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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There’s a pretty good argument that the hottest property precinct in Australia right now is South East Queensland.
Brisbane, the Gold Coast, the Sunshine Coast: Together they comprise a vast metropolitan area - ongoing urban growth means these three big centres have merged into one big conurbation which starts at the NSW border and extends 250 kilometers north to Noosa.
All three have hot markets. The research conducted by Hotspotting for the latest edition of the Price Predictor Index revealed 254 suburbs across South East Queensland with rising sales activity.
To put that in perspective, the Sydney metropolitan area has 106 growth suburbs. If you add in the Central Coast, which has caught the growth wave from the capital city, there are 120 growth markets.
This shows that, while Sydney is the nation’s hottest big market in terms of price growth, it’s starting to fade (though not markedly, as yet), while South East Queensland is starting to rise.
So when you see headlines suggesting that the boom is fading and price growth is starting to dissipate, remember that it’s Sydney they’re talking about. There are markets elsewhere in Australia that are really just starting their run.
They include Adelaide and Hobart, as well as numerous regional cities in Queensland, New South Wales, Victoria, South Australia and Western Australia.
But the headline event is the rise of South East Queensland. While there has been some price growth in 2014, to date it has been fairly moderate.
The big shift has been in sales volumes and that’s what I mean when I say there are 254 growth suburbs in the region – 254 suburbs throughout Brisbane, the Sunshine Coast and the Gold Coast with distinct patterns of rising sales activity.
The greatest price growth will come in 2015.
I remain hesitant about the Gold Coast. There’s no doubt that the oversupply that has dragged down this market for five years has now been absorbed – and that there is a significant real estate recovery under way.
The heartening thing is that most of the growth suburbs on the Gold Coast at the moment are what I would call genuine housing markets – inland suburbs where houses are being sold, rather than coastal locations where highrise apartments are flogged to investors and speculators.
Unfortunately, that will change. Now that the Gold Coast is back on a growth path, developers are flocking back, intent on creating the next oversupply. Driven more by ego and greed than common sense, developers are competing for the title of biggest project and tallest tower.
And, like their counterparts in Melbourne, it’s all designed for sale to Chinese investors. It won’t end well.
Beyond that cautionary note, the message about Brisbane and South East Queensland looks highly positive at the moment.
The opportunity for investors lies in understanding that the rise in sale volumes we have seen in 2014 is a forerunner to significant price growth.
South East Queensland has more momentum now than does Sydney, but it’s not yet reflected in price growth data.
That is yet to come.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
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terryryder-YECXbqmri2

The baton is passing from Sydney to South East Queensland

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There were three bidders when 37/89-91 Hughes Street, Cabramatta went to weekend auction.
The first floor recently renovated 61 square metre two bedroom apartment fetched $351,000.
The 1974 built apartment was marketed as an entry level perfect home for first home buyers or an ideal investment with potential rent of $320 per week.
<a href="https://www.domain.com.au/property/for-sale/apartment-unit-flat/nsw/cabramatta/?adid=2011571207" target="_blank">Peter Ly of Raine &amp; Horne Cabramatta</a> told Property Observer it sold to an investor. 
It last sold in 1998 at $66,000, reflecting 10% annual growth over the 16 years.
 <img src="/images/2014/12/02/cabramatta-dec-2-two.jpg" alt="">
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jchancellor-FAypfDUnLy

10% annual growth as Cabramatta unit sells as $351,000 weekend cheapie

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We know the rate of price growth continues to slow, but the most telling data in the latest November figures CoreLogic RP Data, was the slowing in growth for Sydney apartments.
Sydney continued to drive capital city growth in November, with house values up 14.3% on an annualised basis.
It was running at 14.9% two months ago. It was 15.2% during 2013.
But the apartment segment is nowhere near as strong.
Apartment values in November were up 8.7% over the past year.
But two months it was running at 11.5%. It was 11.6% during 2013.
It is fair to say most Australian cities have now passed their cyclical peak periods.
Sydney's house median sits at $825,000, up from $775,000 at the end of 2013.
Apartment median sits in Sydney at $605,000, up from $557,000 at the end of 2013.
Overall the national capital city average annualised growth for houses has been 8.9% compared to 5.9% for apartments.
Of course let's not forget that just three year ago units were the faster movers in 2012, which was overall pretty ordinary for growth with Sydney house prices up 1.3% annually and units up 2.3% annually.
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Sydney apartments the weaker link for late 2014 price growth: CoreLogic RP Data

