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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

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

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

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

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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>.
 
<div align="center"><hr width="100%" size="2" noshade></div>
 
 
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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terryryder-YECXbqmri2

South Australia: Looking for the diamonds amongst the rough

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The Portside Wharf development in Hamilton has released 14 two storey terraces, with construction to begin later this year.
The two bedroom, two bathroom terraces will each have river frontage, while some will have private entrances with direct access from the wharf. They will occupy the bottom two levels of the 16 storey Pinnacle apartment complex. Residents in the terraces will have access to the building’s rooftop terrace, which features a pool, barbecue, entertainment area and gymnasium.
Only 12 of the 14 terraces released remain available to purchase. Prices begin from $795,000, ranging in size from 92 square metres to 183 square metres.
Portside Wharf includes four completed residential buildings in addition to Pinnacle and another development, Link, which are awaiting construction. The total Portside Wharf development also includes retailers and dining spaces.
It is the first stage of the Northside Hamilton urban renewal project, which when completed is intended to house around 10,000 residents.
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
For the latest development listings, brought to you by Property Observer and partners, see our <a rel="nofollow" href="https://showcase.propertyobserver.com.au/">Investor Showcase</a>.
Images are artist impressions.
 
 
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jrichardson-uRX5hFdKfN

New residential release from Portside Wharf development in Hamilton

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One of the greatest sources of property misinformation comes when newspapers report short-term price data from a single source. 
Tremendous importance is placed on monthly median price changes in figures from one research company and sometimes even weekly price movements. 
The reality is that monthly changes are often irrelevant and it’s quite farcical to place any significance on alleged weekly movements.
Undue emphasis on monthly data from one source caused some media to declare in October that the market had peaked and the boom was likely over. More recently, figures for the December quarter from multiple sources have made nonsense of that interpretation. 
But writers and commentators continue to repeat this kind of mistake because (a) they don’t understand real estate data, and (b) they don’t care too much because it’s easy copy and a cheap headline. 
The record shows that statistics from one source can be contradicted by figures from another. When media reports both in isolation the result is confusion and misinformation. 
As one example, Australian Property Monitors says the median unit price for Darwin rose 8% last year, while RP Data says it fell 4%. One week the headline shouts that the market is booming and the following week the same newspaper says the market’s in decline. 
Having said all that, we had a rare event last week when house price figures published by APM were almost totally in line with data published earlier by RP Data. I can’t remember the last time that happened, given the variances that usually arise from different methodologies and competencies.
This time around, both sources found that the average rise in house prices across the eight capital cities was slightly under 10% in 2013.
One said Sydney rose 15.2% and the other said 15.1%. Both recorded a 5%-ish annual rise in Brisbane and both agreed Adelaide’s market had nudged ahead about 3% last year.
RP Data said Melbourne rose 8.5% and APM said 8.6%. Have they been comparing notes? If so, they didn’t consult the REIV, because that august source of “interesting” figures has claimed a rise almost double that of the two independent research sources.
Darwin’s figures were a little wider apart, with one suggesting a 5% rise and the other a 7% lift. In Perth, RP Data’s 10% increase compares with APM’s 8.5% rise. Both sources claimed moderate rises in Hobart, one suggesting 3% and other 5%.
So, according to those two sources, all eight capital cities lifted their house prices last year, mostly by moderate amounts, with the exception of Sydney which had its first strong year in a decade.
There’s less uniformity in the data on apartments, but there are some areas of near agreement. The average across the capital cities, according to APM, was a rise of 8% while RP Data said 9%. Both reckon Sydney’s market lifted about 11% and they agree that Canberra rose around 1% and Adelaide by less than 1%.  
Melbourne had a solid year with both sources, but one records a rise of 7% and the other 9%. Ditto Perth, with a rise of 6% or 9%.
Hobart fell markedly, but the degree of decline varies from 5% with RP Data to 8% with APM.
As previously mentioned, Darwin’s situation is a mystery, given that one source reports a solid rise and the other a significant decline.
The bottom line is that while this kind of data can be interesting and occasionally informative, it is more often confusing and/or misleading. And it records the recent past, which really does very little to inform the future, which is the key piece of intelligence for property investors.
As I have written before, it’s far more useful to know what’s happening with the number of sales, rather than the median prices they produce.
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://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://twitter.com/hotspotting" target="_blank">Twitter</a>.
 
