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

Lowe Living launches Jardin House in Camberwell

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

The Walden pairs house-scale living with North Sydney connectivity

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

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

ACT abolishes stamp duty for first home buyers

A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.

The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.

A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.

[smartcode_project:default project_id=134800 project_image_fid=370648]

Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.

For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.

A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.

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The attention to detail extends beyond the rooftop.

Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.

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The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.

Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.

Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.

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Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.

Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.

For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.

[smartcode_project_cta:default project_id=134800]

Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.

Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.

Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" />

<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.

The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.

&nbsp;

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" />

Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.

Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.

Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.

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Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.

The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.

[smartcode_project:default project_id=135247 project_image_fid=364995]

Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.

Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.

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Capital Corporation to cater to Upper North Shore downsizers by creating walkable community at The Residences at Wahroonga Estate

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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There are few better examples of the potential for investors in regional Australian than Toowoomba.  
Queensland’s biggest inland city (population 155,000) recorded price growth in 2013 that out-performed capital city Australia, with the possible exception of Sydney. Most Toowoomba suburbs delivered double-digit growth in their median house prices last year, headed by <a href="/news">Rangeville</a> (the number one location in terms of sales volumes) which rose 14% and Newtown which rose 16%.  
Part of  Toowoomba’s appeal lies in affordability and rental returns. Despite the recent high growth, most suburbs have median house prices in the range between $240,000 and $330,000. House yields suburb-by-suburb mostly fall in the 5.5% to 6% range, while apartment yields are mostly between 6% and 7%.  
Toowoomba does well because it ticks most of the Hotspotting boxes: a strong and diverse economy, a growing population, plenty of infrastructure spending, a growing business community, affordability housing – and a big kicker which takes it to another level, in the form of the coal seam gas industry in the nearby Surat Basin.  
Toowoomba is regarded as one of the best places in Australia to get a job. Its jobless rate is about 1.5 percentage points below the national average.  
I particularly like regional centres that benefit from resources activity but don’t depend on it. The CSG industry is quite recent in this part of Queensland and Toowoomba was a prosperous city and steady property market before it became a factor.  
Toowoomba has delivered some level of price growth every year for the past decade, with the exception of the flood-affected year of 2011. Toowoomba suburbs typically have long-term capital growth rates around 7-8% per year.  
Australian Property Monitors senior economist Andrew Wilson has forecast further price rises for Toowoomba in 2014, tipping an average rise of 8%,  
At the same time, University of Southern Queensland Professor John Cole has forecast a population boom, with Toowoomba’s population tipped to reach 240,000 by 2031.  
Toowoomba and the surrounding region are alive with resources projects, infrastructure projects and property developments, which include the impending completion of a new airport facility and proposed major road and rail links.  
One example of the impact is the growth of local business FK Gardner &amp; Sons, which has tripled staff numbers in the past three years and recently opened a $20 million head office  
As with all growth centres, the one danger to the city’s property market is the potential for oversupply. Other boom centres in Queensland, notably Mackay and Gladstone, have had their markets undercut by over-building by developers. To date, that has not happened in Toowoomba and vacancies currently are around 2%.  
But the potential exists. The number of new dwellings approved has grown steadily in the past three financial years. And in the first half of the current financial year, there was a further 50% increase. Investors need to keep an eye on vacancies and ongoing approval levels.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank" style="font-size: 14px;">Twitter</a>.
 
 
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Regional hotspot Toowoomba shows great investor potential

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The Australian Bureau of Statistics (ABS) released the Consumer Price Index results for the December 2013 quarter earlier this week.  The December results provide a timely summary of consumer price rises up to the end of last year.
<img class="aligncenter size-full wp-image-2830" alt="Chart 1" src="https://blog.rpdata.com/wp-content/uploads/2014/01/Chart-11.jpg" width="470" height="173" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Headline inflation was recorded at 0.8% over the final quarter of the year and was 2.7% over the year.  Perhaps most interesting is the fact that the final two quarters saw inflation of 1.2% and 0.8%, an annualised rate of 4.0%.  The current annual inflation of 2.7% sits within the RBA’s target band of 2% to 3% however, the strong level of inflation over the past two quarters lessens the prospect of interest rate cuts for the time being.  The RBA prefer to look at underlying measures of inflation; the trimmed mean and weighted median each recorded quarterly rises of 0.9% in December.  Both measures have annual inflation recorded at 2.6% which is only slightly below the 2.7% headline figure.
From a residential property markets perspective the effects of inflation are also important to consider.
<img class="aligncenter size-full wp-image-2831" alt="Chart 2" src="https://blog.rpdata.com/wp-content/uploads/2014/01/Chart-21.jpg" width="470" height="172" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Based on the RP Data-Rismark Home Value Index, combined capital city home values increased by 9.8% in 2013 however, when you adjust for inflation the growth was a lower 6.9%.  Although home values rose over the year across all capital cities, when the impact of inflation is considered, home values actually fell in Hobart (-0.6%) and the rate of growth across all other cities was also lower.
Over time the impact of inflation on housing markets should also be considered.  The raw capital growth figures show that combined capital city home values at the end of 2013 were 3.5% higher than at their previous peak.  When these figures are adjusted for inflation, values are still -4.6% lower than their previous peak at the end of the September quarter in 2010.
<img class="aligncenter size-full wp-image-2832" alt="Chart 3" src="https://blog.rpdata.com/wp-content/uploads/2014/01/Chart-31.jpg" width="470" height="173" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Across each individual capital city market, inflation adjusted home values remain below their previous peak.  This includes Sydney and Perth where unadjusted figures show values are 10.9% and 3.6% higher than their previous peak respectively.  When adjusted for inflation, values across these two cities are currently -0.1% lower than their previous peak and Perth values are -8.9% lower.
If we look at the time of the previous market peak in inflation adjusted terms across each city, it goes some way to explaining why there has been such a pick-up in demand for housing and subsequently an increase in home values.  Sydney’s market peaked in the first quarter of 2004 and across other capital cities the market peaks were: Melbourne (Q3 2010), Brisbane (Q1 2008), Adelaide (Q2 2010), Perth (Q3 2007), Hobart (Q4 2007), Darwin (Q3 2010) and Canberra (Q2 2010).
With the relative costs of other goods rising at a faster pace than home values over recent years it is no surprise with mortgage rates at historic low levels that buyer demand and home values have now been rising.  From here, if inflation continues to climb that may result in the need to lift interest rates which would likely dampen investor activity and slow levels of capital growth.  The important thing to keep in mind however is that when you consider inflation, dwelling values remain lower than their previous peaks in every city.
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
 
