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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The latest ABS data has indicated the percentage of first home buyers active in the market has once again fallen, from 14.7% in July, to 13.7% in August.  
Subsequently we’ve been <a href="https://www.propertyobserver.com.au/first-home-buyers/sacrifice-and-compromise-the-reality-of-first-home-ownership-terry-ryder" target="_blank">bombarded with commentary</a> asking why this should be so in a low interest rate atmosphere, where, there are plenty of acquisitions available for sub $300,000?  
Not withstanding, whilst 10 years ago $200,000-$300,000 would have secured a modest home in reasonably facilitated suburb, today – due to woeful supply side policy – you’d struggle to find family size accommodation on the fringes of our major cities for the same expense.  
First home buyers will always wax and wane to some extent, based on their perception of value and <a href="https://t.co/cRxqNHaHPi" target="_blank">ability to save</a> over and above items of affordability alone.  
And whilst a lower percentage entering the market can in part be attributed to lifestyle factors such as labour mobility, getting married later in life, numbers falling under the radar on <a href="https://www.accreditedbroker.com.au/knowledge-portal/articles/512-where-have-all-the-first-home-owners-gone" target="_blank">loan applications</a> and the shadow effects of various grants and incentives being introduced and subsequently scaled back (thereby producing a demographic shift in the timing and age at which buyers enter the market), there are other factors at play which clearly point towards pressures of affordability.  
For example, just from the last census alone we can see the percentage of one person households has decreased for the first time in over 100 years from 24.4% to 24.3% - whilst at the same time group households have jumped from 3.9% to 4.1% and crowded houses with three or more families have risen nationally by 64% to 48,499.  
A closer look at exactly what it costs to rent a modest apartment within commutable proximity to our capital cities gives some indication why this should be so.  
For example, in Melbourne - (which currently has one of the highest vacancy rates of any capital – 2.7% (SQM) for the month of September) - if you’re halfway fussy, requiring good proximity to transport, a modest balcony, or internal floor space over 40 square metres, you’ll be hard pushed to get a one-bedroom apartment in original condition under $320-$350 per week.  
In Sydney, the equivalent will cost between $450 and $500 per week – therefore it makes sense to share expenses, and this is certainly the case with renters I’m in contact with.  
An argument consistently put forward when discussing the first home buyer demographic, is the idea that many want to rent, rather than buy – and it’s certainly one I have sympathy with, whether that be for <a href="https://t.co/cRxqNHaHPi" target="_blank">lifestyle</a>, affordability, or work purposes.  
However when two people meet and plan a family, there is a natural desire to settle. In the absence of long-term lease and rent controls, most would preference purchasing over renting.  
Therefore, a drop in ownership for this demographic, falling 79.5% to 77.2%, coupled with increasing numbers becoming long-term renters, is concerning.  
The Grattan report, released early last week, clearly demonstrated how tax policy is disproportionally weighted toward the owner/investor at the expense of the renter.  
Indeed, so imbedded is it in the Australian culture that home ownership is the key to financial freedom, there is an un-witting air of sympathy when we refer to ‘generation rent.’  
As for the first home buyer - assuming their initial property is not going to be their last - it would be more apt to term the demographic ‘first time investor’ with the need to purchase a growth generating asset in an area with enough projected consistent buyer demand, to ensure equity to tap into, when time comes to upgrade.  
Notwithstanding, the investment potential of their purchase is always an initial question from home buyers I assist.  And to get on what’s the commonly termed the ‘property ladder’ today, is markedly different from the post-war environment baby boomers were born into.  
Much of the newer accommodation being constructed is generally not attractive to consumers - being high-density, low-grade apartment blocks for which first home buyers can have difficulty obtaining finance.  
Whilst it’s not impossible for those who have saved a deposit to enter the established market - the stronger financial arm of the investment sector competing for a similar pool of dwellings around the suburban median price bracket, can present a significant challenge.  
Urban boundaries and the propensity to towards land banking, hefty tax overlays and poor infrastructure development, has ensured land on the outskirts is already artificially inflated, rather than representing a cost that would assist purchasers to compensate for the expense of commuting greater distances to work related services.  
The residents who purchased in Melbourne’s Point Cook for example, which was expanded in line with the 2030 plan and initially marketed as “A thriving neighbourhood … just 22 kilometres from Melbourne’s CBD” with “convenient access to established schools, shopping, recreational facilities and public transport” have seen their <a href="/news">home values fall</a>, battled with overcrowded roads, and a minimum two hour commute to the CBD in peak hour traffic.  
So whilst it’s easy to accuse first home buyers of being picky, one could just as easily ask why they should they forgo a hard earned deposit to accept what’s currently on offer, or exceed the budget to outbid competition for a limited number of established dwellings?  
First home buyers are not a ‘buy anything as long as it’s cheap’ consumer – although some mistakenly assume they should be if they want to get into the housing market.  
And whilst commentators use low interest rates to support the argument that housing affordability has improved, it is important to understand that housing affordability and the cost of servicing a mortgage are two separate entities.  
Mortgage rates are set up with different structures dependant on circumstance, and subject to interest rate changes influenced by the macro environment.  
To take out a 25 year mortgage requires the expectation of secure employment in a terrain where frequent job changes or part time work are becoming a norm.  
They may influence house prices through a cycle, but they do not take away the fact that home prices now – even with lower lending rates – require longer terms to pay down, with the interest over the duration of that period adding considerably to the capital cost.  
Next page: So what can be done?
 
