Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Joel Robinson

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

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The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

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The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

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The Australian Bureau of Statistics (ABS) released housing finance data for December 2013 yesterday.  The data provides a good summary of the mortgage lending environment throughout 2013.  It shows that 2013 was clearly a year where there was a strong rebound in demand for mortgages.
<img class="aligncenter size-full wp-image-2871" alt="Chart 1" src="https://blog.rpdata.com/wp-content/uploads/2014/02/Chart-1.jpg" width="470" height="173" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
The total number of owner occupier housing finance commitments in December 2013 was 14.1% higher than in December 2012.  This figure is split into refinances of established dwellings and non-refinances or new loans.  The number of refinance commitments is 12.5% higher over the year and the number of new loan commitments is 14.8% higher. 
The data shows that demand for mortgages has increased measurably throughout 2013.  This is also reflected in home values data, the RP Data-Rismark Home Value Index showed that capital city home values rose by 9.8% in 2013.
<img class="aligncenter size-full wp-image-2872" alt="Chart 2" src="https://blog.rpdata.com/wp-content/uploads/2014/02/Chart-2.jpg" width="470" height="172" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
The number of owner occupier finance commitments for the construction of new dwellings was 14.5% higher over the year, commitments for the purchase of new dwellings were 13.2% higher and non-refinanced commitments for the purchase of established dwellings were 15.1% higher over the year.  It is important to note that non-refinanced purchases of established dwellings accounted for 75.8% of all owner occupier new loan commitments in December 2013.
Over the 12 months of 2013 there were 598,364 total owner occupier housing finance commitment, up 9.5% from a year ago.  Refinance commitments accounted for 32.4% of all housing finance commitments in 2013 and the remaining 67.5% was for new loan commitments.
<img class="aligncenter size-full wp-image-2873" alt="Chart 3" src="https://blog.rpdata.com/wp-content/uploads/2014/02/Chart-3.jpg" width="470" height="171" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
In December 2013, the total value of housing finance commitments (the amount borrowed) was $27 billion.  From a banking perspective, the money lent is much more important than the number of loans and the total value of finance commitments was 27.0% higher over the year.  
Looking at the value of commitments, commitments to owner occupiers for refinances were 20.4% higher year on year, owner occupier new loan (ex-refi) commitments were 19.0% higher while investment loan commitments increased by 40.7%.  The total value of housing finance commitments, excluding refinanced loans increased by 28.5% year on year.
<img class="aligncenter size-full wp-image-2874" alt="Chart 4" src="https://blog.rpdata.com/wp-content/uploads/2014/02/Chart-4.jpg" width="470" height="170" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Looking at the proportion of housing finance commitments provides further insight into how much is being lent to different cohorts of the market. 
As a whole, 60.2% of lending over the month was to owner occupiers made up of 43.4% for new loan commitments and 16.8% for refinances.  The rest (39.8%) was lending for investment purposes.  The 43.4% of lending to owner occupiers for new loans was the lowest proportion since January 2004.  The 16.8% of lending for refinances by owner occupiers was the lowest proportion for that segment since September 2010.  The 39.8% of lending for investment purposes was the greatest since October 2003 (41.2%).  The 41.2% of total lending for investment in October 2013 was also the highest proportion of investment lending on record.
In my opinion the level of investment lending is a concern from the market, given it is currently at near record levels.  Obviously with mortgage rates low and returns on relatively risk-free asset classes so low, investors are moving into other, slightly more risky, asset classes such as residential property.  This is what the RBA was hoping for – however, the high level of lending to investors is not without potential risks in the future. 
The move to residential property investment seems to be purely a move chasing capital growth.  In strong investment driven markets such as Sydney and Melbourne home values increased by 14.5% and 8.5% respectively in 2013.  Gross rental returns on residential property in these cities is extremely low at 4.0% and 3.5% respectively at the end of last year. 
If these investors are not necessarily committed to the housing market long-term, then we could potentially see an influx of investment-grade properties come to the market in the future as these investors look to exit the housing market and place their investment dollars elsewhere.
<img class="aligncenter size-full wp-image-2875" alt="Chart 5" src="https://blog.rpdata.com/wp-content/uploads/2014/02/Chart-5.jpg" width="470" height="171" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Despite the fact that we have near record low mortgage rates and home values had been falling through 2011 and the early part of 2012, the level of activity by first home buyers has been extremely low. 
In December 2013, the number of first home buyer finance commitments was actually 1.9% higher than the previous December (note these figures are not seasonally adjusted).  Throughout 2013 there were 82,599 first home buyer housing finance commitments indicating that they accounted for just 13.8% of all owner occupier finance commitments over the year.  The number of first home buyer finance commitments in 2013 was a record low for a calendar year period.
Overall the data highlights that 2013 was a strong year for mortgage lenders with escalating demand for mortgages.  The increase in demand has largely been driven by subsequent purchasers (upgraders or downgraders) and investors. 
The rising level of demand for mortgages has subsequently resulted in an increase in property sales and fuelled the 9.8% annual increase in capital city home values.  As noted the heightened level of activity by investors in the market is potentially a cause for concern and no doubt one that the RBA and APRA will be keeping a close eye on. 
Keep in mind that in many instances investors are using interest-only loans and these are obviously attractive when interest rates are at record low levels, but potentially not as attractive when/if interest rates are normalised.
With mortgage rates still at low levels and the market expectation that there will be no increase in the cash rate until 2015, it is difficult to see how there won’t be a further lift in housing finance commitments throughout 2014.  It will be interesting to see if we see a further lift in investment activity in the market and whether or not we see a rebound in first home buyer volumes throughout the year.
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
 
