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

Lowe Living launches Jardin House in Camberwell

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

The Walden pairs house-scale living with North Sydney connectivity

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

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

ACT abolishes stamp duty for first home buyers

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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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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pwargent-M4siyDbqQY

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.  

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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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ckusher-ujnxiKuFQs

Is public transportation infrastructure really that important?

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The rate of apartments being offered off the plan is increasing, with developers of high density residential needing a certain amount of pre-sales before the development can kick off. These apartments are generally offered at a cheaper rate with incentives sometimes pinned on, but are these properties a good investment?
Property Observer has asked industry professionals from buyers agents to developers to weigh in with their thoughts.
They were each asked: Can off the plan properties be good investment? Why or why not?
John Carfi – Chief executive officer of <a target="_blank" href="https://www.mirvac.com/">Mirvac</a> residential<img width="113" height="150" src="/images/stories/2013/11/01/carfi-profile.jpg" alt="carfi-profile" style="float: right;">
YES, IF YOU BUY WISELY
off the plan properties can deliver great returns to investors, providing a stable rental income, the potential for capital gain and tax benefits through depreciation and negative gearing.
When investors buy property off the plan they are essentially buying sight unseen so the first rule should always be to ensure the developer and builder are reputable with a track record of delivering quality buildings as specified and on time.
The returns will be determined by many factors depending on whether the investor is intending to hold and rent or 'flip' the property to make a quick profit.
Flipping, or speculative purchase, is a much riskier investment strategy, and presumes that the market will rise and a profit can be made before or soon after settlement. It’s a gamble that may not turn out in the investor’s favour.
For those seeking a medium to long term hold, the factors to consider are the appeal of the property to tenants. If the property is well-designed with a high level of amenity, close to public transport, infrastructure such as schools, shops and open space it is more likely to attract a higher rent and be easy to let.
There are many tax benefits associated with owning an investment property and they are most favourable when the property is new. However this should not be the sole criteria for investment.
Another factor that will impact upon yield is the strata levy. These are not set until settlement however investors need to be aware that inclusions such as swimming pools, gymnasiums and the other attractive selling points of the development will need to be maintained by the owners corporation.
Most investors will be looking for capital gain and if you have bought wisely, a good quality product in a good location, the gains should be in line with the market.
 
Todd Hunter – Director at <a target="_blank" href="https://www.wheregroup.com.au/?">wHeregroup<img width="125" height="150" style="float: right;" alt="todd-hunter-profile-2" src="/images/stories/2013/11/01/todd-hunter-profile-2.png"></a>
off the plan IS RARELY A GOOD INVESTMENT
Let’s look at this practically, the developer is selling a product. They have worked out their numbers to the exact dollar on a spreadsheet and know how much they can sell for as a minimum. But who wants minimum?
As a property owner, when you sell, you want the maximum price don’t you? Well, so does a developer. Their issue is that they don’t have a big market presence in Australia so quite often they employ the services of a marketing company to spread the word to buyers right across Australia. They often have referral networks consisting of accountants, financial planners, and mortgage brokers to help them sell to their client.
Now these marketing companies do not work for free. Nor do the referral networks. The developer doesn’t want to drop their price either, so their fee is simply added to the developer’s sale price.
So why not go direct to the developer and cut out the middleman? Greed, by the developer to sell one at an increased profit as well as keep price consistency for valuation purposes.
It’s only when they have financial issues that they will liquidate and you can maybe get a deal.
Second reason - GST – why do you think that car prices drop by at least 10% the moment they drive out the driveway? Because the GST must be paid. The same is for properties but not on sell price but GST is paid on all good and services used to build the property.
For those reasons I have not seen many off the plan purchases of late that are worth investing in.
Next page: Paul Biller and Damian Collins
 