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Inflation suprisingly strong while adjusted home values below previous peaks

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I reckon 2014 will be a fabulous year for property investors. It’s the year where we will start to see the impact of interest rates that have dropped steadily to a record low over the past 12 months.
We’ve seen the Sydney (and other areas) real estate market start to fly and I wonder if it will reach the dizzying heights of 2003. No matter if it doesn’t, as it’s already shown that we have regained our confidence after we all took a massive hit worrying about whether we would survive the global financial crisis (GFC) in 2007 which lead to a global recession of which some countries are still battling – worse they say than the Great Depression of the 1930s.
In Australia during the GFC our resource sector seemed to hold us up as we fed China’s growth. There was a rapid rise but then the ‘slow down’ hit in late 2012 as China’s demand softened and we  transitioning from a construction to a production phase within the mining industry. This has had an impact on our economy over the past couple of years. And a change of federal government last year may be the icing on the cake of change. Change is what we need after weathering such a big storm.
We’ve survived some amazing historical events that we’ll look back on in years to come, and we'll brag to our kids about “When I was young, the entire financial world nearly collapsed, banks and even countries had to be bailed out and the stock and housing markets crashed..."
I think 2014 will see the winds of change that will lift us to soar again.
When I made my first property investment it was the year 2000 and I had spent a considerable amount of time and money on my ‘property’ education (more than my uni degree). I was lucky to start investing in an up market but didn’t really appreciate this till years later.
What I’d like to say to investors now is: You may well be looking at a window – a window of opportunity – one that won’t always be there. The record low interest rates will increase. The affordable property will become more expensive.  The government incentives may be withdrawn.
Get in and stay in. It’s the time in the market where you can make some serious money, not in a short time because a long-term commitment is needed.
Study the market but don’t take too long before you venture in and remember, you need to allow funds to be able to hold your property long-term to take into consideration the times you cannot predict – use your memory of the GFC as an example of what crazy stuff can happen.
Jo Chivers is director of <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
 
 
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The window of opportunity is open - so get in, and stay in

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As many property investors can attest to, a trip to the Civil and Administrative Tribunal can be a daunting and expensive experience.
In a building dispute seen before QCAT earlier this month, applicant Abheshek Sodhani sought a total of $19,352 (with interest) plus an undecided amount at the discretion of the tribunal, from Queensland residential property developer Path Developments, who oversaw the construction of his new three bedroom duplex. The tribunal dismissed his claims, resulting in a loss of time and resources for Sodhani.
Property Observer takes a look at QCAT’s decision to deliver some tips that could save you from a trip to the tribunal.
Clarify any contentious terms before signing any contracts
While it may seem obvious, subjective or unclear contracts appear to be one of the greatest causes of disputes between investors and contractors.
One of Sodhani’s complaints at QCAT was that Path Developments had not provided the strata title in the course of completing his property. Sodhani claimed that he had to make additional payments to Path Developments above the cost of the price stated in their contract ($318,000) to obtain a strata title.
According to Sodhani, his contract with Path Developments stated that the strata title should be paid for by the builders, and no costs relating to the strata title should be paid by the client.
However, a closer look at a special condition in the contract shows that it in fact states: “payment for strata title by builder. Documentation by client.”
 
