<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

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?

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

<img alt="iCIRT" data-entity-type="file" data-entity-uuid="dcbb59af-3d5a-43aa-b28e-a66e55a83568" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Announcement.png?VersionId=6OD8r.v.oucEF01BWxR85urzoD9seQ9e" />

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

<img alt="mirvac" data-entity-type="file" data-entity-uuid="1c11c691-e8cd-46c3-88fd-6c8d614e8357" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mirvac.png?VersionId=ZqDqNL36WJOOCmNMmmO93Q2GTrFOBomz" />Mirvac is a 5 Gold Star iCIRT rated developer, the highest possible rating a developer can get: Harbourside by Mirvac

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

<img alt="iCIRT" data-entity-type="file" data-entity-uuid="958e1497-8151-4689-aadc-baf59f6e6122" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/iCIRT-Infographic-Assessment-Process-Final.png?VersionId=7KyVcwSo4vCLXBYBdq382e3Si.R.9PWQ" />

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

<html><body>
Over the many years I’ve been helping people with their property developments, I have uncovered some amazing stories.
To celebrate <a target="_blank" href="https://www.internationalwomensday.com/theme.asp#.UxhaU_mSySo">International Women’s Day</a> – which is tomorrow 8th of March - I thought I’d share with you some of the most inspiring women property investors I’ve come across and who I am proud to call my clients and friends.
These women have achieved great things whilst just getting on with their lives. They are normal, down to Earth chicks; mothers, wives, daughters.
When I met Rachel, she was a part time working mother of four young children all under five. She wanted to development property so she could continue building her existing portfolio but was a little bit busy to manage it herself. She already held what I considered a very impressive portfolio of eight investment properties. When Rachel was 24 years old, instead of a car, she bought her first property and then just kept investing.
Rachel worked in accounting for a company she didn’t much care for.  To put it bluntly, her boss was a pig. But she used to grit her teeth and bear it as she knew she needed the salary income to keep moving forward on her property journey.
Rachel lived near me, so I went to her house to present our property development project management business to her.  We met over the kitchen bench with her husband and the little ones pulling on her skirt. Between distracting the kids, we chatted about property and it was only a few weeks later we’d started on her dual occupancy development. Rachel was decisive; I guess she didn’t get much time to procrastinate.
We completed her dual occ, increasing her property portfolio by two more properties, and then I received the phone call. Rachel excitedly shared with me her news that she was pregnant again and in the same breath she explained that she wanted to get another cashflow positive property under her belt before having to leave work. We discussed a granny flat project and immediately started searching for the right property for her. We found the property and at the same time, Rachel had an announcement to make. The amazing news was that she was having twins!
We completed her granny flat development after her beautiful twins were born twelve weeks premature! Now she owns 10 investment properties. Rachel’s goal is to set herself and her husband up for an early retirement and to help her children with their investments in the future. She is also looking to start a new business helping other investors do the same as she’s done.
My next amazing lady client is Angela who owns a whopping 14 properties including the three villas Property Bloom recently developed for her.  Angela started investing when she was 27. A dynamic single mother who works full time in the corporate sector leading a large operational team in the media industry, she is focussed on building her asset base and wealth, securing the future for herself and her two beautiful children.
Her investment strategies include buy and hold, subdivision, medium density development and build to add value. Angela has also set up her own self-managed super fund.
When we worked together, Angela really impressed me with her attention to detail and focus on exactly what she wanted. I knew her day job was very demanding but the time she dedicated for her family was more important to her. Angela’s biggest driver is to be a great role model for her children and to provide them with a future that will offer them options and choice.
Finally, I’d like to introduce Justine who is possibly better known as a successful, <a target="_blank" href="https://www.smarttrading.com.au/index.php?q=1">professional stock and CFD trader</a>, speaker and best-selling author; but Justine is also a property investor.
Justine was just 23 when she purchased her first property investment. However, before this at the tender age of 18, she invested her savings in the stock market as a hobby. Talk about diversification. This ‘hobby’ then became a full-time career in 2001, when Justine decided to take the plunge and leave her job to become a full time stock trader.
I met Justine a few years after this and she was well on her way to securing her financial freedom.  A wife and mum of two gorgeous children, she engaged Property Bloom to manage a corner block development that included a major house renovation, Torrens Title subdivision and unit development.  This project created a high amount of equity and a solid yield.
Justine has since ventured to the USA to take advantage of the low property prices and strong Aussie dollar and has built up a fantastic portfolio of USA properties. Being the entrepreneur she is Justine’s latest venture is <a target="_blank" href="https://www.smartpropertyinvesting.com/index">Smart Property Investing</a> where she helps others buy into the US property market.
These three women are remarkable in their own ways.  But they are all focussed, work extremely hard and are motivated to make a difference for their futures and for the future of their children.
Most importantly, they are every day women, just like you and I who just get on and do it.
I’m also working with many other fabulous ladies who have taken on the challenge of setting themselves up financially....so here’s a shout out to Liz, Linda, Sandi, Lean, Nikky, Annabel, Jo-anne, Lorraine, Alison, Esther, Karen, Paige and Suzie. Happy International Women’s Day to your all!
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Property Bloom</a>, which manages property development.
                             </body></html>

jochivers-wq5Bp59R5a

Three women's inspirational property investor stories

<html><body>
A free trade agreement between Australia and China appears to be a step closer, after Chinese Premier Li Keqiang said his government would seek to “accelerate” an agreement with the Australian government.
Li made the comments during a speech to the Chinese parliament this week, in which he said the Chinese economy will grow at around 7.5% this year, according to reports in <a href="https://www.afr.com/p/world/li_warns_of_china_pc_growth_pains_w8xcQEDh7FTYwSsyDb7aPO" target="_blank">Fairfax</a>.
He also said China will look to speed up free trade agreements with South Korea and the Gulf states.
However, Li give no timeframe for the signing of an agreement, which would allow imports and exports to enter each country without paying duties.
An Australia-China free trade agreement has been in the works for more than nine years and Prime Minister Tony Abbott has previously said he is aiming to secure a free trade agreement with China and Japan <a href="https://www.smartcompany.com.au/growth/export/35043-crossbencher-s-bill-could-scuttle-china-free-trade-agreement" target="_blank">by the end of 2014</a>.
Peter Mace from the Australian Institute of Export told SmartCompany Li’s comments are a “positive sign” ahead of Abbott’s scheduled visit the China in April.
But he says “there is still some water to go under the bridge” before the parties can reach an agreement and it is unlikely that an agreement will be secured anytime soon.
Nevertheless, Mace is “hopeful” a deal can be nutted out by the end of the year.
Mace warns there are “still some sticking points” that will be need to be addressed for an Australia-China free trade agreement to proceed, including improved access to investment in Australian firms for Chinese companies and access to the Chinese agricultural market for Australian exporters.
He says based on the New Zealand experience, where agricultural exports to China rose “exponentially” after the country signed a free trade agreement with China, an Australian agreement presents significant opportunities for Australian companies.
University of New South Wales economics professor Tim Harcourt <a href="https://www.smartcompany.com.au/growth/export/32734-free-trade-agreement-back-on-the-table-with-china---good-news-for-smes" target="_parent">previously told SmartCompany</a> a free trade deal would make trading with China easier for Australian SMEs.
“Small and medium-sized enterprises are now more likely to go to China and south-east Asia than anywhere else in the North Atlantic,” said Harcourt.
“Opportunities exist particularly in regards to the urbanisation in China, which is opening up opportunities for architects and construction and services firms.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.     
</body></html>