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Paul Biller – Principal of <a target="_blank" href="https://www.1stcity.com.au/">1st City Hasemer &amp; Caldwell-Eyles<img width="113" height="150" style="float: right;" alt="biller-profile" src="/images/stories/2013/11/01/biller-profile.jpg"></a>
off the plan PROPERTIES CARRY GREATER RISK THAN PURCHASING AN EXISTING PROPERTY
An off the plan purchase carries greater risk than purchasing an existing property as it is very difficult to establish fair market value for what the property will be worth on completion or predict an accurate future rental return. There will also more than likely be an oversupply of competing properties for rent when the development is completed due to other investor sales in the complex, ultimately resulting in having to lower the asking price in order to secure a tenant. Other things to consider are the project may not proceed if the relevant council approvals are not granted; the finished product may differ to what you anticipated; you can’t physically walk through the property you are buying.
There are however many advantages to buying off the plan including buying at a better price. When developers first offer their new projects they often offer them at discounted prices in order to secure required pre-sales for the bank. When the required number of pre-sales is met and construction begins the prices generally rise. Therefore, for investors who commit early to an off the plan purchase there is often a good price incentive.
Another advantage is the depreciation benefits. The newer the property the more tax deductions are available. The buyer is able to claim depreciation on their tax for items including fixtures and fittings. As the benefits are greatest when the property is brand new – buying off the plan maximises your available tax deductions.
As an off the plan purchaser you may get to customize your new property. Often buyers may have a choice of finishes to choose from including different colours, tiles, various fixtures and fittings as well as layouts which the developer may be able to incorporate such as merging two apartments into one large one.
There are also various government grants and stamp duty exemptions to first time property buyers.
As with all property purchasers, be sure to do your research. Look at the median apartment price growth in the area and research the project team including the developer, architect and builder.
 
Damian Collins – Director of <a target="_blank" href="https://www.momentumwealth.com.au/?">Momentum Wealth<img width="113" height="150" style="float: right;" alt="collins-profile" src="/images/stories/2013/11/01/collins-profile.jpg"></a>
GENERALLY, off the plan APARTMENTS ARE NOT GOOD INVESTMENTS
Generally off the plan apartments are not good investments.  Investors are often enticed to "get in on the ground floor" and hope that the property will be worth more at settlement than what they paid. Certainly in a rising market a property may be worth more than what you paid. But on the other hand I've seen many investors buy off the plan and find at settlement that prices are 20% less than what they paid. If you are buying for the intended gain before settlement then you are really a speculator, not an investor. For the long term investor an off the plan apartments provide additional risks. Firstly at the time of buying it may appear that there is limited supply on the market. However, if the market starts to see demand, developers in that area may release a substantial number of new properties leading to potential oversupply and poor price performance. One of the key reasons why off the plan apartments are generally not good investments is that there is too much building value and not enough land value. Ultimately the land goes up in value and the building depreciates. Many high rise apartments have little land content and the long term lower growth rates reflect this. Particularly with off the plan apartments, you are paying for a nice shiny new property that in a few years may not look so new to any future prospective buyers. off the plan sales are great for developers as it helps them get finance for their projects with enough pre-sales. If you are an owner occupier not focussed on the capital growth and you find a property that you think is ideal then it may be suited to you. However if you are an investor, give off the plan properties a miss and find a property with a good land value in an area with limited supply and high demand. You'll be sure to make much more money that way.
Next page: Ross Le Quesne and Kevin Lee 
 