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A preliminary weighted average clearance rate of 66.6% was recorded this week across capital cities compared to 65.7% last week and 66.9% this time last year.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Capital-City.jpg" rel="wp-prettyPhoto[g4065]"><img class="aligncenter size-large wp-image-4066" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Capital-City-580x429.jpg" alt="CoreLogic RP Data auction comments | Capital City" width="580" height="429"></a>
Conditions for buyers at auction are improving as we get closer to Christmas with volumes remaining at historical highs and demand easing, particularly in Melbourne.
In Sydney auction volumes are very high and the number of active buyers seem to be rising in line with supply. A preliminary clearance rate of 75.2% recorded compared to 71.8% last week and 72.7% last year.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Sydney.jpg" rel="wp-prettyPhoto[g4065]"><img class="aligncenter size-large wp-image-4067" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Sydney-580x393.jpg" alt="CoreLogic RP Data auction comments | Sydney" width="580" height="393"></a>
In Melbourne a preliminary clearance rate of 63.7% was recorded compared to 66.1% last week and 67.9% this time last year. The state election has had no impact on results that are on trend with the mild easing in demand seen over November.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Melbourne.jpg" rel="wp-prettyPhoto[g4065]"><img class="aligncenter size-large wp-image-4068" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Melbourne-580x381.jpg" alt="CoreLogic RP Data auction comments | Melbourne" width="580" height="381"></a>
In Brisbane a preliminary clearance rate of 45.9% was recorded compared to 43.3% last week.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Brisbane.jpg" rel="wp-prettyPhoto[g4065]"><img class="aligncenter size-large wp-image-4069" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Brisbane-580x391.jpg" alt="CoreLogic RP Data auction comments | Brisbane" width="580" height="391"></a>
Adelaide recorded an above trend clearance rate of 66.7% compared to 61.2% last week.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Adelaide.jpg" rel="wp-prettyPhoto[g4065]"><img class="aligncenter size-large wp-image-4070" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/20141201-Adelaide-580x382.jpg" alt="CoreLogic RP Data auction comments | Adelaide" width="580" height="382"></a>
In Canberra a clearance rate of 63.3% was recorded.
In Perth a clearance rate of 21.7% was recorded.
In Tasmania 8 auction sales were recorded and no homes were passed in.
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rlarocca-zWhvjay44N