Path Developments argued that the costs paid by Sodhani were in obtaining documents for the strata title, and that they had in fact paid a total of $8,880 getting the strata title itself. The tribunal agreed.
The tribunal’s decision shows that it pays to double check any unclear items on contracts. Even QCAT agreed that the terms were ambiguous, stating that “unfortunately the special condition is not explained any further in the contract.”
Sodhani also claimed that he missed out on four months of rental payments, and had to bear additional interest costs because the property was completed four months late. But the tribunal ruled that there was no particular date specified in the contract for the completion of the property, and that the date that the contract is signed is not an indication of the commencement of construction.
It’s worth taking the extra time to enquire about any subjective items.
Seek advice when you need it
As evidence to his claim, Sodhani provided a letter carrying the name (but not the signature) of Peter Luckmann, Path Development’s director. The tribunal decided that the letter was not part of the existing contract, and had no bearings on his decision.
If you think you have an agreement in writing, it’s worth having the document checked against any existing contracts, and written up formally – which is something that will most likely require the help of a lawyer.
A lawyer can also spend an hour combing your contract for anything that might need clarification. Investing is tricky enough as it is – while lawyers are expensive, if you’re unsure of any terms, it’s worth hiring someone to advise you.
Keep all your receipts
QCAT noted that while Path Developments provided invoices for all the payments they made obtaining the strata title, Sodhani did not present any proof of payment for any of the additional documentation. Even if QCAT did agree that Sodhani shouldn’t have borne the extra costs, it would have been impossible to assess just how much he was owed.
Do your research
Sodhani also claimed that his property wasn’t built as per the specifications outlined in his contract with Path Developments. According to Sodhani, there was a 7.9 square metre difference between the size of his property as submitted by a certification group to the council, and the final survey plan. As such, he claimed that he was owed a reimbursement for loss of land to the tune of $1,016 per square metre of difference.
But Path Developments argued that survey plans for strata titles are measured differently than building plans, accounting for the apparent difference in size. In fact, Path Developments stated that after building Sodhani’s property as per its approved working drawings, he actually ended up with an extra 2.1 square metres above what was specified in his contract. The tribunal agreed.
If you feel as though you haven’t received what you agreed to in your contract, it’s worth looking a little deeper – call a surveyor or take a look at the publicly available information from your local Department of Planning.
Do you have any other tips for avoiding a trip to the tribunal?            
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
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Four investor tips to keep you out of tribunal

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It has practically become a national pastime for Australians to remark on just how expensive the property market is in this country. Be it BBQs, social functions, or even over a casual drink after work, affordable housing is always a hot topic of conversation. The reality is that be it purchasing a home that ticks all the right boxes, or securing an investment property that is affordable while still offering strong a return, property ownership remains a costly affair for many.
Even saving for a deposit can be a disheartening affair. Take lender’s mortgage insurance, for example. It is arguable one of the most unnecessary and wasteful expenses that a home or investment property buyer can.
The key issue when it comes to affordability however is not the cost of housing, but rather the cost of land. That is what you are really paying for when purchasing most properties. Land in highly desirable areas is very expensive because it is a scarce resource. This is because all but one of our capital cities are coastal, built on harbours, peninsulas and river fronts. Add to that the extensive urbanisation of our overall population, and all of these factors reduce the volume of available land to build more housing stock, where dwellers need it most.    
I believe the biggest oversight is neglecting to effectively manage the value of land throughout our capital cities. Instead, more effort has been focused on reducing construction costs.    
This is ridiculous for two reasons:    
1) Take an average three-bedroom Sydney house on a modest block (450 square metres), within a 15 kilometre radius of the CBD. You’d be looking at say $900,000 minimum to buy that property. But the land value of that parcel is more likely to be $600,000+. What good would it do for the buyer, then, to attempt to reduce the $300,000 portion of the cost for the dwelling, down to say $250,000? Overall the buyer would still be paying $850,000 for the property.
2) The impact on our construction industry, which has been hurt in recent years and only just recovering again now. Making construction and development companies less profitable will encourage them to want to build less projects, since their margins are not as great. Punishing the construction industry will only stress affordable housing concerns, and not ease it.
The Australian government has, at both federal and state levels, initiated programs in recent years to ease affordable housing challenges throughout the country. Take for instance the introduction of the National Rental Affordability Scheme (NRAS) in 2008. Almost 50,000 entirely new residential dwellings were constructed since the introduction of the scheme. The aim was to build housing in the most needed and desirable locations – so mostly throughout CBD areas of capital cities – and to make it affordable and accessible to the rental markets who needed it most.    
The government called on investors to buy into these developments and enter into a minimum 10 year arrangement. More information on how the NRAS scheme works can be found <a target="_blank" href="https://www.originalpropertybrokers.com/index.php?page=57">here</a>.    
The problem with the NRAS scheme though is that is merely a Band-Aid fix to a bigger land value issue. Making physical dwelling construction costs more affordable is not really a viable solution here because it is the high land value that will see these properties become just as unaffordable once the decade-long investor ‘ownership’ scheme ends. Furthermore, encouraging investors to buy these properties should raise affordable housing alarm bells, as investors will be pursuing values growth more than anything else.
This is the real crux of the broader affordable housing crisis that much of Australia is facing, and I believe it is all entirely related to our near-unique demographic position.
You’ll note I mentioned ‘near-unique’ above. If you compare Australia to a similar market, Canada, you’ll see that the two countries have more in common than just having an affordable housing crisis. Like Australia, Canada is a geographically massive country with a comparatively small human population. In fact, <a target="_blank" href="https://data.worldbank.org/indicator/EN.POP.DNST?order=wbapi_data_value_2011+wbapi_data_value&amp;sort=asc">according to the World Bank</a> (see link below), out of all the countries on Earth, Australia is the fourth least densely populated country in the world. Canada is ranked 10th. 
This means that with a low population of working age people (which will shrink as the baby boomer population moves to retirement in both countries) being available to ‘run’ the country, it will become more expensive to maintain the quality of life in these countries. This will push up land values over time. This has direct and indirect consequences for land values. In both Australia and Canada, there are only a handful of major cities that present as genuine employment hubs.
By no means am I about to paint a bleak picture here, however, as values could improve if the population continues to shrink after the baby boomer generation passes on. Effectively, there would be more properties then available to a smaller population, and this would make dwellings more affordable.
So yes, affordable land is needed, and it almost seems a farce that spare land is something Australia offers in abundance. So what’s the problem, right? If Australia’s population distribution had evolved to be more like a smaller-scale version of say China or the US; where the population is pretty evenly distributed around dozens of smaller size cities versus being clustered in just a handful or less of larger ones, like Australia, Canada, Brazil, and Russia; then affordable land would be less of an issue.    
Imagine if Australia’s cities were like this: Brisbane, Perth, Adelaide and Canberra were the same as they are, but instead of having Sydney (4.6 million people) and Melbourne (4.1 million people), we had lots of smaller cities in NSW and VIC instead.    
For example, in NSW, say Sydney was only 1.6 million people, then Port Macquarie was 1.5 million, and Wagga was 1.5 million, and in VIC, Melbourne was 1.5 million, Mildura 1.5 million, and Bendigo 1.5 million. Land would be infinitely more affordable because, well, there would be more of it to go around, spread across more medium-sized cities, versus two large ones.    
Sadly, our population is not spread out in such a way, and unfortunately this means that demand in our larger cities will continue to keep land costs high, and thus affordable housing will remain scarce.    
Although there does not appear to be any easy solutions to the problem, I believe a potential one is to consider satellite cities on the outskirts of major capital cities. In these kinds of locations, land values are lower, yet access to CBDs can still be feasible within say a 90 minute travel time.    
For CBD commuters this likely won’t be viable, however it is worth keeping in mind that the job you may have in five to 10 years may not even require you to commute to a CBD to do it! Australia’s workforce is embracing technology more and more. Although this is in the pursuit of greater work efficiency and not affordable housing; I believe Australian mortgage holders may be a beneficiary.
If innovation continues to evolve and the trend to negotiate more ‘work from home’ days continues, I believe many urban Australians will begin to reconsider why they are continuing to hole themselves up in an expensive ‘rat race’ shoe-box apartment, when sub-90 minute travel time coastal house may be more feasible with their new work schedules.
It will be interesting to see if this trend picks up speed in the coming years.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" rel="nofollow" href="https://www.propertycorrespondent.com.au/">Property Correspondent.</a>
 