<hr class="system-pagebreak">
So what can be done?  
As recorded by APM, Sydney’s median house price has increased by 4.2% over the September quarter to $722,718 – ‘the first capital to reach this milestone,’ whilst, the unit median has pushed past the half million landmark to $510,000.  
The current rental yield for a unit would be around 4%, therefore most new investors would be negatively geared and speculating on capital growth accrued during the period of ownership plus another like minded investor paying more at the end of that duration, to make the strategy productive.  
Yet, despite this robust activity from the investment sector making up around 50% of the buying market, Sydney’s vacancy rate recorded the largest monthly decline in September of any capital - now at 1.8% (SQM).  
This is because, the concentration of investment is focused overwhelmingly on the established sector through policies such as negative gearing coupled with 1999 decision to tax capital gains at half the rate applicable to other income. Since implementation, supply has not increased; rather investor activity around a limited pool of second-hand dwellings has multiplied (see next graph).  
<img src="https://www.urban.com.au/images/stories/2013/10/28/cashmore_oct_28_one.png" alt="cashmore_oct_28_one" width="470" height="350">
Needless to say, common sense dictates that maximisation of policy initiatives to increase supply cannot occur if we don’t address this mindset.  
<a href="https://www.facebook.com/l.php?u=http%3A%2F%2Fwww.propertyobserver.com.au%2Fnegative-gearing%2Fnegative-gearing-a-boon-for-investors-not-so-great-for-renters-catherine-cashmore&amp;h=2AQHhdbwt" target="_blank">As I touched on last week</a>, prior to negative gearing being quarantined in 1986 – rents were already rapidly rising in Sydney and Perth, with vacancy rates below 1%.  
Therefore, it is not clear whether subsequent rises were wholly due to the tax changes.  It is also not clear that a continual sharp increase in rents would have been worst had the policy backflip not occurred.  
However, without effective supply side initiatives to offset the inflationary elements investment in established property has produced, the market is simply a game of musical chairs - replacing a property for sale with a property for let.  
Solution  
I’ve said on many occasions that the challenge of creating a balanced, affordable, attractive market for homebuyer, investor and renter alike cannot be tackled on one front.  
There are many distortions that need to be slowly unpicked, whilst robust activity to lower land values and increase supply implemented.  
As it stands, considering the number of investors who rely on negative gearing as a tax/investment strategy, we’ve arguably painted ourselves into a corner.  
I am a full agreement that negative gearing is a failed policy. However, I would hesitate in abolishing it in one foul swoop for the following reasons.  
Whilst here is little evidence to suggest there’d be an investor exodus, there’s also scant evidence that first home buyers would be in a position to immediately soak up any additional stock at current prices – bearing in mind negatively geared investments are most suited to this demographic (being smallish one or two bedroom apartments.)  
The average first home buyer borrows around $280,000-$300,000 – therefore we’d need to see more than a light correction in values to provide a competitive entry point – not to mention the difficulties most have saving a deposit.  
Furthermore, even if established supply were to increase with projected lower demand from investors, to see substantial drops in values assumes vendor’s being forced to sell at a loss.  
As evidenced in some of our previous downward cycles (most recently during 2011 to 2012) markets can stagnate rather than truly ‘correct’ with many buyers taking a back seat expecting further falls.  
However, a gradual deployment of speculation away from established dwellings, with incentives to investors to purchase new over old, coupled with assistance to potential home buyers to either <a href="https://www.moneysmart.gov.au/managing-your-money/banking/savings-accounts/first-home-saver-accounts" target="_blank">save</a>, or enter into <a href="https://www.keystart.com.au/" target="_blank">shared equity schemes</a>, would be a start to meeting any increased supply with new home buyer demand.  
The policy could be gradually phased out by limiting it to a fixed number of investments  - two for example – or taking the suggestion made by the Henry tax review of tightening current arrangements with a lesser 40% of interest allowed as a deduction, and capital gains taxed at the slightly higher rate of 60%.  
This at least would be a starting point toward a fairer market.  
Additionally, dramatically increasing supply of new ‘quality’ accommodation with some reserved for low-income workers must take priority, as well as a structured plan to increase infrastructure through the consideration of bond financing for example.  
Over the 17 years to 2012 negative gearing cost Australian tax payers around $33.5 billion (inflation adjusted for the period estimated). Considering we have an aging population requiring increased spending on healthcare and other related services, coupled with a widey spruiked shortage of housing and, as Tim Toohey pointed out in a recent Goldman Sachs publication, forecast income growth of 3.5% in 2013-14 compared to an average of 15.5% over the last 15 years, it’s hard not to see better ways to manage the budget.  
Indeed – any politician with more than a short-term mindset – would be blinkered to imagine we can continue with the current status quo for ever.  
Additionally, an overhaul of policy surrounding tenancies is also necessary. However, that’s for another column.
<hr>
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
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catherinecashmore-6LXia3pPQj

Why aren't first home buyers purchasing?

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Recent national dwelling approvals data by the Australian Bureau of Statistics shows that with interest rates at their lowest levels in 53 years, dwelling construction approvals are now higher than their long-term average levels.

