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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

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

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

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

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

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

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

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

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As 2014 progresses it will become increasingly clear that oversupply is a bigger issue than shortage in Australian property markets.  
It may also become apparent that the greatest threat of a future market downturn will not come from the mythical price bubble concocted by journalists who don't care too much about accuracy or balance but from an emerging serious oversupply in some markets.  
For some years the notion of a dwelling shortage, often described as "a chronic housing shortage crisis", has been promoted by some organisations and individuals pushing vested interests.  
That notion has never been supported by any factual data nor by the behaviour of markets, but it hasn't stopped newspapers from treating it as a fact because it was a cheap and easy headline.
Most market outcomes in recent times have made nonsense of the shortage claims. The fact that four of the past six years have been periods in which prices on average have fallen is inconsistent with the idea of a chronic shortage so bad it has been often called a crisis.  
So too has the lack of rental growth in most of our major cities. In the past couple of years only Darwin and Perth have delivered major rental growth.  
Darwin has been perhaps the only capital city to which the term "housing shortage" could be accurately applied in recent years. When the Ichthys gas project brought thousands of new workers into this rather small city, and supply-demand imbalance worsened and rents rose sharply. Darwin has by far the highest residential rents in capital city Australia.  
The rental growth in Darwin, and in resources-related centres such as Port Hedland, demonstrates what happens when there truly is a shortage of dwellings relative to demand.  
Where there is no rental growth, you can safely conclude that there is no dwelling shortage.  
According to the latest Rental Report from Australian Property Monitors, Darwin remains the only state or territory capital city with any realistic claims to a shortage - and even there the rate of rental growth has dissipated considerably.  
In the past year, there has been no growth in Sydney's median house rent and only moderate growth in the unit median.  
Melbourne recorded no change in unit rents and just 4% growth in house rents. Rents in Canberra fell, both for houses and rents, largely because the city has the opposite of a dwelling shortage.  
Brisbane showed no growth in apartment rents, because it has a growing over-supply, and house rents increased just 2.6% in 12 months.  
The previous rental growth in Perth has come to a halt, as shown by the 5% decline in the median unit rent in the December quarter. In Melbourne, the median unit rent fell 3% in the December quarter. Both cities have significant surpluses in their apartment markets, especially in Melbourne where the inner-city over-supply is already serious but will get worse and may create a market crash in the future.  
But don't be surprised if you continue to spot market commentators, particularly economists, talking about "the housing shortage". This furphy has been aired so often it's regarded as fact by those who are poorly-informed about real estate issues - a description which covers most Australian economists.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank" style="font-size: 14px;">Twitter</a>.
 
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terryryder-YECXbqmri2

Oversupply a far greater issue than a dwelling shortage

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

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

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Property development and investment group Tipalea Partners has splashed $11.8 million on an industrial property in Port Botany, amidst structural change in South Sydney, which will see 20% of the current industrial market removed.
<img alt="matraville-jan-20-one-2" height="213" width="470" src="/images/stories/2014/01/20/matraville-jan-20-one-2.jpg">
"South Sydney remains such a strategically important industrial market in Sydney and it's undergoing massive structural change,” says Scott Spanton managing director of Tipalea Partners.
“The most significant change is that around 1,000,000 square metres of industrial land and buildings is earmarked for residential and commercial redevelopment over the next five years. This will effectively remove 20% of the current industrial market," says Spanton.
Tipalea Partners bought a 6,600-square-metre six unit industrial property on Beauchamp Road with an 8.1% indicative rental yield.
<img alt="matraville-jan-20-two" height="313" width="470" src="/images/stories/2014/01/20/matraville-jan-20-two.jpg">
"We expect strong rental and capital growth potential will be created by the ongoing displacement of industrial tenants as the gentrification of South Sydney continues between now and 2020.
“It's the perfect storm of investment conditions, critical infrastructure assets are being expanded, demand for space is increasing but supply is shrinking,” says Spanton.
The site is fully leased with expiries ranging from 2014 to 2018.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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ntrotman-Et3xWpamVh

Tipalea Partners snaps up Port Botany site for $11.8 million

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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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