cwaters-YrtBR88nBe

China seeks to “accelerate” free trade agreement with Australia

<html><body>
Saving
Household saving ratios have been high since the financial crisis, but data out yesterday from the Australian Bureau of Statistics showed that at last people may be gradually opening their wallets again.
Retail sales data will provide us with more evidence.
There is a bit of a lag in the Reserve Bank's Chart Pack figures, but let's see what we can deduce.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Household Saving Ratio graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/5tr-hhsaving-small.gif?accessed=2014-03-05-20-18-31" height="282" width="320">
Sill elevated, as compared to the levels seen over the last two decades, but low interest rates should see Aussies starting to loose the purse strings a bit.
Building approvals
By the time next month's charts are in the total residential building approvals data will show approvals at their highest level in a decade.
A good thing or a bad thing?
A great thing for the economy.
And for housing prices? Well, we'll get an oversupply in pockets, of course.
But nationally?
The Digital Finance Analytics blog attempts  <a href="https://www.digitalfinanceanalytics.com/blog/how-big-is-the-property-demand-supply-gap/" target="_blank">here</a> to  explain the shortfall in our construction and concludes we need to more than double dwelling construction to meet demand.
I'm not sure about the exact nature of the conclusion, since different cities and regions have different demands and requirements.
But with the population growing at 400,000 per annum and household sizes far lower than they used to be then, yes we desperately need to get more building supply, and quickly.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Private Residential Building Approvals graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/5bl-privbapp-small.gif?accessed=2014-03-05-20-18-31" height="257" width="320">
Household finances
The third chart below on household finance shows the first signs that household debt levels as a percentage of disposable income - which have been flat or falling slightly for the last nine ears - may again be turning up, just a slight notch.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Household Finances graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6tl-hhfin-small.gif?accessed=2014-03-05-20-18-31" height="286" width="320">
Housing loan approvals
Housing loan approvals are by aggregate dollar value are heading to the moon, blasting through the $20 billion barrier and heading well beyond.
It's property market boomtime.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Housing Loan Approvals graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6br-hla-small.gif?accessed=2014-03-05-20-18-31" height="256" width="320">
Dwelling prices
Prices are heading sharply upwards in all major capital cities except for Adelaide.
The red line indicates that some regional markets must have picked up also, although this is best judged on a region by region basis.
Sydney property market commentary over the years has morphed from crash, to bust, to a bull trap and then to a slow melt. But finally there seems to be an acceptance of what we forecast here long ago: we're into a sharp property upturn, with very little stock on the market.
In our estimation the cost of production was too high for this to be otherwise and only now are we at last seeing any meaningful supply response.
In the future I'll look at whether SQM's prediction of 15-20% Sydney price growth in 2014 will play out.
In any case, sweeping city-wide commentary adds very little value to anyone who can read a chart.
I'll have a look in a bit more detail at which sectors of the Sydney market are now risky (plenty of those) and which we consider to be significantly less so.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Housing Prices graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6bl-dwelpri-small.gif?accessed=2014-03-05-20-18-31" height="254" width="320">
Household wealth, household debt
With share markets driving up to a six year high yesterday, Aussies' net worth is now in a pleasing uptrend, while household debt levels have been flat for around a decade, which is good news for Aussie households.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Household Wealth and Liabilities graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6tr-hhwl-small.gif?accessed=2014-03-05-20-18-31" height="278" width="320">
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
                                  
