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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Unclear, complex and poorly drafted regulations and laws had hurt the National Rental Affordability Scheme, according to the first public submission to the 2014 Senate inquiry into housing affordability. 
Poor co-ordination between government departments had undermined property investor confidence, with the submission claiming "thousands"of property investors initial tax returns had been rejected by the ATO due to the NRAS complexity.?
The submission by Andrew Tyndale, a director of Grace Mutual, suggested the NRAS regulations were unduly complex. Grace Mutual Limited is a not-for-profit entity utlising wholesale funding in the social sector, in particular the financing thus far of more than 1,000 houses under NRAS.
Despite the flaws since its 2008 introduction, NRAS had resulted in significant numbers of affordable dwellings being constructed, Andrew Tyndale said.
"Regardless of criticisms of NRAS, it has resulted in the construction of at least 20,000 new affordable rental dwellings, directly positively impacting 30,000 tenants, building capacity and assets within the Community housing Sector, and creating or preserving thousands of jobs in home construction."
He added NRAS had brought affordable housing to the awareness of the general public suspicious of social housing.
"With the majority of built NRAS dwellings being sold to private investors, this has created widespread awareness of the need, the difference from social housing and the NRAS solution."
The submission noted the NRAS regulations were unduly complex, in particular the interpretation on capping of rental increases at original rental rate plus NRAS indexation for the full 10 years.
"This significantly disadvantages landlords who put in social tenants first, as they will not be able to increase rent, even if an essential worker becomes the tenant later.
"Many CHPs (community housing providers) bowed to State pressure and put social tenants into NRAS dwellings in the early days.
"Another example is the rejection of thousands of investor tax returns by the ATO, due to the complexity around the State’s NANE income and associated deductions.?
"Having two complex tax-related incentives (State &amp; Commonwealth) increased the complexity and cost of documentation and legal services, and raised the barriers to institutional involvement, as did linking the incentives to the NRAS Rent."
'This poor coordination between government departments undermined investor confidence.
"This occurred from the very beginning where the ATO took a hard line stance on introducing investors to benefit from NRAS, despite this being one of the foundational objectives of the program."
The submission claimed too many NRAS incentives were being wasted on university student housing.
"Large numbers of NRAS incentives (at least 4,000) were awarded for the construction of student housing.
"There appears little evidence that this has any positive impact on the middle to low-income families that were the target of the original policy."
The scheme was hoped to generate the supply of 50,000 new dwellings between July 2008 and June 2012, and the option for 50,000 more to be built subject to market demand from 2012.
 
 
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jchancellor-FAypfDUnLy

Low income NRAS incentives wasted on university student housing: Grace Mutual

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I was cycling through Preston the other day, riding to the left of a lane shared with cars as the “bicycle lane” was full of parked cars. A motorist in a four-wheel drive overtook me at some speed with less than a foot between us. I came up to his window at the next red light, tapped on it, and asked him whether he was aware that he’d passed me so narrowly.
“Nah, I gave you plenty of room.”
“You should have been in the bike lane.”
“You f***ing cyclists think you have all the rights.”
Although this person didn’t raise his voice at me (nor did I to him) or threaten me – this was not the worst encounter I’ve had while cycling – at no point did he apologise or even concede that it was important to be considerate of other road users and their safety. When I made the point to him that he would not want to be responsible for somebody’s death, he told me “not to be so dramatic”.
Tell that to the families of the 33 cyclists killed across Australia in 2012, the last year for which road fatalities were available from the <a href="http://www.bitre.gov.au/statistics/safety/fatal_road_crash_database.aspx">Australian Government’s Road Deaths Database</a>. While this figure is small compared to the total fatality figure of 1303, the fact that more people travel by car than bike means that cyclists have a higher injury and death rate than motorists and their passengers. <a href="http://www.darebinbug.org.au/images/2010/JACRSV21N3_037.pdf">A 2010 study by researchers from Deakin University and the University of Sydney</a> found that cyclist fatality rates per kilometre between 2002 and 2008 were anywhere from 4.5 to 18.6 times that of car occupants.
We as a society tend to fix these kinds of problems through legislation or physical infrastructure. Councils across Melbourne have been installing more bicycle lanes, including <a href="https://www.bicyclenetwork.com.au/general/bike-futures/11522/">physically-separated lanes</a>, such as in Albert Street in East Melbourne and Swanston Street in Carlton. <a href="http://www.couriermail.com.au/news/queensland/queensland-cyclists-to-get-1m-clearance-on-roads-permission-to-ride-without-helmets-under-proposed-laws/story-fnihsrf2-1226770826919">The Queensland Government is soon to pass legislation requiring motorists to leave a metre gap when passing cyclists</a>, increasing to 1.5m when travelling at 60km/h or more. Do these solutions address the whole problem, however, when it is impractical to install best-practice bicycle infrastructure all over the city or to always enforce road rules?
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/swanston.GIF" rel="gallery-all" title="Separated bike lane on Swanston Street, Carlton"><img alt="" class="image-article-full-width-702px" src="/sites/urbanmelbourne.info/files/styles/article_full_width_702px/public/pictures/article-images/swanston.GIF?itok=0BJ8Lq01" title="Separated bike lane on Swanston Street, Carlton" typeof="Image"></a>
In my opinion, a large part of cyclists’ safety problem is that of some motorists’ attitudes relating to how and where cyclists should ride, and what rights should be afforded to them. The man who narrowly overtook me had no issue doing so presumably because he assumed he posed no threat to my safety and because I shouldn’t have been there in the first place. Had he considered me as a fellow human being foremost (rather than a member of a different “road user type”), acknowledged my right to share a lane with cars where it was impractical to travel in the bicycle lane (<a href="http://www.austlii.edu.au/au/legis/sa/consol_reg/arr210/s247">Australian Road Rules Regulation 247</a>) and been cognisant of the hazard that his vehicle posed to my safety, he would have likely been happy to wait an additional five seconds to overtake me safely.
One solution towards this attitude problem could be more education campaigns for motorists in relation to vulnerable groups such as cyclists. These would need to include the rights and responsibilities of various parties, such as the legal position on where and how cyclists may ride, and who gives way to whom in various situations. While some members of any road user group would continue to break the law, correcting misconceptions on road rules would help decrease situations where a motorist’s mistaken outrage at a cyclist sharing the road blinds him or her to compassion and common sense.
Another would be greater awareness that cyclists are not a fundamentally different type of animal life, even when dressed in spandex, but fellow human beings. Too often, we categorise others into rigid out-groups – even when the basis for these groups cease on alighting from our vehicles. Family members have told me that they have begun driving more carefully around cyclists since I began cycling, having greater empathy and awareness of the risks involved. It is my hope the increasing numbers of cyclists will mean that more people will know one and see them as somebody’s family member or friend, rather than an obstacle to getting through the next set of green lights. However, we may need safety campaigns reminding us that people – however they travel – have lives and aspirations that can too easily be extinguished by carelessness or impatience.
In a perfect world, technological and infrastructural solutions would remove the all-too-present element of human error from transportation. Although we continually strive to fix accident blackspots and physically separate vulnerable road users from threats, these solutions alone cannot be the answer. Greater compassion, awareness and patience on our roads would make a world of difference.
Alexander is a member of <a href="https://www.facebook.com/linkmelbsus" target="_blank">Students Linking Melbourne Sustainably</a>.
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apsheko