 
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Land values are the crux of affordability, and there's no easy solution

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The world’s richest 85 people have wealth equal to that of half the world’s population.
According to Oxfam, which relies on World Economic Forum statistics released in November, this global elite is worth $US110 trillion, which is equal to the wealth of the poorer half of the world’s population. And the wealth of the richest 1% of the world’s population is 65 times the wealth of the bottom half of the world’s population.
Oxfam’s study is addressed to the delegates at the World Economic Forum, taking place at Davos in Switzerland this week.
“Oxfam is concerned that, left unchecked, the effects are potentially immutable, and will lead to ‘opportunity capture’ – in which the lowest tax rates, the best education, and the best healthcare are claimed by the children of the rich. This creates dynamic and mutually reinforcing cycles of advantage that are transmitted across generations,” the charity writes.
“This massive concentration of economic resources in the hands of fewer people presents a significant threat to inclusive political and economic systems. Instead of moving forward together, people are increasingly separated by economic and political power, inevitably heightening social tensions and increasing the risk of societal breakdown.”
Oxfam calls on the delegates to Davos to pledge not to dodge taxes in their own country or the countries they invest in, to not use their economic wealth to seek political favours that undermine the democratic will of their fellow citizens, to be transparent about their investments and to support social protection and a progressive taxation system.
According to the study, Australia saw the second-largest largest percentage increase in the income share of the richest 1% of the population between 1980 and 2012, behind only the United States over that period. In 2012, 10% of Australia’s wealth went to the richest 1%, which is double what it was in 1980. In the United States, the most unequal society studied, nearly 20% of the country’s wealth went to the richest 1% - in 1980 it was just 10%.
Economist Richard Denniss, executive director of left-wing think tank The Australia Institute, says the numbers are “as alarming as can be”.
“As is the fact that no one expects anything to change. It shows how effective the rich are at changing the rules to benefit themselves.”
Sadly, Denniss says, wealth inequality in Australia mirrors the global trends, with the gap between the rich and the very poor significantly widening over recent decades.
“The easiest evidence is to look at Australia’s richest person, Gina Rinehart. She’s far richer today relative to the average than the richest person in 1980. And she’s far, far richer than the second-richest person in the country.”
Oxfam’s study also surveyed residents in six countries about whether they perceived laws and regulations to be regularly designed to benefit the rich. A majority of respondents agreed with the statement.
The study did not survey Australians, but Denniss says he believes the trends would be replicated here.
“For example, we’ve just removed the mining tax which would have been paid by foreign countries and Australia’s richest people, and aimed to spread the benefits of the mining boom more fairly.”
“It’s a bad thing, for democracy, for any group to have far more influence than their numbers entitle them to.”
Denniss says that if Australia’s richest people are committed to equality and opportunity for all, they shouldn’t focus on philanthropy, but should instead support a fairer taxation system, and be supportive of increases to the minimum wage and other aspects of the social safety net.
Oxfam is more optimistic than Denniss. In its <a href="https://www.oxfam.org/sites/www.oxfam.org/files/bp-working-for-few-political-capture-economic-inequality-200114-en.pdf" target="_blank">closing summary</a>, the charity says the trend can be reversed, as it has been in the past.
“The US and Europe in the three decades after World War II reduced inequality while growing prosperous. Latin America has significantly reduced inequality in the last decade – through more progressive taxation, public services, social protection and decent work. Central to this progress has been popular politics that represent the majority, instead of being captured by a tiny minority. This has benefited all, both rich and poor.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany.</a>
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mrobin-TVRYiru7si