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ckusher-ujnxiKuFQs

Near record level of investment lending a concern for the market

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Is it the hip pocket (or if you like it, the head) or the heart that currently rules the residential property market?
While not always expressed in those exact words, I suggest that almost every time we plan a project or plan a marketing campaign this thought is always lurking in our thinking.
Marketing almost always involves a big dose of emotion – it’s the fuel of many an auction. We know that even the most hardened consumer will at times be in a sort of conundrum. Are they being ruled by their heart or by their heads? And when we have markets that are full of change, with limited opportunities (supply), does this lead to anxiety, or is this simply the excitement of the times?
Markets are tied up with many different emotions. It’s the stuff that fuels the constant media attention and chatter, and we are seeing this now almost everywhere. Buyers and vendors are anxious not to miss out on the best price, on that ideal home or block of land, or on a great investment. The mixture might be different, but it creates a very active atmosphere and I suggest this makes a good starting point to consider how we might best approach development, marketing and buying residential property in 2014.
So with the sway of both our hearts and heads in mind, let's look at the three familiar topics of infrastructure, investment and supply. If we do that, I think we can shine a light on some key aspects of the market and thus balance out some of the ‘emotions’ we see developing.
Infrastructure
No matter if we’re dealing with an inner-city apartment or a new housing estate – the need for infrastructure is a constant.  Developers can find their projects delayed or made less attractive, and buyers have always had infrstructure as their priority. Without the right services and facilities, they stay away or they look for big price incentives.
Infrastructure is also linked to employment opportunities and with possibly higher unemployment headed our way this entire area will be a big hot spot in 2014. We are also set to see the community turn from expectation and planning to a fervent desire to see real action, which in some areas is happening.
Almost without exception buyers are, along with much of the general community, looking for delivery, be that new light rail, improved motorways, more schools or even very big ticket items like a new airport for Sydney. These projects need to move into the build phase. While there might be some planning issues, private developers will then move to deliver their part of the agenda with new shops, offices and industrial facilities. Again we need to remind ourselves that the current Prime Minister has stated that he wants his government to be known as the ‘infrastructure government’.
However, given how important this topic is, there must be room for better and quicker funding, and this might be a fertile area for SMSF investments. In 1994 there were 70,000 such funds, while today it’s in excess of 510,000 worth $520 billion – so infrastructure bonds might be welcome. At the same time, this would help secure new development which is another key area of investment sought out by the SMSF sector.
From a buyer’s point of view, quality infrastructure has always been a constant need, no matter how far you go back in history buyers always want well located homes, close to shops, employment, schools and with transport access. In the city they might also want access to parks, bike lanes, child care and cafes – that’s only going to continue in 2014 and we all know that emotions run high when infrastructure is lacking or under pressure. Developers understand this reality but the lag between government responsibility and the delivery of private facilities needs to be closed.
Investment
In 2013 we saw a strong trend towards some parts of the residential market being dominated by investors, and at the same time there has been a big drop in the numbers of first time buyers in the market. Investors have also been active at a time when prices have also been on the increase, again this is not ideal for the FHB. Although a rise in consumer confidence over the past six months has in part been linked to higher house values, it is often said that Australian consumers are more content and happier to spend when home values are on the increase.
Some parts of the investment market have also been strongly influenced by off-shore buyers, and with recent falls in the Aussie dollar this is a trend that may even accelerate in 2014. The SMSF sector is also unlikely to have any less of an appetite for real estate in 2014, although there are some concerns being raised about over-lending to such funds. However as Sydney in particular retains its spot as the third most unaffordable city in the world, after Hong Kong and Vancouver our residential market remains an attractive investment. Here, the key question is this: will population growth and demand remain strong enough to absorb supply, both as owner-occupiers and of course with enough people to rent investment stock?
In 2014, the flow-on impact of a robust housing market with improved levels of construction will be a key economic imperative as we move from reliance on the mining sector, which any tax review will almost certainly take into account.
Supply
There is no doubt at all that in 2014, we will be dealing with a demand led environment in almost every market. In some markets, like Sydney, the lag in supply may take a decade or longer to re-balance and that will be captive to a great extent to what happens with infrastructure and investment. We have also yet to consider how climate change may soon start to impact future supply, extreme summers and more bushfires might place increased cost pressures on development and this may in fact further hinder supply.
Demographics will also have a very big impact on supply, the delays with changes to planning laws in NSW are in part a demonstration of how sweeping changes to demographics are clashing. Established areas are going to have to adjust to the realistic demands of a growing city. An argument about more apartments in established areas, or more homes on the outskirts of the city is partly being sustained by a shift in demographics.
In any community we can see how different waves of immigration are in part leading to greater acceptance of apartment living. In 2011 apartments accounted for 25.6% of where we live, but currently approvals are running at 75% in favour of apartments and so within 20 years 50% of us may well be living in apartments.
If the need for more housing is to be satisfied, no matter where people want to live, then despite the hurdles involved government planning has to respond and developers in turn need to deliver a quality of product to meet demand and thus help to create valued communities.
In 2014, there will also continue to be huge demand for new land releases. In June 2013 land sales reached an eleven-year high, partly reflecting that fact that supply has been running at about 20% per annum below the level of demand and there is also no retreat from the strong desire for detached homes alongside more demand for apartments. It’s simply the varied requirements and aspirations of the demographics involved.
The outlook for 2014 is complex, but given the nature and size of the market that is not unusual or unexpected. Interest rates, the fate of the Aussie dollar, rising unemployment, the Federal Tax Review and Budget and China’s growth prospects are big picture issues.
Planning and infrastructure delivery are also big issues, while demand will continue to out-strip supply. However, if robust demand pushes prices ever higher then investors, who are usually more flexible with their buying options, will start to look at all options across the country.
Any of the points discussed are major topics in themselves, however, developers need to ensure that new product meets the changes in demand that are always taking place with shifting market demographics, while committed buyers are sure to remain fully engaged with their market and should seek a good relationship with local real estate agents and keep both head and heart in balance.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
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pchittenden-eLqUUC8TWW

Is it the head or the heart that currently rules the market?

