<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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I'm sure most readers don't want another tedious run-down on the negative gearing debate. I don't want to see another one myself. We've all read the articles declaring that the tax legislation is unethical and must be abolished. And correspondingly, we've all read the dismissive replies of vested interests.
Accordingly, we also already know that abolition is unlikely to happen in one fell swoop since there is a risk of rapidly increasing housing waiting lists and spiralling rents, such as occurred in the areas of low supply and vacancy rates back in the 1980s, especially Sydney and Perth. Proponents must surely know deep down that scrapping the negative gearing in such a manner risks hurting the very sector of the population that they are trying to help: 'Generation Rent'.
Disclosure: I own a few negatively geared properties myself, and clearly when I bought them my motives were not concerned for whether the outcome would be an increased supply of dwellings for first home buyers at the low end of the market. Rather, like most rational investors, I was centred upon optimising returns, and thus in Australia have looked towards Sydney's established stock, in the inner/middle ring suburbs within the $500,000-$800,000 range.
Whilst on the subject, it remains baffling to me how yield-focussed investors continue to suggest that the highest future capital growth will be in the outer or fringe suburbs and regional centres, particularly when <a href="https://petewargent.blogspot.com.au/2013/09/outer-suburbs-better-or-worse" target="_blank">study</a> after study (and <a href="https://www.dailytelegraph.com.au/business/jessica-irvine/renting-versus-buying-in-defence-of-generation-rent/story-fnj45kvd-1226740576912" target="_blank">article</a> after article) have concluded that Australia's capital cities - like so many others in the world - are instead building iniquitous "cones of wealth" in the desirable and centrally-located suburbs. Meanwhile, under-investment in outer suburb infrastructure and dwellings is gradually yet surely wrenching the gap between the haves and have-nots into a a "yawning chasm".
For my money, although the negative gearing legislation likely increases the supply of housing in aggregate, the gnawing issue is that it doesn't necessarily increase supply of affordable housing which is most appropriate for first homebuyers. We'll come back to the solutions shortly.
Perhaps more importantly than even this, the negative gearing legislation is not the reason for Australia's relatively high dwelling prices, although it has surely not helped. The main issue concerns the word highlighted above: supply. Other countries have tax deductions on mortgage interest on the principal place of residence yet relatively lower house prices. In fact, historically, negative gearing has not even represented the most significant section of tax legislation at play in distorting dwelling prices - instead, that has been...
Australia's capital gains tax legislation
By far and away the most significant sections of the tax legislation which have impacted Australian house prices and the trend towards an abnormally high rate of Australian home ownership have been the capital gains tax (CGT) rulings.
It was perhaps possible in days gone by to overcome the ongoing impracticalities of being a long-term renter. But there was little incentive to do so when Mr. and Mrs. Jones next door were continually crowing about the financial benefits enjoyed from being aboard the so-termed "housing escalator" on their suburban quarter acre plot. And how galling must it have been when the Joneses were able to sell their house capital gains tax free and thus trade up to a bigger house in a 'better' neighbourhood? The vision of being a long-term renter must have been pure anathema.
While the 'fairest' way to balance up the tax system might therefore appear to be to assess homeowners for imputed rents reflecting the manner in which landlords are assessed for rental income (perhaps surprisingly, this has been done in Australia before between 1915 and 1923 <a href="https://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2010/Economic%20Roundup%20Issue%202/Downloads/PDF/06_Tax_expenditure_considerations.ashx" target="_blank">as noted by Australia's Treasury</a>), I believe that a tax reform of such a nature is unlikely to materialise, and the probable best solution lies in a recurrent property tax as I'll explore below.
Addressing supply issues
So if the negative gearing legislation has done little to increase the supply of housing appropriate for lower income tenants, how is this issue to be addressed? Through subsidies most probably, such as have been employed in the past by German governments by making discounted loans available to commercial housing companies to meet social and lower income housing objectives.
With a colossal $1.5 trillion in Australia's superannuation coffers <a href="https://www.treasury.gov.au/PublicationsAndMedia/Speeches/2012/Australias-Superannuation-System" target="_blank">according to the Treasury</a> - "equivalent to our national GDP" - there are vast reserves of pension fund capital available for this purpose should it be considered a desirable objective.
With self-managed super funds (SMSFs) controversially also now enabled to borrow and invest in residential housing, one wonders whether we are presently missing an opportunity here too? This is particularly so now that SMSFs have some ~$500 billion under management (figure recorded as at 30 June 2013 according to the <a href="https://ato.gov.au/" target="_blank">Australian Taxation Office</a>). Due to the substantial deposits commonly required by lenders, SMSFs are frequently only empowered to invest in residential housing at the lower end of the market in any case.
Funding of subsidies - tax reform
Assuming that Treasury would desire any such reforms to be fiscally neutral, how should any shortfall be funded? Given that homeowners have effectively received a material 'wealth dividend', a substantial element of which has been derived from state investment in infrastructure and urban development, it strikes me that the common sense answer would be through a progressive and recurrent property tax (i.e. one which is charged annually, with owners of the largest dwellings attractive the most tax).
As Australia has an elevated rate of home ownership when compared to many equivalent developed countries, such a tax could be spread widely enough not to be damaging, and if accrued annually the impact could also be spread over time too. It's likely that such a tax would be best introduced with an exemption in the early years of ownership for first time buyers, and perhaps with a lower level of tax to be levied on certain types of required dwellings (i.e. medium/higher density units and apartments).
Why moderation is best
I'm not hugely enamoured with concept of drawing straight-line comparisons between Australia's most expensive cities and America's cheapest large equivalents. I'm referring to humid Houston, of course, the largest city in Texas, famous for its oil, and now being promoted as Australia's model solution for affordable housing.
I've never even visited Texas, although I've gleaned from friends who live there and via the Fifth Estate (the group in modern society promoting weblogs, not the movie) that apparently Americans who relocate to the city are frequently "disgusted" to discover that their expected income tax savings are swiftly clawed back through <a href="https://www.chron.com/woodlands/extra/article/Highest-property-taxes-The-Woodlands-4460379.php" target="_blank">immoderate property taxes</a> of 2.5% (in some cases even up to 3.5%) of the assessed property value. By contrast, in Australia, material stamp duties are currently levied upon property acquisition.
Easier zoning restrictions must surely play a role in Houston, yet if housing is so affordable, then why are home ownership rates in Houston so low? Presumably because the incentive to buy a home is also diminished by a high annual property tax levy. Assuming that Houston is held up as a model housing system in order that more Australians can achieve home ownership...well, that doesn't work, because we have far higher home ownership rates in Australia already then Houston, or, for that matter, Germany (in fairness, this could be something of a circular argument - do higher home ownership rates cause higher prices?).
If three of the principal financial reasons for Australians wanting to own a home are (1) to participate in future capital gains (2) benefiting from a capital gains tax exemption allowing them to trade up the housing ladder, and (3) owning an unencumbered home in retirement, then elevated or excessive property taxes instantly remove the very financial reasons for home ownership.
Strong capital growth will not be experienced, and even where growth is attained the unfortunate owner will continue to be zinged by escalating taxes until the day they drop off. If you do aspire to paying off your (albeit 'cheaper') mortgage debt by the age of, say, 50, you still could face another half a century of paying a high ongoing cost for your right to home ownership.
It's see easily possible to see some real-life examples of what high recurrent ownership costs can do to housing developments in certain parts of, say, Sydney. There are a number of warehouse-style buildings and older apartments blocks with incredible harbourside locations or water views where the potential entry costs appear too good to be true. And indeed, they are. Where strata schemes have fallen into disarray and quarterly maintenance costs spiral, defaults and elopements inevitable follow, owners look to sell at almost any price, and buildings decay into tomorrow's slums.
The very reasons for home ownership can be quickly stripped away by excessive property taxes, and thus tax reform should be appropriately considered and any proposed property taxes levied reasonably moderate.