Conditions for buyers at auction improving: National weekend auction wrap

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BIS Shrapnel’s Outlook for Residential Land, 2014 to 2019 report has forecast that Sydney’s upturn will continue but the big performers appear to be Queensland’s Brisbane, Gold Coast and Sunshine Coast. Perth is, however, expecting a downturn over the period.
Sydney’s sales rate in the outer suburbs is notable for being close to its early-2000s level, explains BIS Shrapnel’s senior manager and report author Angie Zigomanis. Despite the increase in sales there has been an extended downturn in Sydney’s land market resulting in a continued shortfall in new housing.
The markets in Brisbane, Gold Coast and the Sunshine Coast can be looked at more as a recovery after extended weakness, with new house and land packages looking affordable relative to established houses with minimal upwards movement for land prices.
Melbourne and Adelaide are forecast to see growth, at a moderate pace, over 2015 – even in the low interest rate environment – with healthy levels of new house building seen in both.
“Demand for land in both the Melbourne and Adelaide markets is showing some increase, underpinned by low interest rates,” said Zigomanis.
“In Melbourne, lot production bottomed out in 2013/14 after the land market was oversupplied due to new subdivisions coming online following the market peaking in 2009/10. As a result, the stock of completed lots had to be progressively sold down before the next round of development could occur,” he said, noting that any excess has now been absorbed by an uptick in land demand, rising prices and low interest rates with sell outs in estates and off the plan sales common.
“Adelaide experienced mild growth in lot production in 2013/14, with low interest rates and limited price growth improving affordability and encouraging greater demand for land. However, the upside is more limited, with slower population growth expected, resulting in milder growth in demand for new dwellings in general. The market is also being impacted by the removal of the Housing Construction Grant at the end of 2013,” he said.
National roundup begins on the next page. Please click below.
<hr class="system-pagebreak">
Sydney – In an upturn
Falls in lot prices (median lot price of $290,000 in 2013/2014) and rises in outer Sydney house prices have improved the attractiveness of new houses compared to established.
“The peak in land prices in 2004/05 meant that a significant premium had to be paid to buy a new house compared to the cost of an established home,” said Zigomanis.
“With established houses being much more affordable, demand for new houses collapsed in the following years and lot production fell to a low of 1,400 lots in 2009/10, with significant pent up demand also developing.”
Key driver: Low interest rates and improved affordability for new houses.
Lot sales have increased, with around 5,500 lots per annum estimated to have been completed for 2012/2013 and 2013/2014.
8,100 lots per annum forecast to be complete over five year to 2018/2019
Forecast peak of 9,000 lots in 2016/2017.
Brisbane – Entered early stages of recovery
Early recovery phase entered in 2013/2014, as lot production rises from 4,700 lots in 2012/2013 to 6,000 lots, though it remains below 8,900 lots per annum produced in the 10 years to 2011/2012.
“The improvement in lot production in 2013/14 was underpinned by the emergence of pent up demand for new houses after the sustained period of low new dwelling activity following the GFC,” said Zigomanis.
“Cuts to interest rates have improved the affordability equation for Brisbane home buyers, while weak land prices over the last five years have also made new housing more attractive.”
Key driver: Net interstate migration expected to pick up with strong price growth in southern states to encourage some to look to Queensland. Deficiency of dwellings to remain.
Lot production forecast to continue to rise and peak at 9,000 lots per annum by 2015/2016. Lot sizes have failed to maintain affordability, but are larger on average than other capitals.
Gold Coast/Sunshine Coast – Strengthening expected
A collapse in demand was seen after the GFC, with just 600 lots produced in each in 2012/2013, the lowest in 20 years.
“This lack of new dwelling supply has resulted in an underlying deficiency of dwellings emerging in both markets in 2013/14 – particularly for new houses – and we are seeing a recovery emerge,” said Zigomanis.
“Low interest rates have boosted affordability, which in turn has allowed for this pent up demand to be released. Land production in 2013/14 increased to an estimated 1,475 lots on the Gold Coast and 950 lots on the Sunshine Coast.”
Key driver: Local economic conditions becoming positive, major non-residential projects commencing, tourism sector increasing, interstate migration improving.
Lot production forecast to continue to strengthen, to peak at 2,100 on the Gold Coast and 1,800 on the Sunshine Coast by 2016/2017. 
Melbourne – Working through oversupply
Number of new estates increased strongly from 2008/2009 to 2012/2013, with just under 19,000 lots per annum completed in Outer Melbourne from 2008/2009 to 2011/2012. A downturn in demand was seen in 2010/2011.
“The excess of completed lots coincided with a 39% decline in new house building approvals in Outer Melbourne between 2009/10 and 2012/13, which in turn exacerbated the oversupply of land,” he said.
“As a result, new lot completions more than halved to 9,100 lots in 2013/14; the lowest level since 1997/98.”
Key driver: Low interest rates, population growth.
With stronger demand seen in 2013/2014, new developers have taken to selling future stages off the plan, with a solid increase in lot completions expected for next year, with a pea of 16,000 lots expected by 2015/2016.
Adelaide – Pick up after strong declne
An uptick was seen in lot production for outer Adelaide in 2013/2014 after a 42% decline from a 2008/2009 peak of 5,200 lots to 3,000 in 2012/2013.
Low interest rates and resulting improving affordability and declines in median land price have pushed up demand and lot production to 3,400 lots in 2013/2014.
Key driver: Low interest rates, $8,500 Housing Construction Grant.
Demand for Outer Adelaide is expected to remain stable. An average of 3,200 lots per annum is expected until 2018/2019. 
Perth – Moving into a downturn
Perth’s outer suburbs’ market, including Mandurah, rebounded strongly after the GFC downturn, with record migration and population growth, along with the mining boom, to drive lot production from 6,800 lots in 2011/2012 to 13,200 lots (a record) in 2013/2014.      
“A key to this rebound in activity has also been the improved housing and land affordability that emerged after prices stagnated over 2007-2012,” he said.
“With average land sizes, and therefore prices, also falling in Perth, improved land affordability relative to established houses also increased the demand for new houses and land.”
Key driver (causing downturn): Resource sector easing, resulting drops in migration inflows, population growth slowing, lowering purchaser confidence.
Record levels will be sustained over 2014/2015, according to BIS Shrapnel, but lot production will drop to a low of 8,800 lots by 2017/2018.
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jduke-EHk3XBmHkn