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Property investors need to be ever vigilant. Many feral creatures prowl the real estate domain looking for ways to devour consumers, often using deception to lure buyers. A significant part of my 30-plus years as a researcher and writer have been spent investigating real estate scams and I know property to be a dangerous place for the unwary.
Many developers are using marketing companies to shift stock at the moment. These specialist marketers can earn massive fees, way beyond the commissions paid to mainstream real estate agencies who sell properties on behalf of vendors.
Why would developers pay 6% or 10% commissions to marketers when agencies will do the job for 2% or 3%? Because the stock in question is proving difficult to move, usually because the local market is oversupplied or otherwise in serious decline. They need an outfit which is happy to use dodgy methods to flog this unwanted stock to distant investors, often at above-market prices.
Right now developers are struggling in oversupplied regional centres like <a href="/news">Gladstone</a> and <a href="/news">Mackay</a> or in mining towns with falling markets such as <a href="/news">Moranbah</a> in Queensland and <a href="/news">Port Hedland</a>, <a href="/developments/karratha-wa-6714">Karratha</a> and <a href="/news">Newman</a> in Western Australia.
No informed investor would buy in any of these places at the moment because they are all in serious decline and the bottom has not been reached. All are locations that will recover in time, but that time has not yet arrived.
The glossy promos pumped out by the marketers make no reference to the parlous state of these markets. They speak of vibrant local economies, strong markets and the prospects of double-digit rental returns – all claims that are blatantly false.
Sometimes real estate media will publish the propaganda from these organisations, without providing any journalistic filter to the “information”. One property magazine last week published verbatim a press release from a marketing company which claimed Moranbah was “on the cusp of another property boom”. This was written by the team marketing a unit development in Moranbah so there was an obvious vested interest in talking up Moranbah’s prospects.
When a magazine publishes this kind of rubbish it’s dangerous for consumers because it’s presented as genuine editorial and credible information.
I have no doubt Moranbah, which has been a real estate growth star in the past, will recover in the future. But right now it’s the nation’s  number one no-go zone. Rents are about one-third of their previous levels and the median house price declined 42% in the past 12 months. The coal sector, which is Moranbah’s only industry, is still in downsizing mode with commodity prices low and costs still way too high. The biggest miner in this region, the BHP-Mitusubishi joint venture, has just announced further job sheding to trim costs.
Another alarming example of marketing hyperbole which casts the truth to one side was a promo from marketers seeking to peddle high-priced townhouses in <a href="/news">Wandoan</a> in Queensland.
The promo said the new townhouses were in “the heart of the Wandoan CBD”. Anyone who knows Wandoan will laugh at the notion of it having a “CBD”. Wandoan is the quintessential one-horse town, with a population around 350.
The project was proclaimed “Wandoan Central, The Property Investors Dream”. The marketers claimed investors would “easily earn up to an amazing 14.4% return”. The townhouses had asking prices around $450,000, in a town where you can buy houses on land for $100,000 to $150,000 less than that.
Let’s be clear about Wandoan. The only reason anyone would build a unit development here is because international mining company Xstrata (now Glencore Xstrata) was planning a $6 billion coal mine and there were also plans for $1 billion rail link to the coast from this region. We have alerted our clients to this because, if those projects go ahead, Wandoan will become a much larger town.
But, as I’m sure the marketers of Wandoan Central know, both those big projects have been deferred. The new Glencore Xstrata is scrapping projects to trim costs and the Wandoan mine is one that’s been chopped. And without projects like this, the rail line is not feasible.
There are also companies pumping out propaganda on Karratha and Port Hedland, oblivious to rising vacancies and falling prices and rentals. The claims made about the yields that can be achieved in the current market are patently untrue.
Karratha prices are on a serious downward path. Locations which previously had median houses prices in the $800,000s are now down in the $600,000s and vacancy rates have hit 7-8%. Sales volumes are dropped and prices have followed.
These locations will recover in time, but the time to re-consider their prospects for investors is a considerable way off.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank" rel="nofollow">hotspotting.com.au</a>.
You can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://twitter.com/hotspotting" target="_blank" rel="nofollow">Twitter</a>.
 
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terryryder-YECXbqmri2

Dodgy marketing tactics luring unwary investors into regional and mining town no-go zones

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Auction clearances in Sydney and Melbourne continued to ride high on the weekend following a solid start to the selling year last week.
The news comes amid expert warnings of a <a target="_blank" href="https://www.smartcompany.com.au/finance/investment/35505-will-there-be-a-property-apocalypse-economists-warn-house-prices-will-plummet-if-interest-rate-stays-low">potential property bust</a>, if banks keep loaning increasing sums of money at low interest rates.
In Sydney 84.4% of properties that went to auction were sold, while in Melbourne the clearance rate was 75.6%.
The average price for houses sold by auction in Sydney was $970,000, up from $835,000 for the same weekend last year. For Sydney units, the average median price was $672,500, up from $622,000 last year.
The most expensive auction sale in Sydney was a four bedroom home in Strathfield at $2.28 million, while the most affordable was a two bedroom unit in Auburn, selling at auction for $400,000.
Australian Property Monitors senior economist Andrew Wilson told SmartCompany that in Sydney, it was the second week in a row of solid clearance rates, however last week there were small numbers of properties on the market.
“We need some more auction results to get a true sense of what is to happen…it is no surprise that the energy from last year is continuing into this year, at a higher level than where the market ended (in 2013),” he says.
He says as the property year warms up, the higher priced properties in the more exclusive areas will start to appear on the market, giving a better indication of the sorts of average median sales figures likely to dominate this year.
“We have anecdotal evidence to say that the sales in Sydney were above the reserves set,” he says.
In Melbourne, the average median house price was $695,000, up from $576,250 for the same weekend in 2013, while the average price for units sold at auctions was $430,000, up from $456,000 last year.
The most expensive auction in Melbourne was a three bedroom house in Elsternwick, selling for $1.22 million. The cheapest was a one bedroom apartment in Richmond, at $282,200.
Wilson says while the figures look solid for Melbourne, more time is needed to get a reliable indication of the trends. He says Melbourne’s outer east belt is proving a hot spot, with a strong clearance rate on the weekend, while the inner east was also performing well.
He expects to see a greater flood of properties on the Melbourne auction market throughout February as people try to get in before the Labour Day long weekend.
“With bank mortgage rates heading downwards and banks getting more competitive, there is more incentive for buyers,” he says.
However he warns with more job losses at factories in Victoria, confidence to borrow may wane as people become more concerned about their job security.
In Brisbane, where there are fewer auctions, the clearance rate was 57.7%, with the median house price at $626,000, up from $446,000 for the same weekend in 2013.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
 