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Short-term median price data can be interesting, but more often it's confusing or misleading

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The Australian Industry Group Australian Performance of Manufacturing Index contracted for the third month in a row in January, down 0.9 points to 46.7 points.
Seasonally adjusted, it remained in negative territory across all the major activity sub-indexes.
Some improvement was found in new orders and employment, with those sub-indexes contracting at a slower rate compared with December, at -48.8 and 48.3 respectively.
Some sub-sectors, however, recorded growth, including food, beverages and tobacco at 54.0, wood and paper products at 61.9, petroleum, coal, chemical and rubber products at 52.7 and non-metallic mineral products at 57.6.
Australian Industry Group chief executive Innes Willox said the year is looking challenging for manufacturers; however, some areas have positive signs of growth.
“Non-metallic minerals – which includes key building materials such as glass, bricks and cement – has improved in response to the beginnings of a lift in residential construction,” he said.
“Some encouraging signs are also evident in food and beverages manufacturing and in petroleum and chemicals manufacturing, possibly due to the lower Australian dollar over recent months.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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moliver-7qYWqnHmyR

Manufacturing slips for third consecutive month

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Off the plan properties are becoming increasingly attractive for property investors and home buyers, and in a property market that’s heating up, it makes sense. Buy now, for today’s prices, and have a home later that’s worth more than you paid for it. If everything goes well, it can be a dream. However, if you scrimp on your research, choose the wrong development or developer, then you could be in for a nasty shock.
In this Property Observer exclusive, we asked a number of property experts, including those directly involved in development, to <a href="https://www.propertyobserver.com.au/developments/exclusive-are-off-the-plan-properties-good-investments/2013103166079" target="_blank">provide their opinion about whether off the plan can be a good investment</a>.
Opinions were strongly split; some noted that off the plan is ‘rarely’ a good investment, with others saying that if you buy wisely you will reap the returns.
“When investors buy property off the plan they are essentially buying sight unseen. So the first rule should always be to ensure the developer and builder are reputable with a track record of delivering quality buildings as specified and on time,” said John Carfi, chief executive officer of Mirvac.
Meanwhile, Todd Hunter from buyer's agency wHeregroup notes that you may be paying top dollar for a developer who is paying for a marketing company, GST and a number of other aspects before factoring in their own margin.
Our other experts spoke of needing a ‘long-term’ view, and the fact that with current grants the properties can be good for first home buyers, as well as the associated risks.
Monique Sasson, from Wakelin Property Advisory has been forthright about her belief that the majority of off the plan investments don’t work due to the lack of scarcity value.
However, she notes that there are always exceptions.
“There are always two or three examples that break the rule to prove the rule, but they do tend to be geared towards owner occupiers, many of them are seven figures, rather than what I would consider to be the garden variety investment apartment at a more affordable level for most investors.
“I'm really talking about something between $500,000 and $700,000. Whereas these ones that may have started out as off the plan would have started out as $700,000 or $800,000 investments when they were sold but they'd now be worth well and truly in excess of $1,000,000 and sometimes even $2,000,000,” <a href="https://www.propertyobserver.com.au/news/properties-that-will-double-in-value-in-seven-to-10-years-monique-sasson-wakelin/2013091265003" target="_blank">she told Property Observer</a>.
If you’re determined to buy off the plan, then there are a number of things you can do to prepare yourself and mitigate against any risk.
Article continues over page. Please click below.
 