This latest news will please the RBA where Governor Glenn Stevens recently stated that with interest rates at extremely low levels, dwelling construction is starting to fill the void.
The RBA was keen to see an increase in dwelling construction, not just higher home prices. Governor Stevens also commented that the RBA was hopeful that dwelling construction could pick up some of the economic void as mining investment went past its peak. The good news for the RBA is that what they desired is exactly what is coming to fruition.
<img alt="kusher-oct-25-one" height="213" width="470" src="/images/stories/2013/10/25/kusher-oct-25-one.gif">
Lower interest rates and incentives to ‘buy new’ are fuelling a higher number of dwelling approvals, which ultimately leads to construction which in turn provides a substantial multiplier effect for the domestic economy.
Based on the ABS results, the best response to the lower interest rate environment in terms of dwelling approvals was seen within New South Wales, Queensland, South Australia and Western Australia.
While approvals in Victoria trended lower, the number of approvals across the state was significantly higher in previous times than those in other states and has recently recorded a significant decline.
<img alt="kusher-oct-25-two" height="237" width="470" src="/images/stories/2013/10/25/kusher-oct-25-two.gif">
This result is not necessarily a bad thing given the fact that the housing supply deficiency is lower in Victoria and there have been looming concerns about excessive levels of construction within inner Melbourne and across the outer fringe of the Melbourne metro area.
Across the states there have been early signs of a revival in dwelling approvals. The annual number of dwelling approvals as at August 2013 was 22.6% higher in New South Wales, -3.0% lower in Victoria, 12.2% higher in Queensland, 9.6% higher in South Australia and 31.8% higher in Western Australia.
With month-to-month dwelling approvals data so volatile, it’s important to look at the trend where based on today’s accompanying charts, it can be seen that approvals are beginning to trend higher.
Based on a rolling 12 months average figure, there were 13,589 approvals in August 2013 which was 11.7% higher than in August 2012. The August 2013 approvals figure of 12,163 was the most recent low.
<img alt="kusher-oct-25-three" height="234" width="470" src="/images/stories/2013/10/25/kusher-oct-25-three.gif">
The RP Data-Rismark September Home Value Index confirmed that capital city home values have increased by 8.7% from their recent low. Given this and based on percentages, the rebound in approvals was stronger than the lift in home values.
A lift in dwelling approvals is more important than a lift in home values. It would be fair to say a higher rate of dwelling approvals is much more beneficial to the Australian economy than a lift in home values. Unfortunately without the additional demand created through higher home values and sales it is less likely that developers would take on the risk of building more homes.
The rolling 12 months average dwelling approvals figure shows that approvals are now 1.9% above their 20 year average. The issue here is that for most of the past 20 years, the supply of new dwellings has been insufficient. This result is probably not actually a good benchmark; no doubt the RBA would like to see approvals continue to climb further from this point.
<img alt="kusher-oct-25-four" height="238" width="470" src="/images/stories/2013/10/25/kusher-oct-25-four.gif">
The ABS dwelling approvals data is the sharp rise in the proportion of approvals for medium and high density housing. He found that over the past 12 months, 41.6% of all approvals were for units where just five years ago, only 33.2% of all approvals were for medium and high density properties.
The shift towards a higher proportion of unit approvals is a change that may be difficult to accept for potential home owners but will no doubt be an ongoing feature of the market over coming years.
As long as governments continue to show a reluctance to expand urban footprints, particularly within our major capital cities coupled with population increases in these areas, there will subsequently be additional demand for housing.
It is clear that instead of supplying a greater number of detached homes there is a general preference, particularly in some of our larger cities, for densification of inner city areas. This is not necessarily a bad thing, especially considering that this development of inner city areas will reduce the requirement for new infrastructure.
 
<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

Low interest rates push construction approvals higher than long-term average: Cameron Kusher

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A fascinating week with the Abbott government establishing its commission of audit in order to return the budget back to surplus which will require wide – ranging cuts. <a title=" Return to budget will be ‘a herculean task" href="https://www.theaustralian.com.au/national-affairs/policy/return-to-budget-surplus-will-be-a-herculean-task-says-deloitte-access-economics-report/story-fn59nsif-1226743490437" target="_blank"> Return to budget will be ‘a herculean task</a>’, says Deloitte Access Economics so the leading question then is where are these 'rivers of gold' that the government will release in order to get the budget back to surplus?
I can’t see this happening anytime soon given these new cuts (whatever they will be) won’t be introduced until after the next election. The Abbott government’s preferred approach is to submit their reforms (cuts) to the voters at the next election seeking a mandate.
Front and centre will be property – <a title="housing is Australia’s great boondoggle" href="https://www.businessspectator.com.au/article/2013/10/24/australian-news/housing-australias-great-boondoggle" target="_blank">housing is Australia’s great boondoggle</a>. If Joe Hockey’s audit committee is looking for a way to save a lazy $43 billion a year, the middle and upper-class welfare that is Australia’s housing policy might be a good place to start.
The Grattan Institute’s <a title="Renovating Housing Policy" href="https://grattan.edu.au/publications/reports/post/renovating-housing-policy/" target="_blank">renovating housing policy</a> has determined that this massive wealth transfer puts $36 billion in the hands of existing home owners and a further $6.8 billion goes towards subsidising owner – investors into a product that delivers yields that are generally lower than equities or fixed interest. Between them, owner occupiers and investors receive over 90% of government funding directed towards the housing market.
The report confirms that government tax and welfare policies are contributing to housing unaffordability in Australia, with most of the welfare pie directed towards home owners and high income earners. Investors benefit from negative gearing and discounts on capital gains tax. First home buyers receive the first home buyer’s grant, which while popular, largely accrues to home owners via higher prices.
This motivated me to do a case study on Mosman and the conclusions sent alarm bells ringing. I went to the Mosman Council website and looked at the 2011 Census data.
MOSMAN
<ul>
<li>
Number of Houses: 4,746
</li>
<li>
Number of Apartments: 8,079
</li>
<li>
Combined Total: 12,891*
</li>
</ul>
*Includes three houseboats, eight other and 55 not stated. The census also showed at the time it was conducted that 1,242 dwellings not occupied.
I am advised that Mosman has approximately 6,000 properties for rental which in itself is a staggering number – 46.6%. If the government were then to be heavy handed on negative gearing the Mosman property market would be absolutely decimated with investor exit strategies.
NORTH SYDNEY
<ul>
<li>
Number of Houses: 4,518
</li>
<li>
Number of Apartments: 30,188
</li>
<li>
Combined Total: 34,897
</li>
</ul>
We don’t know how many properties are leased in the municipality of North Sydney.
<img alt="22-10-2013 1-54-30 PM" src="https://www.rwm.com.au/files/2013/10/22-10-2013-1-54-30-PM.jpg" width="470" height="651">
<img alt="22-10-2013 2-41-30 PM" src="https://www.rwm.com.au/files/2013/10/22-10-2013-2-41-30-PM.jpg" width="470" height="273">
<a title="Leave negative gearing alone: REIA" href="https://www.propertyobserver.com.au/finance/leave-negative-gearing-alone-reia/2013102165847" target="_blank">Leave negative gearing alone</a> said the REIA which was an expected response although the argument that carried the most weight was <a title="REIA persists with negative gearing lies" href="https://www.onlineopinion.com.au/view.asp?article=15604" target="_blank">REIA persists with negative gearing lies</a>. Reserve Bank of Australia data clearly shows that the overwhelming majority of investors - over 90% - buy pre-existing dwellings, and the proportion of investors buying new dwellings has fallen spectacularly since negative gearing was reintroduced in September 1987.
On the other hand, one area that could be looked at is the <a href="https://www.businessspectator.com.au/article/2013/10/18/politics/political-capital-locked-house-prices" target="_blank">GST that applies to new homes</a>. It is around one quarter of the taxes and charges that “drive a wedge between home builders and buyers”. Taxes and charges, including having to pay infrastructure bills up front, make up 40% of the cost of a new dwelling. This would explain why Australia’s new home construction is in the doldrums – and won’t be changing anytime soon. Furthermore this also sheds light on why so many of Australia’s construction companies have been forced into liquidation.
If the government does submit to abolish negative gearing at the next election it would win overwhelmingly given one third of Australia’s population rent, one third own with a mortgage and one third own without a mortgage.
<a title="Sydney beats $700,000 price barrier" href="https://canberratimes.domain.com.au/real-estate-news/sydney-beats-700000-price-barrier-20131023-2w1la" target="_blank">Sydney beats $700,000 price barrier</a> in the September quarter the median price jumped 4.2% to $722,718 – as one commentator remarked “We are in uncharted territory now.”