</body></html>

pwargent-M4siyDbqQY

Latest RBA stats show that the property market is in good shape

<html><body>
Predicting the future or markets is not a science and since some people make bad financial decisions based on spurious predictions, the predictors absolutely deserve to be pulled up for their errors. The world is not linear, and while pulling charts from thin air may look impressive, there is no way to predict markets with such certainty. In any case, you can invent a chart to 'prove' anything. Take our old friend, the good old S-curve. The x axis represents time passing (x to left, y to the sky, remember?), and the y axis cumulative data.
<div style="text-align: center;"><img src="https://www.forecastingnet.com/S-curve.png" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;"></div>
S-curves can be used for a number of different functions, such as to explain the technology life cycle, or the lifespan of a product. An example? Say, the new users of a website such as MySpace. The number of new users started out slowly (early adopters), then the site became increasingly popular (early majority), then popularity exploded after Lily Allen started posting her recordings publicly on the site (late majority), and then the number of new users slowly flattened (laggards), eventually to close to nil. The MySpace cumulative number of users chart, if anyone has bothered to chart it (which I assume they have somewhere) probably looks something like my S-curve above.
The problem with these books which try to predict the future scientifically is that the world is not black and white, and the number of variables involved is huge. In any case, you can use an S-curve to 'prove' just about anything you want. Let's say, the property crash predictions over the last seven years. Simply add some silly narrative to prove the chart.
<a href="https://4.bp.blogspot.com/-Oba3tBnlDo4/Uw0j2-NEo7I/AAAAAAAALow/G8lYbv_GWcM/s1600/S+curve.jpg" imageanchor="1" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img border="0" src="https://4.bp.blogspot.com/-Oba3tBnlDo4/Uw0j2-NEo7I/AAAAAAAALow/G8lYbv_GWcM/s1600/S+curve.jpg" height="244" width="320" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;"></a>
Point A (2007) - property prices in Australia's main cities have been flat after a boom through to 2004. All is quiet on the crash prediction curve.
Point B (2008) - "40% crash" predictions appear in the press. Bearish sentiment and crash predictions slowly begins to ramp up.
Point C (2009-10) - prices increase sharply in response to low interest rates. Property investors are variously termed as unethical, greedy and evil. The crashniks gain momentum. A price crash is described as inevitable.
Point D (2011-12) - the crash crescendo reaches fever pitch as property prices fall moderately. Anyone who owns a house is an idiot. American commentators say prices will crash by 60%...maybe up to 85% in certain areas. People will be wiped out. There is to be no escape from the unavoidable crash.
Point E (2012-14) - prices start rising again. ANZ Bank forecasts prices will rise by 15-20% by the end of 2015. In early 2014, bears begin to lose interest in the crash, capitulate and buy houses. Some join in and buy investment properties.
Point F (2016) - prices flatten off. We return to Point A on the chart.
Is there such a curve? No, of course not. It's absolutely ridiculous and I just made it up on the spot. But this is exactly the sort of thing that is used to sell books. All I need to do now is trademark it - "The Property Crash Prediction Curve" - and get it out to market.
Trends
In saying all of this, I have witnessed something akin to this more than once in London, and first time buyers are often said to wait until markets are rising before committing to buying.
In the modern era, first time buyers in large, mature capital city markets are likely to be in their 30s. There was a lot of talk about property prices crashing when the technology stock bubble burst around the turn of the century, and while sentiment did soften in some areas, there is only so long that people are prepared to wait for a crash.
It's happening in London again now, with Savills out forecasting <a href="https://www.savills.co.uk/resources/5-year-forecast/" target="_blank">five more years of price gains</a> of around 25% from 2014 to 2019. Plenty of buyers took a step back from 2009, during and after the financial crisis, but since a man's working life is only so long there is a limit to how long people will wait before simply deciding to get on with it and buy a home.
Next page: What S-curves are really used for in property. Please click below.
                    
<hr class="system-pagebreak">
What S-curves are really used for in property
Meanwhile back in the real world, and with my bean-counter head on, S-curves do actually have an important role to play in the property world.
When major developers undertake new projects, they are costed using an S-curve model or function, with cumulative labour and construction costs budgeted out through the life of the project. Deviations from the curve are then continuously monitored on an ongoing basis through variance analysis and through using project reporting accounting software packages.
Typically, a major development or construction project has relatively low planning, legal and application costs in its early days, before construction and labour costs ramp up sharply. Then, at the end of the project there will always be a few lagging costs, such as remedial work or disputed contracts, and the project reporting codes are then closed.
Development of new stock
You'd be forgiven for thinking from looking at the price of new apartments that developing companies are making obscene profit margins, but you'd be wrong. Once land, financing, government taxes and charges, labour and construction costs are booked and corporate overheads allocated to a project, developer margins are far from exceptional.
LendLease (ASX: LLC) released its Group Consolidated Results for the half year yesterday, showing a net profit of only $250m, from a colossal revenue of more than $6.5 billion for the half year. The Mirvac (MGR) results present a similar story. Stockland Group (SGP) is generating a Return on Equity (ROE) of well under 6%. Solid enough results, but hardly exceptional margins.
Construction costs
I spent a fair chunk of my career costing out (mining) construction projects and have been responsible for managing budgets that have suffered nasty adverse deviations from the S-curve and painful overruns. It's unpleasant. And if you have to go back to the equity markets for further capital raisings, it's more unpleasant still. For everybody concerned.
The capital expenditure report from the ABS shows that, for all the talk of mining construction having peaked 18 months ago, it is only now beginning to drop. The reason? Overruns, caused by the sharply increasing cost of doing business, variously including labour costs, construction costs and compliance.
The <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2013-12-12/gorgon-gas-project-cost-blowout/5151982" target="_blank">Gorgon gas project in north-west WA will cost $54 billion</a>, possibly even more. The original budget was $37 billion (thankfully, I've never been responsible for an overrun like that monster!). The cause of that? Red tape and compliance. And as our society becomes more litigious, this is only going to get worse not better. You seemingly can't fire anyone these without a dozen written warnings or a large lump sum payout.
Ask anyone who has managed or overseen a construction project in the last decade and they'll tell you the same thing: labour and construction costs in Australia are very painful. It's partly been driven by a surge in wages. We may have an implied inflation target of Australia of 2.5%, but wages growth has outstripped this figure every year since the inception of the Wage Price Index.
But that's only half of the story. Employing people in Australia today is not only a consideration of basic salary. When budgeting for project labour costs, additional provisions of up to 40% are sometimes needed for on-costs such as productivity, the superannuation contribution, Workers Comp insurance, payroll tax, annual leaving loading, long service leave provisions, and so on.
And even this is only part of the story. As my mining engineer friends in the field never tire of telling me: "You can't even take a leak without filling out a form these days". Coarse. But also true.
Article continues on next page. Please click below.
                             