Cycling safety solutions - infrastructure or attitudes?

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As we start to reflect upon 2013 and the last six months in particular, there are signs that 2014 will be another busy year, partly because in NSW changes to strata law and planning legislation will impact the residential market and apartment projects and buyers in particular.
While there will also be some big-picture economic hurdles I would like to briefly update these two important reforms. After extensive consultation NSW Fair Trading has now released its position paper on strata title law reform and a final bill is due to be introduced in early 2014.
As might be expected for such a complex topic there are approximately 70 proposed reforms.  It is of interest that most are consumer driven, designed to benefit all occupiers of strata schemes, owners and tenants. The reforms also aim for greater transparency and accountability in the management of strata schemes impacting committee members, how proxies are used; and the disclosure of third party interests and connections.
However for future developments the reforms seek to impose major and significant obligations on developers, giving owners greater rights, but also they will impose additional costs and liabilities on developers.
One big change will be a requirement for a developer to commission an independent defects report between 12 and 18 months after the occupation certificate for the building has issued. Another much talked about change will see developers of high rise strata buildings (more than three storeys) required to pay a bond or provide a bank guarantee equal to 2% of the contract amount for the construction of the building. This obligation for developers is a significant new obligation with cost consequences for developers. It is not yet clear if this obligation will apply to existing projects that have already commenced construction.
Generally maintenance is a core concern and all developers will be required to prepare a maintenance schedule aimed to help an owners corporation understand how to best maintain the building. Owners corporations will have the right to take action over unrealistic strata levies during the initial period where under some circumstances an order to pay compensation could be awarded against the developer. Future project planning and financials will need to allow for these new costs.
The collective sale and extinguishment of strata schemes
As greater numbers of older strata buildings become ripe for re-development the extinguishment of those schemes has become an issue. There are some areas where less than perfect projects were built in the 1960s and 1970s and these areas need to be updated. The position paper now provides the detail on how this is to be facilitated for the termination of strata schemes.
It is interesting to note that since 1961 only 826 strata schemes have been terminated out of a total of 72,000.  To help avoid excessive costs and delays the proposal is to legislate for a new and simpler process, which an owners corporation can follow with disputes under the Land and Environment Court. Apart from these few key items the reforms are far reaching and will affect much of the property industry and the apartment market will be impacted.
No smooth sailing for planning reforms
After widespread dissatisfaction and negative community feedback the NSW government will undertake further consultation before the NSW Parliament reconsiders the new planning bill in 2014. Debate on the bill was deferred by the NSW Legislative Assembly on 28 November 2013, until next year.
While the NSW government is committed to delivering a new and modern planning system that also allows quicker decisions to be made and hopefully provides more housing, the legislation remains ‘stuck’ after more than two years of policy development.
Given the importance of creating more housing in NSW and the big impact that will have on the local economy, it still looks like mid-2014 before these important issues are resolved, creating doubt for both the development industry and the wider community.
In NSW these are two issues we need to keep a keen eye on, while at a federal level the government’s review of the tax system in 2014 may well throw up some other, possibly bigger issues that could soon be impacting development and investment, with the promise that no areas will be ‘off limits’ to the review.
 