 
<hr class="system-pagebreak">
 
 
 Ross Le Quesne - Mortgage broker at <a target="_blank" href="https://www.aussie.com.au/?">Aussie Home Loans<img width="113" height="150" style="float: right;" alt="laquesne-profile" src="/images/stories/2013/11/01/laquesne-profile.jpg"></a>
ENTER WITH CAUTION
<div>Buying a property off the plan a can be an attractive proposition but, as with any property purchase, you must only enter into it with great caution and after much research.</div>
<div>
 A brand new property in a new development is very appealing, but like buying a new car, you may find yourself paying a premium for something that is worth less the moment it's yours. off the plan properties can be overpriced due to the additional entities involved. The developer and builder need to make their profits, as well as a marketing agency (who can charge 5% selling fees) which inflates the price you pay.  To ensure you're not paying too much, you must always do your due diligence. Research the area and what similar properties are selling for now. Make sure the assumed future value (the value of the property by the time of completion) has not factored into what you've paid for the property. You want to be paying today's price when you sign your contract. Buying off the plan can sometimes be profitable. If you're buying in a growing area and you pay market price at time of purchase, meaning that by the time you pay for your property (sometimes 18 months later) you've already gained equity. You will only know that you're paying the right price if you're familiar with the local market and can verify comparable sales.
<div>The rental returns (especially as predicted by the vendors) of a new property can be attractive, but are they the best in the market? An investment is a business decision, not an emotional one - the property does not need to be beautiful to make good rental return. Are there established properties out there right now that will provide better returns for lower outlay and lower risk? To minimise the risk of paying too much you need to do your own research. Don't fall -n love with the idea of a brand new property, if you think you're overpaying you need to walk away.</div>
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<div></div>
Kevin Lee - Buyers Agent at Smart Property Adviser
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<div>THERE'S ASSOCIATED RISKS BUT GOOD OPPORTUNITY FOR FIRST HOME BUYERS</div>
<div>
There has always been a degree of risk associated with purchasing residential properties off the plan, yet for some investors, a well-researched off the plan purchase can represent a solid opportunity and good strategic addition to their portfolio.
However we need to put this out there right now: don't purchase property 'off the plan' with the expectation that it will automatically increase in value whilst its being built.
Yes some people made significant capital growth on both existing property and off the plan purchases over the last 40 years - however you could be sadly mistaken if you put all your money on that horse over the next 20, 30 or 40 years.
This is a 'changing of the guard' moment in Australia's history, unlike anything we've ever witnessed.
The days of 'property doubling in value every seven to ten years' (if they ever did exist) are long gone. In fact I'm still looking in the Australian Constitution for where it says that "by merely signing a purchase Contract, you're entitled to capital growth".
If however 'chasing capital growth' is still part of your game-plan for 2013 and beyond, then you should only ever count on matching inflation - maybe a touch more in the long term. But know this - you will most likely have significant periods of negative or nil growth.
Having said that, there are a number things outside your control that can actually help create capital growth. Two that come to mind immediately are: poor government planning &amp; laws that restrict development; and natural geographical constraints that limit development (e.g. Sydney and South East Queensland's urban development confines).
Infrastructure development - or Urban Renewal programs - instigated by either Local, State or Federal Government are like a "free renovation" for your property. So if you can, choose an off the plan development in a metropolitan area where significant government infrastructure spending has been committed - not just planned. Politicians are good at 'talking the talk' - you need to ensure their money is committed in order for the rest of that old cliche to be played out.
Off the plan developments can sometimes prove to be a good opportunity for first home buyers to get into the market faster, with most state governments offering first home buyers significant incentives. For example in NSW they'll put $15,000 on the table and waive the stamp duty for purchases under their self imposed price threshold.
Savvy purchasers though will ensure that they aren't getting in over their head financially - this is your first home remember. Not your last!
Also - if you are buying off the plan you'd be we'll advised to do so as early in the piece as possible. Why? Because that's when developers are willing to offer their 'best terms' as you are actually helping them de-risk the project and qualify their proposed project for construction funding! They need you: it's that simple!
Finally, if the project, style, location and 'it' factor appeal to you and a few of your mates then think about going in as a 'group' - you will get a better deal. Think of it this way: it's like the company that buys a fleet of new cars pays a fair bit less that you do for your purchase of just one.
As I said at the outset, there is always risk associated with buying off the plan - do your homework and mitigate that risk as best you can.
Next Page: Adam Sparkes
 