<hr class="system-pagebreak">
Focus on safety
Safety on construction sites is now rightly seen to be of paramount importance - people are more important than profits - and this is coming with a dollar cost attached.
In Sydney recently, we have seen the death of a construction worker in the field at Barangaroo, a horrific scaffolding collapse on Mascot's O'Riordan Street and a crane upended in Chatswood, all of which hit the newspaper headlines.
Rightly or otherwise, the press now sees construction accidents as fair game for news reporting and this brings with it an elevated reputation risk to companies.
Go to the ASX and take a read of any property development company or mining company results presentation - such as that of <a href="https://www.asx.com.au/asxpdf/20140226/pdf/42mzs2x5klxngs.pdf" target="_blank">LendLease</a> - and you will see that after a pretty picture on the front cover and a lengthy disclaimer, the slide we always put as number 1 is: "Safety". It was not always so, but this is now convention is mining and construction circles.
Reserve Bank highlights construction costs issue
One of the benefits of having and independent Central Bank is the independent analysis it brings, and the Reserve Bank in Australia has itself highlighted more than once the impact of higher construction costs on new residential housing stock.
<img alt="Graph 8: Construction Costs" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph8-small.gif" height="387" width="400" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
This might be surprising when you consider how cheap <a href="https://www.clarendon.com.au/" target="_blank">display homes</a> can seem in the glossy magazines. However, operating a construction site is a different matter entirely, and the costs of a major construction project - particularly for multi-storey infill sites of more than 50 apartments, as the RBA clearly shows above - bear no resemblance to those of mass-produced project homes.
The land price for infill sites, even in Sydney is below $100,000 per dwelling. Of course, the land content appears low in the RBA's charts when compared to the median value of lots in the city. And indeed it is, for a couple of reasons.
Firstly, because the RBA has used outdated 2011 figures from <a href="https://www.urbis.com.au/" target="_blank">Urbis</a> as its source. And secondly because the RBA is looking at the lot value of land released for new dwellings as opposed to the median value of all lots, which is clearly going to be materially different, given the likely locations.
Summary
In summary, we are not going to see materially cheaper land or property prices in Sydney because (a) the land for release is frequently on the outer fringe where few people want to live, and (b) as <a href="https://www.urbis.com.au/think-tank/general/sydney-land-releases-fail-to-meet-demand" target="_blank">Urbis itself confirmed</a>, not enough of new land gets released to meet demand anyway, which keeps prices pumped even further.
Rest assured that, expensive as today's new residential projects may seem to off plan buyers, significantly cheaper new stock will not hit the market. Developers will not accept lower margins than they presently are, and since labour and construction costs remain elevated, so too will the price of new housing stock.
In any case, planners are fighting a losing battle against the manic population growth in the capital cities, which is another reason why for all these years I've argued against a price crash. The Sydney population over the last decade increased by around half a million persons - enough people to fill the main <a href="https://d16outft0soac8.cloudfront.net/uploadedFiles/CONCERT%20HALL%20Tech%20Specs_Feb%202011.pdf" target="_blank">Opera House concert hall</a> to its full capacity 187 times over. That's a lot of people.
Population growth at that pace (and <a href="https://petewargent.blogspot.com.au/2014/01/read-matusik-on-population-growth" target="_blank">faster still in 2013</a>) doesn't necessarily equate to higher house prices, but it's hardly the recipe for a crash either.
OK, enough blurb from me. I'm off to trademark my new S-curve model.
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
                     
</body></html>

The property crash prediction S-curve (TM): What it can really tell us

<html><body>
If you are confused with what’s presently happening within the Australian economy you’re not alone. Already in 2014 we have seen the announcements that motor vehicle manufacturing in Australia is closing down and this week Qantas announced that a further 5,000 jobs will be cut by the carrier. It’s abundantly clear that since the global financial crisis (GFC) Australian businesses are adopting a new mandate: Do something. Either lead, follow, or get out of the way!
Last week we saw another shock announcement with <a target="_blank" href="https://www.businessspectator.com.au/news/2014/2/27/australian-news/capex-drops-dec-quarter" title="CAPEX drops in December quarter">CAPEX dropping in the December quarter</a> which in all probability confirms that Australian businesses are more than cautious in 2014 – which certainly contravenes previous speculation that the markets were upbeat about what 2014 will bring. Whilst this does not spell the end of the world this significantly highlights that consumer sentiment is wavering, which is consistent with what we saw during and since the GFC.
Like most progressive businesses we had a session yesterday with our real estate coach <a target="_blank" href="https://www.activategrowth.com.au/index" title="Daniel Spencer ">Daniel Spencer </a>where the Australian economy was summed up with just the one sentence: “The greatest fear is the unknown”. If you cast your mind back to the GFC businesses’ engagement all but came to a standstill given consumers were distracted looking for answers and signs. What we are seeing today are economic machinations busily at work in stark contrast to <a target="_blank" href="https://www.propertyobserver.com.au/economy/home-prices-are-rising-and-so-is-unemployment-that-s-a-first/2014021867838">what we have seen before</a>.
I have no idea how mainstream media missed an announcement this week that <a target="_blank" href="https://article.wn.com/view/2014/02/25/Kuringgai_Council_to_discuss_the_future_of_Gordon_Golf_Cours/" title="Ku – ring – gai Council resolves to investigate the future of the Gordon Golf Club site ">Ku–ring–gai Council resolves to investigate the future of the Gordon Golf Club site </a>for the purpose of looking at possible future uses. Now this is a big story which in all probability will lead to plenty more councils reviewing their assets with a view to selling out to cashed–up property developers. Ku–ring–gai Council made the announcement last Tuesday that they are looking at a new sporting facility, including options for the first indoor sports centre in Ku–ring–gai (they sort of hid this as second point), a range of residential housing, small neighbourhood shops, local park and other community facilities. The council have another public golf course and rest assured that too will end up on the planning board as councils across the country look to cashing in on community assets.
I hate to say I told you so, however back on April 9, 2010 I wrote: <a target="_blank" href="https://www.rwm.com.au/2010/04/09/record-population-growth-and-possibly-an-even-scarier-outcome/" title="Record population growth – and (possibly) an even scarier outcome.">Record population growth – and (possibly) an even scarier outcome.</a> “So what can we expect? The greatest sell–off of (open space) land for residential development and Mosman (given its abundance of foreshore land) would become a major revenue raiser for funding sustainability. The ‘posh’ will utter, gosh! A strong possibility that Mosman sea scapes could resemble those from Whale Beach to Palm Beach. Of course governments will say ‘it is all in the name of economic progress’. Simply put – we may believe we are the custodians of open space and even though we don’t have title to this lifestyle privilege, money talks and many areas that are untouched could lose their virginity.”
“We now find that one in four NSW councils is on the brink of being unable to pay for essential services. We are already hearing murmurs that some councils are looking at selling off public golf courses and replacing them with housing estates.”
So there you have it – watch this proposal very carefully as it in all probability will open Pandora’s Box.
<img alt="simeon-march-3-one" height="385" width="470" src="/images/stories/2014/03/03/simeon-march-3-one.gif">
<img alt="simeon-march-3-two" height="409" width="470" src="/images/stories/2014/03/03/simeon-march-3-two.gif">
It is succinct and very clear why the Australian economy is experiencing behavioural problems when one closely examines these graphs. So based on this data one should not expect any rebounds anytime soon.
Robert Simeon is a director of <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/" title="RWM" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
                                       
</body></html>

robertsimeon-hRNTwJyXkQ

The start of the public land sell-off?