<hr>
 Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
 
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pchittenden-eLqUUC8TWW

Strata law changes will have a big impact on the residential market in 2014

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Apartment building approvals in South Brisbane increased three-fold over the past year as it pushed ahead as the fastest growing suburbs in Brisbane following intense urban renewal investment.
Residential building approvals increased from 151 in 2010/11 financial year to 744 in 2012/13,1 according to research firm Urbis.
Its projected growth rate is 5.6% with almost 10,000 people predicted to move in by 2031.
The suburb has been the site of massive public spending with $4.1 billion of infrastructure spending over the past years, including the Southbank Activity Precinct, the Queensland Cultural Centre, the Southbank Institute of Technology, the Queensland Children’s Hospital, the Brisbane Convention and Exhibition Centre and an expanding Business and Office Precinct.
There is another $1.2 billion planned for the near future.
Urbis says loose planning controls have contributed to the explosion in apartment building.
“The Brisbane City Council recognised the area’s unique attributes and introduced a Neighbourhood Plan in 2011 that loosened the previously restrictive planning controls and in doing so gave industry what it requires for major investment decisions – an increased yield potential and certainty through code assessable development that is quarantined from competitor or public appeals,” Urbis director Stephen Buhmann writes.
He says the population growth forecasts suggest the building boom will continue in the 2020s.
“This implies that the recent burst in approvals is not just a one-off.  Rather, it is the start of a continuing phase of development that is expected to run for well over a decade.”
Aria Property Group is one of the developers taking advantage of the building explosion with the June completion of its Russell apartment building which just achieved full rental occupancy.
The 56-unit development sold mostly to local investors and local owner-occupiers, three weeks after coming to market.
{yoogallery src=[images/stories/2013/12/16/south]}
The Rothelowman White designed building won the Urban Development Institute of Australia Queensland’s 2013 prize in the urban renewal category.
“Urban renewal is important because it reduces the need for urban sprawl and cleans up parts of the city which have previously been used for industrial and commercial activities,” says Aria’s Michael Hurley.
“It is vital that these projects are designed to be complimentary to surrounding environments, to be consistent with existing infrastructure and to still be relevant in 10 or 15 years time.”
“When we started on Vine, South Brisbane had not seen any significant residential development from 2008 to 2012. There had been 10,000 office workers that moved into South Brisbane during that five year period.
“And with little or no residential units having been delivered in that same time period, an undersupply of housing occurred. Vacancy rates were the lowest in Brisbane at 1.4%, which was driving rental yields up. Well located, quality residential units have been long overdue in the market.”
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
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awalsh-7Ub9EypybQ

South Brisbane's apartment explosion comes with urban renewal

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If there was any residual doubt about whether low interest rates would push more investors into Australia's housing markets, well, there isn't now.
I'm not sure I understand all of the reasons why everyday Australians are more inclined to invest in residential property than, say, our counterparts in the US, but regular readers will recall that I was confident that this would be the outcome of lower interest rates (in the face of a chorus of articles and commentators suggesting in no uncertain terms that the housing markets would not respond to monetary policy, and that buyers should 'sit it out' and wait for an inevitable price correction).
It seems to be part of the Australian psyche, as well as a reflection of our tax system. Investors with surplus capital have seemingly been spooked by the share market crash rather than welcoming the wonderful buying opportunities, and instead turn to the property markets to seek returns in the low interest rate environment ("I've always done well in property").
In my opinion, and in that of others, the long-run outcome of this will be iniquitous "cones of wealth" surrounding our major capital city centres - in particular Sydney and Melbourne - just as we have seen unfolding in London and elsewhere over the past few decades. I don't expect that outer suburbs and regional centres, where the percentage of investors is much lower, will be impacted all that much.
Finance data
The Housing Finance data for October from the Australian Bureau of Statistics (ABS) showed a very substantial 4.1% seasonally adjusted increase in total dwellings housing finance.
<a imageanchor="1" href="https://1.bp.blogspot.com/--O0y9m6RS0w/Uqd_bs-p0ZI/AAAAAAAALEE/rc-Pe742TYw/s1600/ABS+housing+finance.jpg" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="450" src="https://1.bp.blogspot.com/--O0y9m6RS0w/Uqd_bs-p0ZI/AAAAAAAALEE/rc-Pe742TYw/s400/ABS+housing+finance.jpg" height="135"></a>
Source: ABS
As you can see above, owner occupied housing finance increased by 1% through October, seasonally adjusted, and the recent data has sent the total number of owner occupied dwelling commitments well above their long run averages.
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/05dbce56402ec566ca25723d000f2999/Body/0.29FC!OpenElement&amp;FieldElemFormat=gif" alt="Graph: No. of dwelling commitments, Owner occupied housing">
Source: ABS
The total value of dwelling commitments is in a roaring uptrend, the most recent sector of the chart almost vertical.
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/05dbce56402ec566ca25723d000f2999/Body/0.1FEE!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Value of dwelling commitments, Total dwellings">
Source: ABS
 
The real driver and the real story of this release is the level of investor activity, which has increased massively over the month of October (+8%) and over the past year (+29%).
Note that this is easily the highest level of investor activity ever recorded in Australia.
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/d672cf4ebe195f15ca256e910077d9c2/Body/0.A0E!OpenElement&amp;FieldElemFormat=gif" alt="Graph: INVESTMENT HOUSING - TOTAL">
Source: ABS
 
Combined with other data which shows that New South Wales is leading the levels of financing activity, this clearly suggests to me that the types of property which will 'outperform' the national averages will be those favoured by investors, in particular those located in the inner/middle ring suburbs in Sydney.
Meanwhile, there was positive news for the new dwellings sector, with he number of commitments for new dwellings strong.
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/d672cf4ebe195f15ca256e910077d9c2/Body/0.3C46!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Purchase of new dwellings">
Source: ABS
 
First home buyer activity
There is little point in analysing first home buyer activity in great detail. We know that the numbers are low, but, in NSW at least, we also know that the numbers are incomplete.
I missed out on a property myself to a first home buyer a fortnight ago, but I'm doubtful that he was recorded as such. Notably, he was somewhat older than first home buyers from generations gone by, a trend we might expect to see continuing.
New dwellings construction
And finally, finance for the construction of new dwellings is definitely moving strongly in the right direction with 11 consecutive monthly increases, but it would be fair to say that there is still a good deal of heavy lifting for low interest rates to do before it could be called a construction boom.
In particular, much of the activity has been in NSW and Western Australia to date, so other states have some way to go.
According to the ABS: "The number of finance commitments for the construction of dwellings for owner occupation (trend) rose 0.7% in October 2013, following a rise of 0.6% in September 2013.
 