<hr class="system-pagebreak">
Adam Sparkes - Director of sales and marketing at <a target="_blank" href="https://www.crowngroup.com.au/?">Crown Group</a><img width="113" height="150" src="/images/stories/2013/11/01/sparkes-profile.jpg" alt="sparkes-profile" style="float: right;">
GET IN EARLY AND HAVE A LONG-TERM VIEW
The key thing to remember when buying off the plan, especially when buying into well-known developments, is the best investment returns are made by those who get in early.
Buyers who purchase in the first release are offered lower prices and a greater selection of apartments than buyers in subsequent releases or at completion - which means those who get in early also have more choice when it comes to position and aspect.
Adding to that, buyers who get in early can see capital growth even prior to completion. This occurs if similar properties in the development are sold off the plan later in the lifecycle of the project for higher prices. For example an apartment on level 5 sold for $1 million followed by a similar apartment on level 6 sold off the plan nine months later for $1.1 million, the latter provides a benchmark for valuations of the level 5 property sold earlier. This scenario can offer investors a chance to make capital gains faster than they may with existing properties.
Many of us have heard of the scenario seen in some Sydney developments in the early 2000s when investors purchased apartments off the plan and saw values significantly increase before completion. While,  I feel this is unlikely to happen again in Australia (and I would caution buyers solely motivated to buy apartments off the plan and hoping to sell for a large capital gain before completion), purchasing off the plan can present an attractive proposition for buyers willing to take a long-term view.  Investors buying with a view to hold the apartment for five- 10 years are better positioned to ride out the property market cycles and see good capital gains.
Other benefits of buying brand-new apartments include tax deductable depreciation allowances usually are higher for off the plan properties than existing properties, in addition investors are also eligible to the same out–of-pocket tax deductions as an existing property, making off the plan apartments an attractive proposition for savvy investors.
Finally, to give yourself the best chance of good medium-long term capital growth when buying off the plan, it’s worth looking at existing and future infrastructure in the area, including transport, hospitals, universities and schools. Finally, the facilities provided in the development itself, such as function rooms, pools, gyms and well-appointed foyers are becoming increasing important to tenants and buyers.
 
 
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ntrotman-Et3xWpamVh

Are off the plan properties good investments?

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Three penthouses have sold off-the-plan in the West End riverfront development Vida, totaling $8.9 million in sales and knocking the development up to 95% sold.
The $100 million development by private developer Pointcorp has one dual-level penthouse remaining, priced from $3 million.
Nearly all of the four-bedroom apartments have been snapped up between $1.55 million to $1.72 million and a range of three-bedroom apartments have sold between $1.25 million to $1.4 million.
"We have sold 12 apartments for in excess of $1.25 million in a matter of months," says Pointcorp sales and marketing manager Sam Patterson
"That is in stark contrast to the demand that has been experienced in Brisbane over the past few years, with the majority of interest targeted toward smaller, entry level apartments.
"As a result, most new developments released in recent times have catered to this market, so to have this type of success with a project that is specifically designed for those wanting a larger apartment with the highest quality fittings and finishes is a real sign the market has begun to shift,” says Patterson.
All three penthouses were sold to owner-occupiers.
"Each of our apartment types has been designed with a significantly larger floor plan than the average apartment in Brisbane, making them appealing to those who want to live in their apartment, and the position on the river, so close to the CBD and in West End adds to the appeal.
"While West End has long been renowned for being a 'trendy' area to visit, it is really still emerging as a residential hot spot.
“Savvy buyers have recognised this and are looking to secure their place now to take advantage of its urban renewal,” says Patterson.
Designed by Cottee Park, Vida comprises of 148 apartments across two 12-level riverfront buildings.
Remaining apartments are priced from $409,000 to $3 million.
Viva was released to the public in June, with construction to start later this year.
The median apartment price in <a target="_blank" href="/news">West End</a> is $220,000, a 25.2% decline in the past five years, according to RP Data.
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Brisbane West End Vida development 95% sold including $8.9 million in penthouse sales