World's richest 85 people as wealthy as 50% of the world's population combined

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Would you? Could you? Perhaps you have already ...
Falsify your address just to get your little ray of sunshine into the family’s school of choice, that is.
Some parents do it; others scheme about it and those secondary schools in their sights – such as McKinnon, Balwyn and Canterbury Girls' – put strategies in place to make sure it doesn’t happen (often).
The pressure on some high-achieving parents to get children into schools of choice leads them to drastic measures. Some are said to fudge their addresses by bribing relatives, others change their mobile phone billing data, some wealthy parents buy a second property – with no intention of living there – just so they can have a postal address for school documents. Others make false statutory declarations – or rent properties for six months and then leave them vacant.
It seems nothing is too much trouble when a place in a class in the best school is on the line.
Getting in on the front foot, McKinnon Secondary College says it "strongly advises prospective parents to contact the college before securing a leased property, or purchasing a property, to discuss enrolment options."
It’s a serious issue with strict criteria, such as the <a href="https://www.mckinnonsc.vic.edu.au/the-mckinnon-zone/" target="_blank">boundaries designated by McKinnon Secondary College</a> (pictured below).
<img src="/images/stories/2014/01/21/mckinnon-jan-21-one.jpg" alt="mckinnon-jan-21-one" height="458" width="470">
Source: McKinnon Secondary College
Only houses on the inside of boundary roads are deemed to be in-zone. If the zone is amended, the school says it will signal changes on its website and in the local press.
Enrolling students must live with their parents. Staying with a relative or friend does not qualify a student as a "resident". And guardianship is not a criterion for enrolment unless supported by relevant papers endorsed by the Family Court of Australia.
Balwyn High School says its expectation is that a family will remain permanent residents within the zone for the duration of their child’s education. It says it cannot guarantee a child’s continuing enrolment if their residential status changes during that time.
It has been a long-term requirement that new enrolments sign a residency declaration stating the family’s intention to remain permanent residents in the zone as long as their child is enrolled there.
The purchase of property in certain areas to guarantee entry is taking its toll on some schools who simply cannot find a place for them. Balwyn High School says it is "constantly liaising" with the Department of Education and Early Childhood Development regarding its "acute accommodation problem". It says it is investigating the possible placement of new students into other government schools as a means of alleviating its "accommodation crisis".
But Victorian Education Department spokesman Liam Carter said there was no review and no state government policy in place to prevent parents falsifying information for school enrolments. "It’s not much of an issue in Victoria as most schools take students from out of their zones anyway," he said. "Only a few schools have specific zones and they manage the issue themselves."
As an aside, he said he had heard of one principal who would go around to addresses he was sceptical of and check that a certain student did, in fact, live there. This is verified by an entry on the McKinnon Secondary College website stating: ‘’ Documentary proof of residence is required, and applicants may be personally visited without warning to verify habitation claims.’’
That’s one way to check. Other ways include providing evidence of the purchase of a property in the zone or a property lease from a licensed real estate agent for at least 12 months. The property and lease must be under the parent's name. Copies of a driver's license, utility bills – all in the parents’ names - are other items asked for as proof of address.
Article continues on next page. Please click below.
 
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School zoning is also a dividing feature in the UK where a Parent Power survey, commissioned by education charity Sutton Trust, found a third of professional parents deliberately moved to an area with good schools, while one in five moved to the catchment area of a specific school.
The claims were made in the Mail Online which found that one-in-20 parents could afford to buy a second home just to use the address when applying for enrolment. This was more than double the 2% among parents in general.
Around 6% – double the average – admitted using a relative’s address on application forms. And one in 10 said they had started going to church to get their child into a faith school compared with one in 16 among parents in general.
And one in 20 – 5% - said they bought a second home to use the address when applying for a place at a specific school. This is more than double the 2% among parents in general.
Hocking Stuart Bentleigh’s Fran Harkin said property was "definitely more expensive" in the McKinnon school zone which reflects the fact that parents will pay more for the privilege of sending their children there. Salesman Anton Zhouk said anecdotal evidence was that some parents bought second properties in the zone for a legitimate address to present to the school regarding their child’s enrolment.
"You hear of it going on but, of course, it’s never talked about," he said. "Some buy land - without a house on it - just to qualify."
"The zoning requirements have a marked effect on prices," Zhouk confirmed. "Centre Road divides the zone and properties on the ‘right’ side may cost $150,000 more. It’s certainly a good selling point."
Melissa Ryan, of Hodges Bentleigh, said "very specific buyers, such as the Chinese, come to Australia to give their offspring a quality education" and this has a big effect on school zone land prices.
"They want their children to stand out amongst the rest and an Australian education has cache. So, in order to get their children into a good school, they will pay extra for it."
Ryan said the value of the Aussie dollar played a part in their strategy. "When the dollar was high Chinese buyers left the market, so that houses in the school zone were selling for less than those outside. Now, with the dollar low, they are back in."
The return of the Chinese is certainly affecting prices, with Ryan saying they were "even outbidding developers" on property where the minimum to buy in is around $1 million. "Over the past two years – when the dollar was high - this has not been the case."
Agent sbelieve that buyers of Asian origin – who make up 80%-90% of buyers in the area – are especially keen to send their children to select schools. Many can afford to pay cash for their new homes.
Ryan said the McKinnon/Bentleigh market was strong. "This time of year people buy cars and houses. Anything that is still on the market is being snapped up quickly."
John Pollard, of Woodards Bentleigh, said school-catchment zones "had a huge pull" on buyers and put a 10% premium on sale prices. "And it is usually the starting point of the marketing campaign."
Pollard said planning ahead could pay dividends. He said a Chinese couple from Thomastown with a pre-school age daughter recently bought a rundown property in McKinnon – in the school zone, of course – planning to rent it out until their daughter is ready for year 7, when they will move in.
NSW schools are equally strict about their enrolment criteria. Popular Willoughby Girls’ High School in the inner north lists ‘residential proximity’ as the main criterion for entry, with proof of a student's address to include originals of different documents, such as a council rates notice or residential lease and electricity bills with their parents’ names.
The school lists nearby suburbs in priority order according to their distance from the school, which is defined as a straight line point to point from the school to the nearest point on the suburb boundary. Parents can access a <a href="https://www.wghs.nsw.edu.au/WGHS/assets/File/Residential%20Proximity%202%5b1%5d(1).pdf" target="_blank">residential proximity</a> map to see how far they are from the school.
Artarmon Public School – a few minutes away on Sydney's lower north shore – is reportedly the fifth-best primary school in the state. And that’s a sound reason for parents to buy in the suburb, says Jason Georges, of Ray White Willoughby. "There are only a limited number of streets in the catchment and property there is always in demand, with three bedroom houses usually going for around a million dollars."
Killara High School – like all NSW public schools – has enrolment criteria insisting that children are designated to a particular school based on the permanent residential address of their primary caregiver.
It has to - as one of the few non-selective public schools to rank in the top 100 high schools in the state it has massive enrolment pressures.
The president of the Parents and Citizens Association, David Jordan, told Fairfax newspapers that growing housing density was putting huge pressures on the school. "You're getting a massive increase in population in the area but there's no money going into infrastructure in the schools. Basically, the school was designed for about 900 students. It's over 1500 now. We just can't afford to have out-of-area kids."
In 2002, only about half the students at Killara came from the local area. Now it is nine out of 10, he said.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
 