<hr>
Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">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 title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">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

Property will be front and centre of the government's planned reforms

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Regular readers will know that I have for some time expected the Sydney property market to outperform based largely upon its strong fundamentals as compared to other Australian capitals combined with the harbour city's relative under-performance since the first quarter of 2004.
This is evidently now playing out fairly dramatically with reported dwelling prices up by around 10% in the matter of only a few months.
At the same time, various other real estate markets are not firing in anything like the same way.
In fact, when adjusted for inflation - as RP Data does in their enlightening chart below - most other property markets are some way below their previous peaks in 'real terms'.
In other words, certain markets may be experiencing what some have described, aptly, as a "slow melt".
That is, they may be gradually increasing in terms of actual dwelling prices over time, but capital growth on average could remain lower than the rate of income growth.
In doing so, such markets may well become more affordable over time as household incomes increase.
Hobart and Brisbane are two good examples of where current prices are comfortably more affordable than they were at the previous market peak (at least, on a city-wide basis).
<img alt="Embedded image permalink" height="259" src="https://pbs.twimg.com/media/BXOnGfICMAIQIMC.jpg" width="400" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: RP Data
I'm aware that some people argue that not everyone is receiving pay rises right now. This is undoubtedly true. In fact, that is always the case.
But as the Australian Bureau of Statistics (ABS) data has shown, incomes have continued to rise in recent times on a national basis. Some industries - notably the mining and resources sector - have naturally fared better than others in terms of salary growth.
In any event, the current property market upturn is demonstrably largely a Sydney affair.
Interestingly, as recently as June of this year there were various misguided reports of a "weak" Sydney market (see the mid-year dip in RP Data's chart below), whereas now only a few short months later the pitchforks are out blaming Chinese buyers for forcing up our property prices.
Such are the pitfalls of daily home value indices and a greatly increased volume of reported data.
<img border="0" height="180" src="https://2.bp.blogspot.com/-gjTrpr11Fe0/Umc5z7QTQSI/AAAAAAAAKlc/To-yVEfZIyo/s400/RPD.jpg" width="400" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: RP Data
In other news, there were signs of inflation in this week's consumer price index (CPI) release for the quarter (the headline reading jumped to 1.2% for the quarter, although the trimmed mean and weighted median prints were sitting back in the desirable range) including in the housing and transport categories, although the ABS data was once again something of a mixed bag of messages.
Although inflation remains well under control on an annual basis, further interest rate cuts look to be doubtful at this stage. The data tumbling out of Sydney's housing market may represent one factor in the equation; the interesting movements in the Australian dollar recently was another.
 