<hr>
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
 
 
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How to fix Australia's affordable housing problem

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Last month Queensland Premier Campbell Newman <a href="https://www.theurbandeveloper.com/developments/new-casino-for-brisbane-cbd-qld-government-announces-eoi-process-for-new-precinct-development/" target="_blank">called</a> for expressions of interest to develop a major integrated resort casino precinct within the Brisbane CBD. The vision is for a new casino surrounded by six star hotels and upmarket retail, restaurant, convention and entertainment facilities.
This will potentially be one of up to three integrated resort casino projects planned for Queensland. Deputy Premier Jeff Seeney suggested the developments would provide a significant boost to the state’s economy through the construction and future tourism that would flow.
The initiative comes on the back of plans by NSW for a AU$1.5 billion integrated resort casino project at <a href="https://www.smh.com.au/business/packer-casino-gets-goahead-to-proceed-to-next-stage-20130704-2pdrv" target="_blank">Barangaroo</a> in Sydney.
This project was awarded to James Packer’s Crown Limited and is to include a 60-storey tower, a six-star hotel and associated facilities. Writing in the <a href="https://www.smh.com.au/business/barangaroos-competitive-tension-a-joke-20130705-2pfus" target="_blank">Sydney Morning Herald</a>, Michael Pascoe described the bidding process for the Barangaroo project as “flawed” and far from best practice stating that:
“Crown successfully manipulated the system from the outset to avoid going to tender against the world’s top casino operators for Sydney’s second ‘VIP gaming facility’ licence.”
Rather than seek an outcome that would represent international best practice in integrated resort casinos, the NSW government has opted for a duopoly that favours local incumbents who influence large sections of the media.
So why the sudden rush into casino projects?
The key factor is the desire to achieve economic benefits. A <a href="https://www.auscasinos.com/pdf/media/CasinosandtheAusEconomy.pdf" target="_blank">study</a> undertaken by the Allen Consulting Group in 2009 for the Australasian Casino Association painted a highly positive view of casinos. According to this report casinos are a major provider of tourism infrastructure and play a key role in the rejuvenation of urban environments.
Casinos are also major employers and they attract over one million international tourists to Australia each year. These same tourists spend around AU$5 billion during their visits. Individually each international casino visitor spends about twice as much as those who don’t visit casinos. In addition to these benefits, casinos provide substantial gaming taxes and licensing revenues to state governments.
A further <a href="https://www.crownresorts.com.au/CrownResorts/files/1d/1db9d9a2-3de5-4072-9a4a-486bb427cf8c.pdf" target="_blank">report</a> was undertaken by the Allen Consulting Group in 2012 into Crown’s proposal for the Barangaroo casino. This pointed to the need for such developments to help salvage the tourism sector.
Over the past 10 years Australia’s tourism sector has suffered due to the high dollar exchange rate. From a peak in 2000 at the time of the Sydney Olympics, Australia’s inbound tourism trade has steadily declined. While the number of Australians travelling overseas grew from 3.6 million to 7.4 million between 2001 and 2011, inbound tourism grew from 5 million to only 5.9 million in the same period.
Competing with Asia’s casino precincts
For many Australian state governments and their local casino operators the role model is Singapore. Two major integrated resort casinos have been developed at Marina Bay adjacent to the city’s CBD, and at Sentosa Island. At a cost of around AU$13 billion, these casinos opened their doors in 2010 and have been experiencing steady growth. Tourism revenues have reportedly grown by around 49% over the past three years. In 2011 tourism was <a href="https://thr.sagepub.com/content/12/3/139.short">contributing</a> US$14.8 billion, or about 4% of Singapore’s GDP.
The Marina Bay Sands resort complex covers 15.5 hectares and has 581,400 square metres of floor space. Only 3% of this is devoted to the casino. There is a 55 storey triple tower luxury hotel surrounded by retail, restaurants, plus convention and entertainment facilities, operated by the Las Vegas Sands Corporation.
Other major integrated resort casino developments are planned for Macau, Vietnam and the Philippines. All of these will seek to take advantage of the rapidly expanding flow of tourists from China.
According to the Allen Consulting Group the number of outbound Chinese tourists has grown from 10.5 million people in 2000 to 57.4 million in 2010. It is expected to grow to around 100 million and be worth US$838 billion by 2020. However, combine the growth in Chinese tourists travelling to Australia with this heightened interest in casino projects and there may well be some trade-offs to consider.
Casinos demand a holistic approach to integrated tourism
Not surprisingly as a stand-alone concept, casinos attract a fair share of adverse commentary on their social, political and economic impacts. However, there is a growing literature on the economic benefits of casinos to national economies.
Research has <a target="_blank" href="https://thr.sagepub.com/content/12/3/139.short">shown</a> a significant rise in the number of problem gamblers in Singapore since 2010, and police have noticed a sharp rise in crime relating to the presence of the casinos. Amongst these criminal activities are petty theft, cheating and prostitution.
Rosalind Stefanac writing in the <a target="_blank" href="https://business.financialpost.com/2013/04/02/can-casinos-spearhead-economic-development-efforts-in-canadas-cities/">Financial Post Magazine</a> critically poses two questions. First, are the economic benefits from casinos sufficient reason to offset the potential for detrimental social impact? Second, is the casino a viable source of ongoing revenue for a community?
For Australia the economic development potential of integrated resort casino developments is significant. As Deloitte has reported, tourism is one of five “super growth” industries that Australia can potentially develop as part of a “post-resources boom” economy.
However, the success of developments such as Singapore’s casinos is due to the strategic vision that lies behind their design. As “integrated resorts” these casinos must emphasise more than just a venue for gambling.
The purpose of the integrated resort within an economic plan is to advance the economy, generate employment and attract export earnings. This means integrated resorts must have an appeal for hosting many types of tourism and be attractive to a great many gatherings, conventions and exhibitions of a scale that generates ongoing attraction.
According to Andrew McEvoy, Tourism Australia’s Managing Director:
“… for success and long-term sustainability Australian tourism requires more than just effective marketing campaigns. It requires physical investment in tourism infrastructure, particularly hotel stock, as well as improved air links and increases in aviation capacity.”
Infrastructure and planning are critical
For some the inclusion of a casino within the resort complex becomes problematic due to the concerns over problem gambling and crime. However, any major tourism development must involve the building of significant infrastructure and this must be paid for either by the government or industry.
Research has <a href="https://ieeexplore.ieee.org/xpl/articleDetails.jsp?reload=true&amp;arnumber=4362212" target="_blank">suggested</a> a large scale systems engineering (LSSE) approach was critical to the development of that Singapore’s highly successful integrated resorts.
The focus of a successful tourist destination should be on the word “integrated” in an integrated resort casino. Singapore’s approach to its casino development was strategic and built upon a foundation that sought to deliver a strong economic benefit to the island state’s overall economy. Its vision was to “develop Singapore as a regional tourism hub”.
It is still too early to pass judgment on the nature of the casino developments being planned for Queensland. To date no Australian casino development has reached the same standards as that of Singapore, and none can be truly classified as representing integrated resort models. This is the case for Sydney’s Barangaroo development which does not appear to have been subject to the same level of scrutiny and global competitiveness that took place in Singapore.
Major casino developments of the type proposed for Queensland will attract significant international investment and have the potential to generate substantial returns to the local economy. However, they will also attract many critics and may have socially undesirable impacts if poorly managed.
Get things right and their impact on the economy, tourism and transport sectors and the enhancement of urban environments can be highly positive. Get things wrong and the outcome can be profoundly undesirable. Let’s hope the Queensland government gets it right.
 