Sydney demand to continue as South East Queensland gains momentum: BIS Shrapnel’s national forecast

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Across Australia, the rate of price growth continues to slow, with combined capital city home values down 0.3% in November, according to CoreLogic RP Data.
Sydney continued to drive capital city growth in November, with home values up 1% on a monthly basis. Melbourne saw the biggest decrease in values, with a 2.6% drop over November.
CoreLogic RP Data recorded home value decreases in Melbourne, Adelaide, Canberra and Darwin.
The year on year capital city result further reflects a slowdown, according to CoreLogic RP Data research analyst Cameron Kusher.
"Although combined capital city home values increased by a healthy 8.5% over the 12 months to November 2014, the annual growth rate is now at its lowest level in the year – the rate of annual home value growth across the combined capital cities continued to slow after peaking at 11.5% over the 12 months to April 2014," says Kusher.
Kusher says most Australian cities have now passed their cyclical peak periods.
"Importantly, this has become apparent in the two largest capital cities; Sydney and Melbourne, where annual value growth peaked at 16.7% in April 2014 and at 11.9% in January 2014 respectively," he notes.
"Although Sydney and Melbourne appear to have moved through their peak periods, capital growth conditions have consistently been the main drivers of value growth over the past 12 months."
Sydney's November home values were 13.2% higher than those recorded in in November 2013. In the 12 months to November, Melbourne's home values increased by 8.3%.
Brisbane recorded the third strongest year on year growth, with 6%. Hobart's prices increased by 5.2% in the 12 months to November. Adelaide's home values increased more modestly by 2.8% in the same period.
Perth and Darwin had the weakest year-on-year results, each recording 1.4% growth.
Kusher expects 2014's value growth will be weaker than that seen in 2013.
Currently, the market appears to be weakening, Kusher says.
"Market indicators such as auction clearance rates remain quite strong, but also point to slightly weaker overall housing market conditions," he explains. According to Corelogic RP Data, auction clearance rates have reduced across Melbourne and Sydney in recent weeks. The two cities are Australia's biggest auction markets.
Kusher says property listing numbers have also begun to trend higher.
"This may indicate a slower rate of sale and is indicative of mounting stock on the market," he notes.
 On a monthly basis, Perth recorded an dwelling price increase of 0.9%, the second strongest capital city result. Brisbane home values increased by 0.4% over the same period, while Hobart recorded 0.2% growth. Adelaide home values were down 0.3% for November, Canberra saw a 0.5% decrease and Darwin's dwelling prices decreased by 0.8%.
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jrichardson-uRX5hFdKfN