 
<hr class="system-pagebreak">
 
How you can mitigate risk
Never treat any aspect of the marketing material as gospel.
If you are being given a price for the apartment, triple check the inclusions – ensure these are noted specifically on the contract. Be wary of ‘estimates’. If you have been provided an estimated rental return and capital growth, find out what this is based on.
Rental returns should be based on other comparative rentals currently tenanted in the area. Ensure you check the vacancy rate. Call some local property managers and ask them what sort of demand there is for you sort of property and how much they would put the weekly rent at for prospective tenants.
Capital growth prospects should not necessarily be based on past growth. Trends can change at any time, and if you’re being provided some assumption of growth in the area, be ready to ask for the research that went into this forecast. Ask other experts about their forecasts.
Similarly, compare everything provided in the marketing material against the contract. Double check the inclusions, floor plans, delivery date and anything else you believe you are entitled to.
If there is a discrepancy in any of the material, you’ll want to be taking a close look at what you’re potentially going to buy.
Have your own team
Do not rely on the experts provided to you by any development company or one-stop shop. Ensure you seek out independent accounting and legal advice. Use these experts to put any of the claims of the developer to the test, and to help you with double checking the marketing material.
You’ll also want to ask your accountant or solicitor of anything that stands out to them as unusual, or to flag any common problems with you.
Research:
The area
Researching the area in which you’re buying should be standard for any home buyer or investor. There are many fundamentals and aspects to check first (you can <a href="?option=com_googlesearch_cse&amp;q=research%20an%20area" target="_blank">see a number of our research guides here to get you started</a>).
Prices can certainly drop in suburbs and you’ll want to ensure that you’re not overpaying to begin with. You'll want to esnure that the outlook is fairly comfortable for the future prospects, particularly as you are not going to get your hands on the property for some time.
Most crucially for those looking to buy off the plan is to find out what other developments are coming online in the area, particularly those that can substantially change what you are looking at now. Will something build out the view that you’re paying a premium for (or is there the capacity in the future)?
You will also want to find out the local opinion about the development. If there has been unrest from residents for the development, something regularly seen in the more tightly held areas of Melbourne, the stigma of the new building may be hard to shake off in the future.
The developer
Treat your discussions and research about the developer as a job interview. Ask for examples of previously successful projects and remember to check that they’ve come in on time, in budget and within expectation of previous owner occupiers.
Ensure they have completed similar projects before, and, if possible, visit the development to see how closely it stacks up against their marketing material.
You’ll want to check their insurances, and run checks through Fair Trading to find out about any cases against them. We also recommend a thorough Google search to find out what is being said about them online.
Ask the developer:
-          How long have you been working in the industry and what have your other projects been?
-          What development updates should I be expecting, and who can I contact during the construction?
-          Can I speak to some of your previous clients?
-          What sort of buyers have purchased the rest of the building?
-          What interest are you receiving on this building?
-          How long did it take to get development approval?
-          Can I see your balance sheet?
The development
Opportunity cost is a hugely important aspect to bear in mind, particularly when your capital is held up as you wait for construction to complete. Have a look at the lead time on these developments.
Be wary of any changes to the initial plans and of any differences to the show home and material you’ve been presented. What ‘wriggle room’ is there for this specific development, and in the contract, for you to be provided a different apartment? Never settle on the verbal agreement, and get everything in writing.
The contract is going to be one of the main pieces of paperwork that will look after you, should you have to take further action down the track. You will also want to find out if there is the ability to make changes in consultation with the developer if you are unhappy.
Fair Trading recommends the following questions should be asked (and checked against the contract):
<ul>
<li>
Can I make changes to the finishes in the kitchen and bathroom?
</li>
<li>
Can I select appliances such as stoves and dishwashers and items such as floor and wall tiles?
</li>
<li>
Can I visit the site during construction?
</li>
<li>
If the building is finished earlier than expected, has finance been suitably arranged?
</li>
<li>
What are my rights if construction is delayed?
</li>
<li>
Is my deposit secure if the building doesn't proceed?
</li>
<li>
Can I on-sell during the construction period?
</li>
</ul>
Source: <a href="https://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Buying_property/Buying_off_the_plan.page" target="_blank">Fair Trading New South Wales</a>
RealestateVIEW recommends the following checks and balances:
- Take note of the completion date
- Are there penalties if you withdraw from the contract?
- Can you visit the site during construction?
- What happens if the developer runs into financial problems, and what happens to your deposit?
Source: <a href="/guides" target="_blank">RealestateVIEW</a> 
Read more over page: Free resources and useful information
 
<hr class="system-pagebreak">
Free resources and useful information
Finally, there's plenty of free information available online that will assist you in ensuring you choose wisely. Be wary of <a href="/news">any information that simplifies the process</a> or suggests it can be done cheaply or easily.
On Property Observer we have the following available for anyone looking to buy off the plan: An eBook, with <a href="/guides" target="_blank">14 tips for buying off the plan</a>
A number of articles about new developments near you, and an <a href="https://showcase.propertyobserver.com.au/" target="_blank">Investor Showcase</a> with further details Fair Trading also has a number of useful documents, such as <a href="https://www.fairtrading.nsw.gov.au/Factsheet_print/Tenants_and_home_owners/Buying_property/FTB21_Buying_off_the_plan.pdf" target="_blank">this PDF with a two-page guideline to your off the plan basics</a>
 
YOU MAY ALSO WANT TO READ:
The <a href="https://www.propertyobserver.com.au/developments/don-t-underestimate-the-risks-in-off-the-plan-buying/2013031959692" target="_blank">risks of off the plan buying</a> should not be underestimated
Ask Margaret: <a href="https://www.propertyobserver.com.au/residential/ask-margaret-should-i-buy-off-the-plan-or-an-existing-property/2013062862801" target="_blank">Should I buy off the plan or an existing property?</a>
The three risks buyers take when they buy off the plan, and <a href="https://www.propertyobserver.com.au/developments/three-risks-buyers-take-when-they-buy-off-the-plan-%E2%80%93-and-how-to-avoid-them/2011112952599" target="_blank">how to avoid them</a>
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
 
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Considering buying an off the plan property? Read this first

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China’s manufacturing sector recorded its first decline in six months, according to the latest HSBC Purchasing Managers' Index (PMI) figures.  
The final PMI for January came in at 49.5, down from a score of 50.5 last month, where a reading below 50 points indicates a deterioration in conditions.  
“A soft start to China's manufacturing sectors in 2014, partly due to weaker new export orders and slower domestic business activities during January,” HSBC chief China economist Hongbin Qu says.  
“Policy makers should pay attention to downside risks and pre-emptively fine tune policy to <a rel="nofollow" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-01-30/final-hsbc-pmi-confirms-chinese-manufacturing-decline/5227892?section=business" target="_blank">steady the pace of growth if needed</a>.”
This article first appeared on <a href="https://www.StartUpSmart.com.au" target="_blank">StartUpSmart.</a>
 
 
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