"This is the eleventh consecutive rise since December 2012. The seasonally adjusted series rose 1.0% in October 2013, following a rise of 1.7% in September 2013."
<img width="450" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/d672cf4ebe195f15ca256e910077d9c2/Body/0.317E!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Construction of dwellings">
Source: ABS
Summary 
Housing finance is a useful indicator as to what is coming in the future, and the indicators suggest more of the same in 2014 while interest rates remain low.
Over the past 12 months, Sydney has recorded 14% growth, Perth around 10.5%, and Melbourne 7.5%. Even Adelaide, which was is my least favoured capital city suggestion due to there being a weaker supply/demand dynamic, has scraped together a tiny amount of capital growth, although the city's dwelling prices have comfortably underperformed inflation for years and years now.
<a imageanchor="1" href="https://2.bp.blogspot.com/-1eWOm-EVNXE/UqekuSqMLEI/AAAAAAAALEU/QTI74rZkIz0/s1600/RPD.jpg" style="color: #253fff; margin-left: 1em; margin-right: 1em;"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; float: left;" width="450" src="https://2.bp.blogspot.com/-1eWOm-EVNXE/UqekuSqMLEI/AAAAAAAALEU/QTI74rZkIz0/s320/RPD.jpg" height="291"></a>
Source: RP Data
In summary, we are heading into a giant and unprecedented investor-led property boom in Sydney. But if you've been a long-term reader of my books (and my blog), you already knew that...years ago.
 
<hr>
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' is out now.
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pwargent-M4siyDbqQY

Sydney is heading into a giant and unprecedented investor-led property boom

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In the final hours of Federal Parliament for 2013, Labor Senator Jan McLucas succeeded in establishing an inquiry by the Economics References Committee, in addressing Australia’s growing housing affordability crisis, stating:  
“Pressures on affordability of housing in Australia have continued to intensify, especially in capital cities and mining communities.”
 