Capital city prices dip in November as growth slows

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The terrace house at 53 Wells Street, Redfern - double-fronted terrace on 200 square metres - sold at weekend auction for $1.18 million.
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The deceased estate sold through <a href="https://www.mcgrath.com.au/buy/house-redfern-nsw-2016/235841/?searchID=45087408" target="_blank">Ben Forsyth of McGrath Edgecliff</a> who had issued 13 contracts.
It was formerly an artist’s home, but left empty for five years. 
The two bedroom home was bought by a young couple.
Redfern house prices have jumped by 16.2%, according to CoreLogic RP Data. Forsyth was quoting $850,000 plus.
At <a href="https://redir.aspx?C=79zFc25QqEGnZ6JTcfBKWf6KkeEd4NEIyAHetFn24ibN4isqe1s859cfUt3vGLzH9VNGxccgBAY.&amp;URL=http%3a%2f%2fwww.realestate.com.au%2fproperty-house-nsw-ashfield-118348847" target="_blank" style="line-height: 1.3em;">12 John St Ashfield</a> about 100 spectators saw two bidders go all the way at each other from start to end when offered through Domenic Bucciarelli of LJ Hooker Ashfield. 
The auctioneer Rob Trovato of Auction Services secured $1,122,000 which was $142,000 over reserve for the house which was a heritage listed, in need of repair, and offered with the potential of building a granny flat.
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Empty Redfern renovator's delight sells for $1.18 million