<hr>
 Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
 
 
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Sydney is firing but other markets are experiencing a 'slow melt'

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Forecasts are down for the engineering construction sector but economists are crystal-ball-gazing to see where the sector will end up.
The residential construction sector has been picked to carry the ball but its recovery has not been a swift starter. Expectations that residential will rise in the next six-12 months are not meeting actual figures.
A rise in commercial construction has also been flagged but is not expected for 18 months at least.
A BIS Shrapnel report released today states the engineering construction sector, responsible for transport, mining and other heavy industry projects, was set for a 7.6% decline this financial year. The figure is a jump on a March forecast of a 5.4% slump, The Australian reports.
The report states engineering construction peaked in 2012-13 and is expected to plummet 19% over the four years to 2016-17.
A Master Builder’s Association survey on confidence in September has shown a drop in sales, work on the books, and expected activity exceeding actual activity.
MBA chief economist Peter Jones said the construction industries were still gleaning the depth and rate of the drop in engineering construction. He said the MBA’s forecasts predicted a 9.9% drop this year and a 20% drop over three years.
He said all that was needed was a psychological change among business-holders from cost-cutting to growth, “it’s like animal spirits”.
“The key to the outlook is improving confidence,” he said. “We need to have a switch from cost-cutting mode to growth mode.”
The MBA’s September survey of business confidence, released this week stated: “Business conditions fell in the September quarter, and the best that can be said is that the index appears to be finding a floor.”
Housing Industry Association chief economist Harley Dale said the BIS Shrapel forecasts were “reasonable”.
“Residential construction is not looking like filling the void as much as we’d like it to do. It’s a recovery that is taking time to gather breadth.”
He said there was some growth overall, but if NSW and WA figures were excluded here was an insignificant 1% recovery elsewhere.

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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Construction recovery guided by 'animal spirits'

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The very first thing I do after finding what I think is a good development site is ask for the sales contract to be emailed to me. It’s the starting point for my due diligence and research. At this stage I may not have even physically seen the land.
I thought I’d share the five most important things I look at as soon as I get my hands on that sales contract.  As developers, there are so many checks that we need to do, but to keep it simple, here’s what I recon needs to be done first...
I’ve opened the sales contract and start to scan through it.  I’m no solicitor that’s for sure, so it’s very important you have a solicitor ready to review the contract after you’ve had the first look.   There is really no point sending a contract to your solicitor and starting to incur legal fees until after you’ve reviewed it and then had an offer accepted.  However, if you are not confident or familiar with sales contracts, then definitely let your solicitor know what your development plans are and ask them to review it in this light.
Front page
A quick look at the front page of the contract confirms exactly what is for sale - this may sound strange – surely what is being advertised is what you’d be buying but this is not always the case. I’ve been offered land that the agent is advertising as two titles but on the contract only one lot is listed. This may mean the land has a subdivision approval however it is not yet registered so there could be costly work still required to complete the process.  Perhaps the agent was told there were two titles by the vendor. Or, I’ve been offered two lots of land that have to be sold under the one contract.  In this case it was because council would not allow a separate access to one of the lots – it’s a long story so I won’t go into it now.
Sometimes the sales agent had been told one thing by the vendor but the reality is different. It’s our job to sift through and check what’s on offer.
Deposited plan and/or survey
From the front page I usually skip straight to the deposited plan (DP) or if I’m lucky there may be a survey in the contract. In about 99% of the cases, there is no survey which is my number one bug bearer. If you are selling land people, please include a survey in the contract!  It will assist purchasers to quickly evaluate the land. 
A survey reveals the width of the frontage, the depth of the block, what structures and trees/foliage are on it and that may need clearing (a cost to include in your budget). A survey will also identify any easements affecting the land.  If you are very lucky, there may even be a contour survey. In new land developments, I can usually get hold of a contour plan. This shows me the fall on the land. The amount of fall will give me an indication of how much site works and retaining the development may require.
Planning Certificate
Next, I look for the section 149 planning certificate as it’s referred to in NSW. The first thing I check is the date it is issued, it’s extremely important that it has been recently issued by council. An old 149 is not worth the paper it’s printed on as council requirements/zonings can change.
I just checked two certificates, one was issued the a year earlier and the second more recently. In the first certificate the land was in a bushfire zone, in the second certificate it wasn’t.  This zoning had obviously changed over time. I then check things like the land zoning – most important if you want to carry out medium density development but the land is zoned low density then the site is not suitable for you. 
For our granny flat developments, we make sure that complying development may be carried out (so we can have our approval received within ten days), I check if the land is in a proclaimed mine subsidence district (this is important as there are many under mined areas in the Hunter Region of NSW however, it still may not rule out a development site for us as you can build on undermined land but further checks on building requirements are made with the Mine Subsistence Board), I check if the land is flood effected (we don’t usually touch floor effected land as it’s too expensive to build to the requirements), bushfire prone (this is ok but does add  a little to the build costs) and any restrictions that may impact on my development plans.
Section 88B instrument
I check to see if there is a Section 88B Instrument in the contract. This is usually only included in newly created subdivisions or land releases.  A section 88B instrument is part of a deposited plan which upon registration:
<ul>
<li>
Creates easements, profit à prendre, restrictions on use of land, and positive covenants. [cl.35 Conveyancing (General) Regulation 2008]
</li>
<li>
Releases easements and profits à prendre. [cl.36 Conveyancing (General) Regulation 2008]
</li>
</ul>
For more information go to the website for the <a target="_blank" href="https://rgdirections.lpi.nsw.gov.au/deposited_plans/easements_restrictions/sec88b_instrument">NSW Registrar General's directions about section 88B instruments</a>.
I will check to see if there are restrictions to multi unit or dual occupancies on the land. I understand that council may still approve a development contrary to a section 88B instrument restriction such as dual occupancy. For instance, if the land zoning allows for dual occupancies under council’s local environment plan and development control plan, then council may approve your DA. However be prepared for some retribution from the land developer or opposition from neighbours.
Sewer diagram
This can be the most important check. The water authority will issue a sewer diagram. I opened a contract for a house on a large block this week only to see it had no connection to the sewer.  This may seem odd but it was an older property and was built before sewer was available to this location.
To connect the property to the sewer may be very costly. The connection point can also indicate the fall of the land as the sewer connection will always be at the lowest point. Depending on your development plans, you may need to extend the sewer line a considerable way and this will impact on costs. Also, look out for sewer junctions and manholes which will add complication to a development site.
I assessed a property that looked like an awesome development site; it had a good house facing one street on a large block with a second street frontage. There was room to build a duplex facing the other street. But after seeing the sewer diagram I just laughed, there were three sewer lines all connecting to one junction in the back yard.  You couldn’t build over that.  Or even if you could, the amount of piering around the sewer lines required would add crazy costs to the project.
So that’s my five main areas I look at in a sales contract, it only takes a few minutes but I can tell in a flash if the site is worth pursuing or not.