<hr>
 Tim Mazzarol is Winthrop Professor, Entrepreneurship, Innovation, Marketing and Strategy at <a href="https://www.uwa.edu.au/" target="_blank">University </a><a href="https://www.uwa.edu.au/" target="_blank"></a><a href="https://www.uwa.edu.au/" target="_blank"></a><a href="https://www.uwa.edu.au/" target="_blank">of Western Australia</a>
Tim Mazzarol receives funding from the Australian Research Council, CBH Ltd, Capricorn Society, Ravensdown, Co-operatives WA and the WA state government. He is also President of the Small Enterprise Association of Australia and New Zealand (SEAANZ), a not-for-profit organisation dedicated to the advancement of research, education, policy and practice for small to medium enterprises.
 Antoine Musu is DBA Candidate at <a href="https://www.uwa.edu.au/" target="_blank">University of Western Australia</a>.
This article was originally published at <a href="https://theconversation.com">The Conversation</a>.
 
 
<img src="https://counter.theconversation.edu.au/content/19558/count.gif" alt="The Conversation" height="1" width="1">
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Tourism and casinos: Can we gamble our way to prosperity?

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This week my words of wisdom are to ‘be careful’ because there is a lot going on out there right now in real estate land.
It is exciting to see investors back in the market. It’s great to see auction clearance rates at continuing record levels and our team is achieving great results across the high end apartment mark.
The momentum is definitely there and if you needed any further confirmation you can tell the Sydney market is strong when the newspapers start headlining talk about a crisis in housing affordability!
But after weeks of going gangbusters we are now starting to see a little bit of pull-back. Nothing dramatic but certainly there is not quite the same level of interest out there as we were seeing even a couple of weeks ago. I think we have hit a little speed bump.
I think some buyers are a little spooked by property hype. Add to that a percentage of buyers who have determined it will require too much effort to meet a pre-Christmas deadline so have decided to wait until the new year. That means there are less active buyers out there right now.
The market is without doubt still strong but a speed bump does slow things down a little and it is another timely reminder for sellers to remain realistic and to consider sensible offers.

<hr>
Ewan Morton is managing director of the Sydney based <a rel="nofollow" href="https://www.mortonandmorton.com.au/" target="_blank">Morton &amp; Morton</a>.
 
 
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Has the market hit a speed bump?

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Residential development property and retail assets were identified as having the highest number of distressed sales listings in the September quarter, a new report revealed.
The findings were in the latest quarterly LandMark White Forced Sales Monitor report which showed that overall distressed sales listings from receivers, mortgagees and liquidators around the country had declined in the three months to September and appeared to be generally on their way down.
However the results for some of the states and sectors varied significantly.
While NSW and Victoria's share of distressed listing both fell in the three months to September, the number of forced listings in Queensland increased during that period and now account for 65% of the national total.
Regional areas continued to do it tough. The majority of listed receivers’ stock was found in regional rather than metropolitan areas, with the regional share at 71% in the September quarter. Over the year to date, the split was 75% regional to 25% metropolitan areas, compared to 67/33 in the year prior.
Breaking down the figures into sectors, the data revealed that the highest number of distressed listings in the third quarter was in the residential development sector, accounting for 23% of the total.
But the biggest mover was the retail sector, which rose from 11% in the June quarter to 19% in September. The industrial sector accounted for 16%, down from 19%, while the office sector increased from 9% to 12% - the highest share so far, the report said.
It also looked at the distressed ratio of the five major sectors across the past year and found that the sector with the highest saturation of distressed sales in the September quarter was residential development at 27%, closely followed by the leisure sector at 26%. On a year on year basis, the residential development sector fell from 44% to 38%, while the leisure sector fell from 32% to 29%.
The distressed ratio for the retail sector rose sharply in the September quarter, moving from 12% to 18% having shown a steady downward trend over the previous four quarters. The industrial sector's distressed ratio rose to 24% in the quarter, after two consecutive falls. The office sector was unchanged at 15%, and 12% on an annual basis.
The take out message from the report was that distressed sales listings were on their way down. It concluded that "although one in five commercial properties advertised in the national press were receivers’ sales, our view is that their effect on the market is diminishing and will continue to do so in the absence of any shocks or major increase in the cost of borrowing".
 
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Residential development property and retail assets have highest number of distressed sales: LandMark White 