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The ABS released its <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8755.0">Construction Work Done</a> figures for the September quarter which underscored two key systemic risks for Australia's economy and housing markets, with the following alarm bells now sounding loud and clear:
<ul>
<li>The long anticipated "mining construction cliff" is now well underway, with engineering construction spend registering a significant 12% decline over the past year to be 15% off from the peak; and</li>
<li>A forthcoming glut of new build residential properties, particularly of attached dwellings: units and apartments.</li>
</ul>
Let's take quick 'shufty' in four short parts.
Part 1 - Total Construction Slides
Total construction work done remains elevated in historical terms at a seasonally adjusted $51,146 million in the September quarter. 
From a macro-economic perspective, of course, it is the trend which is of importance, and total construction has now passed its peak, declining further by a seasonally adjusted 2.2% in Q3 to be 5.1% lower over the year in chain volume measures terms.
 <img src="https://1.bp.blogspot.com/-UJRluTolNf8/VHWiF3ZHrMI/AAAAAAAAReM/2j4DmNQ9inY/s1600/CONS1.jpg"> 
This was a slightly undercooked result versus expectations, and hardly the most auspicious of starts for the inputs into the Q3 National Accounts. 
Of significantly greater concern is what will eventuate for mining and engineering construction prospectively, with total spend already being some 12.1% lower in chain volume measures terms than only one year ago.
With commodity prices tanking it will be increasingly difficult for marginal projects, such as some of those in the coal sector, to pass through feasibility studies to the construction stage, thus reinforcing the entrenched downtrend.
<img src="https://1.bp.blogspot.com/-1-fZYcR6_eQ/VHWiGQ6q6VI/AAAAAAAAReQ/OD3LSD8ym78/s1600/CONS2.jpg">
Moreover, the sheer scale of the mining construction boom on the way up (even today engineering comprises more than 56% of construction expenditure reported here at a punchy $28,710 million in Q3) means that there must eventually be an equivalent drag on the way back down - a drag which will be nigh on impossible for work done in the other building and construction sectors to offset.
Low interest are thus clearly set to be with us for some time to come, which must in turn impact investment decisions and other construction trends, as the financing component of new developments remains historically speaking very cheap.
Part 2 - The Mining Cliff Cometh
The engineering construction data by state unsurprisingly revealed that total spend in Queensland and Western Australia is now receding sharply. 
Other states which benefited less dramatically from the boom years are also now in decline, albeit to a less significant extent, as the resources boom continues to transition into the export phase from the construction phase.
<img src="https://4.bp.blogspot.com/-TyUSFygg5n8/VHWiI6c7wfI/AAAAAAAARe4/vH4nlSpe9c0/s1600/CONS8.jpg">
The ABS provided few details concerning what caused the tremendous spike in Q3 engineering construction in the Northern Territory, although <a href="https://www.smh.com.au/business/mining-and-resources/ugl-joint-venture-faces-damages-claim-over-550-million-power-plant-at-ichthys-20141106-11i4ar" target="_blank">cost blowouts</a> at the Ichthys LNG project have been reported elsewhere related to the struggling UGL, while <a href="https://www.inpex.com.au/news-media/ichthys-lng-project-updates/" target="_blank">Inpex</a> continues to report project progress in its regular updates. 
From a national perspective, we must now expect further declines ahead, and therefore tomorrow's capex data release takes on an additional level of interest!
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
Part 3 - NSW Now Leads Building Work Done
With a massive 54% seasonally adjusted increase in non-residential building in New South Wales since Q1 2012 (mainly related to Sydney projects) in concert with a solid pipeline of residential building, NSW now leads the nation in terms of building work done, which is promising news for the state economy.
 <img src="https://4.bp.blogspot.com/-8Ave3nCKlDw/VHWiHvylSWI/AAAAAAAARe0/AwTLTNk3JCA/s1600/CONS5.jpg">
But while an inherent infrastructure and dwelling deficit are working in favour of the NSW economy, some other states are building too much of what they do not need. 
Residential building work done has increased by 9% over the past year. However, new house building has now slipped past its cyclical peak, representing adverse news for the construction sector,  and note the alarming trend of the red line below for "other new residential" building.
We have known for many months of course that Australia has been approving far too many apartment buildings in certain locations, and now these building approvals are becoming a stark reality, showing up in the construction data as an unprecedented spike which is still booming.
Yikes.
<img src="https://1.bp.blogspot.com/-b--ys90pFp4/VHWiHOi5W0I/AAAAAAAAReg/u-RxFDjckdY/s1600/CONS4.jpg">
New Builds Risk Flashing Red - Systemic Risk?
The next three years will see Australia break many all-time records in the residential property space.
These include the highest annualised rate of apartments constructed in Australia's history, and thus in turn record developer kickbacks and commissions paid to 'investment advisers' (i.e. developer salesmen) for the sourcing of willing interstate buyers of the detritus which developers have been unable to flog themselves (itself quite a notable achievement in the prevailing climate of cheap credit). And the inevitable corollary will be a record number of investors losing their hard-earned cash on dud new development investment properties.
We would never recommend new build units anyway from a risk management perspective - they are too expensive and inherently lacking in scarcity value - but we cannot be any clearer on this point at this stage of the cycle. Too risky. The Block? Just as an infestation of cookery shows in Australia has paradoxically coincided with a record boom in the consumption of takeaway food, similarly the glut of TV renovation shows has not led to an equivalent uptick in major home renovations. There have been many murmurings of a boom in renovation intentions but this is not to be evidenced here in the "Alterations &amp; Additions" data, reflected by the moribund trend in the green line of the above chart.
The Housing Industry Association (HIA) forecasts a miserly 2% increase in renovations work in the year ahead following on from a 0.9% increase over the past year. 
"Every little helps" from a macro-economic perspective, of course, but as the above charts clearly demonstrate these renovations numbers are merely a drop in a very large ocean of construction spend as compared to the forthcoming declines in engineering work to be completed.
Part 4 - Residential Building by State
Lastly for today, a glance at residential building by dwelling type at the state level. We already know that Victoria has been building huge numbers of new houses as compared to elsewhere, but new detached house building has now surreptitiously tiptoed past its cyclical peak.
 <img src="https://3.bp.blogspot.com/-qC8PPX_pwAA/VHWx8UZqmDI/AAAAAAAARfU/GgajBovwWUw/s1600/CONNNN.jpg">
As you can see from the chart below, it is new units and apartments which are the greatest risk area for this residential property market cycle, as developers construct unprecedented volumes of attached dwelling stock. With apartment construction hitting record heights there will also inevitably be a glut of new stock to be sold on by commission-hungry agents. Caveat emptor!
Our previous detailed analysis of the data including <a href="https://petewargent.blogspot.co.uk/2014/11/sydney-property-market-booming-but" target="_blank">here</a> and <a href="https://petewargent.blogspot.co.uk/2014/09/is-sydney-heading-for-oversupply-of" target="_blank">here</a> has shown that apartment approvals in Sydney have long since rolled over and accelerating Greater Sydney population growth reduces oversupply risk on a city-wide basis to some extent, despite some pockets of new stock over-supply (cf. CBD, inner south). 
However, it must also be observed here that with unprecedented construction of attached dwelling stock set to take place through the 2-3 years ahead, particularly in Brisbane, Melbourne, Perth and Sydney, but also elsewhere, there will inevitably be some blood spilt down the track for a substantial number of today's purchasers of new and off-the-plan properties.
 <img src="https://2.bp.blogspot.com/-E4kcsCXd9lI/VHWiIRy8wqI/AAAAAAAAReo/mb-xOzjFmVI/s1600/CONS7.jpg">
Scarcity Value
Always remember that, as in any asset class, buyers of and investors in residential property should look to purchase an asset with an element of scarcity value. In this respect, with building approvals breaking record highs in 2014 - a glut of new supply being precisely the polar opposite of scarcity - and the price of new stock at sky high levels, it is therefore almost by definition the most risk-laden time to buy new property that we have yet seen.
One of the many problems with new build investments is that all too often the choice boils down to an over-priced house (as compared to established stock) in a fringe suburb where few people want to live, which is a poor investment, or an over-priced apartment in an suburb which is set to be flooded with new apartments, which is frequently an even worse prospect. Alas there will forever be some nailed on guaranteed winners from this phase of the construction cycle, including the developers who have long land-banked their own gains from key development sites, and the so-termed 'investment advisers' plundering <a href="https://www.theaustralian.com.au/business/wealth/high-price-for-free-advice/story-e6frgac6-1226454402730" target="_blank">thumping sales commissions</a> on new stock. Scant consolation to be found for those at the end of the food chain who lose out, though.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His latest book is '<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>' .
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pwargent-M4siyDbqQY