<hr>
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" rel="nofollow" target="_blank" style="font-size: 14px;">Property Bloom</a>, which manages property development.
 
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Contract of sale - five vital checks to see if your development plans are worth pursuing: Jo Chivers

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Building a new house is a big undertaking and there’s a good chance there’ll be a few stressful moments during the process.
Fortunately, there are plenty of steps you can take to minimise the problems. Load up your toolkit with some of these stress avoidance and management techniques, and keep your sanity along the way!
1. Have a clear idea about what you want to achieve from the outset
One of the best ways to avoid stress during a new build is by starting off with a comprehensive plan of what you want to achieve. There’ll always be issues you can’t account for, but making changes creates cranky builders and costs more in time and money. Spend some extra effort going over your plans before you start and you’ll save yourself unnecessary hassle down the line.
2. Back yourself
Once you’ve decided what you want, make sure you communicate your ideas firmly. You’ll probably come across a few tradespeople who do a bit of eye rolling when you tell them what you want, but it’s your build and it’s not necessary to justify your choices. There will be times, of course, when you need to weigh up the advice of professionals, but try to remember your goals and listen to your intuition. Hasty last minute changes can lead to substantial regret.
3. Make sure you understand everything
Misunderstandings can lead to a wide range of unnecessary complications, so make sure you ask lots of questions. If you’re not on a building site every day, there’s no way you can be expected to understand all the ins and outs of putting up a new home. Good tradespeople take the time to explain things thoroughly, without making you feel foolish and insecure.
4. Have realistic expectations 
Make sure you understand the costs and timing, and remember to expect the unexpected. Building is a multi-faceted process with lots of small steps, and sometimes things go wrong. Factor in a 10-20% budget contingency and add an extra six months to your build calendar so you won’t be overly stressed if the budget starts to creep or the building schedule hits a few snags.
5. Try to keep your emotions in check
This is probably one of the hardest things to do, especially if you’re building a home for your family. You want it to be right, and that’s understandable, but taking a step back and disconnecting your emotions a little can help you see more clearly. Building a new home should lead to happiness, not a heart attack, so if you find yourself getting angry or upset, take a deep breath and use your head instead. Solutions will be a lot easier to find.
6. Get Involved
Keeping an eye on things is important, especially if you don’t have a project manager or architect. If you spot any issues you can nip them in the bud before they get out of hand. Visit your site as often as possible and if you notice anything unusual, make sure you bring it up immediately. Don’t assume that it’s all under control, or that everyone knows the plan.
7. Maintain communication with your neighbours
No-one likes a raft of building trucks parked outside their home every day without an explanation or apology. Make an effort to let the neighbours know what’s happening, and offer them your mobile number if they want to discuss any issues.
Taking time to listen is often all it takes to keep the neighbours onside. Put yourself in their shoes, and offer some genuine understanding. Failing that, move on to some good old-fashioned bribery – a nice bottle of wine and a couple of movie tickets usually does the trick!
8. Spend some time on activities that don’t involve the build
The building process can be long and arduous so make sure you take some time out to clear your head. Unless there’s a bunch of urgent “do or die” issues sitting on your desk, factor in a couple of nights away or an afternoon on one of your hobbies. It will help reduce any pent up stress and re-ignite your enthusiasm for your project.
9.  See the stars
When it all gets too much, go outside at night and look up at the sky. Nothing puts it all in perspective like a couple of awe inspiring moments thinking about the size of universe. OK, so the builder ordered the wrong materials. Most things can be fixed, and in the grand scheme of things, it’s really not that bad.
Building a new home should be a positive experience, not one that leaves you feeling frazzled and disappointed. Although it’s nearly impossible to remove all the stress from the process, having realistic expectations, a comprehensive idea about want you want to achieve, good communication, and a time-out plan means you’re more likely to enjoy the experience.
And who knows… you might even want to do it all over again!

<hr>
Sam Crothers is the founder of <a href="https://www.houseplanology.com" target="_blank">www.houseplanology.com</a>, a home website that includes design and building resources, interviews with architects and designers, and a house plan directory. 
You can contact Sam at <a href="mailto:sam@houseplanology.com." target="_blank">sam@houseplanology.com.</a>
 
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Nine tips for maintaining your sanity while building a house: Sam Crothers