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Hope you enjoyed the Melbourne Cup.  It signals the end of the official property year.  Time to rest until Australia Day.  What a great industry to work in; three months off at this time of year and usually two weeks over Easter too.
We work so hard.  We deserve it.  It would be even better if it wasn’t for some elephants in the room.
Hard yards
I keep on reading about how strong the residential market is.  It might be for second hand stock, but then I suspect only in certain locales and for specific price points.
But when it comes to new sales, it is still very much ‘hard yards’.  I think it will remain so – outside of Sydney – for some time to come, if not for this entire cycle.  For mine, much of Sydney’s recent momentum in their new residential market was more due to the change in NSW stamp duties and first home buyer grants than anything else.
There is very little urgency elsewhere and for good reason.  New property often does not offer value in the buyer’s eyes.  Many new projects miss the mark; there is plenty of choice and whilst net returns (rent, less maintenance and depreciation) have been pretty good for new investments in recent years, there has been very little price growth in recently built new housing.  Even in boutique projects, price growth has been lacklustre.
True, new sales have picked up since early September – but that feels like pent-up demand (as many waited until after the federal election to buy).  Looking forward, new sales will be harder – especially this summer.
Buyers are easily spooked and every new sale is hard fought.
And property reporting isn’t helping matters. 
As we noted <a target="_blank" href="https://matusikmissive.com.au/2013/09/24/hot/">a few weeks back,</a> there are a lot of misnomers about price growth, with new builds, renovation activity and the actual way the statistics are compiled affecting the results.
For example, do you really believe that unit prices fell by 30% in Molendinar (Gold Coast suburb) over the last year?  Molendinar is apparently the second worst ‘performing’ suburb in Australia.
But when looking at actual resales – not changes in median values – no such drop occurred.  In fact, attached property values (based on resales) actually rose by 2.1% in Molendinar over the last 12 months.  This rate of growth isn’t much to write home about, but it is world away from a 30% drop in ‘value’.
By the way, there are 864 building units in Molendinar, about a third of which are commercial premises, many semi-industrial in nature.  Several of the 50 ‘residential’ unit sales reported last year in Molendinar – as part of 30% fall in values – were actually industrial sheds and not residential property at all.
These lists are now getting out of hand.
This is the first elephant in the room.
Everyone in the industry needs to start questioning the actual data being pumped out.
But I suppose that would require a bit of property knowledge and a tad more work than regurgitating the press release.  Nearly everyone producing such lists either has an agenda or (sadly) it isn’t worth their time and effort to clean up the results.  Doing so would be counterproductive after all - as few markets actually behave so erratically and where is the fun and media release in that?
Oh, and don’t you love the reasoning real estate agents give when it comes to explaining such wild leaps and bounds.  My favourite goes something like this: “That’s because there is better value elsewhere, come look at what I have listed for sale”.
How about we start questioning these lists and those producing them much more?  I will bet you that nine out of 10 times they are incorrect and nothing like that is actually happening in those locations that seem to make the ‘hot’ or ‘crash’ lists.  Yet many novice buyers take them as gospel.
And why aren’t we making such comments in the press?  Sure, we get asked, but I always ask to see the list first.  Sadly, the data is often embargoed so we refrain from commenting.
Sniper bait
For every new sale settled, two actual sales are actually made.  Often, more work goes into the ‘sale’ that falls over than the one that sticks.  That is the nature of selling new property.  It has always been the case.
Selling something new – often off-the-plan - via a few simple tools like a building model, reports, brochure and feature board – is quite difficult.  Many buyers get cold feet, as they cannot visualise what they are actually buying.
But today there is another problem.  Seemingly solid deals are being killed by deflection.  Those doing the deflecting are often those whom buyers trust the most – their account, solicitor or even financial advisor.
Investment sellers get a bum rap.  They are the sharks in the pool.  But at least they come at you front on.  It’s the professionals – those one or two steps removed from the sales process – who have the sharpest teeth and largest appetites.  And most of the time, you don’t seem them coming.
Let’s use a recent real example to illustrate.
A young resource worker is advised by this father to stop wasting his money and invest some of it.  An appointment is made to see a financial adviser.  The advice is to buy a residential property.  A new property is found – independently by the young gun – contracts signed, deposits paid and off to the accountant the contract goes.  The accountant heavily suggests that the said investment is a poor one and that a better investment would be to buy into project X.  This advice is taken – as the accountant is trusted and it is assumed should know about such things – the first contract is ripped up and a dwelling in project X is bought.  The buyer isn’t aware of the $10,000 kickback the accountant got for the sale.
This is another – if not larger – elephant in the room.
This, of course, doesn’t apply to the vast majority of property professionals but it is happening out there.  It is very hard to make a new sale when there are so many snipers in the trees.
If we are going to have a Form 27c in Queensland, then let’s at least outline the actual firms being paid a commission and stop hiding XYZ Accountancy or ABC Solicitors under ‘marketing or advertising’.  Many buyers, sadly, don’t read the forms that they sign, but some do.
End note
I also keep reading about the big lift in new housing approvals.  Lower interest rates are working blah, blah.  Yet many of these approved projects will not <a href="https://matusikmissive.com.au/2013/10/22/better-developments/" target="_blank">eventuate</a>.
There is heaps stacked up against new property – GST, taxes and charges, long and opaque council approval process and NIMBYism, to name just a few.
Whilst we now have an undersupply of new property, the mismatch between demand for new property and its supply isn’t anywhere as high as many economists believe.   So the usual drill of need exceeding supply won’t work this time around as well as it has in the past.
The two elephants in the room – misinformation and deflection - aren’t helping matters.  Outside of Sydney, it is going to be harder to make the new sales (that settle) that many anticipate over the next couple of years.
And it is in the country’s interest that more new homes are actually built.
Here are some facts to ponder:
<ul>
<li>
Residential construction (not approvals) adds two percentage points of GDP growth
</li>
<li>
Every $1 spent on residential construction has generated $1.31 worth of spending elsewhere in the economy
</li>
<li>
Every $1 million spent on residential construction generates 17 jobs on a full-time basis.
</li>
</ul>