 
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staylor-63KgDrKwoY

School zones: How far would you go to get into the best schools?

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As 2014 progresses it will become increasingly clear that oversupply is a bigger issue than shortage in Australian property markets.  
It may also become apparent that the greatest threat of a future market downturn will not come from the mythical price bubble concocted by journalists who don't care too much about accuracy or balance but from an emerging serious oversupply in some markets.  
For some years the notion of a dwelling shortage, often described as "a chronic housing shortage crisis", has been promoted by some organisations and individuals pushing vested interests.  
That notion has never been supported by any factual data nor by the behaviour of markets, but it hasn't stopped newspapers from treating it as a fact because it was a cheap and easy headline.
Most market outcomes in recent times have made nonsense of the shortage claims. The fact that four of the past six years have been periods in which prices on average have fallen is inconsistent with the idea of a chronic shortage so bad it has been often called a crisis.  
So too has the lack of rental growth in most of our major cities. In the past couple of years only Darwin and Perth have delivered major rental growth.  
Darwin has been perhaps the only capital city to which the term "housing shortage" could be accurately applied in recent years. When the Ichthys gas project brought thousands of new workers into this rather small city, and supply-demand imbalance worsened and rents rose sharply. Darwin has by far the highest residential rents in capital city Australia.  
The rental growth in Darwin, and in resources-related centres such as Port Hedland, demonstrates what happens when there truly is a shortage of dwellings relative to demand.  
Where there is no rental growth, you can safely conclude that there is no dwelling shortage.  
According to the latest Rental Report from Australian Property Monitors, Darwin remains the only state or territory capital city with any realistic claims to a shortage - and even there the rate of rental growth has dissipated considerably.  
In the past year, there has been no growth in Sydney's median house rent and only moderate growth in the unit median.  
Melbourne recorded no change in unit rents and just 4% growth in house rents. Rents in Canberra fell, both for houses and rents, largely because the city has the opposite of a dwelling shortage.  
Brisbane showed no growth in apartment rents, because it has a growing over-supply, and house rents increased just 2.6% in 12 months.  
The previous rental growth in Perth has come to a halt, as shown by the 5% decline in the median unit rent in the December quarter. In Melbourne, the median unit rent fell 3% in the December quarter. Both cities have significant surpluses in their apartment markets, especially in Melbourne where the inner-city over-supply is already serious but will get worse and may create a market crash in the future.  
But don't be surprised if you continue to spot market commentators, particularly economists, talking about "the housing shortage". This furphy has been aired so often it's regarded as fact by those who are poorly-informed about real estate issues - a description which covers most Australian economists.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank" style="font-size: 14px;">Twitter</a>.
 