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A debate about the role and size of the early stage venture capital community was sparked last week by David Gonski’s comments that Australian entrepreneurs are being driven overseas due to a lack of available funds.
Speaking at an Australia-Israel Chamber of Commerce event, the Australian Future Fund and Coca-Cola Amatil chairman declared the diaspora of Australian entrepreneurs heading overseas to find investment a “tragedy”.
“We need an industry that is involved in early-stage investment and I don’t think we can get that when the major pools of money are being judged on 30, 60, 90 or 180 days because these things take much longer,” Gonski said.
However, Venture Advisory executive director, Sydney Angels member, and investor Adrian Bunter told StartupSmart Gonski was incorrect in his assumption there is no adequate pool of funds.
“In some respects he said there were no early stage funds and the only option was to leave Australia in the early stage. But the reality is start-ups don’t need to leave to raise funds and there is a lot of investment activity going on here,” Bunter says.
According to a <a target="_blank" href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/growth/growth-strategy/tech-start-ups-could-contribute-109-billion-to-local-economy-by-2033/201304229532">PwC and Google report</a> on the start-up ecosystem released earlier this year, there are over 500 angel investors, 10 angel groups and one sidecar fund, and almost $600 million in management by 20 venture capital groups.
“But there is always more money that can go into the system and he is right that a lot more needs to be done, especially from an institutional investor perspective. Most super funds don’t look at early stage start-ups and are more guided by those shorter couple of month return windows.”
Bunter says encouraging super funds to back start-ups will not be an easy task.
“It is very difficult for institutional groups to invest in start-ups because they’re so large. They’d need to allocate a significant proportion funds to see the returns their shareholders expect.
“Venture capital here really started to grow during the dot.com phase, and towards the peak of it, so venture capital doesn’t have a great track record over the last ten years or so. Therefore the super funds aren’t allocating much money to venture yet.”
Bunter adds the amount of early stage investing in Australia is probably considerably higher than the Google statistics imply, as much of the early stage investment comes from personal networks of family and friends rather than through networks and funds.
“There is a huge amount of investors who are comfortable with that level of risk, so concerns about high-risk investments are not exactly the problem,” Bunter says.
Concerns around the lack of funding at the series A-round level have largely been met, according to Kar-Mei Tang, head of research at national venture capital industry association AVCAL who addressed an <a target="_blank" href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/financing-a-business/australian-venture-capital-growing-and-set-for-a-shake-up-as-the-start-up-sector-matures/2013102411007">event for venture capital investors</a> in Sydney late last month.
“The start-up sector has been an emerging force over the last three years and we’re starting to see more founder investors and super angel activity which will filter through to venture capital,” Tang said.
Alan Jones is an investor and advisor for a range of start-ups including <a target="_blank" href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/growth/growth-strategy/bugherds-alan-downie-graduate-of-first-startmate-intake-shares-his-experience/2013102911041">BugHerd</a>, <a target="_blank" href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/planning/business-planning/scriptrock-founder-discusses-startmate-and-moving-to-san-francisco/2013110111067">ScriptRock</a> and through the <a target="_blank" href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/growth/business-advice-and-education/startmate-accelerator-opens-applications-for-fourth-intake/2013100710877">Startmate accelerator</a> program and <a target="_blank" href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/financing-a-business/venture-capital/blackbird-ventures-venture-capitalist-rick-baker-tips-for-australian-tech-start-ups-aiming-for-silicon-valley/2013102911037">Blackbird Venture Capital</a> portfolio.
He told StartupSmart investing in start-ups would become increasingly popular as people seek investment options not shackled to commodity prices but instead driven by smart people tapping into new trends.
“People who are considering investing in start-ups often say it’s risky. But for those of us who are already doing it, we know we’re investing in people, technology and innovation. To me, that seems like a much safer investment than some of the other sectors where Australians invest such as mining, agriculture and aquaculture,” Jones says.
Jones says the tendency of Australian investors to pour money into industries vulnerable to fluctuating commodity prices needs to evolve.
“As no one in Australia has any influence on the future of commodity prices, it’s all speculation,” Jones says. “Sure, we have different challenges about gaining capital and getting permission to shoot for the moon, but usually when you start-up here, you’re servicing a global market and there are lots of options.”
While there is significant risk involved in investing in early stage companies, Jones says the early stage start-up investment community in Australia is growing as investors gravitate towards more personal connections with their investee companies.
“I’d rather back someone with a great technological idea, because the risks there are much more about picking the sentiment of customers correctly. The biggest thing about the tech start-up industry is there is no such as thing as a unique idea, so you need to find and back the team that will be the best at executing on their plans,” Jones says.

<hr>
This article first appeared on <a target="_blank" href="https://www.startupsmart.com.au/">StartupSmart</a>.
 
 
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Australian early stage investment is alive and growing, experts say