<hr>
Michael Matusik is the founder of <a style="font-size: 14px;" href="https://www.matusik.com.au/" target="_blank" rel="nofollow">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.
Read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
 
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michaelmatusik-49YzLvdmNv

The hard yards: Second hand stock is booming but new sales is a different story

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There are multiple messages in dwelling price data from Australian Property Monitors, including evidence that we have rising markets but not a boom – not yet, anyway.
Sydney is now the price growth leader of capital city Australia, both for apartments and houses. APM’s figures give Sydney an annual rise of 11.7% for houses and 10.2% for units.
The next best is Perth (up 8.6%) for houses and Darwin (up 8.2%) for units.
To put that into perspective, in mid-2010 every capital city had double-digit annual price growth, including two cities that were above 20%. That was a boom, thought not a bubble, given that the subsequent price decline in 2011 and 2012 was relatively minor – and now prices are rising again.
The overall growth is still quite moderate, with Canberra, Brisbane and Adelaide all with annual house price growth below 3% and Hobart around 5%.
With apartments, the APM figures record median price decline in six of the eight capital cities in the September quarter. The only exceptions were Darwin and Sydney.
In annual terms, all cities except Brisbane have median unit prices higher than year ago, but only Sydney and Darwin have annual price growth above 7%. Melbourne, Brisbane, Canberra and Adelaide are delivering little or no growth in median unit prices.
These figures, looked at overall, are a reminder that the headlines about markets going ballistic are coming out of Sydney, where some sections of the house market are indulging an auction frenzy.
We do not (yet) have a national property boom, although we do have encouraging growth in many of the major markets, as well as some regional markets.
It highlights once again how much the residential property industry needs balanced reporting from people with expertise and experience. Given that major media businesses are sacking rather than nurturing editorial talent, we are unlikely to ever get calm reasoned coverage of real estate in metropolitan newspapers.
There are multiple reasons why Sydney is currently displaying faster price growth than other cities, including the reality that Sydney has some catching up to do.
Before 2013, Sydney had been the chronic under-achiever of the major property markets, with 10 years of mostly sub-par performance. Its economy had been ordinary, its government had been dreadful and there was a marked absence of infrastructure development.
Most Sydney suburbs have averaged just 3-4% in annual price growth since 2003. You have to go to drought-stricken one-horse towns to find worse price performance.
Those who cling to the notion that Sydney is always the best place to buy, and that the trendy suburbs beside the CBD or the beaches are the best places to invest, will take the recent upturn as confirmation of their entrenched attitudes.
But the million-dollar suburbs of Sydney will have to deliver a lot more growth to make up for the past 10 ordinary years.
<hr>
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank" style="font-size: 14px;">Twitter</a>.
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terryryder-YECXbqmri2

