An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

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

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?

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Auction clearance rates in Australian capital cities continued their strong recent run in the week to March 24, according to the latest information from <a target="_blank" href="companies/rp-data">RP Data</a>.
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Capital city auction clearance rates on the rise: RP Data

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The Australian 108 skyscraper approved for development on Melbourne’s Southbank just over a week ago has run into trouble because its proposed height infringes on the flight path into Essendon Airport, according to a report in The Age.
Victorian planning minister Matthew Guy <a href="https://www.propertyobserver.com.au/victoria/tallest-building-in-southern-hemisphere-approved-for-melbourne/2013031759915" target="_blank">approved the 108-storey apartment and hotel tower</a>, which is due to rise 388 metres above the city and would be the tallest residential tower in the southern hemisphere.
The $600 million apartment tower (pictured below), designed by architects Fender Katsalidis, would breach the airspace of Essendon Airport, which is 13 kilometres north of the city. The airport has a 373-metre height envelope for aircraft approaching from the south.
<img alt="australia108march26one" height="831" width="400" src="/images/stories/2013/03/australia108march26one.jpg">
These limits are set according to a federal protection system known as PANS-OPS (procedures for air navigation services - aircraft operations), which is designed to allow aircraft to fly safely in and out of airports and is set by international agreement.
There are no provisions for penetrating this airspace, a Department of Infrastructure and Transport spokeswoman told The Age.
It is not the first concern to be raised about the proposed tower, with Melbourne Lord Mayor Robert Doyle suggesting in February that it could <a href="https://www.propertyobserver.com.au/victoria/shrine-of-remembrance-overshadowing-concerns-arise-from-australia-108-tower-proposal/2013022759619" target="_blank">overshadow the Shrine of Remembrance</a>.
Australia 108 is backed by private investors believed to include Nonda Katsalidis, Benni Aroni, Adrian Valmorbida, Ian Fayman, Gary Caulfield and Mark Hopkinson.
Benni Aroni, chairman and founder of construction and property development firm Stralliance, said one of the conditions for approving the tower were that arrangements were made with the Civil Aviation Safety Authority.
“I believe it is a resolvable issue," he told The Age.
The Age quotes  industry sources saying an alternative could be for Essendon Airport flight paths to be altered, which would require the support of the federal Department of Infrastructure and Transport, the Civil Aviation Safety Authority and Air Services Australia.
Planning minister Matthew Guy remains adamant the building has received all the necessary approvals.
Apartments in the building start at $425,000 for a one-bedroom unit, $575,00 for a two-bedroom unit and $775,00 for a three-bedroom unit. There will be 664 apartments.
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Airspace height problems for Australia 108 skyscraper can be resolved: Benni Aroni

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A former ungainly Frankston waterfront complex will launch in April as luxury residential and serviced apartments following completion of the Peninsula on the Bay by developer the Asian Pacific Group.
The redevelopment of one of Victoria’s best located, but least attractive coastal buildings is expected to capitalise on investment in tourism and business in the area as well as further help rejuvenate the <a href="/news">Frankston</a> area which is tipped as a hotspot for property investors.
The redeveloped 10-storey <a target="_blank" href="https://www.peninsulaonthebay.com.au/">Nepean Highway complex</a> features 65 residential apartments with 86 serviced apartments (managed by Quest), and a ground floor serviced office complex.
Most apartments will have sea and CBD views.
Its main selling point will be its proximity to the beach and commanding views over Port Phillip Bay, the Mornington Peninsula and Melbourne's CBD.

Sale of apartments at Peninsula on the Bay will be through Quest Properties, with the prices expected to be between $250,000 and $350,000.
Quest is offering investors a 25-year lease with a secured 6.2% to 6.7% rental return fixed for the first two years and then increasing by 4% per annum under the lease.
The building, which had been long vacant and had a number of previous uses including as offices, a nightclub and leisure centre, was once referred to by comedian Barry Humphries as "the world’s ugliest building".
A number proposals for use of the site have come before the Frankston Council but failed to come to fruition before the development proposal from the Asian Pacific Group.
Frankston TV produced a <a href="https://www.youtube.com/watch?v=hUPaotgIXo4" target="_blank">video</a> last year to show the state of the building prior to  development, its proximity to the beach and location.
The redevelopment of the Peninsula Centre into a residential, commercial, retail and restaurant hub is expected to attract a series of established retail outlets as well as a restaurant to be run by popular Australian restaurateur <a target="_blank" href="https://www.propertyobserver.com.au/retail/hawthorn-east-premises-of-paul-mathis-firechief-restaurant-listed-for-march-auction/2013031259794">Paul Mathis</a>.

