<p>An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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>.</p>

<p>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.</p>

<p><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." /></p>

<p>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.</p>

<p>&nbsp;</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>Rebel had secured approval for the concept plans late last year.</p>


Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p><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_" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=7395 project_image_fid=278194]</p>

<p><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.</p>

<p>"<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.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=7395 project_image_fid=278196]</p>

<p>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.</p>

<p>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.</p>

<p>"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;</p>

<p>"Every apartment was to feel considered, timeless, and highly functional."</p>

<p>[smartcode_project:default project_id=7395 project_image_fid=278195]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.</p>

<p>"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."</p>

<p>[smartcode_project:default project_id=7395 project_image_fid=278204]</p>

<p>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.</p>

<p>Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.</p>

<p>[smartcode_project_cta:default project_id=7395]</p>


Juliet to sit quietly amid Roseville apartment boom

<p>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.</p>

<p><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.</p>

<p>The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=370959]</p>

<p>“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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=370964]</p>

<p>“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.</p>

<p>“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.”</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=371430]</p>

<p>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.</p>

<p>Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.</p>

<p>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.</p>

<p>LPS Group is expected to start construction later this year.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=150017]</p>


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

<p>Are mortgage holders set to get a reprieve from the RBA in 2026?</p>

<p>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.</p>

<p>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.</p>

<p>“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.</p>

<p>"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.</p>

<p>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.</p>

<p>“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.”</p>

<p>Dr Auld said inflation risks and labour market outcomes would be important to watch.</p>

<p>“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.”</p>

<p>She said tighter financial conditions are expected to weigh on housing and activity.</p>

<p>“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.”</p>


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

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>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;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>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.</p>

<p>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).</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<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>

<p>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.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

<p>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.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>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.</p>

<h2>What is NatHERS?</h2>

<p>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;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>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.</p>

<h2>How NatHERS Ratings Work</h2>

<p>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.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> 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.</p>

<p><strong>Cost Savings:</strong> 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.</p>

<p><strong>Environmental Impact:</strong> 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.</p>

<p><strong>Improved Comfort: </strong>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.</p>

<p><strong>Market Value and Desirability:</strong> 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.</p>

<p><strong>Compliance with Building Codes:</strong> 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.</p>


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?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>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.</p>

<h3>Convenience and accessibility</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>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.</p>

<h3>Vibrant lifestyle and community</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>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.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>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.</p>

<h3>Enhanced security and maintenance</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>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.</p>

<h3>Live-work-play balance</h3>

<p>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.</p>

<p>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.</p>


alisonwarters@gmail.com

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

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><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></p>

<h2>Who pays Stamp Duty?</h2>

<p>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.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>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.</p>

<p>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!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<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>

<p style="line-height:1.38">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.</p>