No national property boom (yet), but encouraging growth in many markets

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With the federal election now done and dusted, its almost hard to remember a time when Tony Abbott wasn't PM. For those of us who actually miss the spin, gaffes and broken promises of an impending election (aside from the ones our esteemed PM still provides), never fear - the state election is only 12 months away - even less if Geoff Shaw manages to alienate yet another subsection of the Victorian population before then.  For those of you who would rather stick pins in your eyes than endure another campaign, there is a light at the end of the tunnel (and not the East-West kind) - the next election has promised to be fought with a strong focus on everyone's most cherished everyday experience - public transport!
Whilst public transport was an issue at the last state election (remember Ted Ballieu's war cry to 'fix the problems'?), that will pale into insignificance compared to the role it will play in the 2014 poll, thanks to everyone's favourite boondoggle - the East-West tunnel. Having won the last election promising a raft of rail projects, they quite inexplicitly back flipped and decided to build a road tunnel instead.  Whilst the common perception is that it will do nothing to ease congestion, and with no business case to even justify its existence, the government's motive to pump $8 billion into it is the biggest mystery since the 1980s asked 'Who shot JR?'.  Whilst it has provided opposition leader Daniel Andrews a much needed bat to whack Premier Napthine around the head with, the tunnel's location has also provided plenty of ammunition for one of the Greens' and PTUA's favourite obsessions - the Doncaster Rail Line.
The PTUA's and Greens' obsession with Doncaster is the stuff of legend.  In fact, if Doncaster Rail was a person, they'd both be charged with stalking.  Whilst the benefits of the Melbourne Metro and high capacity signaling are obvious, they continue to bang the Doncaster drum with monotonous regularity.  The romance of it makes for a great sob story - 'The people of Doncaster have been waiting 90 years for this' we're constantly told.  Anyone would think that Doncaster is a remote village that has to wait for a twice a week horse and cart service to visit the big smoke in Melbourne.  The much improved DART bus service is all but forgotten when it comes to talking about existing alternatives. So is a Doncaster rail link really needed? Or even viable for that matter?
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/art-doncaster_rail-620x349_1.jpg" rel="gallery-all" title="Image courtesy www.theage.com.au"><img alt="" class="image-article-half-width-351px" src="http://urbanmelbourne.info/sites/urbanmelbourne.info/files/styles/article_half_width_351px/public/pictures/article-images/art-doncaster_rail-620x349_1.jpg?itok=PzN2NmdH" title="Image courtesy www.theage.com.au" typeof="Image"></a>
Doncaster should be, in theory, the perfect rail project.  With a ready made reservation down the middle of a freeway, there are no debates about underground or overground, route or compulsory acquisitions; important factors when retro fitting rail through brownfield sites; but the list of negatives are just as striking.  Whilst a freeway makes for an obvious route, no one actually lives on a freeway. The distance to housing is even more pronounced in the case of the Eastern Freeway, as much of it runs through parkland. This means walk up patronage is already reduced, removing one of the major draw cards of catching public transport in the first place.  To address this, large park and rides would be be required at EVERY station (5 are planned), not just at the terminus at Doncaster Rd or Doncaster Hill.  Not only would parkland be consumed to build them, patronage is also restricted by the size of the car parks.  This in turn removes motivation to catch the train - 'Why bother driving to the nearest available car park? I may as well drive all the way in...'.
The 2nd major problem is cost where some ridiculous figures have been bandied about to build it.  A report by Curtin University, RMIT and engineering firm Arup claims it could be done for the bargain basement price of $840 million, whilst the PTUA claim they could build stage 1 to Bulleen for a paltry $100 million.  Melbourne's most recent completed rail project, the South Morang extension, cost $498 million, for a 3.5km extension with 1 new station and no tunnels (though there was a grade separation at Cooper St).  Doncaster is a 12km line with 5 new stations and major tunneling involved at both ends; the Doncaster Hill tunnel being especially tricky as it requires an uphill tunnel that would be the deepest in Melbourne.