Property information provider Residex reported strong capital growth in the Frankston property market with an 18% increase in house prices, and a 19.5% increase in unit prices over the past three years.
The development will benefit from Frankston’s transformation into urban waterfront destination, with plans in progress for a local marina as well as the soon to be opened Peninsula Link highway upgrade, which will cut down travel time from Frankston to the CBD.
Will Deague, CEO of Asian Pacific Group, has been quick to downplay the reputation of Frankston, often touted as a problem area due to its lower-income socioeconomic demographic.
“I spent the whole weekend down there on-site and that beach is as good as anywhere.

“It’s got a lot going for it. I think it’s just a matter of time for Frankston,” he says.

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Frankston eyesore reborn as Peninsula on the Bay holiday apartments

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As outlined in my <a target="_blank" href="https://www.propertyobserver.com.au/trends/bridging-the-gap-between-buyer-expectations-and-affordability-peter-chittenden/2013031859927">earlier post</a> The Property Council of Australia’s Outlook Series aims to encourage informed debate and in Project Agenda’s perspective that refers to residential markets in 2013.
Here I look at some of the most important drivers of Sydney’s apartment market as we continue to consider how to ‘bridge the gap.’
What will 2013 bring?
To start this topic we need to check-off what is required for any <a target="_blank" href="https://www.propertyobserver.com.au/western-australia/pilbara-apartment-project-helps-drive-earnings-and-profits-for-wa-developer-finbar/2013031259597">apartment project</a> to be a success. I think that there are five key drivers, they are clear-cut and they apply to all markets and none should come as any surprise. They are: convenience, infrastructure and amenity, transport, education and employment, and affordability.
All of these are constants in the market and from my direct experience all were very important to buyers in 2012 as they been for many years.
However before we look at how these points are impacting the market, I want to take a few steps back and look more closely into the minds of our current buyers. Already we have discussed how much more conservative buyers have become and even with very low interest rates, they are hesitant and not very keen to go head over heels in debt.
Part of the reason for this I think can be found by answering the question: what will my property be worth in five years and what will be my return?
Buyers of all kinds – and this includes investors – are very sensitive to these questions and over the past few years there has been a shift in the balance of how much buyers will borrow and what future equity growth they expect. Lets take the view of a pre-GFC buyer, they anticipated that over say five years their equity might increase from a starting point of $50,000 to $150,000, and on a $500,000 purchase they were happy to take on a loan of $450,000 because after five years their property had jumped in value to say $600,000 – and at times they were even happy to ‘spend’ that equity.
Now the picture is somewhat changed, capital growth may have slowed so that our example of a $500,000 purchase shows a value in 2013 of a more conservative $520,000, but the buyer’s equity is being used to sustain a smaller loan, the equity is seen more as a means of saving. These savings are not being chased out partly because of the much more conservative nature of the market. This is a major shift towards a more ‘normal’ market.
Who are the buyers?
While first-time buyers might be in a state of flux, they are still an important part of the market, and doubtless there may soon be more incentives on offer. However the full definition of who are the buyers for Sydney in 2013 covers these core groups:
Generation X &amp; Y – They steer away from long-term obligations and are a challenging group to please on the sales path as they are very attuned to propaganda growing up in the world of marketing. However, their property requirements are typically simpler – lifestyle and convenience.
Divorcees – this is a major driver in the Sydney market and whilst they have similar property needs to the Gen X &amp; Y they cover a very wide range of age brackets and are more driven around location due to their dual-lifestyle.
Local Asian buyers – strongly driven by infrastructure and location. This group wants fast, efficient sales assistance and will respond quickly. They have also been known to buy as ‘contended tribes’ – one buys, a family buys.
International buyers – these buyers tend to be very sensitive to the price point, exchange rates and location. It’s all about the numbers to them. With sometimes being later aligned to factors such as access to a select schools or universities.
Investor Networks – as I have already outlined this is a very important group moving into 2013, and is very tied into the demand for rental accommodation, which I will cover in a post later this week and our investors are ever more demanding. These networks take experience and dedication when managing and servicing to deliver successful results.
Retirees – we know this group well and have been selling to their needs for the last 10-15 years. Now the question to ask is who are they buying for? A new home for themselves, their kids to help them into the market or for their retirement via a SMSF.
 