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On the face of it, a time of predominantly positive data for the residential property markets, although much depends on whether you're a 'glass half empty' person, or of the 'glass half full' persuasion.
<img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://4.bp.blogspot.com/-RurAM9oyohw/UnRG6baJAoI/AAAAAAAAKqg/cy8e1RmvJfE/s400/HIA.jpg" height="235" border="0">
Source: HIA
Private new dwelling sales again jumped to send the data into a promising year-long uptrend, buoyed by low interest rates. The <a target="_blank" href="https://hia.com.au/media/~/media/Files/MediaMicrosite/Media%20Releases/New%20Home%20Sales%20Post%20September%20Quarter%20Gain.ashx">data from the Housing Industry Association</a> showed sales of new homes at their highest level in over two years in the month of September.
As is almost always the case, if you dig deep enough it's easily possible to put a negative spin on the data, particularly if you drill down to the month on month figures by state which are inherently volatile. And we don't want to get dragged into the tired old "our economy is shrinking if you ignore the sectors that are growing" shtick.
The truth is that detached house sales are trending upwards strongly (+25% year on year) yet still remain below their long-term average in four out of the five states (Western Australia being the unsurprising exception), and thus there is still some heavy lifting for low interest rates to do. Sales of new multi-units remain largely flat year on year which is clearly a less than impressive statistic given the low interest rate environment.
Dwelling approvals
Moving on to Thursday's dwelling approvals data set which was more difficult to put a negative slant on, with unit and apartment approvals increasingly dramatically by 31.8% in the month, and, far more importantly, 31.9% over the year to September 2013. Approvals for houses also increased, although less dramatically by 7.7% year on year.
When it comes to Australian Bureau of Statistics (ABS) data, it pays not to become overly swayed by monthly spikes or anomalies (and approvals by their very nature must be a volatile data set), but the trend for total dwelling units approved is now clearly moving in the right direction. As noted, private sector housing approvals are also moving up, albeit at a slower pace.
Total dwelling units       Private sector houses
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="156" src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/0545ffc6a101264dca25719f007f6f1f/Body/0.1A5C!OpenElement&amp;FieldElemFormat=gif" height="200" alt="Graph: Dwelling units approved"><img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="156" src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/0545ffc6a101264dca25719f007f6f1f/Body/0.2598!OpenElement&amp;FieldElemFormat=gif" height="200" alt="Graph: Private sector houses">
Source: ABS
Taking a longer term view, total dwellings approved in Australia are once again trending upwards, driven largely by a big uplift in approvals for units and apartments since early 2009.
Total approved                                    Houses approved    
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="200" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/b202f77b5544ca7fca257239007b2a7f/Body/0.542!OpenElement&amp;FieldElemFormat=gif" height="123" alt="Graph: Total dwelling units"><img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="200" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/b202f77b5544ca7fca257239007b2a7f/Body/0.FBC!OpenElement&amp;FieldElemFormat=gif" height="123" alt="Graph: Private sector houses">
 Units and apartments approved
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="230" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/b202f77b5544ca7fca257239007b2a7f/Body/0.19B8!OpenElement&amp;FieldElemFormat=gif" height="141" alt="Graph: Dwellings excluding houses">
Source: ABS
Naturally, fortunes vary by state, but the approvals trends for Western Australia and New South Wales (below) now look good since the trough of 2008/9. With a population growth of 3.4% per annum, Western Australia needs new dwellings, while within a quarter of a century there will be more persons in Greater Sydney than there are rivets in the Harbour Bridge (six million). Approval trends in other states remain less convincing.
NSW dwelling units approved      WA dwelling units approved
<img 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/a146ff16407f4bd1ca25725a001ae9d1/Body/0.20A!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Dwelling units approved - NSW"><img 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/a146ff16407f4bd1ca25725a001ae9d1/Body/0.272A!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Dwelling units approved - WA">
Source: ABS
The value of new residential building increased in September by 2.3% and is also now in a clear uptrend.
<img 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/b202f77b5544ca7fca257239007b2a7f/Body/0.2562!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Value of new residential building">
Source: ABS
Economy
From a broader macroeconomic perspective, the data released last week poses some interesting questions, namely whether a pick up in residential construction (especially one which is leaning towards the construction of apartments rather than houses) can plug the hole in GDP which will be left as mining and engineering construction expenditure tails downwards. Estimates for total capital expenditure look set to slip through 2013-14 and beyond, after a booming decade.
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/1ecf42b5ec12e8bcca2573460014f2df/Body/0.1300!OpenElement&amp;FieldElemFormat=gif" height="152" alt="Chart: Financial year actual and expected expenditure- Total Capital Expenditure">
Source: ABS
The relative size of the dollar numbers in the previous two charts above tell one very clear story: it's going to take more than just an upturn in residential property construction to see stronger economic growth returning should mining and other capex drop sharply.
In this context, it was heartening to see a second consecutive month of growth in AIG's manufacturing index for September, and David Jones (DJS) saw a long overdue 6.6% bounce in its share price on Friday after at last recording a bounce in its Q1 2014 sales. We may even see a post-election bounce in business confidence, although it's clearly far too early to be engaging in any back-slapping yet.
Dwelling prices
RP Data released its property price data for the month of October, recording yet another blinding month for Sydney (median prices up by a further 2.4% in the month, taking quarterly gains to 5.5% and year-to-date gains to almost 13%) but a horror quarter for Hobart where median dwelling prices were recorded as having fallen by some 6.0%.
<img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://4.bp.blogspot.com/-XmrVqTjBk2w/UnRQvfq3fTI/AAAAAAAAKqw/ycj2KZwf8LU/s400/RPD.jpg" height="296" border="0">
Source: RP Data
As I've emphasised previously, this property market recovery <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/aussie-property-recovery-appears-to-be-a-sydney-only-affair-pete-wargent/2013100965601">was always likely to be Sydney-centric in nature</a> - largely thanks to the city's relatively weak price performance since its preceding boom through to early 2004 - although there are signs of a moderate upturn in some other areas.
Median dwelling prices are now up since their respective troughs in all of the major capital cities according to RP Data, with Sydney (+16%), Melbourne (+12%) and Perth (+10%) remaining some way ahead of the laggards Brisbane (+4%) and Adelaide (with less than 4% growth).
Interest rates
I've heard the arguments both for cuts in the cash rate (to boost ex-Sydney residential property prices plus the wider state economies) and for tightening monetary policy (seems perhaps unlikely to me until there is some clear evidence of unemployment trending downwards and maybe further data on the likely impact of the so-termed 'mining cliff').
Hang onto your hats, however, because earlier in the week the largest provider of mortgage broking services in the country, <a target="_blank" href="https://www.afgonline.com.au/">Australian Finance Group</a> (AFG),  publicly released its mortgage index data for October showing that it <a target="_blank" href="/news">processed more than $4 billion of home loans in the month</a>. This represents another huge monthly increase of more than 12% from $3,624 million in September and a colossal increase of  more than 61% from its October 2011 figure ($2,509 million).
Even allowing for subtle shifts over time in AFG's relative market share, the monthly index figures tend to represent something of a reasonable belllwether for housing market sentiment, and the official cash rate down at 2.50% is clearly now dragging investors and home buyers back into the market.
Is Australian housing getting cheaper?
Clearly, the property markets are on the move again. In fact, according to RP Data, they have been since around May 2012, as low interest rates have brought buyers back into the fold.
<img width="400" src="https://4.bp.blogspot.com/-hfvxYxBWHoY/Una5OyJu0gI/AAAAAAAAKrM/bDyJpgzpVb4/s400/RPD2.jpg" height="161" border="0" style="border: 1px solid #ebebeb; padding: 5px; position: relative; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;">
Source: RP Data
The low interest rates have also brought a welcome affordability dividend for homeowners, with mortgage repayments becoming very significantly cheaper in recent years. But have the property markets become any more affordable since their peaks in terms of capital cost?
RP Data's Cameron Kusher prepared the below inflation-adjusted chart which shows that the answer is clearly "yes", but only in certain parts of the country. Notably, Brisbane and Hobart remain significantly more affordable city housing markets than they were at their respective previous peaks.
Prices in Sydney, however, are moving sharply upwards and thus affordability is declining, particularly in hot sectors of the market such as the inner west. <a target="_blank" href="https://news.apm.com.au/apm-news/sydney-november-2nd-auction-report-20120423-1xfsg">Australian Property Monitors noted that</a> the harbour city's inner west suburbs recorded another "sizzling" 86% auction clearance rate at the weekend.
<img width="400" src="https://4.bp.blogspot.com/-rMoNEvEAAkw/Una6JWSDVYI/AAAAAAAAKrc/eTIesaDnRPc/s400/2013_11_01_value-change-stats-table.png" height="211" border="0" style="border: 1px solid #ebebeb; padding: 5px; position: relative; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;">
Source: RP Data
The Reserve Bank (RBA) has gone to quite some lengths is recent years to emphasise its belief that while the capital cost of housing is comparatively expensive in Australia, affordability of mortgages is better than it was in the era of higher interest rates two decades ago.
<img width="394" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph11.gif" height="400" style="border: 1px solid #ebebeb; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;">
If I was a betting man I'd have a flutter on the cash rate staying right where it is for quite some time to come yet. The futures markets are onto this and have priced out all further rate cuts (albeit with a moderately inverted implied yield curve) while three year fixed rate mortgages have ticked up in the past week. A rate hike is priced in for early 2015, although your guess is as good as mine when it comes to predicting the future.
 
<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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Glass half full or half empty? The latest property news is all about perspective

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Melbourne is the auction capital of Australia. Each year over 50% of all auctions held nationally are conducted in Melbourne. As a result, Victorian auctioneers have extensive practical experience in running an auction. So if you are thinking of selling at auction, it is important to select the best auctioneer for your auction. The REIV offers some tips to assist in selecting the right auctioneer for you.
Firstly, do your homework and watch a few local auctioneers in action. The best auctioneers should be able to balance the need to engage potential buyers with the critical aspect of achieving the best outcome for the seller. The auctioneer is a key part of the selling team and must be able to conduct the auction using their experience and must know and understand the legal requirements, regulations and codes of conduct of an auction.
Shop around and compare the fees of each agency, the marketing plan and who the auctioneer will be, before you commit to one. When comparing, you need to keep in mind that you should not necessarily choose the agency with the lowest fees or the highest estimated selling price.
Speaking with friends and neighbours who have sold their property at auction provides you with information on the experience they have had and seeking advice from people you trust is an important source of information.
Finally, the quality of an auctioneer is directly linked to their experience, education, training and understanding the market conditions. REIV Members undertake continuing professional development to maintain their membership and have access to Victoria’s most comprehensive market data.  This ensures REIV member auctioneers keep up to date with changes to regulation, industry standards and practice and market trends.
You can contact the REIV for a list of accredited auctioneers. They receive advanced training and regularly update their skills and knowledge or search for an REIV member at <a target="_blank" href="https://www.reiv.com.au/">www.reiv.com.au</a>.
 