This makes those quoted figures look absurd.  Hardly surprising given the $840 million figure was based on Perth's Mandurah rail line - a project built almost 10 years ago and through predominantly greenfield sites. The PTUA figures are just downright irresponsible - in the current environment of high infrastructure costs, it's most unlikely they couldn't even build the incredibly complex interchange at Collingwood for $0.1 billion, let alone the track, wires and station.  I'll run the length of the entire rail line naked if they could build it for under double that figure!  More sensible quotes seem to start at $3 billion (Collingwood to Doncaster Park &amp; Ride) and go up to about $11 billion for the whole shebang (to Doncaster Hill + tunnel from Clifton Hill to Southern Cross).
Complicating matters further is the issue of patronage.  Some outlandish claims have been made here too; one study even claiming that the Doncaster line could carry about 100,000 passengers a day equating to 20,000 per station, somewhat unlikely numbers for a predominantly suburban line with no interchanges.  As a reference point, the network's busiest non loop station is Footscray, carrying about 15,000 a day and it's a major metro rail/vline/tram/bus interchange.  Furthermore the recently completed Doncaster rail study showed a train would actually take few cars off the road, with the majority of passengers coming from the previously mentioned DART bus.  Regardless of the numbers, just running trains to Doncaster would put extra strain on the Clifton Hill - Flinders St section.
The South Morang Line is already bursting at the seams, and with South Morang now the fastest growing suburb in the country, its thirst for capacity is only going to get bigger.  Compromising this with a new line that will carry a questionable number of passengers is simply a case of robbing Peter to pay Paul.  The only way to avoid this is to build the Clifton Hill to Southern Cross tunnel, which will probably be needed to de-couple the South Morang Line regardless.  But of course, this tunnel can't be built until the Melbourne Metro tunnel is built first.
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/731929-train-line1.jpg" rel="gallery-all" title="Image courtesy www.ycat.org.au"><img alt="" class="image-article-half-width-351px" src="http://urbanmelbourne.info/sites/urbanmelbourne.info/files/styles/article_half_width_351px/public/pictures/article-images/731929-train-line1.jpg?itok=_ig8teJX" title="Image courtesy www.ycat.org.au" typeof="Image"></a>
Whilst the Doncaster rail line is hardly on my Christmas wish list for 2013, I'm not saying we should throw it on the eternal scrap heap.  It may very well be viable, even necessary down the track with the current number of apartment developments being proposed for Doncaster itself, demand could eventually outstrip the capacity the DART buses can deliver.  The Clifton Hill - Southern Cross tunnel will already be built, ensuring the Doncaster wont take capacity away from the South Morang line (or Mernda line by then, or hopefully Whittlesea line), allowing money to be used for the necessarily large park and rides.  And as was recently suggested, maybe the Eastern Freeway will be tolled, providing the bulk of the required funds for the project, as well as an extra incentive for people to use the train instead.
Doncaster, Rowville, Melton electrification, Mernda Extension are all great future projects, but to use some of Paul Keating's terminology, the Melbourne Metro Tunnel is the 'Black Caviar' of transport projects.  It is the only project that benefits the whole network, whilst transforming it into a true rapid transport network.  It could be argued that high capacity signaling would also be universally beneficial, however we wont see its full potential if we don't remove the bottlenecks that only de-coupling will provide.  In a day and age where high infrastructure costs reduce us to picking winners, the Melbourne Metro tunnel must be our first priority - not a disproportionately expensive suburban line with dubious benefits.
Whilst the Greens &amp; PTUA's hearts may be in the right place with its unconditional support of public transport, choosing to back populist projects over more necessary ones is hardly helping the cause.  The only way we can stop misconceptions like the East West tunnel is to be united on its opposition.  The public has spoken loudly in its support of public transport over roads - its time the PTUA took one for the team and supported all those voices, not just a select few.  Bring on the State election!
 
Further reading
<a href="http://www.doncasterrailstudy.com/">http://www.doncasterrailstudy.com/</a>
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