<html><body>
For as long as auctions have existed in Australia, agents have been rorting the system.
For the past 15 years, state and territory governments have been passing laws to curtail auction excesses like dummy bidding and underquoting on price guides. But agencies keep sidestepping the rules and so governments keep passing new laws that cause agents to scream from the rooftops.
We’re seeing that playing out now with Queensland plans to ban price guides on auction properties. Agents and their representative bodies are squealing loudly and urging consumers to lobby politicians to stop it. The level of angst from real estate “professionals” is amazing to observe.
I have several messages for those protesting the changes.
One, you have only yourselves to blame. If you were competent and honest in their dealings around auctions, law changes would not be needed.
Two, you’re distorting reality when you claim your protest is motivated by concern for consumers. The motivation is self-interest, pure and simple. Nobody does self-interest like a real estate agent.
Three, real estate consumers are unlikely to protest about a ban on price guides because there’s no downside for buyers and sellers. The average buyer in particular will benefit from the ban.
The bottom line is that price guides are worthless. Agents commonly under-quote in their price guides to try to attract interest in the sale property. This means potential buyers waste their time and money on pursuing properties that were never in their price range.
It’s hugely frustrating for people who think they have a chance on a home, but discover on auction day that the reserve price was always higher than the top of the price range advertised. Buyers would be better off doing their own research than relying on the rubbery figures in price guides.
Whenever media or consumer affairs personnel have surveyed price guides and eventual sale prices, they have found that most price guides are fictitious. It’s a form of advertising fraud and governments are right to take action on it.
Strangely, the loudest noise is coming from interstate agents. The Real Estate Institute of New South Wales, for example, claims the ban will harm consumers. It says the move will reduce “transparency” at auctions. John McGrath, a Sydney-based agent, has claimed that “Queensland is facing a dire situation” and that the move is “insanity”.
Transparency at auctions? The typical auction is the antithesis of transparency.
A dire situation? Because agents will be prevented from misleading consumers with their “price guides”?  Someone needs to take a cold shower and some valium and have a wee lie down.
In one of his many media statements on this issue, McGrath says: “Every buyer I have ever met in 32 years wants price guides.”
No, they don’t. They want accurate and honest price guides. Given that the industry seems incapable of providing them, the best course is to ban them altogether.
Terry Ryder is the founder of <a rel="nofollow" href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>.
You can contact Terry via <a target="_blank" href="https://mailto:%20ryder@hotspotting.com.au">email</a> or on <a rel="nofollow" target="_blank" href="https://twitter.com/hotspotting">Twitter</a>.
                           
</body></html>

terryryder-YECXbqmri2

Don't like the auction price guidance ban? You can only blame yourself

<html><body>
This week, a preliminary auction clearance rate of 72.8% was recorded across 1,494 auction results, with a total of 2,680 auctions held across the capital cities. Both auction clearance rates and auction volumes decreased last week, from 76.2% the previous week across 2,905 capital city auctions.
Currently, auction conditions are a lot stronger than they were at the same time last year. Over the corresponding week last year there were 1,983 properties taken to auction within the capital cities and RP Data recorded a clearance rate of 61.0%. It will be interesting to see if continuing high clearance rates encourage a further increase in the number of capital city properties taken to auction, given that current volumes are already so much higher than at the same time last year.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" rel="wp-prettyPhoto[g2927]" href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Capital-city.jpg" target="_blank"><img style="margin: 0px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; height: auto; vertical-align: bottom;" height="347" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Capital-city.jpg" alt="20140302 Capital city" class="alignnone size-full wp-image-2930"></a>
Last week was Sydney’s second week this year where the number of auctions held in the city was more than 1,000. So far this year, Sydney’s auction clearance rate has been consistently recorded at or above 75%, which is much stronger than conditions seen at the start of last year. Last week, the preliminary auction clearance rate was recorded at 77.9%, with 1,019 properties taken to auction in the city. Over the previous week, there were 1,101 Sydney auctions and the final auction clearance rate was recorded at a strong 84.2%, the highest auction clearance rate seen in the city since September last year.
One year ago, there were only 751 Sydney auctions held over the week and the clearance rate was much lower, recorded at 61.1%. The increase in the number of properties taken to auction across the city demonstrates that vendors are becoming increasingly confident of a successful sale and are more willing to market their property under auction conditions.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" rel="wp-prettyPhoto[g2927]" href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Sydney.jpg" target="_blank"><img style="margin: 0px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; height: auto; vertical-align: bottom;" height="310" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Sydney.jpg" alt="20140302 Sydney" class="alignnone size-full wp-image-2932"></a>
A preliminary auction clearance rate of 73.9% was reached from 1,319 auctions this week in Melbourne. This compares to 65.6% for the same time last year from fewer auctions.
This represents a substantial lift on the results a year ago and is a very strong result for the Melbourne market as it follows the highest volume of auctions for February on record.
Last month there were 2,623 auctions with a clearance rate of 71.5%. This was higher than the 2,571 recorded in 2010 although the clearance rate in February that year was 79.0%.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" rel="wp-prettyPhoto[g2927]" href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Melbourne.jpg" target="_blank"><img style="margin: 0px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; height: auto; vertical-align: bottom;" height="311" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Melbourne.jpg" alt="20140302 Melbourne" class="alignnone size-full wp-image-2931"></a>
In Brisbane, less than half of all properties where RP Data recorded an auction result this week sold (42.4%), however, much like the other cities, there were more auctions held in the city this week (148) compared to the same week last year (111), when the clearance rate was recorded at a lower 37.7%. Over the previous week, Brisbane’s auction clearance rate was recorded at 63.6% with 161 properties taken to auction.
Although conditions across the Brisbane auction market are currently much weaker than across the larger auction markets of Sydney and Melbourne, it is important to remember than unlike Sydney and Melbourne, auctions account for a much smaller proportion of the overall Brisbane market.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" rel="wp-prettyPhoto[g2927]" href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Brisbane.jpg" target="_blank"><img style="margin: 0px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; height: auto; vertical-align: bottom;" height="309" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Brisbane.jpg" alt="20140302 Brisbane" class="alignnone size-full wp-image-2929"></a>
Last week, Adelaide recorded a strong clearance rate of 75.0% with 97 auctions held in the city. Over the previous week, 118 Adelaide properties were taken to auction and RP Data recorded a final auction clearance rate of 59.8%. So far this year, Adelaide’s clearance rate has been recorded above the 70% mark, however prior to this, the clearance rate in Adelaide had not exceeded the 70% mark since back in September last year. The number of auctions held across the city over the same week last year was 70, with a clearance rate of 38.9%.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" rel="wp-prettyPhoto[g2927]" href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Adelaide1.jpg" target="_blank"><img style="margin: 0px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; height: auto; vertical-align: bottom;" height="312" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140302-Adelaide1.jpg" alt="20140302 Adelaide" class="alignnone size-full wp-image-2935"></a>
Auction volumes across the capital cities will be lower over the coming week due to multiple public holidays around the country. Currently, RP Data is expecting 1,402 auctions to be held across the capital city markets over the coming week.
Shana Miller is a research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
Melbourne auction commentary provided by Robert Larocca, RP Data’s Victorian housing market specialist
                      