<hr>
 Enzo Raimondo is CEO of the <a rel="nofollow" href="https://www.reiv.com.au/" target="_blank">Real Estate Institute of Victoria</a>.
 
 
 
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enzoraimond-7fvRFHPR52

Choosing the best auctioneer for your auction

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The complexities of urban zoning by state governments, who openly advocate affordable housing initiatives, are in truth are doing quite the reverse.  
The debate about house prices rises or falling, and what is, or isn’t a good for the economy, continues to dominate headlines – and not just in Australia.  
Indeed, the cost of accommodation in most developing nations, is often coupled with wide spread reports of a growing divide between those who entered ownership early enough to reap the financial rewards stemming from a substantive period of healthy capital gains, against a generation who are finding the challenge of funding vastly higher capital prices, is coupled with less than desirable choices resulting from poor supply side policies.  
Yet the governance of housing supply is hamstrung firstly by the idea that everyone should stay centrally located, squeezed into an area parallel to existing transport networks, which although already over capacity, results in intensive development of high density, low grade, accommodation.  
In part this is based on the faulty logic that a larger percentage of residents not only want to live in the city, but if located adjacent to tram and train routes, would ditch the car in preference of either for their daily commute to work.  
Whilst my experience as a buyer advocate bears evidence that the concept of being close to public transport is desired by the vast majority of purchasers, various studies have dispelled the myth that an increasing percentage are using the crowded networks for their daily commute.  Not to mention the difference between living ‘walking distance’ from public transport, or feeling the house rattle as the train or tram trundles past.  
In Melbourne - unless you work directly in the CBD – travelling by rail usually entails a second trip by either bus or taxi at the other end. And as around 81% of jobs are located outside this area, with most being scattered broadly across the wider metropolitan regions, road networks are still the quickest and therefore preferred option for the larger percentage of residents - (as evidenced in the study Making public transport work in Melbourne, by Bob Birrell, Rose Yip and David McCloskey.)  
This goes some way in resolving the misadvised notion that dense living can reduce pollution, rendering it ‘environmentally sustainable’ – with studies by organisations such <a target="_blank" href="https://www.population.org.au/">Sustainable Population Australia</a> showing:  
“…that highrise housing increases per-capita greenhouse gas emissions by up to 30% due to a total reliance on power switches and being unable to enjoy the natural cooling of shady trees and living sustainability. Department of Planning and Energy Australia study (NSW) and the ACF Consumption Atlas show highrise buildings emit more greenhouse gases per dwelling and per person than smaller blocks of flats, townhouses or detached homes.”  
As for those living in outer suburban districts, any concept of fast public transport to attend a football match, a day at the races, or experience inner-city nightlife, is a long gone fantasy.  
Some of Melbourne’s non-existent train lines were initially mooted as far back as the 1890s – and following numerous feasibility reports which amount to millions of arguably wasted dollars, they’ve become no more than dotted lines in the Melways.  
Obviously units offer a cheaper entry point into tightly constricted markets.  The price difference in median values between an apartment and house ranges from around 12 to 30% (dependant on area and size – RP Data.)  
However, In Melbourne, the challenge of keeping apartment prices low is complicated by new zoning regulations, rendering some neighbourhoods immune from dense development, whilst others have the green light.  This further limits the concentration of land where construction can occur, and escalates already inflated land values.  
Additionally, to get planning and building approval for an apartment block is a costly venture, requiring 100% debt cover and often resulting in a period of years from concept to ‘lock up.’  
The complexities include levies for funding of communal facilities (such as underground parking, street lighting and so forth), which contributes significantly to the cost of the product.  
Getting council approval can involve a lengthy period to resolve protests from existing residents and local councils, who fear the social and economic impact on their neighbourhood culture and local environment, and all of the above adds to developer holding costs until the project is finalised.  
To obtain the necessary funding, the larger percentage is marketed to overseas buyers using vastly inflated commissions, who face no restriction when purchasing off-the-plan.  
They are constructed with a squeeze as many as possible mindset, compromising natural light and storage space along the way, and providing the finished product at an affordable price point (below existing unit medians) is no easy task.  
High owner corporation fees to fund the required security features, lighting in corridors, lifts, lifestyle amenities (such as a gym or roof top garden for example) equates to at least a few thousand a year. Rental guarantees are often marketed to promise a return not possible once the guarantee has expired. – And if the developer encounters financial difficulties during this period, there is no government legalisation backing up any promise of payment.  
Hence the supply of high-density accommodation is mostly purchased by the investment sector who find it easier to obtain funding, than the first home buying demographic, yet it seems a significant proportion sit vacant for periods of time.  
For example, Melbourne’s Southbank has a vacancy rate close to 8% (SQM) which also falls in line with data obtained from Prosper Australia’s speculative vacancy report, which analyses water usage to assess residential vacancies across the metropolitan region over a 12 month period – the methodology of which is explained in detail <a href="https://www.prosper.org.au/2013/11/01/speculative-vacancies-in-melbourne-2013-report/">here.</a>  
The research shows 7.9% of accommodation in the suburb uses no water at all, and over 22% less than 50 litres per day (a statistic which may be influenced by some being serviced apartments.)  
All of the above, works on the assumption that most people like to live close to the city and whilst this may apply to residents in their early years, who delight in the hub and bub of an inner city lifestyle, including student renters who need to locate close to nearby university campuses, there isn’t much evidence that the rest of us are prepared to give up space, to live in the type of accommodation provided.  
The idea that demographically we’re becoming a nation of downsizers is somewhat mythological, but it doesn’t stop the flow of regular articles suggesting we’re all becoming a nation of ‘happy strata dwellers,’ where “families are increasingly flocking to high-rise apartments.”  
Whilst there’s no doubt we’ll see an increasing shift to apartment living due to lack of feasible alternatives, there is no evidence to suggest this is desired by the vast majority of home buyers.  
It’s been shown the elderly overwhelmingly downsize to medium density accommodation thereby avoiding highrise developments altogether – younger generations in their 20s and 30s have a better propensity towards high density living and the proportion is increasing. However, figures still only peak around 14% at the age of 27, and the trend across all age groups is marginal, with only one in 20 choosing this form of accommodation nationwide (as of the 2011 census).  
Obviously, most local home buyers prefer houses to apartments – and for the highrise price tag of a two-bedroom flat, there’s far more bang for buck in established accommodation that doesn’t come with the additional risk of a view being built out, queues to exit the car park, and 150 immediate neighbours traversing through various stages of their housing career.  
Extra supply for the buy to let market should not be diminished, and it’s not my intention to do so.  However, there’s a broader need to establish quality accommodation for a larger proportion of home buyers who will accept townhouse living if locating inner city, but reject high density developments. And contrary to popular belief, it is possible to accommodate an equal number of residents in medium density dwellings without building to the skies.  
Movements such as <a href="https://www.policyexchange.org.uk/images/publications/create%20streets.pdf" target="_blank">Create Streets</a> in the UK are at the forefront of pushing low rise initiatives, and Robert Dalziel – the London-based architect for Rational House, who visited nine cities around the world, including Mexico City, Shanghai and Berlin, has comprehensively examined how high-density can be made agreeable for a broad demographic of home buyers.  More information can be found in his book –commissioned and published the Royal Institute of British Architects: entitled <a href="https://www.propertyobserver.com.au/https://www.amazon.com/House-In-The-City-Architecture/dp/1859464521" target="_blank">A House in the City — Home Truths in Urban Architecture.</a>  
However, families require houses (not apartments) gardens, green areas and local schools. They need community facilities, a local doctor on hand, good public transport and nearby shopping centres – and they need it all at an affordable price point.  
It’s probably for this reason, that the major part of Victoria’s growth has been evidenced in fringe localities such as Wyndham, Melton and Whittlesea. And one thing we’re not short on in Melbourne is land. Yet regulatory constraints in outer suburban localities cause their own complexities that increase land prices making the entry point for such developments effectively double what they should be.  
As <a target="_blank" href="https://ipa.org.au/people/alan-moran">Alan Moran</a> recently pointed out in the <a target="_blank" href="https://www.heraldsun.com.au/business/strong-political-will-needed-for-cheaper-housing/story-fni0dcne-1226732571096">Herald Sun</a>: “Without government restrictions on (the) city edge, land … would cost under $100,000. Regulatory-driven scarcity adds $100,000 to $150,000 to costs which the new homeowner must bear.”  
Even within a wide expansive boundary as mooted in Melbourne’s new urban growth strategy, the government limits land use until they have gone through a lengthy process of mapping out areas for infrastructure known as a <a target="_blank" href="https://www.gaa.vic.gov.au/precinct-structure-plans/">precinct structure plan</a> (PSP)– and as soon as you restrict the supply of anything, scarcity inevitably inflates values.  
Larger developers are not slow to purchase swathes of acreage prior to rezoning, and then once PSP’s have been finalised, drip feed it onto the market.  
Consequently, government bodies have little understanding how released plots respond to consumer demand or control over unnecessary land banking.  
There’s little sense creating new suburbs without the necessary infrastructure. However, such facilitation is currently financed via hefty development overlays, which are passed onto the buyer rather than initiatives such as bond financing, where residents pay back proportionally over a lengthy period of time, thereby bypassing an upfront fee which is piled onto the capital cost of their initial purchase (the detail of which I’ll go into in a future column.)  
Additionally, a broad based land value tax, as advocated in the Henry review, would recoup a percentage of the windfall developers advantage, as prices increase though urban zoning, providing further encouragement to bring the plots into effective use and provide further funding for essential amenities.  
The subject deserves deeper analysis, but the above touches on some of the measures we’re unwantedly subject to, by state governments who spruik how they’re bringing affordable housing onto the market, yet in truth are doing quite the reverse.  