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moliver-7qYWqnHmyR

Property sales take off over the weekend, but expert warns time will tell

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New dwelling starts are, well...starting.  Approvals are near all time highs.  Actual commencements are on the rise.
The Australian economy is now at a stage where offsets to the downturn in mining capex are starting to come through.
It's great news (for now).
 <img alt="matusik_feb_10_one" height="353" width="470" src="/images/stories/2014/02/10/matusik_feb_10_one.jpg">
<img alt="matusik_feb_10_tweo" height="353" width="470" src="/images/stories/2014/02/10/matusik_feb_10_tweo.jpg">
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/02/dwelling-starts-1.jpg"></a>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/02/dwelling-starts-2.jpg"></a>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/02/dwelling-starts-3.jpg"></a>
<img alt="matusik_feb_10_three" height="353" width="470" src="/images/stories/2014/02/10/matusik_feb_10_three.jpg">
New dwelling approvals are close to a high point in Australia.  Dwelling commencements totalled 165,000 last year.  They are expected to reach 180,000 during 2014.  This is much higher than the 150,000 annual average over the last seven or so years.  This lift in new housing starts - my boffin friends tell me - will add significantly to the country's economic growth.  In short, more jobs.
The lift in new housing approvals is across most states and territories.  Victoria is coming off a very high base.  Tasmania has little need to build much, given its low population growth.
One chart that reads best if the lines head down is our 'dwellings yet commenced' graph.  The lines are now heading in the right direction.  Only one in 10 detached houses approved across Australia have yet to start construction.  This ratio is one in five for apartments and townhouses.  These ratios are dropping.  All smiles.
It takes, on average, about three months from approval to start building a detached house in Australia.  About five months for a townhouse, nine months for walk-up flats and 18 months for mid to highrise apartments.  Sadly, it takes years, more often than not, to actually get a new development approval. But enough whinge.
Dwelling prices are on the rise, up 10% over the last 12 months.  Australia's two largest cities are mostly driving this growth.
House price growth - despite <a target="_blank" href="https://www.propertyobserver.com.au/news/property-crash-is-like-popping-popcorn-especially-in-melbourne-harry-dent/2014020567560">Harry Dent's recent efforts</a> - is not showing any signs of slowing down.  And really, why would it?  Strong population growth, very low-interest rates (so far), an undersupply of stock and an expectation of further house price appreciation are fuelling demand. 
Yes, I do think that there is an element of 'irrational exuberance' now taking hold in Sydney and even Melbourne.  It may even find its way up north to South East Queensland by the end of this year.  We haven't had a party up this way for yonks and we look forward to a bit of cheer.
Until new dwelling supply now starts to respond - i.e. dwelling commencements rise in line with approvals - then upward pressure on dwelling prices will remain whilst interest rates are low.
An increase in new dwelling supply is now coming.  Given this trend, interest rates are now likely to remain steady.
<ul></ul>
History has a way of repeating - hence there is a property cycle - and this coming lift in new housing supply (which is great for job creation and actually housing people) will most likely peak when interest start to rise.  These twin lifts will see the housing market soften.  But for mine, that is some 18 to 24 months away.  And the 'soft' should be nothing like a fall of 30% to 50%!
Michael Matusik is the founder of <a style="font-size: 14px;" href="https://www.matusik.com.au/" target="_blank" rel="nofollow">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition. 
Read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
 
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michaelmatusik-49YzLvdmNv

Lift in dwelling approvals and commencements is great news... for now

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Recent <a href="https://thempreport.com.au/2014/01/23/australian-homes-among-worlds-most-dear-fitch-report/">reports</a> have confirmed what many already know: the cost of housing in Australian cities is among the highest in the world.
The growth rate in Australian property prices over the last 15 years is the biggest sustained increase recorded anywhere. Australia also has the highest debt-to-income ratio – <a href="https://theconversation.com/renting-for-life-housing-shift-requires-rethink-of-renters-rights-20538" target="_blank">encouraged by generous tax incentives to the middle and upwards classes to invest in property</a> – meaning that as more households commit more of their incomes to mortgage repayments, so prices continue to rise.
High prices push out the arts
Sydney is <a href="https://www.smh.com.au/business/the-economy/sydney-melbourne-house-prices-lead-strong-growth-in-january-20140203-31w0u#ixzz2sQTNrouT" target="_blank">most expensive</a>, with a median dwelling price of A$660,000, followed by Melbourne with a median of A$553,000.
That these two cities lead the field is not surprising: Sydney is Australia’s financial capital, and Melbourne is commonly positioned as <a href="https://theconversation.com/melbourne-the-worlds-most-liveable-city-not-exactly-17677" target="_blank">the nation’s most liveable</a> and cultural capital.
Melbourne’s arts and live music scenes are indeed internationally renowned, and Sydney is now trying to revive its long-gone music scene, having taken guidance from Melbourne researchers on <a href="https://theconversation.com/a-live-music-scene-needs-a-live-music-policy-20140" target="_blank">the development of a Live Music Action Plan</a>.
Melbourne is not quite the exemplar it could be, however, and is already falling victim to its own success. In recognition of this, the Victorian state government has established <a href="https://www.premier.vic.gov.au/media-centre/media-releases/4417-live-music-roundtable-established" target="_blank">a live music roundtable</a>; and the inner-city councils of Yarra, Port Phillip and Melbourne have set up their own live music taskforces. Each is attempting to respond to the effects of the increasing property prices and residential population on local arts and cultural activities.
My research team has tracked the location of Melbourne’s arts and music scenes over the past 20 years.
The two maps below show the location of independent and community-based (ie. non-commercial) cinema, visual arts, performance and live music (for elaboration on these definitions see our recent paper <a href="https://www.tandfonline.com/doi/abs/10.1080/10286632.2013.788162#.UvQXhWS1aIg">here</a>) in 1991 and 2011.
The pattern they show is the pattern of gentrifying cities all over the world: low-yielding land uses get pushed into areas where land values are lower, as high-end residential and office buildings – the “highest and best” uses in most market economies – proliferate.
<img src="/images/stories/2014/02/17/nzxgkscw-1391743480.jpg" width="470" height="665" alt="nzxgkscw-1391743480">
Figure 1.
 <a href="https://c479107.ssl.cf2.rackcdn.com/files/41003/area14mp/h4h7bnpm-1391747974.jpg" style="font-size: 0.8em;"><img src="https://c479107.ssl.cf2.rackcdn.com/files/41003/width668/h4h7bnpm-1391747974.jpg" width="470"></a>
<a href="https://c479107.ssl.cf2.rackcdn.com/files/41003/area14mp/h4h7bnpm-1391747974.jpg" style="font-size: 0.8em;"></a>Figure 2.  
The displacement of the venues that host these activities from the wealthier south-eastern suburbs is expected. Interestingly, they are not fleeing to the city fringe where prices are much lower, but clustering where they can in the inner-city or heading north. The two intense clusters on the 2011 Melbourne map are in the CBD and Collingwood/Fitzroy, and the northward trajectories are in Brunswick/Coburg and Northcote/Preston.
It is these areas that have the greatest diversity in property prices in inner-Melbourne – some of the most expensive, to be sure, but also some of the cheapest and, importantly, smallest spaces available in the inner-city. The fact that these venues are not (yet) relocating to the outskirts is due partly to the need for centrality and good public transport for their audiences, and partly to the residential populations in these areas that largely support the presence of sometimes loud and messy activities.
The arts and live music scenes in Melbourne in 2011 (and now) are still strong and the number of small venues is increasing, but they are also increasingly precarious. At their core are the independent artists and musicians whose relative freedom to experiment – and to continue to feed more commercial or mainstream culture – has been sustained by low rents and the capacity to live relatively cheaply.
A <a href="/news">2010 report</a> by the Australia Council for the Arts shows that the financial position of practicing artists over the last 20 years has worsened. Titled <a href="/news">Do you really expect to get paid?</a>, the report shows that very few artists in Australia earn high incomes and most earn very low incomes. Most earn from their chosen profession less than A$10,000 a year.
The pressures of gentrification
Gentrification is placing all sorts of pressures on arts and cultural venues, and on the people who work and play in, and live around and support them.
Those inner south and eastern areas on the 2011 map of Melbourne that are being emptied of their arts and music scenes, and areas such as Docklands that never had (recognised) cultural activity and still don’t, were subject to urban regeneration strategies – those market or state-led economic development strategies so often inspired by notions of the “creative city”.
Intended to decrease vacancy rates and increase land values, these strategies bring revenue to local governments and capital gains to landowners, essentially by displacing lower than best economic uses – including low-cost housing and low- and non-profit cultural uses.
While lifestyle and property media features gush over the “hipness” of the latest district discovery, the scene tries to hang on or moves on. The doubling and tripling of rents is not “hip”, it’s a problem.
The “creative city” is a contradiction other cities have been grappling with for years. Local governments in San Francisco, New York, Portland, Amsterdam, Berlin and Hamburg, among others, unable or unwilling to curb gentrification, are at least ensuring that some of the financial returns are invested in rent controls, capital works and purchases for (sub)cultural uses, and more cautious and egalitarian urban regeneration programs.
Few Australian governments have come to terms with the depth of the dilemma, but some in Melbourne and Sydney are making a good start.
Now they must accord a place to independent arts and cultural uses in their planning policies, their zoning designations and their regeneration strategies.
Most importantly, they must make investment decisions not just in the interests of culture, but of those low-income people who put the social, cultural and economic diversity into gentrifying cities.
Kate Shaw is an Australian Research Council (ARC) Future Fellow in urban geography and planning at the University of Melbourne.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
 