This appears to be good news and something that a growing ground swell of home buyers and renters, limited by budget and feasible supply, have been hoping for.  
The inquiry is set to investigate the role of all levels of government in facilitating affordable home ownership and private rental, social, and public accommodation.  
Importantly, it will also look into policies designed to increase the supply of housing – perhaps the most critical and well proven factor in the potential long-term effectiveness of any sustainable solution.  
As welcome as any inquiry into housing affordability is, I question why we are using taxpayer dollars to produce a repeat version of the investigation undertaken by the Rudd administration back in June 2008?  
The 2008 report entitled <a href="https://www.propertyoz.com.au/library/A%20good%20house%20is%20hard%20to%20find%20report%20JUNE%202008.pdf">“A good house is hard to find: Housing affordability in Australia”</a> was detailed in its content, drawing on evidence from organisations such as the housing section in the Department of Families, the Master Builders’ Association, the Planning Institute, the Urban Development Institute, the Housing Industry Association, NATSEM and the Treasury.  
It addressed Australia’s tax policies, such as capital gains tax and negative gearing, which under the current structure are widely recognised as having a negative impact on affordability and market activity. It included an assessment of the construction industry's future skilled labour workforce – a job to be undertaken by the National Housing Supply Council, which has subsequently been abolished by the Abbot government, thus giving a very clear indication where their priorities lie (not with housing).  It also covered rental accommodation, and social housing policy.  
The report correctly stated “the need for greater responsiveness of land release and housing supply to market demand.” Stressing, “Efforts to this end should occur in a variety of contexts.”  
Some of the highlights included:  
<ul>
<li>
Recognition that state and local governments' planning processes are too complex and often involve long delays and high costs.
</li>
<li>
Housing supply not adequately facilitated with community infrastructure.
</li>
<li>
Developer infrastructure charges being too excessive and further restricting supply and inflating purchasing costs.
</li>
<li>
The negative impacts of the 'urban growth boundaries' implemented by the Victorian and South Australian governments, resulting in land banking and increased prices.
</li>
<li>
The type and quality of housing being constructed – i.e. not appealing to elderly downsizers or single parent buyers.
</li>
<li>
And notably, a critical assessment of New South Wales, with the suggestion it had probably done more than any other state in Australia to restrict the opportunities for urban growth on fringe land.
</li>
</ul>
  The 238 page document contains many submissions; including this one, by the New South Wales Division of UDIA (Urban Development Institute of Australia),
in which Mr Blancato recommends the Commonwealth government expedite the release, rezoning and servicing of Commonwealth land with critical lead infrastructure to support the supply of new dwellings to the market;  
“We are proposing that there should be an amount of land—a forward train of land of maybe 20 years—that is released and serviced.  
“The word ‘released’ is something that is very difficult to get a handle on. You will have successive governments release the same patch of land five times but not a dollar will be spent on infrastructure…  
“The government used to invest in it—20 years ago you would go out to a release like Blacktown and the main sewer carriers were in and the sewage treatment plant was built. You would go out there and you could develop this five-acre parcel or that five-acre parcel. You might do a little bit of a lead-in, connecting infrastructure, but it was affordable.”  
Whilst I wouldn’t advocate all the recommendations concluded in the paper, it’s five years later and we seem to be no further forward.  
Prices continue to rise from a bull run on established property in our most populated states – and first home buyers are barely treading water against a speculative investment sector.  
Urban boundaries and a propensity towards land banking, hefty tax overlays and poor infrastructure development, ensure land on the outskirts continues to be priced at a level that doesn’t incentivise buyers to correctly evaluate the trade-off between price and time. Therefore demand remains marginal, with a downward slide in the number of new dwellings completed per annum.  
There is no forward thinking on infrastructure financing, or a full understanding that people don’t purchase houses as much as they buy into communities.  
Additionally, there is little diversity on the type of housing built in greenfield developments to enable newly created suburbs to market to a broad socioeconomic mix of residents, who do not just want McMansions built to the edges of a 400-500 square metres blocks of land.  
Rents continue to rise, with vacancy rates in areas such as Sydney, close to 1%.
Crowded houses – with three or more families sharing accommodation, has increased nationally by 64% to 48,499 according to the ABS.  
The ACT is abolishing stamp duty over a slow transitional <a target="_blank" href="https://www.canberraconnect.act.gov.au/app/answers/detail/a_id/1397/~/tax-reform">20 year</a> period and reverting to a land tax system, and some states have reduced stamp duty payments for first home buyers, however there has been no action federally on recommendations in the Henry Tax review on negative gearing, capital gains tax, or the rapid rise of residential investment and gearing in SMSFs.  
So what happened?  
In one respect it’s the deluded thinking perpetuated by policy makers, who theorise urban sprawl to be essentially bad, imagining it’s possible to develop affordable housing on expensive land in inner urban localities. This is a picture of a bright future where residents live a handbreadth apart, compacted in small apartments around existing infrastructure hubs within computable distance to the CBD – questioning ‘isn’t this where everybody wants to be anyway?’  
As if to prove their point - when fringe land is released and an additional abundance of ‘roof space’ is built, it fails to lure a diverse range of home buyers, because - as the 2008 report correctly highlighted - the housing lacks diversity, the cost of raw land remains too high, and the developments are burdened with hefty taxes transferred onto the buyer.  
More importantly, the surrounds are not adequately facilitated with infrastructure such as schools, transport, medical and recreational facilities to cater for an individual and family’s personal needs.  
Therefore, our outer suburbs tend to be black listed as low socio economic hubs, populated by those who are deemed to sit at the bottom of the housing ladder.  
I listened to an auctioneer’s preamble a few days ago, which summed it up perfectly.  After he elucidated the various attributes of the modest two-bedroom home, he threw his hands up and with a flourish, exclaimed: “And let me tell you what you get for free!” And proceeded to point out the local school, shopping strip and park.  
Accordingly, if a buyer is able to travel to work, the supermarket and any other amenity on the priority list within a 30-40 minute period, the distance from the CBD is not an imposing factor. The decider is in the time it takes to drop the kids off to school in one direction and travel to work in the other.  
Furthermore, an acknowledgement that the value of land and the capital gains achieved by its owner lays in the facilitated connections around it, forms the argument for broad based land value tax, as I explained <a href="https://www.macrobusiness.com.au/2013/11/land-tax-must-kill-negative-gearing-stamp-duty/">here</a>.  
The <a href="https://www.demographia.com/dhi.pdf" target="_blank">Annual Demographia International Housing Affordability Survey</a> has aptly demonstrated, in cities where supply is not artificially constrained by poor policy and planning, which fails to cater for community needs, house prices remain affordable and relatively stable.  
Realistically, a well developed city, which has policies flexible enough to meet the demands of its home buying demographic, should see price rises track only the rate of inflation, with growth in household incomes somewhat influential in those areas in which there is greater demand.  
Not the well spruiked figures of 7% plus median growth per annum we experienced in some suburbs prior to the GFC, – or figures outpacing both wage growth and inflation.  
Across Australia, every state faces its own intrinsic economic and geographical challenges, for which housing policies need to be flexible enough to adhere, local resident voices need to be heard, and councils need to have the freedom to respond.  
However, if the only options we offer first home buyers are candy style incentives in a low interest rate environment, which must stay at rock bottom levels in order to support the inflated levels of debt it encourages. Then, over the longer term, our real estate obsession from which so many feed, will become a noose around the neck, provoking broader concerns.  
It’s very important we correctly understand where our policy makers have let us down in the delivery of affordable housing stock. A worrying trend is starting to emerge, which was highlighted in a recent news report showing footage of Julia Gillard's Altona house auction.  
In the post auction interview, the sales agent said that the Chinese purchaser wanted her to express to everyone that 'she is an Australian citizen.'
The comment speaks volumes - emphasising how important it is to stop blaming current high prices solely on 'foreign buyers' whilst at the same time, singling out a unique demographic - a large proportion of which are Australian citizens, work and pay their taxes and have a right to purchase residential real estate.
One of the most powerful tools for the regulation of any market is transparency. Without it, speculation ensues and leads to undesirable assumptions - such as the belief that every Asian face seen at an auction is 'foreign'.
The reason real estate prices are high in Australia is due to years of poor government policy and planning - and this is where the blame should be placed and this is where the pressure should be directed.
 
<hr>
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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Another senate housing affordability inquiry – but what’s happened since the last?

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Victoria saw around 1,560 auctions in 327 suburbs this past Saturday, making 2013 the hottest year for auctions with nine Super Saturdays on record, according to the Real Estate Institute of Victoria (REIV).
Prior to this year, 2010 comes in a close second with seven Super Saturdays on record.
Richmond was set to have the highest volume of auctions with 27 auctions, followed by Bentleigh East with 23 auctions, Brighton with 20 auctions, Reservoir with 19 auctions, and St Kilda with 19 auctions as well.
The weekend before last's auction clearance rate stood at 64%, which was the lowest since April.
REIV chief executive Enzo Raimondo believes this reflects the very high number of auctions, noting of last weekend that it will be the last for the year, bringing the grand total to nine. This compares to just two in 2012.
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2013 had nine Super Saturdays, highest on record: REIV