<hr>
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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catherinecashmore-6LXia3pPQj

Urban zoning does more harm than good in fight for affordable housing

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Oh dear – the lunatics are trying to run the asylum! Mosman has always had its individual niche suburbs – Balmoral (not Balmoral Beach), Clifton Gardens, Mosman Bay and Beauty Point. Although at the end of the day it is Mosman 2088 so I see the attempt to subdivide Mosman into five new identities is nothing more than bureaucracy gone mad.
Further confirmation is the media outlets are having a field day at the expense of Mosman –<a target="_blank" href="https://www.smh.com.au/nsw/five-uneasy-pieces-as-mosman-faces-splitup-20131030-2whgw" title=" Five uneasy pieces as Mosman faces split – up"> five uneasy pieces as Mosman faces split–up</a> which makes it sound like an ugly divorce. <a target="_blank" href="https://www.smh.com.au/comment/smh-letters/return-to-sender-mosman-change-of-address-a-pretence-20131031-2wlyf" title="Plan to lock suburb out of its harbour fronts ">Plan to lock suburb out of its harbour fronts, </a>so on the one hand you have a new suburb Balmoral Beach although your home may front onto Chinamans Beach? Has this actually been thought through?
<img height="300" width="250" src="/images/stories/2013/11/06/mosman_division.jpg" alt="mosman_division" style="display: block; margin-left: auto; margin-right: auto;">
Source: Mosman Council
When I go  to look at the houses listed in Mosman that is exactly where you find every house. As For Balmoral Beach – 0, Clifton Gardens – 0, Beauty Point – 0 and Mosman Bay – 0. So it’s not that hard to see what the consumer thinks and simply shows how confusing and ill-informed such a proposal is. As they say “if it isn’t broken don’t try and fix it” and I believe there are plenty of other issues at which Mosman Council would be better directing its resources instead of again carelessly wasting taxpayer money.
<img height="354" width="470" src="/images/stories/2013/11/06/mosman-nov-5-one.jpg" alt="mosman-nov-5-one">
Photo: A suggested name change map for the Mosman Council (digitally altered)
Last week I read with interest an article that appeared in the Australian Financial Review – <a target="_blank" href="https://www.afr.com/p/national/why_this_bn_fund_manager_won_touch_eaK1Mbv4DRp3lqKKZRo8fJ" title="Why this $80bn fund manager won’t touch Australian banks.">Why this $80bn fund manager won’t touch Australian banks.</a> I liked this question to First Eagle portfolio manager Matthew McLennan by Christopher Joye. “You are clearly very knowledgeable on the Australian economy – what are your views on the resurgent Aussie housing market? It is interesting to me when you hear a politician saying this is not a housing bubble – that is just a supply – constrained market. At the end of the day, I think the Australian housing market is instinctively on the full side of fair value in a situation where the natural constituency, the marginal buyer, is already quite levered.”
I thought interesting analysis; then I thought let’s see what this so called bubble looks like and just exactly what is causing this ‘bubble’. It can be explained quite easily – supply.
The average Mosman agency today has approximately 5% of the properties on their rental lists available. Ten years ago that figure was 10-15% and twenty years ago it was 25%. Very few practicing agents today would ever remember how rental properties were once offered with rent – free inducements to prospective tenants.
<img height="285" width="470" src="https://www.rwm.com.au/files/2013/10/29-10-2013-12-38-47-PM.jpg" alt="29-10-2013 12-38-47 PM" class="aligncenter size-full wp-image-8258" style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;">
There are just 90 houses in Mosman available for purchase today, this time last year 114, and this time two years ago 155. For apartments we have 55, this time last year 92, and this time two years ago 110. So you can see a pattern forming where the last time Mosman reached 100 houses was back on May 23 of this year – and in our peak selling season spring/summer we are struggling to reach triple figures.
So again it is supply that is controlling the market and whilst it remains at record lows it is fair to say that Mosman does not have a bubble or alternatively if it does have a bubble there is next to no air in it. Cremorne houses available are 9, and twelve months ago there were 15 and two years ago 16. Cremorne apartments you have a choice of 15, and twelve months ago 15, and two years ago 36. Neutral Bay houses offer 11, and twelve months ago 20 and two years ago 18. Neutral Bay apartments offer 26, twelve months ago there were 56 available and two years ago you had 98 apartments for sale – so there is a very clear pattern evolving.
<img height="415" width="470" src="https://www.rwm.com.au/files/2013/10/28-10-2013-9-31-44-AM.jpg" alt="28-10-2013 9-31-44 AM" class="aligncenter size-full wp-image-8259" style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;">
I prefer to offer a handkerchief analysis of the market as against media outlets who offer the blanket analysis although it would be correct to suggest that the two bear absolutely no resemblance.
So then you have the constant innuendo that our banks are fast – tracking a sub – prime experience yet the ANZ posted this week a $6.498 billion profit up 11% from the previous year. NAB announced yesterday a profit of $5.940 billion profit up nine per cent on the previous year. I did note immediately following the profit announcements the Australian Prudential Regulation Authority (APRA) advised Australia’s largest banks to limit their dividend payouts to investors to allow the banks to comply with the new rules requiring them to maintain higher capital thresholds.
Whatever currency takes your fancy or whatever name you want to call it – the Mosman dollar still looks very, very impressive.