<img width="1" height="1" alt="The Conversation" src="https://counter.theconversation.edu.au/content/21749/count.gif">
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kshaw-MqzDNssKtd

High rents aren’t hip: the contradictions of the ‘creative city’

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As the deadline for the senate inquiry into housing affordability approaches, some notable submissions have thus far been made.  
Saul Eslake, one of Australia’s most respected economists and previous member of the now disbanded ‘National Housing Supply Council,’ has submitted the address he gave last year at the 122nd Annual Henry George Commemorative Dinner, in which he eloquently outlines <a href="https://www.prosper.org.au/2013/09/03/saul-eslake-50-years-of-housing-failure/" target="_blank">Australia’s “50 Years of Housing Failure.”</a>  
Eslake advocates the need to remove policies that stimulate demand, such as negative gearing, in favour of those that increase supply. He backs ‘rethinking’ infrastructure financing and removing stamp duty, in favour of a broad based tax system on the unimproved value of land, as was recommended in the 2009 Ken Henry tax review.  
Any detail Eslake misses on the supply side, is dutifully covered by Senator Bob Day.  
Senator for South Australia, a registered builder and founder of major construction companies, such as Homestead Homes and Home Australia. Day’s submission is his May 2013 policy paper - ‘<a href="https://www.bobday.com.au/PDF/Home-Truths-Revisited-May-2013.pdf" target="_blank">Home Truths Revisited</a>,’ - in which he shares an intricate understanding of the history and complexities of supply side policy, which have seen land prices increase more than ‘tenfold,’ in comparison to the cost of building, which has seen ‘virtually no increase at all.’  
Importantly, for my industry colleagues who write that price rises were simply down to the increase in demand stimulants (such as dual income households), Senator Day notes, “while influential bodies like the Productivity Commission and the Reserve Bank focused their attention on demand drivers, like capital gains tax treatment, negative gearing, interest rates, readily accessible finance, first home buyers' grants and high immigration rates… the real culprit, the real source of the problem, was the refusal of state governments and their land management agencies to provide an adequate and affordable supply of land for new housing stock to meet the demand.”  
Other notable submissions come from Grace Mutual Limited, a not-for-profit entity who “designs investment mechanisms to attract wholesale funding into the social sector” - in particular the National Rental Affordability Scheme.  
GML outline the ‘unduly complex’ regulations that have disadvantaged investors, noting; “Large numbers of NRAS incentives (at least 4,000) were awarded for the construction of student housing,” yet “There appears little evidence that this has any positive impact on the middle to low-income families that were the target of the original policy.”  
And the last two submissions to date (2/2/2014) come from “home loan experts,” who want to abolish negative gearing, but predictably think that the first home buyer grant should stay; as well as an anonymous paper, with an overview of the points made by both Saul Eslake and Bob Day, noting as I did back in <a href="https://www.macrobusiness.com.au/2013/12/what-must-the-senate-do-about-housing-affordability/" target="_blank">December 2013</a> that nothing has been done since the last Senate inquiry.  
Rinse and Repeat  
To emphasise - The 2008 Senate report, entitled <a href="https://www.propertyoz.com.au/library/A%20good%20house%20is%20hard%20to%20find%20report%20JUNE%202008.pdf">“A good house is hard to find: Housing affordability in Australia”</a> made the same points regarding:  
<ul>
<li>
Australia’s tax policies, such as capital gains tax and negative gearing, which impact affordability and market activity.
</li>
</ul>
<ul>
<li>
Each states planning laws, overviewing the construction industry's future skilled labour workforce, the impact of urban boundaries on land prices, and the funding of community infrastructure.
</li>
</ul>
<ul>
<li>
The need for a diverse range of accommodation suited to both young and old alike, advocating greater competition within the building industry.
</li>
</ul>
<ul>
<li>
Both the both the public and private sector, addressing tenancy laws, and renters rights.
</li>
</ul>
  It was both comprehensive and detailed in content, and yet - five years later - at every level - both state and federal government have failed.  
Failed to provide a ready surplus of ‘cheap land.’
Failed to overhaul infrastructure funding.
Failed to boost a sluggish construction sector in relation to population growth.
Failed to reign in speculation.
Failed to overhaul a system that results in too few rental properties for low-income households. And;
Failed to reduce the need for social housing or raise standards in the public sector.  
Instead, we’re left with a new record median house price, which sits close to $600,000 ($597,556 APM), following the highest quarterly rise for four years. This is built on the back of a diminishing first home buyer sector, which is instead supported by record numbers of investors, benefitting from a pace of growth in Sydney which all agree, is ‘unsustainable.’  
As far as affordability is concerned, we’re simply sitting on a merry-go-round of repeated mistakes.  
Housing affordability a mystery too complex?  
This is not due to any lack of understanding on the government’s part. There is no secret or mystery to housing affordability.  
The solutions are well understood;  
<ul>
<li>
They were discussed at length in the previous senate inquiry.
</li>
</ul>
<ul>
<li>
The RBA has outlined them in papers, as recently as the 2011 bulletin entitled ‘<a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2012/sep/2" target="_blank">supply side issues in the housing sector</a>.’
</li>
</ul>
<ul>
<li>
AHURI has repeatedly tacked both <a href="https://www.ahuri.edu.au/downloads/NRV3/AHURI_Final_Report_No105_Housing_affordability_a_21st_century_problem.pdf" target="_blank">supply</a> and <a href="https://www.ahuri.edu.au/downloads/publications/EvRevReports/AHURI_Final_Report_No182_The_spatial_and_distributional_impacts_of_the_Henry_Review_recommendations_on_stamp_duty_and_land_tax.pdf" target="_blank">tax </a> policy.
</li>
</ul>
<ul>
<li>
<a href="https://vcoss.org.au/" target="_blank">VCOSS</a>, <a href="https://www.shelter.org.au/" target="_blank">Shelter</a>, the <a href="https://www.tenantsunion.org.au/" target="_blank">Tenants Union</a>, the ‘<a href="https://www.demographia.com/dhi.pdf" target="_parent">Annual Demographica Housing Affordability Survey</a>’ and <a href="https://www.macrobusiness.com.au/leith-van-onselen/">Leith Van Onselen</a>, have all provided their own valuable contributions to the ‘solutions’ surrounding housing affordability.
</li>
</ul>
<ul>
<li>
And this senate inquiry will do the same.
</li>
</ul>
The recommendations fall in line with other countries and states that have successfully achieved a consistent correlation between gross median house price and income – and so to some degree of detail share the following two points in common:  
1) They have taxation system that discourages speculation, but encourages productivity. The most successful of which is well-administrated broad based land value taxation system. This system has been adopted in various cities in the US. Like Pennsylvania for example, where the tax on the unimproved value of land is heavier than that of property (a process of which I explain in full <a href="https://www.macrobusiness.com.au/2013/11/land-tax-must-kill-negative-gearing-stamp-duty/">here</a>).  Or as in Texas, where property is taxed, yet income isn’t; reducing the level of speculative demand.  
2) They have created an environment in which liberal supply side policies ensure ‘fringe’ land is sold close to its agricultural value, ensuring zoning laws do not impede development, and there remains strong competition within in the construction sector.  
Why we have failed.  
The reason countries like Australia, the UK and certain states in the USA for example, fail to successfully move away from the boom and bust cycle, was summed up neatly in a 2007 parliamentary report entitled <a href="https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22library%2Fpartypol%2F4ZLN6%22">‘New directions in affordable housing: Addressing the decline in housing affordability for Australian families: executive summary’</a> - in which it confidently stated; 
 
