participation in the market as well as household savings being much higher than what was recorded between 2001 and 2004.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Looking at some of the broader economic conditions suggest some sizeable differences between the 2001-04 boom and current market conditions.
At the beginning of 2001 standard variable mortgage rates were recorded at 8.05%.  By the end of the year they had fallen to 6.05% which was the low point for the cycle.  By the time home value growth began to fall standard variable mortgage rates had climbed to 7.05%.  Over the current growth phase, standard variable mortgage rates were 6.85% in June 2012 having fallen from 7.05% the previous months. 
From that level they have fallen to 5.95% and have been on hold at that level for the past 16 months.  Given this for the past 16 months standard variable mortgage rates have been lower than they ever were during the 2001 to 2004 boom.
Housing credit advanced by a total of 89.1% over the period from January 2001 to October 2004 at a rate of 1.9% a month.  Over that period, investor credit expanded at a rate of 2.4% a month, outpacing the 1.7% monthly expansion in owner occupier credit.  Over the current growth period, housing credit has expanded by 13.4% at a rate of 0.5% a month.  Over the period, owner occupier credit has risen by 0.4% a month compared to 0.6% a month for investor credit.
The rate of credit growth really does only tell part of the story because much more is lent for housing now than it was back in the previous boom so you would expect the growth rate to be lower now.  It is important to remember that the cost of housing was also lower at that time so the typical mortgage was much lower than it is today. 
Finally, because the data looks at credit outstanding, if repayment of that credit is being made at a faster pace it will also impact on these figures.  Throughout the 2001 to 2004 boom housing credit expanded at a rate of $6.4 billion a month with owner occupier credit up $4.0 billion a month and investor credit rising $2.4 billion a month. 
Over the current growth phase, housing credit is expanding at a rate of $5.7 billion a month with owner occupier credit rising $2.9 billion a month compared to a $2.8 billion monthly increase in investor credit.  This seems to suggest that housing credit is increasing by only a slightly lower amount currently than it was back in the 2001 to 2004 boom. 
As mentioned before, the biggest influence on this is likely to be the cost of housing now as opposed to then especially when you consider how much lower sales transactions are currently.
Looking at the supply of housing, over the 2001 to 2004 period, an additional 654,253 dwellings were approved for construction at a rate of 14,223 per month.  Over the current phase there have been 436,130 dwelling approvals at a rate of 15,039 per month.  In the current phase the pipeline of approvals has grown at a faster rate of course, the national population is higher so this is certainly a positive outcome.
Unfortunately population growth data is only available each quarter.  Each month we do receive overseas arrivals and departures data which correlates strongly with net overseas migration data.  The other component of population growth, natural increase, does not have as big of an impact on housing demand as overseas migration. 
Over the 2001 to 2004 boom period, there were 603,550 net long-term and permanent arrivals to Australia at a rate of 13,121 per month.  Over the current growth phase there have been 880,120 net long-term and permanent arrivals to Australia at a rate of 31,433 per month.  The data shows that net migration to Australia has been much stronger over the current growth phase compared to the previous phase which creates additional housing demand.
Household finance data highlighting selected ratios from the RBA is only available each quarter but is worthwhile to analyse.  Between December 2000 and September 2004, the ratio of housing debt to household disposable income increased from 78.8% to 118.0%.  Subsequently, household debt to household disposable incomes rose from 95.2% to 137.2% and housing assets to household disposable income rose from 333.4% to 448.3%. 
From June 2012 to June 2014, housing debt to disposable income rose from 130.4% to 137.7% and household debt to disposable incomes rose from 145.2% to 151.1%.  Meanwhile, housing assets to disposable income increased from 393.7% to 433.6%.
In summary, the comparison between the 2001 and 2004 growth phase and the current one shows:
<ul>
<li>Growth in home values has been much more moderate over the current phase than in what was recorded over the housing boom of 2001-04 and this is also the case across all capital cities. 
</li>
<li>The 2001 to 2004 growth phase was broad occurring in all capital cities where the current phase is characterised as being quite narrow, focussed mainly on Sydney and Melbourne. Importantly, the growth trend in the previous growth phase started in Melbourne and Sydney before rippling to the other capital cities. 
</li>
<li>Transaction volumes for houses and units have been significantly lower over the current growth phase compared to the previous phase (despite a larger population and higher overseas migration). 
</li>
<li>Standard variable mortgage rates have typically been much lower over the current growth phase than they were in 2001 to 2004 with rates consistently at record lows for the past 16 months. 
</li>
<li>The rate of growth in housing credit has been much more moderate over the current growth phase compared to the 2001-04 boom phase. 
</li>
<li>Although the rate of credit growth is slower now than before, so too is the value of housing credit increases albeit the gap between 2001 and 2004 and the current phase is much narrower. 
</li>
<li>On a monthly basis we are currently approving more dwellings for construction than we were in 2001 to 2004. Keep in mind that we are also approving a lot more units than we were in 2001 to 2004 and unit approvals have proven to be less likely to ultimately be constructed than houses. 
</li>
<li>Net long-term and permanent arrivals have been significantly greater over the current growth phase than they were between 2001 and 2004. 
</li>
<li>The 2001 to 2004 boom period coincided with a significant rise in housing and household leverage along with a jump in housing assets. Whilst each of these factors have also increased over the current growth phase the slope of the increase has been much more moderate.  Furthermore over the current phase the ratio of housing assets to household income has increased by a greater amount than household and housing debt to disposable income while in 2001 to 2004 it increased at a slower pace.</li>
</ul>
Debate around the sustainability of home value growth over the current growth cycle is healthy and warranted, however some lessons can be learnt from how the housing market performed during an even stronger and longer growth phase over the period from 2001 to 2004. 
As interest rates rose, housing market exuberance was gradually quelled.  Values didn’t plummet, but they did retreat in Sydney and growth rates flattened out in most other cities.  Australian households are now more sensitive to the cost of debt, with the ratio of disposable income to household debt at record highs which means the market will probably respond even more swiftly to any perception of interest changes ahead.
Importantly we are already seeing the housing market move through the peak rate of growth.  The CoreLogic RP Data Home Value Index peaked in April this year and the rolling annual rate of capital gain has been drifting lower since that time. 
Transaction numbers have also levelled, as has the average selling time of a home, the rate of vendor discounting and growth in housing credit. 
Our expectations looking forward are that growth rates will continue to drift lower, at least at a macro level due to natural affordability pressures, compressed rental yields and further warnings on speculative investment from the RBA.
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