<hr>
Robert Simeon is a director of <a target="_blank" rel="nofollow" href="https://www.rwm.com.au/" title="RWM" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a target="_blank" rel="nofollow" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
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robertsimeon-hRNTwJyXkQ

The lunatics have taken over the asylum: Attempt to divide Mosman is bureaucracy gone mad

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For those of us that live and work in the inner city areas of our capital cities, we think that public transport infrastructure is a must across the city.  The reason being that it is essential for those of us in suburbia to be able to travel to and from the city in an efficient and timely manner, notwithstanding the fact that so many of us still drive.  But I question whether or not public transport is actually that important.
According to data from the end of June 2013 from the Property Council of Australia, the total floor space across the CBD office markets is 17,263,536 square metres.  If we were to assume that the typical office has a workspace ratio of say 20 square meters for every one worker, this would mean that if these offices were fully occupied they would house 863,177 workers.  If we include the nearby fringe areas, which I have defined as: Brisbane Fringe, North Sydney, St Kilda Road, Southbank, West Perth, Crows Nest/St Leonards, Adelaide Fringe and East Melbourne, there is an additional, 4,396,603 square metres of office space.  Again assuming a 1:20 ratio these offices if fully occupied would house 219,830 workers.  Between the CBD and fringe office space, if we assume one worker for every 20square metres of floor area, there is enough space for 1,083,007 office workers nationally.
At the moment, office vacancy rates are quite high across the country, sitting at 10.1% across the CBDs and 10.2% across these fringe office markets.  Based on these figures and our ratio assumptions there are 775,945 workers within our CBD markets and 197,484 workers within the fringe areas.
Of course not everybody that works in the CBD or fringe areas works in offices there will be a mixture of retail, services, industry etc that also offer employment in these areas which would also increase the overall working population in these areas.
If we look at the labour force data from June 2013 we see that at a national level, there were 8,138,418 persons employed full-time and 3,519,841 persons employed part-time for a total of 11,658,258.  Of course the nature of part-time employment is such that jobs are at times shared so given this I will assume that half of the part-time positions are travelled to each day (reflective of job sharing) resulting in my total employment figure of 9,898,338 persons.
Based on this 9,898,338 persons figure and the current occupied CBD and fringe office space, these inner city area offices are providing employment for just 9.8% of the nation’s workforce.  Now of course most of those people that live outside of the respective capital cities are not going to travel to the closest CBD for employment (yes there are some exceptions) so it is beneficial to analyse the proportion of the capital city workforce that travels to the inner city area for employment.
Demographic data to June 2012 showed that 15,015,290 persons lived within a capital city which equated to 66.1% of the nation’s population.  Now we know that unemployment tends to be slightly higher outside of capital cities however, if we assume simplistically that 66.1% of the 9,898,338 persons are employed within a capital city that provides a capital city employment figure of 6,542,801 persons.  Based on this figure, 14.9% of all capital city jobs are situated in a CBD or fringe office markets.  As I mentioned, there are other forms of employment in these area other than just that within an office.  Given this, let’s assume that a further 5% of the total capital city employment is located within either the CBD or the fringe areas taking the figure to 20%, leaving four out of every five employed persons not being employed in the inner city area and therefore not having to travel centrally each day.
Of course there are those that need to travel centrally that aren’t workers that would rely on public transport, this includes: students, shoppers, tourists and those who require government services that are located within these areas.  We would estimate that overall, this proportion of population is quite small.  Outside of this, although users of public transport may not necessarily be travelling all the way into the inner city areas of the capital cities, they do utilise it to travel to other working and retail nodes along the transport system.  Despite this, a majority of the population is unlikely to be relying on public transport to reach their destination each day with even fewer using it to tavel to the inner city areas for employment.
The implications of this is quite significant, although the roads and public transport are undoubtedly congested, a large proportion of the population are simply not commuting centrally on a day-to-day basis.  It also means that public transport is only benefitting a small proportion of the overall community.
From a future development perspective this also has some repercussions.  It is clear that in our larger capital cities there is a significant focus on densification of the inner city areas and those along transport spines.  Although this is the case, demand for these higher density inner city properties is likely to be strongest amongst those who actually work centrally.  In fact, it is probably fair to say that for those who do not work centrally that higher density housing in the inner city areas would likely be highly undesirable.
The push for higher density in the inner city means that you can squeeze more residents into a smaller area.  From government’s perspective it also means that you can rely on existing infrastructure which tends to be most abundant in inner city areas rather than having to provide new infrastructure such as that which is required when development takes place on the outskirts of the city.
Nevertheless, it certainly appears that public transport infrastructure such as rail lines and busways connecting suburbia to the inner city areas only benefits a small overall proportion of the population.  Of course, of the estimated 20% of people that travel to central areas of the capital city, you only have to look at the roads of a morning to see that for many the preferred way to commute continues to be via the private car.
The other aspects of public transport to consider are the cost and the coverage.  The overall cost of public transport is expensive and acts as a deterrent for many to use on a more regular basis.  I live in Brisbane and to travel just one zone costs $4.80 if you don’t have a go card.  The trip to the city from my house is only two zones which is $5.60 by paper ticket and $3.95 if I use a go card .  I live relatively close to the city centre however, if I lived four zones away and purchased a paper ticket the cost is $7.50, if you have a go card the cost reduces to $5.13.
In my opinion, those costs are extremely excessive.  Yes it is probably slightly cheaper than the cost of running and maintaining a car on a week-to-week basis however, the differential is likely to be minimal.
My overall conclusion is that public transport is not as important as many of us believe it to be, particularly for those of us that believe we all need to have public transport to commute to work in the inner city.  This analysis shows that the majority of the working population actually don’t work in the central areas which tend to be the areas best serviced by public transport.
The main reasons that public transport it is not as important are due to: public transport being over-priced, services are generally irregular and unreliable and the services do not effectively cater to the overall needs of the wider community with the main focus of the service to transport people from the suburbs to the central areas of the city.  If the system was expanded, run on a more regular basis and made more affordable, I am sure that it would be more widely used, especially if it was more cost effective and efficient than using a private vehicle.  Sadly, at this stage it is generally a long way from delivering these benefits.
 
<hr>
 Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
 
 
 
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