“Improving housing affordability does not (emphasis mine) mean reducing the value of existing homes, which are usually the primary asset of any individual or family.”  
It’s a comment that sits right up there along with ‘saving doesn’t mean spending less’ or ‘dieting doesn’t mean reducing calories.’  
If only it were so…!  
To create a sustainable and affordable housing market, in line with the majority of recommendations put forward in the senate inquiry, would inevitably have a dampening effect on existing house and land values, in particular sites which are banked for ‘idle’ speculation.  
Article continues on next page. Please click below.
 
<hr class="system-pagebreak">
Is the fear over falling prices justified?  
The fear is understandable when you consider residential real estate is Australia’s largest domestic asset class; with an estimated aggregate value of over $4 trillion, pinned to a banking sector which has the highest exposure to residential mortgages in the world, in a country in which most are home owners.  
However, please don’t fall into the trap – as many of my industry colleagues do - of thinking that just because a large number of home owners in Australia own their own properties debt free, it prevents a potential ‘crash’ in prices.  
A huge portion of private debt for the appropriation of business and commerce is secured against residential real estate.  
A lack of active buyers in the market - (which produces an atmosphere in which price falls are inevitable) – stagnates turnover and prevents those who need to ‘fund’ their retirement through an equity release from doing so. It prevents those that need to move state to find employment elsewhere, from doing so. It locks people into their homes – unable to downsize or upsize – and the effects are felt across all demographics.  
Businesses which run into financial trouble are unable to reach into their house ‘ATM’ and secure additional funding. As a result, industries close, lay-offs are invoked, investment ceases - the list goes on.  
Importantly, it does not prevent a major economic crisis.  
It did not prevent it in Ireland, America, or other countries in Europe, which also had a large proportion of owners, who owned outright.  
We are not immune from a major downturn – no market, which exhibits land cycles is – and be assured, when it does happen, it won’t matter whether the banking system is ‘wiped out’ or not (as suggested as another reason we cant ‘crash’). The government will rush to their assistance – leaving ordinary people to suffer their debt consequences alone, as has been demonstrated repeatedly on an international scale.  
Rising house prices or a stable market?  
An economy that relies on high, rising house prices is one that’s ultimately set to fail.  It’s a symptom of poor housing policy and can only supported over the longer term, by making debt ‘ever more affordable.’  
Therefore the best protection is political reform, which ensures stability across gross price to income ratios - and if managed proficiently in line with the two points outlined above;  
<ul>
<li>
It would assist productivity,
</li>
<li>
Boost the construction sector,
</li>
<li>
Aid infrastructure financing,
</li>
<li>
Keep prices accessible for new homeowners and business – which need to buy or rent land to compete with established players.
</li>
<li>
Ensure tenants are not subject to ever increasing yields.
</li>
<li>
Weather the unwanted impact of real estate ‘booms and busts.’
</li>
<li>
Protect vendors from plummeting property values during an economic crisis - (whenever that point in Australia’s future is) – and;
</li>
<li>
Reduce inequality between the asset rich and income poor.
</li>
</ul>
  Land speculators would not advantage from it – but ordinary taxpayers would love it.  
What the Senate and government must agree to allow, prior to commencing its inquiry.  
Thankfully, we don’t need to have an initial debate with the senate over whether the market is or isn’t affordable – as has been the case with various commentators across the mainstream media.  
Instead, we need collaborative assurance from the government, that any outcome from yet another Senate inquiry, will allow land prices to reduce – the process of which would have a gradual roll-on effect across the established real estate sector.  
Once have an affirmative answer to that question can we begin the debate over how this could be achieved - and once we do, it must ensure the following:  
<ol>
<li>
That fringe land is immediately available for residential development, overriding existing urban boundaries and zoning requirements that render it otherwise, and ensure it remains close to its agricultural value.
</li>
<li>
Increase competition within the construction sector, simplifying the planning process, and eliminating upfront infrastructure costs.  Additionally, a review of the many hidden taxes such as development overlays, application fees, stamp duties and so forth, that are charged through the planning and development process, must be reduced to ensure they are ‘fair and transparent’ as advocated by the HIA.
</li>
<li>
The removal/phasing out of policies such as the first home buyer grant and tax incentives that reward speculation into the established sector, and those that rely on housing inflation to stimulate demand.
</li>
<li>
Reopen the discussion to abolish stamp duty; moving instead toward a broad based land value taxation system. Following practices across the world where it has been deployed <a href="https://www.propertyobserver.com.au/https://blog.p2pfoundation.net/successfull-examples-of-land-value-tax-reforms/2011/02/05" target="_blank">with success,</a> and noting that the ACT is adopting such measures, over a slow transitional <a target="_blank" href="https://www.canberraconnect.act.gov.au/app/answers/detail/a_id/1397/~/tax-reform">20 year</a> period. And;
</li>
<li>
Ensure we build for home buyers, not just investors; paying particular attention to the needs of an ageing population, for which downsizing into apartments is not the preferred, or readily adopted option.
</li>
</ol>
Additionally, the government should work closely with organisations such as Shelter and the Tenants Union, to satisfy that the quality, provision and standard, of both rental and public housing, is improved and maintained, along with an overhaul of tenancy laws for long-term tenants.  
However, if both state and federal government refuse to let land prices drop, acting reactively to affordability issues, rather than proactively, then I suggest you use whatever vote you have wisely. Ignore both major parties; instead, place it behind smaller players who act in the best interests of community and not just their back pockets.  
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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catherinecashmore-6LXia3pPQj