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Oversupply a far greater issue than a dwelling shortage

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Instead of productive advocacy into improving the housing market so it’s equitable for all - we’re left once again battling a ‘Looney Tunes’ debate over whether housing is, or isn’t affordable.  
I’m know I’m not alone in feeling an immense amount of frustration at the circular debate amongst commentators in the mainstream media, that surrounds our first home buyer demographic, and the question of affordability.  
Last week, the November 2013 housing finance data was released showing continued strong demand in the mortgage market, with owner-occupier commitments 15.3% higher than they were a year ago - their highest level since December 2009.  
Unsurprisingly, demand from investors continues to increase, rising 1.5% in November, and up by 35% over the course of the year - the highest level on record - whilst on the other hand, first home buyers remain at record lows, with a recorded market share of just 12.3%.  
Whichever side of the coin you sit, “first home buyers” like “housing bubbles” make a good headline. Therefore, instead of productive advocacy into improving the housing market so it’s equitable for all - we’re left once again battling a ‘Looney Tunes’ debate over whether housing is, or isn’t affordable.  
Denialists  
For those in denial all sorts of excuses are found – the most common of which is the accusation that first home buyers are just spoilt and picky – or as was sent to me in email last week by a fellow contributor on Property Observer - “you just have to save hard and start with a flat – isn't that how it's always been?”  
Well to some extent yes – when there’s a budget, compromises need to be made. But how it’s always been? No.  
Whilst in the late 1990’s a typical first home buyer’s budget would have secured a modest family home, in a reasonably facilitated suburb, for three times median income. Today you’d be hard pushed to find accommodation on the fringes of our capital cities for a similar expense.  
30 years ago the land component of a house and land package represented 20% of the total cost – today it is more like 60%.  
40 years ago, housing policy ensured land was ‘readily available at fair prices,’ with commonwealth funding provided for essential infrastructure. Today land prices have soared; unduly inflated constrictive <a target="_blank" href="https://www.macrobusiness.com.au/2013/11/urban-zoning-and-affordable-housing-are-opposites/">urban zoning policy</a>, with infrastructure prices, loaded onto the upfront cost.  
Furthermore, a CIE study commissioned by the HIA, demonstrated how imposed taxes on developments, when added together, come to 39% of the marketed house and land price.  
By the time you add “necessary” energy and safety standards, coupled with the cost of labour on top of already inflated land values, developers find it increasingly difficult to provide ‘affordable’ accommodation whilst still making a profit.  
Glenn Stephens, Governor of the RBA, summed it up best in 2011, when, he addressed a Parliamentary Committee and exclaimed how he could “not understand why a country as big as Australia seemingly had a shortage of land” and could therefore not provide ‘cheap’ housing.  
We don’t have a shortage of land – we have poor housing policy driven by vested interests to keep inner city land prices high.  I cannot find any other reasonable explanation.  
Asking first home buyers to purchase into a market where, capital city house prices have been artificially inflated, from three times median income to nine times, should not leave us scratching our heads wondering why they don’t feel OK about it. It’s perfectly understandable.  
Who is a first home buyer?
 
According to the ABS, the average age of a first homebuyer is between “31-33 years,” and due to high entry costs, “partnering often precedes home purchase” (the majority of which already have children).  
Therefore unsurprisingly, only a relatively small proportion (19%) make up single households, and outside of those who pit themselves against stronger financial arm of the investment sector, to purchase an apartment, the options we’re currently providing our first homebuyers, fall dismally short of where that main demand centres – demand which often calls for more than tiny apartment which will last no longer than a year or so before an upgrade is necessary.  
The data must be wrong…numbers can’t be this low?  
Others challenge the data, with various <a target="_blank" href="/news">claims</a> that first home buyer numbers are only ‘significantly’ reduced, because a percentage are ‘slipping through the net,’ perhaps entering ownership as ‘investors’ or – due to dated brokering software – not being entered as first timers, unless applying for a state based grant or incentive.  
On the latter point, I did speak to the ABS department of financial statistics directly about the notion that ‘significant’ numbers are missing, and further investigation is underway which I’ll follow up at a later date.  
Albeit, currently they deny the implication, claiming it doesn't accord with APRA's instructions to lenders when collecting statistics - which stresses that a first home buyer, must be one in which “none of the borrowing parties has previously borrowed housing finance for owner occupation” – making no distinction between an investor, or one who does, or does not, apply for the grant.  
Therefore, outside of colloquial evidence, the above ABS statistics are the most accurate ‘current’ indicator we have of a downward trend in first home buyer numbers – and for most ‘reasonable’ minds it should come as no surprise, considering we’re in an environment where the entry cost to obtain ownership is further impeded by rising prices, transaction taxes, and an uptick in unemployment raising concerns over job security.  
 