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Infrastructure is about the long-term growth and prosperity of a nation, but Australia will get very little of this benefit if the cost of building it continues to rapidly escalate.
Australia is becoming increasingly uncompetitive in design and delivery of major projects. This is an unacceptable situation, and a newly commissioned multi-state inquiry by the SMART Infrastructure Facility will identify the key causes and make recommendations to help secure better value for taxpayers’ money.
Australian jurisdictions have experienced sharp rises in the cost of delivering mega-projects. In the pre-GFC mining construction boom period of the mid-2000s construction costs were 20-30% higher than previous levels. Infrastructure projects continue to get larger and, therefore, more risky, so relatively small percentage increases in design and construction costs translate into very large dollar costs.
Certainly the pre- and post-GFC resources booms put upward pressure on scarce labour, equipment and raw materials but this does not appear to explain the full extent of the cost inflation. Put another way, some of the increases in the cost of large projects during the boom years has persisted and seems permanent.
The Business Council of Australia is concerned about Australia’s attractiveness to invest. Australia’s hospitals are 62% more expensive to build, shopping centres 43% and schools 26% than OECD peers. Australia’s onshore resource projects are 40% more expensive than the US Gulf Coast and offshore projects are 200% more expensive.
A big challenge has been Australia’s near 20-year super investment cycle. This created the perfect storm with mining booms I and II coincided with an asset renewal mega-cycle in electricity as well as billions in new investment in water security in south east Queensland and other parts of Australia struggling with the threat of drought. The result was escalating design, engineering, construction, raw materials and equipment costs.
Investment in transport, electricity, gas and water has grown above trend over the past decade. This may have reflected a catch up from under investment in earlier decades, as well as poor regulatory incentives to over build.
Hidden drivers, massive cost
Many of the cost drivers are hidden, at times subtle and small but cumulatively can be very significant on project costs. These include changes to technical standards (over-engineering), environmental and planning requirements, safety standards and treatment of contingencies in contracts. Quality of project delivery teams and particularly project directors is likely to be very important as well.
The Queensland and NSW governments have sponsored the Cost of Infrastructure Project at the SMART Infrastructure Facility, University of Wollongong. They realise the importance of getting on the front foot to, first, understand the drivers of rising infrastructure costs in roads and rail projects, particularly for ‘mega-projects’ and, second, to better control costs so that taxpayers are more likely to receive better value for money.
High and uncertain costs are also very relevant to the incentives for private investment in public infrastructure. For instance, it is difficult enough for prospective private investors to manage green-field and patronage risk with new assets such as toll roads and renewable energy projects. But when we add to that a risk premium for rising project construction costs, it is difficult for mega-projects to pass stringent commercial testing.
Arresting the loss of long term planning is critical to lower infrastructure costs. All jurisdictions face extreme scarcity of available land, especially separated transport corridors for freight and passengers in already built-up areas. As demonstrated recently with the Southern Sydney Freight Line, right of way to passenger services impacts design, longer delivery time and much higher capital and labour costs.
More generally, the lack of land-use planning in cities has required expensive tunnels when surface access would have been cheaper. Environmental regulation further exacerbates costs without a proper evaluation of benefits.
Rushing in the wrong direction
Urgency has played an unnecessarily big role in Australia resulting in the wrong assets being built. The Brisbane Western Corridor Recycled Water Pipeline is a case in point. Before the situation became potentially catastrophic, long term planning with the community on the merits of water recycling could have been a far cheaper way of securing water security.
Finally, an institutional mind shift is required where infrastructure should not be just a counter cyclical economic policy past time. The infrastructure industry does not function well as a ‘short-order’ cook. It needs greater certainty with projects that will come to market over 10 to 15 years. This will provide a better environment for investment in capabilities to drive innovation, streamline delivery, purchase productivity-enhancing equipment and invest in highly trained personnel.
 
<hr>
 Garry Bowditch is CEO of the <a target="_blank" href="https://smart.uow.edu.au/index">SMART Infrastructure Facility</a> at the University of Wollongong, which has been funded by the NSW and Queensland state governments to conduct research into infrastructure costs.
The SMART Infrastructure Facility will report on the cost of infrastructure inquiry in first half of 2014.
This article was originally published at <a href="https://theconversation.com">The Conversation</a>.
 
<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/19037/count.gif" width="1">
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Vital infrastructure projects held back by rapidly increasing construction costs

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A handsome-looking trend is emerging in residential land sales in this week's Housing Industry Association (<a href="https://hia.com.au/media/~/media/Files/MediaMicrosite/Media%20Releases/Land%20Sales%20Shine%20Brighter%20Light%20on%20New%20Home%20Building.ashx" target="_blank">HIA) release</a> for the June 2013 quarter, which should be a precursor to a desired pick-up in dwelling construction.
<a href="https://2.bp.blogspot.com/-eYh3Uq3-aDc/UmSP7g0KxoI/AAAAAAAAKk0/OhsZylngw5s/s1600/landsales.jpg" imageanchor="1"><img style="display: block; margin-left: auto; margin-right: auto;" border="0" height="202" src="https://2.bp.blogspot.com/-eYh3Uq3-aDc/UmSP7g0KxoI/AAAAAAAAKk0/OhsZylngw5s/s400/landsales.jpg" width="400"></a>
Source: HIA
Residential land sales volumes are on the up now for several consecutive quarters and now sit at their highest level since March 2010.
This is what the Reserve Bank of Australia (RBA) has been hoping for, the favoured outcome being a strong increase in dwelling construction to offset the mining construction boom moving over its hump.
Plenty have written off a material increase in dwelling construction coming to the fore, but low interest rates necessarily must take time to work and for their full effect to be seen, and therefore it is often difficult (or simply nigh on impossible) to predict outcomes in advance.
Clearly land sales are up from a low base over the past few years as the HIA chart above shows, but the trend is incontrovertibly an upwards one. Nationwide, land sales are now 21% below their historical average, but that said, they were up by more than 18% in the last quarter alone.
Notably residential land sales are up very strongly by 33% over the past year in Sydney.
This is perhaps unsurprising as Sydney has an under-supply of appropriate dwellings and a very strong population growth.
And still further, the harbour city is seeing very strong dwelling price gains, up by more than 12% already in 2013 with more than two months of the calendar year left to run.
There certainly looks to be unit construction aplenty underway: Barangaroo, Broadway and the inner south being stand-out examples. It's certainly looking to be all on around Sydney, my eyes tell me, although there is of course commonly a lag between construction becoming visible around the city and units becoming inhabited.
This will represent positive news for the Australian economy as and when increasing residential land sales are ultimately reflected in dwelling construction.
The corresponding test will be to gauge whether mining construction capital expenditure drops off quickly as some have feared or whether a somewhat brighter global outlook and stabilising growth in China (and potentially some resources project overruns or cost blowouts - anecdotal evidence suggests that there may be plenty of these ongoing) mean that the mining cliff is rather a gentler tailing off than a capex apocalypse.
The impact to date of 'actual' declining mining construction has been limited in its scope but the 'expected' level of capital expenditure surely looks set to tail off.
This will begin to represent a headwind for the Australian economy through 2014 and beyond, but so far the RBA appears to remain confident of its stance. A favourable inflation (CPI) print this week may help to strengthen its position.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Chart: Financial year actual and expected expenditure- Mining Capital Expenditure" height="156" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/1ecf42b5ec12e8bcca2573460014f2df/Body/1.3CF4!OpenElement&amp;FieldElemFormat=gif" width="400">
Source: ABS
 