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Marketing into 2013 and beyond
It is clear that our buyers are a complex lot!
More demanding, more market savvy and in some cases in no particular hurry and this all adds up to a marketing environment where there will be a number of imperatives for success and all must be meet head-on.
Above all it is essential to know and understand inside out the audience you need to reach and engage. Marketing plans will also need to be refined to capture a critical mass of <a target="_blank" href="/guides">off-the-plan</a> sales in a setting that is more critical than ever from a funding perspective, but also securing sales where urgency is not driving buyers.
If sales at completion are the better plan then again the pressures will be very different and the financial pressures will again have to be factored in. In combination all of these factors lead us to more than ever appreciate how important it is to have a full detailed and effective sales environment. Once we have the buyer interested in our project the right sales environment will pay dividends.
Where will development occur in Sydney?
Against the criteria I have outlined let’s look at the market ahead for 2013 in two areas – inner and outer and in each case what will drive demand.
Because of the concentration of apartment projects lets start with the inner suburbs. In this group, and because they meet the points outlined earlier I think that some of the key inner locations will include: <a href="/news">North Sydney</a>, <a href="/news">Wolli Creek</a>, <a href="/news">Eastwood</a>, <a href="/news">Gladesville</a>, <a href="/news">Cronulla</a>, <a href="/news">Sydney CBD</a>, <a href="/news">Bondi Junction</a>, <a href="/news">Waterloo</a> and <a href="/news">Botany</a>.
As a group these locations all offer three key incentives that buyers are after, convenience, amenities (in particular transport &amp; education) and existing infrastructure.
When we turn to look at the outer areas the picture is less clear, just this weekend there has been another announcement of 170,000 homes.
The New South Wales Government has unveiled what look like a somewhat ambitious plan to supply the more 170,000 new homes across greater Sydney. The plan also nominates eight existing suburbs that will be re-zoned for 30,000 new high-density apartment blocks.
However the key drivers of demand in outer markets will be those areas aligned with both existing and new rail corridors, with only one new link, the south west link actually underway that area should benefit.
Sydney’s motorway upgrades are also key but so far they have not delivered and a racing to catch-up. While where essential services are not available development will lag and this will give in-fill sites the upper hand in marketing and buyer demand.
Stamp duty must go
As frequently stated here in Project Agenda, by others and myself and by the PCA stamp duty is a regressive tax. Just stop for a minute and think about how much GST is tied up in a development project and how that is double taxed in the hands of the buyer, and how do Baby Boomers move when every step they take is also caught by stamp duty.
Looking at all of the drivers I think that 2013 will see improved sales volumes, there will be a clear and much more critical focus among all buyers on central locations. Off-shore in particular Asian buyers will be key as will singles and double income buyers – the ‘Sinks’ and ‘Dinks’ may well dominate as they are less financially conservative.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
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Five key drivers in Sydney's apartment market: Peter Chittenden

<html><body>Australian Property Monitors (APM) has released a list of results from 375 auctions in Melbourne for the weekend of  March 23. <a target="_blank" href="https://www.homepriceguide.com.au/saturday_auction_results/Melbourne.pdf" rel="nofollow" style="font-size: 14px;">Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

APM's Melbourne auction results for March 23 weekend

<html><body>Australian Property Monitors (APM) has released a list of results from 529 auctions in Sydney for the weekend of March 23. The clearance rate was 70.5%. <a href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf" target="_blank">Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