Latest construction data sets alarm bells ringing

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Sydney’s weekend auction market concluded the spring selling season with a 74.6% success rate, virtually steady.
Last weekend’s 73.5% preliminary result was the lowest recorded for four months.
Last weekend's result was adjusted down to 68.4% after late auction results.
Just over 1,000 auctions were listed in Sydney today which ranked as the highest ever number of homes to go under the hammer on a spring Saturday. There are some 350 results yet to be tallied, which will see the preliminary result come back a bit.
The record Saturday stands with 1,100 plus offering during the 2014 Easter leadup.
The upper north shore hosted the most number of auctions this weekend with 146 closely followed by the inner west with 123, the south 134, the city and east 124, the lower north 107, the west 88, Canterbury Bankstown 81 and the northern beaches with 66 auctions scheduled.
The 1884 Roseville residence, Corona House, the late Victorian Italianate style home (pictured below) was passed in at $4.5 million through McConnell Bourn.
<img src="/images/2014/12/01/roseville%20nov%2030%20one.jpg" alt="">
The highest recorded sale was when 52 Lucretia Avenue, Longueville was sold for $3,605,000 through McGrath Estate Agents.
The Woods-McFadden house at Double Bay was passed in <a href="/news/boyarsky-family-in-12-6-million-double-bay-beachfront-buy">on a $14 million vendor bid</a>.
The most popular suburb for auctions this weekend was Hunters Hill on the lower north shore with 15, followed by Mosman also on the lower north shore, St Ives on the upper north shore, Blacktown in the west, and Castle Hill in the north west each with 12 and Strathfield in the inner west and Epping on the upper north shore each with 11 auctions scheduled at the weekend.
Sydney commenced the spring selling season this year with nine consecutive clearance rates above 80%, according to Australian Property Monitors.
"The market has clearly lost that early energy with 5 out of the last seven weekends below the 80% benchmark," APM senior economist Andrew Wilson said.
Before the Saturday results, the four-weekend average clearance rate had fallen to 76.4% which is now well down on the 80.6% average recorded over the previous four-weekend period.
Pre-auction sales had been tracking around 30% in last three months, but jumped up to 40% of sales during November.
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Sydney's Super Saturday auction success rate ends spring steady