The real question the Senate inquiry must ask: Will the government allow land prices to decrease?

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Auctions can be confronting situations, particularly for the inexperienced buyer, and the first rule that must be remembered is that “winning” at auction doesn’t necessarily mean walking away with the property.
If the home starts getting bids that you cannot afford, or that are more than the property is worth, then the best way to ‘win’ is to walk away. Often easier said than done.
This week, Property Observer took part in #loanchat – a Twitter conversation where people are encouraged to chime in and ask questions – with the topic being about auctions.
Here are the top tips
1 Practice and visit auctions ahead of time
If you can, it’s worth going to a number of auctions ahead of the time that you wish to place a bid. This will not only give you an understanding of what prices properties are going for, and the interest levels, but you will also find yourself more comfortable and familiar with the auction process
Auctions are an experience you don’t want to be dropped into cold. Try to visit as many as you can to get a feel of the language.
If you can’t head to any auctions ahead of time, then try to watch some videos of auctions online so that you know what to expect, and see some online guides.
For instance, this video on bidding tips:
{qtube vid:=IG45EARH8YM}
 
2 Have a game plan, including a budget, figured out beforehand
Do not go into an auction unsure about how much you’re willing to spend – know your upper limit and stick to it. However, you may find yourself needing to be flexible by $1,000 or $2,000 to make sure you don’t miss your ‘dream home’ by a few thousand.
Don’t give away how close you are to your limit – many buyer’s agents say they easily get the upper hand as it’s obvious when inexperienced purchasers are reaching their limit. Keep any notes with your limit on out of sight. 
 
3 Get an ‘auction buddy’ if you’re unsure
If you don’t trust yourself at auction, or could do with the support, then it’s recommended to consider an ‘auction buddy’ – someone who can come with you, keep you accountable and ensure that you’re not acting emotionally.
Make sure that you choose someone who isn’t emotionally invested in the purchase and who will play your ‘devil’s advocate’ when you want to pay more than you initially decided to.
 
4 Know exactly what it is your buying (and check out that contract ahead of time)
Do not go into an auction without being clear on your borrowing capacity, your expectations for the property and knowledge of what the asset is like. Ensure you’ve ‘popped the hood’ and undertaken a building and pest inspection, as well as had a solicitor look through the contract so you know what you’ll be signing.
Remember to negotiate any changes ahead of auction time.
 
5 Get as much information as possible
While getting plenty of information is crucial, ensure the advice that you seek out is independent and well-researched.
Too often, investors take advice from the real estate agent, who is acting in the vendor's interest. Prospective buyers should always be looking for impartial advice in every part of the buying process, including auctions. See out your own comparable properties, undertake your own research, and be sure to match it against what you are being told.
Similarly, double check any claims about rental yields achievable.
You'll also want to be figuring out the vendor's motivations - try and find out as much about the current owner as possible. This may just help to secure you the upper hand.
If you want to see <a href="https://www.statecustodians.com.au/help/Ask-Heidi-Blog/February-loanchat-Wrap-Up" target="_blank">a full wrap-up of loan chat then have a look here</a>.
 
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YOU MIGHT ALSO WANT TO READ:
How to <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/new-south-wales/ten-tips-to-avoid-becoming-spring-auction-pushover-buyers/2013091665044" target="_blank">avoid becoming an auction pushover buyer</a> (10 tips) 
<a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/residential/seven-tips-for-buying-before-auction-john-mcgrath/2013072562631%20www.propertyobserver.com.au/auctions/five-tips-for-buying-at-a-busy-auction/2013101865803" target="_blank">John McGrath's seven tips</a> for buying before auction
<div align="center"><hr width="100%" size="2" noshade></div>
 