</body></html>

smiller-vwPjRHTkST

Capital city auction conditions a lot stronger than this time last year

<html><body>
By any comparative measure, the Australian economy has performed remarkably well over the last two decades.  
We’ve had strong gains in the labor force throughout the 1990s, rapid population growth and a surge in the value of key commodity exports through the 2000s.  
Resilient wage inflation duly capitalised into rising property prices, by way of a dramatic and accelerated run up of household debt in the lead up to the GFC.  All of which was buffered and prevented from any significant deleveraging, by the Rudd administration in 2008, when he threw sizeable cash handouts to families along with infrastructure investment to avoid plunging Australia into a technical ‘recession’.  
From this alone, our economic platform deserves the title “The world’s star performer”.  
However, whilst we may stand out in the wealth stakes, we’re not a happier nation for it.  
Last week <a target="_blank" href="https://www.abc.net.au/tv/qanda/txt/s3938479.htm">Q&amp;A</a> featured a question from a young Australian and recent school leaver which touched on the sensitive subject of depression asking: “What can the government do to “fix it?”  
Like every other Western nation, Australia has experienced a sharp rise in the number of people suffering depressive illness over the last decade, with the average onset of the disease moving downwards in terms of age since the 1990s.  
Organisations such as <a target="_blank" href="https://www.beyondblue.org.au/">Beyond Blue</a> report that more than one in five Australian’s experienced depression, anxiety, or both, over last past year, and as the gentleman stressed, he was no exception.  
The comments that followed were sensitive in nature – focusing primarily on individual treatment and prevention within the health system. And whilst the cause of depression is both complex and varied, the first acknowledgement on what the government could do ‘collectively,’ came from Clive Palmer:  
“We need to have some sort of vision,” said Mr. Palmer “Create an environment that makes people realise the world is not as bad as we think it is… if you cut things, if you cut budgets, if you take things from people, you make them more worried about the future, and more uncertain.”  
This was reiterated by Ged Kearny, President of the Australian Council of Trade Unions:  
“I get very concerned when I hear about cuts to public health… they're just another barrier to person, particularly a young person, getting help.”  
They are appropriate observations considering our rising population, skewed toward an aging demographic, which by its very nature will necessitate additional funding over the next decade into both health and education.  
So, it was somewhat unfortunate, at the same time panellists were discussing cuts, Prime Minister Tony Abbot was giving a speech to the <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-02-25/abbott-flags-spending-growth-cuts-health-education/5281606">Australian-Canada Economic Leadership Forum</a> in Melbourne, hinting at just this – as summarised bluntly by Christopher Pyne, Minister for Education:  
"[The Prime Minister] said that the current growth in education and health expenditure was unsustainable, and that is true.”  
What’s Tony Abbot’s vision for economic growth?  
“You can’t spend money until you’ve earned it! – Or until you have the means to pay it back!”  
Was the <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-02-25/abbott-flags-spending-growth-cuts-health-education/5281606">cautionary opening statement</a> Mr Abbot posed.  
It’s a somewhat startling assertion considering it comes from the ‘issuers’ of our monetary supply, offset through taxing those who do have to earn dollars before they can spend it - whilst our government ‘earns’ nothing. Rather it is elected, and charged, to balance the budget in the best interests of its working population to promote economic growth – for which education and health are vital pillars.  
Abbot goes onto say - the best way to build a stronger economy is for Australia to once again to: “Enjoy a surplus.”  
Which may lead you (like me) to wonder how exactly the average private household will enjoy this surplus, considering we have the highest unemployment rate since 2003, along with an increase in those registering as “long-term” unemployed, up 13.5% since January 2013, and more part time jobs being created than full time?  
In Victoria, where manufacturing industries are concentrated, unemployment is at its worst level since 2002, whilst youth unemployment, which represents the demographic driving the future of our economy, has reached a <a target="_parent" href="https://www.theage.com.au/victoria/youth-unemployment-reaches-crisis-point-says-brotherhood-of-st-laurence-20140223-33aks">‘crisis’</a> point.  
Just over 12% of young people between the ages of 15 and 24 are currently out of work.  
Regional localities reflect the worst - 20% in Cairns and Tasmania, 18% to 19% in north Adelaide, 17% in Western Sydney, the Illawarra, parts of Melbourne and regional Victoria – with the trade off being the increased cost of metropolitan accommodation for those “job seeking” in capital cities.  
Additionally, the latest “ABS labour price index” records wage growth at its lowest level on record – climbing just below the rate of inflation for the last calendar year - whilst the cost for ‘essentials’ such as health, childcare, utility services, and petrol, in some areas, has reached record highs.  
Considering our household debt to disposable income has barely deleveraged since property prices hit their peak in 2010 – the very talk of reaching a surplus within three years, particularly by way of cuts to essential services, or even the increased number relying on job seekers allowance - is foolhardy,  
When the government tightens its belt, the private sector picks up the slack. Therefore, “repairing the [government] budget” with the claim that it’s putting Australia “back on the right track”, is not putting the fate of Australians on the right track.  
Austerity, at a time of rising unemployment, does not lead to productive economic growth.  And from depression and unemployment statistics alone, it seems Australian’s are not enjoying a return to surplus.  
They’re are working longer, retiring later and in the face of rising unemployment, the only ‘vision’ the working population seemingly have to hold to is more of the same.  
So what are we left with?  
After 30 years of demise, the manufacturing industry is in the depths of <a target="_blank" href="https://www.macrobusiness.com.au/2014/02/the-extinction-of-australian-manufacturing/">recession</a>.  
Retail is losing the battle to the World Wide Web and residential construction is still struggling to pick up the cyclical slack created by the mining sector.  
Abbot’s “infrastructure promise" to speed up the flow of money from Canberra into the states, to upgrade road and rail projects, is positive news and sorely needed, however, <a target="_blank" href="https://www.macrobusiness.com.au/2014/02/one-auction-and-its-impact-on-the-welfare-state/">remember</a> where those gains will be most acutely felt.  
Without effective <a target="_blank" href="https://www.macrobusiness.com.au/2013/11/land-tax-must-kill-negative-gearing-stamp-duty/">land value taxation</a>, the investment creates the ‘future speculative hotspots,’ where the improvements will be capitalised into rising land values, rather than fed back into servicing, maintaining, and further extending essential community facilities.  
Land is an absolute necessity to all commercial and personal needs, therefore as land values rise; it will affect a continued strain on business and <a target="_blank" href="https://www.macrobusiness.com.au/2014/02/its-housing-thats-killing-productivity/">productivity</a>, and once again, we’re stimulating the cost of irreplaceable fixed assets, rather than the employment sectors needed to underpin a longer trajectory of economic growth.  
But this is what Australia is remarkably good at – creating a booming land market.  We’re right up there with the world’s best performers.  
Article continues on next page. Please click below.
                                  