APM's Sydney's 529 auction results show a 70.5% clearance rate

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Moyvane, a $5.1 million <a target="_blank" href="/news">Kew</a> property was the weekend's top sale.
Melbourne's second most expensive weekend property sold was a five-bedroom <a target="_blank" href="/news">Elsternwick</a> house, Lurgancanty, which sold for $5 million.
Moyvane, a grand five-bedroom 1895 Victorian Era residence sits on a 2,648-square-metre holding directly opposite Yarra Bend Park.
It was offered for <a target="_blank" href="https://30walmerst.com/homepage">the first time in more than eight decades</a> through Jellis Craig agent Geordie Dixon.
There was a $4 million opening bid with three competing for the Walmer Street offering which was announced on the market at $4.8 million.
Lurgancanty is set on 2,200 square metres, with a pool and separate staff quarters at 59 Allison Road.
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.bigginscott.com.au/property/details/9576">It sold through Bill Stavrakis at the Biggin Scott agency.</a>
Brighton had 28 scheduled auction with 24 results provided to the REIV with $2.05 million the highest recorded sale. <a href="/news">There were five higher passed in results</a>.
Melbourne's Bayside saw a lower clearance rate of 55% this weekend, a bit of a disappointment contrasting with the strong results in areas like Boroondara and Stonnington, according to James Buyer Advocates.
"<a href="https://marketnews.com.au/tag/brighton/" rel="tag" title="Posts tagged with Brighton">Brighton</a> in particular saw a number of pass-ins with no bidders at all," their weekend auction report said.
These included 1a Wellington Street, which passed in at $2,800,000, 37 Drake Street at $3,375,000, and 27 Normamby Street at $2,250,000.
"Even so, Bayside has seen a sale over $3 million almost every week so far this year.
"And more new ‘<a href="https://marketnews.com.au/tag/top-end/" rel="tag" title="Posts tagged with Top End">top end</a>’ stock is becoming available.
It includes Blair Athol (pictured below), at 5 Leslie Grove, Brighton, which is back <a target="_blank" href="https://www.domain.com.au/Property/For-Sale/House/VIC/Brighton/?adid=2007444290">on the market after </a> selling for $8 million on late 2009 to the Horne family.
{yoogallery src=[images/stories/2013/03/march25blairathol]}
Note: the above pictures are from a previous marketing campaign by Kay &amp; Burton.
Its been listed with Nick Johnstone Real Estate, with a tender process commencing after Easter.
Set on 3,372 square metres, with pool and tennis court, its a property steeped in history with gardens originally designed by Edna Walling.
Its previous owners include Craig Kimberley of Just Jeans fame who sold it to the Tabcorp and Southcorp chief executive officer Ross Wilson in 1994 for $2.95 million, soon after relocating to Melbourne from Adelaide.
<div>
<a title="With $865 million in sales, Super Saturday residential auction success as results hold steady in Sydney and Melbourne" href="https://www.propertyobserver.com.au/news/super-saturday-residential-auction-success-as-results-hold-steady-in-sydney-and-melbourne/2013032360041?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">With $865 million in sales, Super Saturday residential auction success as results hold steady in Sydney and Melbourne</a>.</div>
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<div>Estate agents can now march into April with further confidence vendors and buyers are on the same price page.</div>
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Kew edges Elsternwick with weekend top sale with Brighton bypassed

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The most expensive apartment sold in Sydney listed at the weekend was a three-bedroom apartment at The Residence in Darlinghurst, overlooking Hyde Park.
The unit 72/14-24 College Street was sold to a Chinese property developer for $4.55 million through CBRE agent Ben Stewart.
The 232 square metre 17th floor three-bedroom, three-bathroom apartment was developer stock.
“It was a good price. There has definitely been a significant improvement in the market this year,” he told The Australian Financial Review.
<div>
<a href="https://www.propertyobserver.com.au/news/super-saturday-residential-auction-success-as-results-hold-steady-in-sydney-and-melbourne/2013032360041?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" title="With $865 million in sales, Super Saturday residential auction success as results hold steady in Sydney and Melbourne" target="_blank">With $865 million in sales, Super Saturday residential auction success as results hold steady in Sydney and Melbourne</a>.</div>
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<div>Estate agents can now march into April with further confidence that vendors and buyers are on the same price page.</div>
The strongest region was the upper north shore at 83%, where results for 35 auction were reported to APM.
The inner west was also strong at 76%, with the east at 73%.
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Chinese developer buys $4.55 million The Residence, Sydney in top weekend unit sale