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Housing is ‘affordable’ because mortgage rates say so  
As <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-01-15/janda-the-illusion-of-housing-affordability/5200706">Michael Janda</a> pointed out in his excellent report last week - housing affordability should not be confused with mortgage serviceability.  
Mortgage rates are set up with different structures, dependant on circumstance, and subject to interest rate changes influenced by the macro environment.  
<ul>
<li>
They do not take into account the up front cost of a home and expenses incurred from associated utility costs.
</li>
</ul>
<ul>
<li>
They do not question rising rental prices, falling vacancy rates, wage growth, unemployment figures, or changes in household demographics and structure.
</li>
</ul>
<ul>
<li>
They make no distinction between the cost of building a home and the underlying value of land, or analyse constraints in supply, or make mention of the limited options available for low or single income households and families.
</li>
</ul>
  To assume on interest rates alone that housing is ‘affordable’ is lazy reporting and generally only applicable to existing owners.  
Those who fail to make the above distinction commonly come from the standpoint of vested interest – or entered ownership at the beginning of the lending boom (in the early 2000s or before,) and have benefitted considerably from a rapid period of inflation – which unsurprisingly enough, includes most of our politicians.  
Housing is affordable because data from other countries says so  
Neither is it complementary to compare ourselves to international terrains which – having been through somewhat harder lessons than our own – are also battling to induce first home buyers out from underneath their ‘rental’ blankets.  
Yet this is what Stephen Koukoulas <a target="_blank" href="https://www.businessspectator.com.au/article/2013/10/15/property/first-home-buyers-are-not-locked-out">attempted to do last week</a>  when he ‘favourably’ compared Australia to Norway, Canada, Sweden and New Zealand.  
All of these markets have suffered from large increases in levels of private debt whilst at the same time limits were placed on supply.  
In Norway, Sweden and New Zealand, central banks have recently employed capital constraints in an effort to moderate demand, and Canada, with a household debt to income ratio of 163.7%, is being watched closely, as investors and economists start to voice alarm.  
Letting house prices escalate, funded by a colossal amount of private mortgage debt, can be a dangerous game.  
As I pointed out <a target="_blank" href="https://catherinecashmore.com.au/wp/?p=431">last week</a> - in the USA prior to the sub-prime crisis, the median income in California was not enough to afford the average Californian home, or even a starter home.  Once the financial crisis hit, rapidly falling prices quickly eroded any equity homebuyers had achieved.  
Whilst on the other hand, states such as Texas, where house prices did not deviate from three times median income, values fell by only -2.5% (from the peak of 2007 to the trough of 2011,) and the state suffered far fewer foreclosures.  
The renters that Terry Ryder rudely labelled ‘<a href="https://www.propertyobserver.com.au/news/the-worst-writer-on-property-is-from-generation-rent/whine-terry-ryder/2014010867118">generation whine’</a>   
Renters, on the other hand, have not benefited directly from low interest rates. Roughly 33% of Australia’s housing market is made up of tenants and since, 2006, rises in the median cost of rental accommodation have outpaced both wage growth and inflation.  
In Sydney, where supply is particularly constrained, APM recorded a 5.4% yearly increase to the median rental price, and according to a new report compiled by the Northern Territory Council of Social Service (NTCOSS,) the average cost of rental housing in Darwin has risen by 7.9%.  
Before we get into a further debate over whether or not rents are ‘affordable,’ it’s worth turning to a previous report from the now disbanded <a target="_blank" href="https://web.archive.org/web/20130513194056/http:/nhsc.org.au/">National Housing Supply Council</a> to highlight the real impact demand side policies like negative gearing have, when coupled with a gradual erosion of supply.  
Reports highlight that the increase of rental accommodation in the private sector has not outweighed the decline in social housing – and from the stock added, most have rents outside of the affordable threshold for lower income households.  
To assesse this the NHSC broke income groups into deciles, and demonstrated of the affordable private accommodation available’ supply is quickly soaked up, leaving 60% of income groups, paying more than 30% of their income on rent, and 25% pay more than 50% of their income on rent.  
In conclusion
 
Gains from high land prices, do not trickle down they flow up. This is what the ‘National Housing Supply Council’ was trying to emphasise in their reports, and what I went to great pains to point out <a target="_blank" href="https://catherinecashmore.com.au/wp/?p=431">last week</a> in trying to answer the questions over what exactly a ‘housing shortage’ means.  
Our market is not just about buyers, it’s about renters too - and our governments are elected to ensure that the price of land is not unduly inflated by either the monopoly of this resource, or undue restrictions placed on its development.  
Worrying still – the arguments over affordability encourage us to lose sight of the real issue – which is not localised to the first home buyer sector, but the general crowding out of low income residents across all demographics – some of which drift in and out of ownership.  
Reform is never easy, but there is a way to break the cycle and ensure land is fully utilized for the purpose intended, without prices blowing out to levels that can only be sustained through keeping interest rates low, or household debt high.  
One way is through freeing the barriers hampering the type and supply of accommodation offered, and the other is through imposing a broad based tax on the underlying value land – of which I went into more detail <a target="_blank" href="https://www.macrobusiness.com.au/2013/11/land-tax-must-kill-negative-gearing-stamp-duty/">here</a>.  
The focus of attack should be not those individuals who have advantaged from the system, but on the law that allows the system to operate – and in response, the commentary should not focus on defending what is plainly obvious, but advocating the policies we need to fix it, and ensure our house and land market is equitable for all.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
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catherinecashmore-6LXia3pPQj

'Looney Tunes' debate taking the mickey out of housing affordability

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Property development and investment group Tipalea Partners has splashed $11.8 million on an industrial property in Port Botany, amidst structural change in South Sydney, which will see 20% of the current industrial market removed.
<img alt="matraville-jan-20-one-2" height="213" width="470" src="/images/stories/2014/01/20/matraville-jan-20-one-2.jpg">
"South Sydney remains such a strategically important industrial market in Sydney and it's undergoing massive structural change,” says Scott Spanton managing director of Tipalea Partners.
“The most significant change is that around 1,000,000 square metres of industrial land and buildings is earmarked for residential and commercial redevelopment over the next five years. This will effectively remove 20% of the current industrial market," says Spanton.
Tipalea Partners bought a 6,600-square-metre six unit industrial property on Beauchamp Road with an 8.1% indicative rental yield.
<img alt="matraville-jan-20-two" height="313" width="470" src="/images/stories/2014/01/20/matraville-jan-20-two.jpg">
"We expect strong rental and capital growth potential will be created by the ongoing displacement of industrial tenants as the gentrification of South Sydney continues between now and 2020.
“It's the perfect storm of investment conditions, critical infrastructure assets are being expanded, demand for space is increasing but supply is shrinking,” says Spanton.
The site is fully leased with expiries ranging from 2014 to 2018.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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