Ellen Walker

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

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<p>Hengyi Australia, the mainland Chinese developer which is developing The William, has signed a significant deal with The Wyndham Hotel Group, the world's largest hotel chain.</p>
<div>The Wyndham Hotel Group has bought 87 apartments at The William, which it will manage as serviced apartments.</div>
<div>
<p>The William, which is situated at 199 William Street opposite the Supreme Court, is a 23-level, architecturally designed, 7-star rated building.</p>
<p>Offering a range of one, two and three-bedroom apartments, <a href="https://www.199william.com.au/" target="_blank">The William</a> will also offer serviced apartment accommodation on four of its 23 levels.</p>
<p>The Wyndham Hotel Group is the world’s largest hotel enterprise with 609,600 rooms in 66 countries and owns 15 hotel brands.</p>
<p><a href="https://www.propertyobserver.com.au/companies/hengyi-australia" target="_blank">Hengyi</a> director Jeff Wang said The William was inspired by glamorous, hotel-style city living. Its future residents will enjoy a 24-hour concierge service as well as luxury amenities such as a rooftop swimming pool and barbecue area, gymnasium, library and theatre.</p>
<p>“Being a residential development among commercial and office space, The William will change the culture and the landscape,” Min Wang, chairwoman of Hengyi said of the project.</p>
<p>“We are certain that the inclusion of Wyndham hotels will be a dynamic new demographic to the northwest of <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/victoria/tallest-building-in-southern-hemisphere-approved-for-melbourne/2013031759915" target="_blank">Melbourne’s CBD</a>.”</p>
<p>The William development is well under way by Built Construction, and is expected to be completed by August 2014.</p>
</div>
<p>The William apartments are set within the conversion of the former Telstra building, which became vacant in 1994 and was infamously known as a “ghost building”.</p>
<p>Min Wang saw the potential it offered and scooped it up for $45 million in early 2011.</p>
<p>Wang chose property as her first venture into the Australian market.</p>
<p>“It was a risk, but it has paid off,” says Wang, who has sold more than 75% of the 480 apartments spread over its two towers.</p>
<p>“By redeveloping this iconic Melbourne building into a contemporary classic for inner-city residents, we are taking a very sustainable and cost-effective approach,” says Hengyi’s Danielle Ashworth.</p>
<p>“Being a residential development among commercial and office space, The William will change the culture, it will change the landscape,” says Wang.</p>
<p>One-bedroom apartments range in size from 45 square metres to 55 square metres and range from $359,000 to $470,000.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2013/02/william1.jpg" alt="william1" width="470" height="265"></p>
<p>Two-bedroom apartments range from 58 square metres to 75 square metres and cost between $405,000 and $620,000.</p>
<p>Three-bedroom apartments range up to 80 square metres and start from $750,000.</p>
<p>The project was launched exclusively to Singapore investors several months ago.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2013/02/william2.jpg" alt="william2" width="470" height="265"></p>
<p>The developers also offer offshore buyers a rental guarantee, and the developer will pay for any legal costs.</p>
<p> </p>
<hr class="system-pagebreak">
<p>As some Australian developers struggle to secure finance to commence projects and are often reliant on locking in adequate pre-sales before banks will lend any money to them, Asian developers are increasingly looking to the Australian market.</p>
<p>“The Australian property market is more mature than China’s, its laws are clearer, and business dealings are simple and direct,” says Wang.</p>
<p>“I have travelled a lot and seen a lot of other cities, but there was something more relaxed about Melbourne, and I felt so easily connected to it.”</p>
<p>It is no surprise that Wang chose Melbourne, after it was touted the world’s most livable city.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2013/02/william3.jpg" alt="william3" width="470" height="265"></p>
<p>The developers of The William list three reasons why they chose to invest in Melbourne.</p>
<p>Firstly, Melbourne is the fastest-growing city in Australia. This population growth, especially in the CBD, is driven by the growth in overseas migration and international students.</p>
<p>The population of the Melbourne CBD has grown over the past five years at a rate of 13.9% per annum.</p>
<p>This population growth will mean a significant and growing shortage in dwellings, and with a vacancy rate of 2.4%, rents are growing faster than inflation, which is good news for investors.</p>
<p>Golden Hills property group acts as the middleman for offshore investors and local investors for The William.</p>
<p>A spokesperson from Golden Hills told <em>Property Observer</em> that Asian buyers look to Melbourne for investment properties as it has a strong offering of universities.</p>
<p>Many Asian buyers have the mindset that it is worthwhile to invest in a property where their children can live while they attend Australian university for the duration of their degrees. The investment property also acts as a home away from home for the investor.</p>
<p>Golden Hills says that inner-city localities throughout Asia are viewed as better assets than middle-ring or outer suburbs, and therefore the same logic applies in Melbourne.</p>
<p>Some local market watchers have described the amount of Asian investment in Australian CBDs as a “frenzy”.</p>
<p>Associate professor in environment and planning at RMIT Michael Buxton told <em>The Age</em> recently that foreign developers were participating in a frenzy that threatened the viability of Melbourne’s apartment market.</p>
<p>He suggested a one-bedroom apartment of just 55 square metres would be common in overseas cities like Hong Kong, but new for Melbourne.</p>
<p>This view was rejected by Victorian Planning Minister Matthew Guy, who said Buxton was targeting these developers based on their ethnicity.</p>
<p>The old Telstra building was constructed in 1966 for the Postmaster-General’s Department, and in 1975 Telecom Australia – later Telstra – became the owner.</p>
<p>Telstra remained the main tenant until moving out in 1994 to an office complex on Exhibition and Lonsdale streets.</p>
<p>The empty shell was bought by Singaporean billionaire Tay Tee Peng for $12 million, who then spent a further $10 million to refurbish it but struggled to attract successful tenants.</p>
<p>The William is designed by Bruce Henderson Architects, with interior designs by Carr Design Group.</p>
<p><em style="font-size: 14px;">For more on the allure of Australian property to Asian buyers, <a href="https://www.propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment" target="_blank">download our free eBook. </a>The eBook is also available for<a href="https://www.propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook" target="_blank"> free download in Chinese.</a></em></p>
<p><em style="font-size: 14px;"><em style="font-size: 14px;">For great tips on buying off the plan, download </em>Property Observer<em style="font-size: 14px;">’s free ebook – <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=14e9848476&amp;e=7a53fc6dd9" target="_blank" rel="nofollow">14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.</a></em></em></p>
<p> </p>
<p> </p>
<p><em style="font-size: 14px;"><em style="font-size: 14px;"> </em></em></p>
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ntrotman-Et3xWpamVh