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“As if…”
As someone previously employed in the mining sector, I’ve spent far too much of the past 13 years writing annual reports and ASX stock market releases for listed companies, and if there’s one thing you learn very quickly as a Group FC it’s that you're often the only person who understands the company financials (and often you're one of very few people who appears to even care).
This is one of the many reasons people invest in stocks so badly, for if you don’t fully understand the detailed financials, how on earth can you know what a company is worth?
Opaquely, some companies report “normalised earnings” almost every year, which sceptics now refer to as “as if earnings” as in: “Here are our earnings as if we didn’t have our loss-making operations…”
From writing stock exchange releases I also know only too well that if you manipulate statistics (especially from small sample sizes) hard enough and often enough, you can prove just about anything by "torturing the figures until they confess".
Nowhere are statistics manipulated harder or tortured more often than in residential real estate. Always challenge what you are told, and remember this key rule of investment…
“If something looks too good to be true, it probably is”
A fine case in point was the February Labour Force data released last week which showed that the Australian economy seemingly added an unbelievable 71,500 jobs in a month.
That statistic is definitely too good to be true, but it nevertheless raised the ire of Hotspotting’s Terry Ryder:
“They [economists] told us the jobless rate would rise, with only 10,000 new jobs created. The outcome was 70,000 new jobs created and the jobless rate steady at 5.4%. Do we get our money back? Or an apology at least?”
<a target="_blank" href="https://petewargent.blogspot.com/2013/03/stunning-employment-figures-confound">If you understand how</a> the samples are collated, rotated and extrapolated, you would know that forecasting jobs growth accurately month-on-month is impossible.
The February numbers were too good to be true and next month’s figures will be correspondingly weaker.
Real estate myths
It’s been a busy week for Ryder with him again taking aim at investors in capital city properties:
“The fossils of real estate are creatures known as Mythosaurus. They’re the relics who cling to ancient folklore such as “the inner-city suburbs provide the best growth” and “Sydney’s good suburbs are the strongest in the nation”. The factor that all myths have in common is that they are unsupported by research evidence. But Mythosaurus does not concern him or herself with inconveniences like statistics.”
Instead, Ryder <a target="_blank" href="https://www.propertyobserver.com.au/queensland/infrastructure-creates-jobs-and-capital-growth-terry-ryder/2013031859926">tips Bowen in Queensland</a> in spite of its 17-18% vacancy rate, puts <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/change-is-the-only-constant-in-real-estate-terry-ryder/2013032059952?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=upperright">Cairns</a> back on the watchlist after its <a target="_blank" href="https://realestatetalk.com.au/kevin-turner-interviews-margaret-lomas-about-the-worst-advice-shed-ever-been-given/">desperately miserable run</a> and went on to highlight that: “Port Augusta has a median house price of $175,000, despite <a target="_blank" href="https://www.propertyobserver.com.au/south-australia/south-australia-is-becoming-a-globally-significant-resources-state-terry-ryder/2013031359827">annual growth averaging 12% over the past 10 years.</a>“
Naturally enough Ryder has picked out a town with outstanding growth, but...whoa! "Growth" of 12% per annum and houses still only cost $175,000? 12%!
Mr Mythosaurus may not like to concern himself with the inconvenience of statistics, but he may wish to look a little more closely at that.
Why don’t we all invest in small towns like Port Augusta? Firstly, because of gearing into an illiquid asset in these times of elevated household leverage as property owners across Europe and the US have discovered to their cost.
And secondly, because quoting median suburb “growth” figures over a carefully selected timeframe is a commonly employed spruik, for as experienced investors well know "growth" can be distorted by a range of factors.
How to calculate ACTUAL capital growth
Go back a reasonable period of time of, say, 20 years to 1993, a time horizon which incorporates the greatest boom in the history of Australian household debt and property values, and <a target="_blank" href="https://www.onthehouse.com.au/">see what houses in Port Augusta were selling for</a> in that year, which was typically between $40,000 and $80,000 (with an outlying few selling for significantly more).
With your dusted-off compound interest tables to hand you'll discover that the implied growth over 20 years for most houses appears to track remarkably consistently at around 6% per annum or sometimes a little below. Interestingly the cheapest properties in their growth infancy tended to fare the best, perhaps partly due to the ability of owners to add value through improvements - the premium properties which sold for as much as $150,000 or more two decades ago by and large have shown diabolical growth. 
Sure there are some outliers and some properties displayed woeful growth at times, but one assumes that as an investor you would have avoided these. 6% p.a. is materially lower capital growth than an experienced investor in the closest major city market of Melbourne would have expected to achieve over a corresponding time period, and it is also lower than the returns you would have expected from an equivalently resources-focused city such as Perth.
Now you might say that 6% is solid enough capital growth, and you’d be absolutely right.Remember though, that in the preceding days of higher inflation interest rates tumbled from an eye-watering 17.50% in 1990 to just 4.75% in 1993 and the result of this structural shift was the greatest leveraging up by households in Australia’s history.
<img alt="wargentmarch25one" height="383" width="470" src="/images/stories/2013/03/wargentmarch25one.gif">
The RBA <a target="_blank" href="https://www.rba.gov.au/speeches/2013/sp-ag-140313">warned Australians last week that this borrowing bonanza plateaued in 2006</a> and its like will not be seen again. In fact, if you have owned a property in Port Augusta since 2008, you would be aware that many houses have declined in price since that time, doubtless not helped by BHP's shelving of its proposed Olympic Dam expansion.
<img alt="wargentmarch25two" height="416" width="470" src="/images/stories/2013/03/wargentmarch25two.gif">
 