<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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Handsome looking trend emerging in residential land sale: Pete Wargent

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Assessing capital growth: Infrastructure
We're regularly told to "buy near infrastructure" but what does this really mean? And isn't it already priced in?
Firstly, let's divide up our expectations. There's infrastructure that already exists in the area, such as the train line, and there's infrastructure that may be coming your way sometime soon. It's this latter part that tends to get investors excited, and it's the former part that owner occupiers and, more prominently, renters, tend to base much of their area selections around.
Clearly, if the train line is already there, some of that growth has already been "priced in".
Current infrastructure
Specifically looking at infrastructure that currently exists in the area - what should you be keeping an eye out for?
Observer Cameron McEvoy previously wrote for us this <a href="/news">'vital' and 'desirable' checklist</a> that you can tick off when looking at your chosen area.
WalkScore can be great for this purpose. Figuring out what infrastructure and amenities already exist in a neighbourhood.
For instance, <a href="https://www.walkscore.com/AU-QLD/Townsville/Townsville_City" target="_blank">this record of Townsville City</a> when used in conjunction <a href="https://maps.google.com.au/maps?hl=en&amp;authuser=0&amp;sig2=zwURDr8ir8rYgA6MkBveRA&amp;q=townsville+qld&amp;ie=UTF-8&amp;hq=&amp;hnear=0x6bd5f8dbd573d1e7:0x500eef17f20feb0,Townsville+City+QLD&amp;gl=au&amp;ei=-qNlUriwPImTiQfJq4DoDQ&amp;ved=0CLEBELYD" target="_parent">with Google Maps</a> quickly shows you where local cafes and restaurants are, where stations are and, essentially, what exists in the area.
Infrastructure projects upcoming
Why are upcoming infrastructure projects often of so much interest to investors? The answer is simple. Here, observer Terry Ryder discusses <a href="https://www.propertyobserver.com.au/queensland/infrastructure-creates-jobs-and-capital-growth-terry-ryder/2013031859926" target="_blank">infrastructure and how it correlates to growth</a>.
Infrastructure, particularly when on a large scale, regularly boosts employment in an area. This, in turn, boosts demand, which can put pressure on the existing supply, which can possibly lead to value growth.
You might notice nothing definitive in that list. The words 'possibly' and 'regularly' are there for a reason. Not every infrastructure project will lead to capital growth. A 200-person mine in a boom town might not actually increase the pressure within an area substantially. A developer could also build in there, just as you buy, offsetting some of the supply/demand pressure that we discussed yesterday. A bypass might actually just make the next town on more amenable, and may make you start looking in that area instead.
Nothing is a dead set certain in this game of property.
In saying that, it's rare that new infrastructure doesn't also bring a wave of positivity and excitement to an area. If it's a new hospital, you can be sure that it will drive employment. If it's a new train station, it may increase the area's amenity. It might also increase crime and noise in the local vicinity to the station hub. You'll want to bear in mind that while the effect of infrastructure can be a significant positive for the overall area, when you look again at the micro, it may work against you.
We compiled a list earlier this year of <a href="https://www.propertyobserver.com.au/economy/the-34-infrastructure-australia-projects-that-might-interest-property-investors-list-of-the-day/2013070763068" target="_blank">34 Infrastructure Australia projects that property investors will want to put on their radar</a>.
Observer Jo Chivers recently talked about how <a href="https://www.propertyobserver.com.au/developments/infrastructure-is-key-when-considering-where-to-invest-jo-chivers/2013050761116" target="_blank">infrastructure developments feed into her investments</a>.
A bit of a warning
When buying due to upcoming infrastructure, such as a suggested airport location or similar, be aware that it is not necessarily set in concrete. Plans can, and do, change. Unless there is significant reason to believe that the project will see the light of day, it is worth ensuring that the area stacks up without it.
Investors will also want to ensure that the area they’re buying into is ‘proactive’ not ‘reactive’ – that is, according to wHeregroup’s Todd Hunter, the area is building infrastructure in prediction of future growth, rather than as a result of growth that has already occurred. Sometimes it can be hard to tell which this is.

<hr>
This article is part of Property Observer's ongoing series looking at how to find your first investment property.
You can also read  about <a href="https://www.propertyobserver.com.au/residential/assessing-capital-growth-potential/2013102065824" target="_blank">a</a><a href="https://www.propertyobserver.com.au/residential/assessing-capital-growth-potential/2013102065824" target="_blank">ssessing </a><a href="https://www.propertyobserver.com.au/residential/assessing-capital-growth-potential/2013102065824" target="_blank">capital growth potential: supply and demand</a> and <a href="/news">five steps for choosing the right investment suburb</a>.
 
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