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<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">If there was any residual doubt about whether low interest rates would push more investors into Australia's housing markets...well, there isn't now.</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">I'm not sure I understand all of the reasons why everyday Australians are more inclined to invest in residential property than, say, our counterparts in the US, but regular readers will recall that I was confident that this would be the outcome of lower interest rates (in the face of a chorus of articles and commentators suggesting in no uncertain terms that the housing markets would not respond to monetary policy, and that buyers should 'sit it out' and wait for an inevitable price correction).</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">It seems to be part of the Australian psyche, as well as a reflection of our tax system. Investors with surplus capital have seemingly been spooked by the share market crash rather than welcoming the wonderful buying opportunities, and instead turn to the property markets to seek returns in the low interest rate environment ("I've always done well in property").</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">In my opinion, and in that of others, the long-run outcome of this will be iniquitous "cones of wealth" surrounding our major capital city centres - in particular Sydney and Melbourne - just as we have seen unfolding in London and elsewhere over the past few decades. I don't expect that outer suburbs and regional centres, where the percentage of investors is much lower, will be impacted all that much.</div>
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<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">Finance data</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">The Housing Finance data for October from the Australian Bureau of Statistics (ABS) showed a very substantial 4.1% seasonally adjusted increase in total dwellings housing finance.</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div class="separator" style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/--O0y9m6RS0w/Uqd_bs-p0ZI/AAAAAAAALEE/rc-Pe742TYw/s1600/ABS+housing+finance.jpg" imageanchor="1" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img border="0" height="120" src="https://1.bp.blogspot.com/--O0y9m6RS0w/Uqd_bs-p0ZI/AAAAAAAALEE/rc-Pe742TYw/s400/ABS+housing+finance.jpg" width="400" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;"></a></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;">Source: ABS</div>
 <div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">As you can see above, owner occupied housing finance increased by 1% through October, seasonally adjusted, and the recent data has sent the total number of owner occupied dwelling commitments well above their long run averages.</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"><img alt="Graph: No. of dwelling commitments, Owner occupied housing" src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/05dbce56402ec566ca25723d000f2999/Body/0.29FC!OpenElement&amp;FieldElemFormat=gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;"></div>
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<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;">Source: ABS</div>
 <div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">The total value of dwelling commitments is in a roaring uptrend, the most recent sector of the chart almost vertical.</div>
 <div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"><img alt="Graph: Value of dwelling commitments, Total dwellings" src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/05dbce56402ec566ca25723d000f2999/Body/0.1FEE!OpenElement&amp;FieldElemFormat=gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;">
 Source: ABS
</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"> </div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">The real driver and the real story of this release is the level of investor activity, which has increased massively over the month of October (+8%) and over the past year (+29%).</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">Note that this is easily the highest level of investor activity ever recorded in Australia.</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"><img alt="Graph: INVESTMENT HOUSING - TOTAL" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/d672cf4ebe195f15ca256e910077d9c2/Body/0.A0E!OpenElement&amp;FieldElemFormat=gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;">Source: ABS</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"> </div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px;">
<div style="text-align: justify;">Combined with other data which shows that New South Wales is leading the levels of financing activity, this clearly suggests to me that the types of property which will 'outperform' the national averages will be those favoured by investors, in particular those located in the inner/middle ring suburbs in Sydney.</div>
</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">Meanwhile, there was positive news for the new dwellings sector, with he number of commitments for new dwellings strong.</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"><img alt="Graph: Purchase of new dwellings" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/d672cf4ebe195f15ca256e910077d9c2/Body/0.3C46!OpenElement&amp;FieldElemFormat=gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;">Source: ABS</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"> </div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">
FHB activity There is little point in analysing first homebuyer activity in great detail. We know that the numbers are low, but, in NSW at least, we also know that the numbers are incomplete.</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">I missed out on a property myself to a first homebuyer a fortnight ago, but I'm doubtful that he was recorded as such. Notably, he was somewhat older than first homebuyers from generations gone by, a trend we might expect to see continuing. New dwellings construction
</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">And finally, finance for the construction of new dwellings is definitely moving strongly in the right direction with 11 consecutive monthly increases, but it would be fair to say that there is still a good deal of heavy lifting for low interest rates to do before it could be called a construction boom.</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">In particular, much of the activity has been in NSW and Western Australia to date, so other states have some way to go.</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px;"></div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">"The number of finance commitments for the construction of dwellings for owner occupation (trend) rose 0.7% in October 2013, following a rise of 0.6% in September 2013. </div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"> </div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;">This is the eleventh consecutive rise since December 2012. The seasonally adjusted series rose 1.0% in October 2013, following a rise of 1.7% in September 2013."</div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: justify;"> </div>
<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;"><img alt="Graph: Construction of dwellings" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/d672cf4ebe195f15ca256e910077d9c2/Body/0.317E!OpenElement&amp;FieldElemFormat=gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;"></div>
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<div style="font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; text-align: center;">
Source: ABS <div style="text-align: left;">
Summary 
<div style="text-align: justify;">Housing finance is a useful indicator as to what is coming in the future, and the indicators suggest more of the same in 2014 while interest rates remain low.</div>
<div style="text-align: justify;"></div>
<div style="text-align: justify;">Over the past 12 months, Sydney has recorded 14% growth, Perth around 10.5%, and Melbourne 7.5%. Even Adelaide, which was is my least favoured capital city suggestion due to there being a weaker supply/demand dynamic, has scraped together a tiny amount of capital growth, although the city's dwelling prices have comfortably underperformed inflation for years and years now.</div>
<div style="text-align: justify;"></div>
<div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-1eWOm-EVNXE/UqekuSqMLEI/AAAAAAAALEU/QTI74rZkIz0/s1600/RPD.jpg" imageanchor="1" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img border="0" height="207" src="https://2.bp.blogspot.com/-1eWOm-EVNXE/UqekuSqMLEI/AAAAAAAALEU/QTI74rZkIz0/s320/RPD.jpg" width="320" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;"></a></div>
<div class="separator" style="clear: both; text-align: center;"></div>
<div class="separator" style="clear: both; text-align: center;">Source: RP Data</div>
</div>
<div style="text-align: left;">In summary, we are heading into a giant and unprecedented investor-led property boom in Sydney. But if you've been a long-term reader of my books (and my blog), you already knew that...years ago.</div>
</div>
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Australian housing finance to the moon (record investor activity)