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Melbourne’s weekend auction market finished the spring selling season on a 67.2% clearance rate.
It was a similar result to last weekend which recorded the lowest clearance rate for spring, and for the year so far, with an initial 67.1% which was revised to 66.8% after late results.
A surge in late spring auctions numbers was impacting market activity with buyers increasingly spoiled for choice, according to Australian Property Monitors (APM).
Auctions numbers rose strongly this weekend with over 1,300 homes listed offered under the hammer in the metro area. 
"This is well ahead of last weekend’s 1,154 results and just below the 1,341 auctions conducted over the same weekend last year," APM's Andrew Wilson said.
There are around 400 of the 1,326 results yet to be advised.
The top sale was Sandy Cove, the Brighton beachfront at 38 Dawson Avenue, which (pictured below) sold for $8,525,000 through hockingstuart. Boasting 46 metres of absolute west-facing beach frontage, the 1989-built Jon Friedrich house sits on a 771 square metre block. It last sold in 2007 for $6.1 million.
<img src="/images/2014/12/01/brighton%20dec%201%20one.jpg" alt="">
Pre-auction sales were prevalent, with the REIV reporting 170 pre-sales from its larger sample of 1181 auction results.
The REIV listed the top sales amid its 65% success rate:
TOP 5 HOUSES 1. 38 Dawson Avenue, Brighton $8,525,000 2. 37 Elizabeth Street, Brighton East $4,345,000 3. 6 Chilcote Avenue, Malvern $3,760,000 4. 2 Barnsbury Court, Deepdene $3,700,000 5. 129 Richardson Street, Albert Park $3,510,000
TOP 5 BARGAIN HOUSES 1. 83 Seventh Avenue, Rosebud $240,000 2. 11 Romsey Crescent, Dallas $270,000 3. 72 Songlark Crescent, Werribee $270,000 4. 36 Chelsworth Loop, Craigieburn $330,000 5. 15 Freda Street, Broadmeadows $330,000 
TOP 5 APARTMENTS 1. 2/8 Glenview Avenue, Malvern $1,920,000 2. 4 Bosisto Street, Richmond $1,530,000 3. 105 Ormond Esplanade, Elwood $1,500,000 4. 3 Edward Street, Toorak $1,250,000 5. 1B Wordsworth Street, St Kilda $1,036,000
TOP 5 BARGAIN APARTMENTS 1. 1/44 Brunswick Street, Fitzroy $133,000 2. 9/10 Derby Street, Fawkner $228,000 3. 36 Elinda Place, Reservoir $253,000 4. 5/216 Sladen Street, Cranbourne $255,000 5. 710/551 Flinders Lane, Melbourne $295,000
Source: Australian Property Monitors.
Melbourne’s inner city hosted the most number of auctions on the weekend with 220 closely followed by the inner south with 209, the inner east with 188, the west  185, the north east 165, the outer east 160, the north 109 and the south east  49.
The most popular suburb for auction listings on the weekend in metro Melbourne was Richmond in the outer east with 24 followed by Glen Waverley in the outer east and Reservoir in the north east each with 22, Port Melbourne in the inner city with 21, St Kilda also in the inner city with 19, Mount Waverley in the inner east and Melbourne CBD each with 18 and Doncaster in the inner east and Brighton in the inner south each with 17 auctions scheduled this weekend.
Last weekend’s auction clearance rate of 67.1% was well below the previous weekend’s 72.1% with the local market clearly tracking backwards since the Melbourne Cup weekend holiday. "Record numbers of auctions will continue to test a fading market through December to the Christmas break," Wilson said.
Before Saturday's result Melbourne’s four weekend average clearance rate had fallen to 72.7% well down on the previous four weekend average result of 75.4%.  
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