Wyndham welcoming at The William in Hengyi Australia's first venture

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<p>The auction of 1/21 Hampden Rd Armadale got off to a slow start and the property looked like it would be passed in at $950,000. But the rain failed to dampen the competition as four bidders finally declared their hand and the property sold for $1.21 million.</p>
<p>In Sydney there were no doubt a few Boags beers drunk last Saturday night as the family of the famous brewer sold the family home well in excess of the reserve. Prior to the auction the property was expected to sell for around $1.25 million but multiple bidders pushed the price to $1.415 million.</p>
<p>This week the downsizing baby boomers will be out in force when the perfect retirement property goes to auction. <a target="_blank" href="https://www.realestate.com.au/property-house-vic-hawthorn-113159479">1/15 Lisson Grove, Hawthorn</a> has the all-important master bedroom with ensuite on the ground floor and comprises a further two bedrooms and double lock-up garage.</p>
<p>The property (pictured below) is expected to sell in excess of $900,000 but don’t be surprised if it well and truly goes over $1 million.</p>
<p><img alt="tippingmarch22one" height="349" width="470" src="/images/stories/2013/03/tippingmarch22one.jpg"></p>
<p>In Sydney, <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-newtown-113170791">87 Campbell Street, Newtown</a> (pictured below) is a tricky one to put a price on. It is a unique property with very few comparable sales to help determine the value. The warehouse conversion has been designed to accommodate a separate business and residence.</p>
<p>Agent Michael Glynn from McGrath Real Estate is looking for buyers with more than $1.7 million to spend.</p>
<p><img alt="tippingmarch22two" height="311" width="470" src="/images/stories/2013/03/tippingmarch22two.jpg"></p>
<p>There's now a website, <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://mail.privatemedia.com.au/owa/redir.aspx?C=KgoIydkbbkqcxEmtHCpjYzenKRip4s8ILx-ixDagf2W2XMdG8J7GWA4FzDXhsR5a7S8fbUw_Jbw.&amp;URL=http%3a%2f%2fwww.propertytycoon.com.au%2f">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener. This season <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow"><i>Property Observer </i>readers have their own competition, which you can access here</a><i style="font-size: 14px;"><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a></i> The winner of the overall competition will win $1,000.</p>
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marmstrong-sd3emVLPPb