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Brookfield’s Portside Wharf development in Hamilton is proving to be a success with $83 million in sales – 130 apartments – secured since January.
The secured sales were in the completed Promenade building and the latest two releases Pinnacle and Link.
"Promenade was completed in late 2012 so purchasers have taken advantage of the completed building and the fact they can move into their new Portside Wharf home without any delay," says Portside Wharf project director Lee Butterworth.<img src="/images/stories/2013/12/11/portside-dec-11-one.jpg" alt="portside-dec-11-one" style="float: right;" height="300" width="200">
"The release of the Pinnacle building in April, and the Link building some months later, enticed new and incremental market segments into the precinct and in some cases market segments we have not seen buy at Portside before,” says Butterworth.
Promenade features 172 one-, two- and three-bedroom apartments across 15 levels and Pinnacle features 168 one-, two- and three-bedroom apartments, terrace homes and penthouses across 16 levels.
The four-level Link building features 31 one-bedroom apartments.
The final apartments at Promenade are priced from $515,000, Pinnacle apartments start from $435,000, while the remaining apartments at Link are selling from just $395,000.
"As the only absolute riverfront building at Portside Wharf, Pinnacle appeals to those wanting a premium location, spacious apartments and the fittings and finishes to match, while Link has a selection of quality one bedroom apartments, in a great location, but at a more entry level price point.
"Across all market segments, we are seeing increasing confidence in the property market, which is also helping to drive sales,” says Butterworth.
<a href="https://www.propertyobserver.com.au/news/three-bedroom-apartments-in-high-demand-at-brookfield-s-pinnacle/2013100165333" target="_blank">Three-bedroom apartments in the Pinnacle release were in such high demand</a>, a waiting list resulted in Brookfield releasing its final three-bedroom stock ahead of scheduled.
Portside Wharf residents will have access to restaurants, cafes, fashion boutiques, a Dendy Cinema, Jetts Fitness and an IGA Supermarket.
<img src="/images/stories/2013/12/11/portside-dec-11-two.jpg" alt="portside-dec-11-two" height="282" width="470">
<a target="_blank" href="mailto:ntrotman@propertyobserver.com.au">ntrotman@propertyobserver.com.au</a>
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Brookfield's Portside Wharf secures $83 million in 2013 sales