 
 
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Actual capital growth in capital cities In recent years, prices in some capital cities have increased (Melbourne, Sydney, Canberra) but have been weak in cities such as Adelaide and Brisbane. Of course, median price growth in capital cities gets distorted too, with the average capital growth dragged down by the dross and the remote under-performers, but investors in quality properties reasonably close to the centres of the cities aim for far higher actual capital growth over the long term than is generally attained in the regions.
<img alt="wargentmarch25three" height="382" width="470" src="/images/stories/2013/03/wargentmarch25three.gif">
Can Mr Mythosaurus give you an example of actual capital growth in the closest major metropolis to Port Augusta? Well, here's just one example of many: we've just seen a villa unit in <a href="/news">Camberwell</a> (9km to the east of Melbourne's CBD) sell for $585,000 - it last changed hands in the same condition in July 2000 for $186,000 - a comfortably compounding growth of ~9.25% per annum over nearly 13 years since it was last sold. No data distortion there, purely a huge demand in that suburb for a quality medium-density property.
How does median price growth become so distorted?
Through 2011 and 2012 I went on the road for 15 months and travelled to virtually every significant town and city in Australia. If you stroll around Port Augusta what you find is a significant number of newer houses on titles which last changed hands between 1997 and 2003 for somewhere between $8,000 and $30,000. You don’t need me to tell you that a house bought for well under $10,000 in 2003 (which is now worth more than $220,000) wouldn't have resembled Kirribilli House when acquired, and it has not simply magically appreciated to more than 22 times its previous value.
It's exactly the same principle as empty plots of land selling in Port Augusta for just $6,000 in 2004 the titles of which are valued today at more than $220,000...that's "growth" of more than 92% per annum because they have now been built on.
Such gross distortions in suburb median prices commonly represent developers paying land value (or land value less demolition value) for an old house in order to improve the site with a new property. The result is an abnormally depressed median price in the years the old houses are bought followed by an outrageous spike in the following years when newer or greatly improved houses hit the market.
<img alt="wargentmarch25four" height="364" width="470" src="/images/stories/2013/03/wargentmarch25four.jpg">
<a imageanchor="1" href="https://2.bp.blogspot.com/-5dCfy3woc00/UUluihURngI/AAAAAAAAI2g/NA9kXCLzEJw/s1600/APM+Port+Augusta.jpg"></a>
Source: APM
Suburb life cycles
This is all fairly typical of the life cycle of a small town or a fringe suburb where land values are extremely low and a building boost can massively distort median prices in the short term.
Extremely cheap properties in the infancy of growth can certainly experience a “catch-up phase”, and if population and employment growth ignite the initial flame then the median price can produce a fairly consistent growth trend in existing homes as wages increase.
However, a boost in new builds can also subsequently disguise a significant lull in median prices. As land is released to facilitate new accommodation existing homes may plateau in price and stagnate or decline as those moving in are attracted to the newer builds.
Thus consistently outperforming growth in actual house prices can only be expected if land is not released or zoning approvals are not granted to accommodate the increasing population.
Future median price growth will be lower
Although it is mentioned inappropriately rarely (or never) by promoters of real estate, leveraging up into an illiquid asset if you don’t know what you are doing is risky.
All of this is not to say that you can’t do OK by investing in a small town if you pick the right one and buy a good property, but merely to highlight two things.
Firstly, quoted suburb median price growth can be misleading and it is certainly no guarantee of future returns.
And secondly, given that the Reserve has a targeted CPI range of just 2-3%, absent an unlikely return to the days of rampant inflation median future capital growth in property must be lower than that experienced in the past.
Property prices in Australia are high and if you use debt to speculate in the wrong asset type you could experience severe financial loss.
Pete Wargent holds a range of finance and property qualifications and is the author of <a rel="nofollow" href="https://petewargent.blogspot.com.au/" target="_blank">Get a Financial Grip – a simple plan for financial fr</a><a rel="nofollow" href="https://petewargent.blogspot.com.au/" target="_blank">eedom.</a>
 