<hr class="system-pagebreak">
The housing bubble success story
Following a rapid 12-month cyclical upswing of housing inflation, residential real estate prices are once again reaching their 2010 peak.  
Outside of normal ‘corrective’ downturns, we’re continually lectured by an overcrowded mass of vested industry commentary that our housing market can ‘never fail’. Or at least not to the extent suggested by personalities such as Harry Dent or respected Australian economist Professor Steve Keen, who are quickly bundled into the same category and labelled as nothing more than irresponsible fear mongers for implying as such.  
Our commentators waste no time offering their own economic analysis of property cycles, which unfortunately missed any prediction of the subprime crisis.  
Albeit, housing affordability for both renters and home buyers, has rarely escaped headline news since before the last election and whilst to a limited extent we seemed to have progressed past the point in which rising prices are marketed as overwhelming positive news, it certainly hasn’t destroyed the myth that they’re somehow ‘good’ for the long-term health of our nation, as owners leverage off the so-called ‘wealth effect’ – relying on the unearned equity in their housing investments to fund both lifestyle and commercial activities.  
Australia’s biggest employer – aged related care (the health and social assistance industries) – derives a large percentage of its funding from people selling their housing, which their children additionally hope to inherit to assist their own journey onto the ladder and the perpetual fear of any downturn in established values has painted the government into a corner.  
Is the housing market on Rocky Roots?  
Yet, fear mongering or not, we know from the above statistics alone, the estimated $5 trillion worth of wealth contained in the house and land market is sitting on rocky roots.  
It’s no longer supported by the boom of productive activity and wage growth that assisted in generating the inflation during the 1990s and 2000s – producing the ‘strong’ monopolised banking sector which capitalised on the mortgage market as a population of buyers and speculative investors rapidly expanded.  
Outside of future prospected wage increases, significant gains are only achievable by manipulating demand side stimulants, tapping into foreign investment, (currently <a target="_blank" href="https://www.theage.com.au/victoria/everestlike-growth-in-melbournes-residential-towers-20140228-33r9x">driving</a> the inner city apartment and development market), whilst limiting effective and feasible <a target="_blank" href="https://www.macrobusiness.com.au/2013/11/rethinking-urban-growth-boundaries/">‘cheap’</a> supply - which the government has successfully achieved to date, by way of policies such as negative gearing, first home buyer grants, and a truly diabolical record of supply side reform.  
As mentioned in one of the most recent <a target="_blank" href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Affordable_housing_2013/Submissions">submissions</a> to the Senate’s housing affordability enquiry, by Prosper Australia: “It took forty years from 1950 to 1990 for housing prices to double, but only fifteen years between 1996 and 2010 to double again.”  
Whilst most will agree growth may be more subdued as we continue, it’s imperative we highlight the destructive nature of this system, which isn’t assisting making us a happy nation, and for a moment, stand back and take stock.  
Ask yourself a question  
Just for the moment, forget the raft of industry commentary and the prospected dates for the next ‘crash’ predicted and ask yourself a question:  
What will the next decade bring?  
If through manipulation alone, Australia manages to achieve more of the same and keep the housing boat afloat:  
<ul>
<li>
What will the consequential effect be on small business and industry?
</li>
</ul>
<ul>
<li>
Who will benefit most?
</li>
</ul>
<ul>
<li>
Will it be your children who have to save even longer to get on the ladder?
</li>
</ul>
<ul>
<li>
Or their children who will need to save longer still?
</li>
</ul>
  Remember if we were to have a crash, it’s not the wealthy that will suffer and it’s ordinary working families who are then left in a position where they’re unable to borrow to take advantage of lower prices.
 
Is the future, long-term wealth inequality?
 
The boom/bust land cycle, which we’re told by industry advocates is the best way to build the individual wealth of its nation, is a system which derives its very existence from a long drawn out speculative process. This ultimately accentuates inequality, under utilises land, always marginalizing those at the bottom of the income stream, whilst advantaging those at the top – as I explained <a target="_blank" href="https://www.macrobusiness.com.au/2014/02/housing-and-the-inequality-divide/">here</a>.  
Nowhere is the divide between rich and poor more evident than the land market which results in a slow process of social polarisation. In Australia, it has given us a segregated schooling system where social disadvantage in education is stronger here than <a target="_blank" href="https://crawford.anu.edu.au/public_policy_community/content/doc/Australia_Inequality-and-Prosperity_final-15-March-13.pdf">any other</a> comparable western nation.  
Whilst inequality in wages and business activity can be equalised through competitive activity, land – by its very nature – is fixed in supply and therefore the only cure to rising prices in a soft economic environment, is the produce of additional supply.  
Meeting that demand by extending upwards is a challenge. Land values in the inner suburbs are already high and although it can assist the needs of apartment dwellers, investors, student renters, and to a degree, downsizers, family buyers (our largest home buying demographic) have no option but to head to the fringe if it’s affordability they’re after.  
But, due to ineffective land tax and supply policy, the fringe suburbs, which capture the bulk of our city’s population growth, do not have the funding needed to facilitate urban sprawl, hence the process of <a target="_blank" href="https://www.macrobusiness.com.au/2014/02/housing-and-the-inequality-divide/">social polarisation</a>.  
They have the highest concentration of mental illness, such as obesity and depression, and prices are further manipulated by larger developers who drip feed their stock onto the market, of which the government currently has no control.  
Not politically sellable?  
From the time a child learns to enjoy a family game of Monopoly, Australians are nurtured on a system that teaches the key to building wealth that is through the leverage and speculation of capital growth in land values. Therefore, none of this is easy to change.  
To do so, requires complete structural reform of land value taxation and housing supply <a href="https://www.macrobusiness.com.au/2013/11/urban-zoning-and-affordable-housing-are-opposites/">policy</a> - therefore we’re told it’s not politically sellable.  
The most solid prediction of the year  
The most most solid prediction of 2014 to date, is the one that will result from the Senate’s housing affordability enquiry.  
After the numerous submissions have been tabled and discussed. The <a target="_blank" href="https://www.macrobusiness.com.au/2014/02/the-housing-question-that-the-senate-must-address/">question</a> I stressed in my own submission will remain unanswered;  
“Will the government allow land values to drop?”  
Assuming this is correct, then Prime Minister Tony Abbott has a care of duty to explain to the public directly how propping up the current status quo will continue to erode the opportunities of future generations.  
He must explain how the government’s failure to provide effective land value taxation and supply side reform to lower land prices, will lock them into longer mortgages, a life times worth of double income debt, push more into long-term tenancy and additionally point out how the current system <a target="_blank" href="https://www.macrobusiness.com.au/2014/02/housing-and-the-inequality-divide/">enhances</a> poor education and health outcomes, social polarisation, and places a strain on core productivity.  
Your choice!  
Ultimately the choice lay with the voting population and in a country that holds to the motto of a fair go, I expect clearly evidencing the consequences of our current housing market will be a lot less ‘sellable’ than educating how we can establish a sustainable approach. <a target="_blank" href="https://www.macrobusiness.com.au/2013/11/land-tax-must-kill-negative-gearing-stamp-duty/">If handled correctly</a> reducing taxes on productivity will ultimately make each and every one of us better off.  
It’s time we allowed Australians to make an educated choice.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
                                                     