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There’s a lot at stake as our property experts gaze into their crystal balls and make some predictions for the coming year.
<img src="/images/stories/2013/12/12/ryder-profile.jpg" width="125" height="150" alt="ryder-profile" style="float: right;">Terry Ryder, property commentator and founder of hotspotting.com.au, believes the 2014 housing market will show "a little bit more sanity" than this year.
"Sydney and Melbourne are experiencing an auction frenzy, which occurs every three or four years, but things will settle down a bit," he said. "Next year there will be 5%-10% growth in those cities but it will be more evenly spread across the middle and outer-ring suburbs."
Ryder predicts the big improver will be Brisbane "which is only just starting to gather momentum". Improvements will be shared across the board. "Brisbane is behind Sydney and Melbourne after being adversely affected by the devastating floods of 2011 and the job losses experienced by 1,500 public servants after the election of the Newman government in March 2012.
"Brisbane is only just now starting to take off and I see much stronger growth there – perhaps over 10%."
Ryder predicts Perth’s "solid year" – it was growth leader early in 2013 before being overtaken by Sydney – would ensure it carried momentum, especially into the more affordable areas, in 2014.
He said Darwin had "quietened down" after a flying start fuelled by the $34 billion Ichthys liquefied natural gas project off Western Australia. The 820 kilometres pipeline through Darwin has generated jobs and, consequently, the interest of investors and home buyers. The fact that this growth has already happened will mean a more moderate 2014 for the city.
Adelaide, he said, would show moderate growth next year of around 5%, while Hobart – "technically in recession" – will need government input to maximise its opportunities.
Ryder predicts savage job cuts of 10,000 to 15,000 by the Abbott government and an apartment oversupply will have Canberra "struggling" into the New Year.
He believes the next interest rate move will be up – but not possibly before at least the middle of next year – and that a heated Sydney property market is not reason enough to put the brakes on the economy as a whole.
He described a 7% increase in property values overall – after two years of zero growth - as "moderate" and not justifying any dampening tactic by the RBA. "Affordability is the best it’s been in 10 years so there’s no need to put on the brakes in 2014 – even though a lot can happen in six months."
Regions should do well in 2014, he predicts, especially those with input from resources, such as Narrabrai and Dubbo in NSW, Myles and Rockhampton in Queensland, and Port Lincoln in South Australia. A regional growth leader will be Cairns in Far North Queensland which is making a comeback. Ballarat and Bendigo in Victoria will show growth, boosted by high infrastructure spending and regional rail links.
No-go areas, Ryder warns, are Melbourne’s Docklands, Southbank and CBD, where oversupply has stymied the apartment market. Likewise, oversupply will affect the Queensland coal port of Gladstone, he says. Ryder is not enamoured with regional city Mackay nor tourism hotspot, the Gold Coast. "Stay away from the speculative market," he warns, "and buy in ‘real’ suburbs with real housing where people have jobs and buy houses to live in. Sales momentum in south-east Queensland is inland – not on the coast."
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<img src="/images/stories/2013/12/12/wargent-profile.jpg" width="125" height="150" alt="wargent-profile" style="float: right;">Peter Wargent, co-founder of <a href="https://allenwargent.com/" target="_blank">Allen Wargent</a> property buyers in London and Sydney, is a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>. He said: 
"Our base case sees a number of key variables which will represent headwinds for the property markets in 2014.
"With the unemployment rate still in a moderate uptrend and mining capital investment set to fall, it is likely to be a year of sub-trend economic growth for Australia, and, consequently, we are tending towards a more subdued overall view than you will see elsewhere.
"The RBA has yet to see the material uplift in dwelling construction it had hoped for, so we are expecting to see interest rates remaining historically low, and the next adjustment may yet still be down."
Sydney is the clear standout, he said. There are likely challenges ahead for Canberra, but Brisbane could be the star.
Wargent’s property price predictions:
<ul>
<li>Canberra -1% to -4%</li>
<li>Hobart -1% to 2%</li>
<li>Perth 0% to 3%</li>
<li>Adelaide 0% to 3%</li>
<li>Brisbane 2% to 5%</li>
<li>Melbourne 2% to 5%</li>
<li>Sydney 6% to 9%</li>
</ul>
<img src="/images/stories/2013/12/12/sasson-profile.jpg" width="125" height="150" alt="sasson-profile" style="float: right;">The Melbourne property market in 2014 is likely to maintain - and even build - on the momentum of 2013, according to Monique Sasson, founder of Wakelin Property Advisory.
“2013 was a year of recovery with the values of many properties recouping their losses since the last peak in 2010," she said.
"We anticipate this trend to continue, and feel the momentum of the past 12 months should carry the Melbourne market upwards in the first half of 2014.
“There will be many Super Saturdays – weekends with a thousand-plus auctions – throughout the autumn of 2014. Nevertheless, robust demand should soak up this supply and see auction clearance rates remain at around 70%.
“In a typical year, the first serious auction weekends don’t occur until mid-or-late February. But the auction season may well open a little earlier than usual in 2014 and we may see a lot of deals in the private treaty market as early as January.
“The greater unknown is what will happen in the second half of 2014.  In large part, the trajectory of the property market will be determined by the Reserve Bank’s attitude to setting monetary policy.
“It may well be the case that the RBA decides to leave interest rates steady throughout most of 2014. If that scenario eventuates, then expect to see Melbourne price growth in 2014 to be strong, and potentially reaching double-digits.
“I doubt the Reserve Bank will be entirely comfortable with this potential outcome – especially if there is a similar result in Sydney.
“Consequently, there is a reasonable likelihood of a modest tightening in monetary policy – perhaps 25 or 50 basis points – from around the middle 2014, or even earlier. This would dampen capital growth in the second half of the year and possibly see a retracting back of some of the earlier 2014 growth.
“Should the Reserve Bank cut rates again, then I expect this will accelerate capital growth in 2014. However, in our view, another rate cut seems unlikely and unwise. As well as fuelling price inflation, cutting rates to 2.25% or lower leaves the Reserve Bank with little in the way of monetary ammunition to respond to any unexpected shocks: such as the banking crisis of 2008.”
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<img src="/images/stories/2013/12/12/CatherineCashmoreProfile.jpg" width="125" height="150" alt="CatherineCashmoreProfile" style="float: right;">"The markets of inner Sydney, and some areas of Melbourne, are being driven by a lot of speculative activity, and this will affect their performance next year, says buyers’ agent and observer Catherine Cashmore.
"Investors tend to be sensitive to interest rate changes, however, in Sydney, a number of factors have combined to make ‘the perfect storm’ leading into 2014: strong interest from overseas buyers, SMSFs feeding into a limited pool of residential real estate, buyers looking for a better return on their savings, coupled with a severe shortage of supply.
"It is projected we'll see interest rates rise through the course of next year and, although not immediately, this will take some heat out the market. This will be more the case in Melbourne before we see the effects in Sydney.
"Brisbane is still playing catch up and, with lower price options, it will likely continue its upward trajectory. There also looks to be some tentative activity along the Gold and Sunshine coasts.
"Home buyers in both Sydney and Melbourne are finding themselves forced further out to find suitable accommodation, and this ‘ripple effect’ will be felt in the middle-ring suburbs.
"I'm afraid without more direct action on long term sustainable solutions for first home buyers, they will continue to struggle with a severe shortage of affordable accommodation."
<img src="/images/stories/2013/12/12/robert-larocca-profile-for-site-2.jpg" style="float: right;">Robert Larocca, RP Data’s Victoria housing specialist, can’t see anything on the 2014 horizon to change the market’s current trajectory.
 
"This year there’s been modest growth while the economy remains between subdued and good. There are not a lot of external calls for the market to rocket ahead.
"Melbourne prices fell back a bit in the past month and we are not yet to reach a new peak, but I think we have levelled out a bit and can expect a peak in either February, March or April."
Larocca said the property market was not being driven by over-confident consumers, but by the Reserve Bank’s interest rate decisions - which are designed to encourage spending. He cautioned that transaction levels were "not overly high" and that there is lots of room for improvement.
"Monetary policy settings remain of interest, but, ideally, we will have good housing prices supported by low interest rates."
Larocca tipped 2014 would be a year of "ongoing sustainable – but not rapid - growth and, if the Victorian economy improves, it will have a direct input into the property market" through jobs and wages growth.
"The whole of last year we had slow improvement. This year the clearance rate is up 10% and the cycle bears no resemblance to those of 2007 or 2010 that were rapid and unsustainable. I hope that next year is more sustainable."
Larocca is concerned at the low numbers of first home buyers. "We need to see an improvement here; last month’s figures (showing a 13% FHB participation rate) were the worst in 10 years."
But he said it would be prudent to wait before hitting the panic button as the reasons are still unclear.
"There’s really a big question mark over next year’s market: we’ve had a good year but we’re not out of the woods yet."
<a href="mailto:staylor@propertyobserver.com.au" target="_blank"></a><a href="mailto:staylor@propertyobserver.com.au" target="_blank">staylor@propertyobserver.com.au</a>
 
 
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