 
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
 
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jduke-EHk3XBmHkn

Five tips to win at auction, and how to know when to walk away

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Mining town Moranbah is the epitome of a typical boom-bust story, with the concept of investing in the area out of many investors’ depth.
At one point, rental yields were soaring at around 20%, a figure more reminiscent of overseas markets than anything typically seen in Australia. <a target="_blank" href="https://www.propertyobserver.com.au/queensland/moranbah-current-listings-offer-yields-nearing-20-but-future-returns-less-certain/2012112158004">However, the future’s certainty even at that time – in 2012 – was questioned</a>.
In 2013, observer Terry Ryder said that the use of fly-in, fly-out (FIFO) workers was removing pressure on local rents and prices, with BMA (BHP-Mitsubishi Alliance) planning to have just FIFO workers on two of the new mines in the basin. Workers fly or drive in for their shift, stay in temporary camps, and return home.
“<a target="_blank" href="/news">Moranbah</a> rents and prices are falling right now, with residential vacancies up around 7%. In nearby <a href="/news">Dysart</a>, vacancies are approaching 15% and rental yields, previously above 10%, are now down around 5%,” he said.
Meanwhile, John Wood, of Moranbah Real Estate, said that the market was flat and slow. But as a long time resident, while admitting that prices had fallen, said that it was “at the point where it can’t fall any further”.
Omega Investments’ Flynn de Freitas, however, believes that the market is on the cusp of the “next property boom”. This is due to billions of dollars’ worth of projects in the pipeline that will "secure the town’s future".
Interestingly, this was in a report commissioned for <a target="_blank" href="https://matsonapartments.com.au/">Matson Apartments</a> (pictured below), where it noted that the market was reaching the floor and is setting itself up for another boom.
{yoogallery src=[images/stories/2014/02/07/mor]}
“The Moranbah property market is poised for its next boom with over $17.2 billion in major infrastructure projects planned and $5.6 billion of these approved within a 60 kilometre radius of the township,” the report said.
“While Moranbah has faced a range of challenges in the last two years – including industrial strikes, extraordinary rainfall events, a ‘rental freeze’ by a major employer, a substantial drop in coal prices leading to large scale redundancies and a sea change of locals moving out of town – there are signs the market is turning as nearby coal mines return to full production and new mining projects start construction.”
De Freitas describes Moranbah’s future as ‘secured’ by a worldwide demand for metallurgical coal, a demand which is expected to rise around 20% by 2018.
“Moranbah’s economic future is looking brighter than ever,” he said.
“This large number of new mining projects in the Moranbah region is underpinning strong population growth forecasts, with over a 45% increase in the town’s population expected in the five years to 2018.”
At 13 Bacon Street, Matson Apartments, a 30 unit development with a ground floor commercial retail space, is in a proposed dining and entertainment precinct.
The units, averaging 91 square metres, are priced from $447,500 and have a $700 per week leaseback by Direct Hotels &amp; Apartments option.
The developer, Don Moffatt from Moffatt Property Development Group, said that the town is just “misunderstood”. He also says that the yield and rental guarantee have not been built into the price.
“It is an independent offering from Direct Hotels &amp; Apartments who through a subsidiary have purchased the management rights to Matson Apartments,” he said.
“Not only will residents receive exceptional on-site professional management, investors will receive above market returns.”
{qtube vid:=UYUdnGbluHY#t=35}
The expectation is for Matson to be completed in late-2014.
With a <a target="_blank" href="https://www.sqmresearch.com.au/graph_vacancy.php?postcode=moranbah&amp;t=1">vacancy rate currently recorded at 9.4% by SQM Research</a>, and more supply coming onto the market, some are asking whether this boom will actually eventuate again.
 
{module What do you think is going to happen in Moranbah?}
jduke@propertyobserver.com.au
 
 
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Busted suburb again labeled hotspot: The Moranbah debate

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A common mistake made by commentators, analysts and investors is to write off an entire region or state because that jurisdiction is under-performing generally.
That attitude overlooks the reality that, regardless of the overall economic or market performance of a broad region, there are always exceptions and out-performers within it.
I’m thinking in particular of South Australia. Few people rate the state or its capital city as places to explore for investment opportunities because the state overall is an economic under-achiever.
In a way it’s understandable. The only reason SA doesn’t rank last on economic indicators is that Australia also has a place called Tasmania. SA is second last in the nation on economic growth, population growth, retail trade and employment.
But, even within such an environment, there are always sub-markets that perform for local reasons. Last year <a target="_blank" href="/news">Port Lincoln</a> and <a target="_blank" href="/news">Whyalla</a>, two solid regional centres out on the Eyre Peninsula, both had strong double-digit growth in their median house prices.
And, as 2014 cranks up, property in SA is showing signs of more widespread growth, despite those poor economic indicators.
One aspect where SA is above average is building approvals. In the past 12 months they have risen 23% in SA, compared with the national average rise of 16%. Another is lending to home buyers, up 8% in the past 12 months, a little higher than the national average.
There are other signals that Adelaide markets are set to rise in 2014. Many suburbs in the SA capital have rising sales activity, as measured by the number of houses and/or apartments sold quarter by quarter.
Rising sales volumes generally translate into rising prices, with a time lag.
One standout region of Adelaide is the Onkaparinga municipality in the south, where a number of suburbs have established patterns of sales volumes rising strongly or at least steadily. Star suburbs include <a target="_blank" href="/news">Aldinga Beach</a>, <a target="_blank" href="/news">Seaford</a>, <a target="_blank" href="/news">Christie Downs</a>, <a target="_blank" href="/news">Flagstaff Hill</a> and <a target="_blank" href="/news">Woodcroft</a>.
This region is getting a massive boost from infrastructure development, with the extension of rail links south to Seaford and a major upgrade to the main road link, the Southern Expressway.
The City of Campbelltown in the north-eastern suburbs of Adelaide is another notable area for sales activity; headed by the suburbs of <a target="_blank" href="/news">Campbelltown</a>, <a target="_blank" href="/news">Tranmere</a>, <a target="_blank" href="/news">Athelstone</a>, <a target="_blank" href="/news">Magill</a>, <a target="_blank" href="/news">Newton</a> and <a target="_blank" href="/news">Paradise</a>. These locations tend to have middle-market prices with median in the $400,000s.
Regional centres with growing sales volumes include <a target="_blank" href="/news">Murray Bridge</a>, <a target="_blank" href="/news">Strathalbyn</a>, <a target="_blank" href="/news">Port Lincoln</a>, <a target="_blank" href="/news">Wallaroo</a> and the <a target="_blank" href="/news">Victor Harbor</a> area.
The appeal of South Australia for property investors includes pricing levels. Adelaide continues to be the cheapest state capital outside Hobart. Most the locations mentioned have affordable prices, as well as solid growth drivers.
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/" rel="nofollow">hotspotting.com.au</a>.
You can contact Terry via <a href="https://www.hotspotting.com.au/" target="_blank">email</a> or on <a href="https://twitter.com/hotspotting" target="_blank" rel="nofollow">Twitter</a>.
 
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