</body></html>

catherinecashmore-6LXia3pPQj

Australia - an economic star performer, but are we any better off for it?

<html><body>
There has been a lot of talk of a property bubble over the past few weeks with US economist and commentator Harry Dent in Australia speaking at conferences and promoting his latest book, predicting a crash in housing markets around the country.
If Google searches are anything to go by, the media that Dent’s visit generated has fuelled concerns about the idea.
There has been a fivefold increase in searches on the phrase “property bubble” in Australia since the start of the year, according to Google Trends data. So far in February, there have been 35% more searches on that term than there were in November 2010, the previous peak in interest in that search from Australia.
Most of the searches conducted related to NSW, Victoria and Western Australia. Queenslanders also did some internet investigations the topic.
Before November 2009, Google recorded no searches on the term “property bubble” in Australia.
<a target="_blank" href="https://www.google.com.au/trends/explore#q=property+bubble&amp;cmpt=q&amp;geo=AU"><img alt="bubble-searched-march-3" height="170" width="470" src="/images/stories/2014/03/03/bubble-searched-march-3.jpg"></a>
Source: Google Trends
Similar terms, “real estate bubble” and “housing bubble” have also been attracting more attention in Australia since late 2009 and early 2010. People in Victoria and NSW searched for real estate bubble with interest in that term growing since early 2013, although searches on that term peaked in April 2010.
Those living in Western Australia searched for “housing bubble” the most, with people in Victoria, NSW, Queensland and South Australia also searching on that term.
Even by global comparisons, Australians have been conducting a lot of housing bubble-related Google searches.
Since 2004, Singaporeans searched Google for news of a property bubble the most, conducting more than double the searches than people in the second most concerned country, Malaysia. Australia ranked third, slightly ahead of Ireland.
Since the start of the year, searches on the term property bubble world-wide have more than doubled to their highest level, according to the Google trends data.
Canadians and people in the United States searched most for real estate bubble and housing bubble. Again, Australians ranked third in using those terms over the past decade.
But if those search results show there’s widespread concern in Australia about a property bubble, other common property-related searches tell a different story.
On average over the past five years, there have been 73 searches on the term “investment property” for every three search on the term “property bubble”.
Even over the past 12 months there have been 82 searches for investment property for every five searches for property bubble.
The term “property for sale” has also been searched in Australia over forty times more often than the term property bubble.
Other indicators such as recent auction clearance rates and housing finance figures also suggest that any concerns are yet to translate into action.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
                
 
</body></html>

zfielding-GvX3Uq9KTa

Analysis - Property bubble chatter has gone through the roof since the start of 2014

<html><body>
With completion scheduled for March, only one full floor apartment and the penthouse at Sydney’s Eliza development remain unsold.
Three full floor apartments sold before Christmas, and another two in the complex sold this week, with two more pending exchange. The building’s developers, Ceerose, expect that the final full floor apartment will be sold by the end of next week.
This week’s sales were negotiated by Nigel Napoli of Savills, with prices expected to have ranged from $4 million to $6 million. Savills and McGrath have achieved five sales for Eliza since marketing began in December.
According to Napoli, Eliza’s luxury apartments have been the subject of international interest.
"We are confident of exchanging on a further two full-floor apartments within days," said Napoli. "Of all the sales at Eliza to date, four have been to overseas purchasers so the development is receiving international acclaim."
Eliza, located at 141-143 Elizabeth St, was designed by architect Tony Owen. The building contains 19 apartments in total, with 10 two bedroom, two bathroom half floor apartments on the lower five levels. There are eight four bedroom, four bathroom full floor apartments, each with their own private lobby. The remaining 200 square metre full floor apartment is on level seven of the building. Eliza’s penthouse will be marketed once completed and fully furnished, with expectations of $15 million.<img style="float: right;" alt="Eliza-nearing-completion" height="334" width="200" src="/images/stories/2014/02/28/Eliza-nearing-completion.jpg">
Napoli notes the prestige location of Eliza, which is situated among fine dining restaurants and fashion boutiques.
"The added bonus for Eliza purchasers is that capital growth of 'blue chip’'buildings in exclusive locations is more pronounced than for any other form of residential property," he said. Hamish Robertson, a director of McGrath, also commented on the development’s location.
"These apartments are in the heart of the Sydney CBD with Hyde Park acting as its front garden. There are not many major cities of the world that offer apartments with this outlook," he said.
Each apartment in Eliza includes a fireplace and full-height timber panelled walls, with limestone floors, calacatta marble benchtops and splashbacks and a walk in pantry in the kitchen.
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
For the latest development listings, brought to you by Property Observer and partners, see our <a rel="nofollow" href="https://showcase.propertyobserver.com.au/">Investor Showcase</a>.
 
</body></html>

Latest Buying Insights

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Buying Insights

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News