 
 
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pwargent-M4siyDbqQY

If something looks too good to be true, challenge it: Pete Wargent

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Weekend auction clearance rates held steady in Sydney and Melbourne despite its super Saturday status with $865 million in residential sales.
<a href="/news">Sydney</a> recorded yet another high clearance rate with a 70.5% success rate, based on the initial Saturday results.
"The Sydney Super Saturday produced a strong 70.5% clearance rate despite high listing numbers," Dr Andrew Wilson, from Australian Property Monitors said.
Australian Property Monitors (APM) reported $300 million in sales from 485 auction results.
They had expected around 682 auctions to be held, so some 200 further results need to be added before any final tally.
It was the sixth consecutive week with the Saturday night provisional tally standing at around 70% or higher.
However on most of those week's, the additionally collected results from late filing agents, took the final figure below, so that in the last weekend results, for March 16, was actually 68.7% rather than the initially reported remarkably good 75%.
The expensive apartment sold in Sydney over the weekend was a three-bedroom apartment at <a target="_blank" href="https://www.propertyobserver.com.au/auctions/chinese-developer-buys-%24455-million-the-residence-sydney-in-top-weekend-unit-sale/2013032460044?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">The Residence in Darlinghurst</a>, overlooking Hyde Park, which sold for $4.55 million.
<a href="/news">Melbourne</a>'s clearance rate was 68% this weekend compared to 68% last weekend. There were $565 million in sales.
"Today's result demonstrates the underlying strength of the market currently as the outcome is consistent with this year's trend and the volume of auctions is higher than seen since mid December 2010," Enzo Raimondo, the REIV chief executive said.
There were 1047 auctions reported to the REIV today, with 712 selling and 335 being passed in, 215 of those on a vendor bid.
<a href="https://www.propertyobserver.com.au/auctions/kew-edges-elsternwick-with-weekend-top-sale-with-brighton-by-passed/2013032460046?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">Moyvane</a>, a $5.1 million <a style="font-size: 14.545454025268555px;" target="_blank" href="/news">Kew</a> property was the weekend's top sale.
The REIV are expecting 1160 results to be the full tally.
 
 
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