Unique Newton warehouse could crack $1.7m in Property Tycoon auction tipping

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<p>The big four banks – Commonwealth Bank, Westpac, NAB and ANZ – have more room to move on mortgage rates then their regional banking rivals, a new paper published by the RBA suggests.</p>
<p>The paper prepared as part of the RBA’s March quarter bulletin highlights a tougher funding environment for regional banks compared with the major banks – though overall funding costs have eased across the sector as interest rates have fallen.</p>
<p>“For the regional banks, the evidence suggests that the overall increase in funding costs since the onset of the global financial crisis has been larger than the increase in funding costs experienced by the major banks,” write Benn Robertson and Anthony Rush in their paper <em>Developments in Banks’ Funding Costs and Lending Rates.</em></p>
<p>Both work in the RBA's Domestic Markets Department.</p>
<p>“A large portion of this increase has been driven by the substantial shift in the composition of regional banks’ funding liabilities away from securitisation and towards relatively more expensive deposit funding, as well as an increase in the cost of their deposits and wholesale debt funding," they write.</p>
<p>Robertson and Rush also report that new mortgage customers were been able to get greater discounts last year compared with existing borrowers.</p>
<p>“During 2012, the average interest rate on outstanding variable-rate housing loans rose by about 40 basis points relative to the cash rate. This increase is consistent with the overall increase in banks’ funding costs</p>
<p>“By contrast, the average interest rate on new variable-rate housing loans increased by around 35 basis points relative to the cash rate, reflecting a small increase in the average size of discounts offered by banks to new customers, as competition for mortgage lending remained strong throughout the year.”</p>
<p>The paper reports that the absolute cost of issuing both secured and unsecured long-term wholesale debt has fallen over the past year, largely reflecting the decline in benchmark rates.</p>
<p>“In early 2013, spreads on the major banks’ unsecured bonds fell to their lowest level since late 2009.</p>
<p>The paper also reveals that all banks in Australia have increased their reliance on deposits.</p>
<p>However, the regional banks still require around 10% of their funding from securitisation – though down from the more than 25% allocation pre-GFC.</p>
<p>“The increase in the share of funding sourced from deposits over recent years has occurred across all types of banks in Australia.</p>
<p>“This trend has been most pronounced for the regional and other smaller Australian-owned banks, with their share of funding sourced from deposit liabilities doubling since 2007.</p>
<p>“Prior to the global financial crisis, these institutions used securitisation more heavily as a form of funding.</p>
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lschlesinger-FZcF9M3vE6

Better funding environment for major banks than regionals: RBA

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<p>Last year may be a distant memory to some, but when I recently reviewed various newspaper headlines from 2012 it revealed that we were a sombre lot back then.</p>
<p>Our property market was in the doldrums, the sharemarket hadn’t really started moving and even seasoned investors were wondering if the gloom would ever end.</p>
<p><strong>The pessimists were having a field day</strong></p>
<p>At the same time, the doomsayers had a multitude of things to worry about.</p>
<p>China was slowing down, commodity prices were collapsing and we were being told our mining boom was coming to an end.</p>
<p>The US economy was in trouble, the European economy was a basket case and there were concerns the world banking system would collapse.</p>
<p>And as they have done for the last few years, the overseas (and some local) property pessimists again enjoyed rubbing our noses into our high home prices, forecasting property prices would drop 15-20%.</p>
<p><strong>Well, the doomsayers got it wrong!</strong></p>
<p>But looking back with the benefit of hindsight, 2012 was a pretty good year for some investors. The world didn’t end, the share market recovered well and our property markets turned the corner in the middle of the year.</p>
<p>But not so good for everyone…</p>
<p>While all the action was going on, there were two types of property investor who didn’t do so well:</p>
<p><strong>1. The nervous nellies</strong></p>
<p>These are the potential investors who sat on the sidelines waiting for someone to ring the bell that the property market had bottomed. They have missed out on the strong capital growth that has occurred in most property markets since the middle of last year as can be seen from the following graph from <a href="https://www.macrobusiness.com.au/" target="_blank">Macrobusiness</a>.</p>
<p><img src="/images/stories/2013/03/yardneymarch22one.png" width="470" height="368" alt="yardneymarch22one"></p>
<p>Source: MacroBusiness.com.au/RPData</p>
<p>Of course, certain properties performed significantly better than the average shown in the chart above.</p>
<p><strong>2. Victims of the get-rich-quick crew and property spruikers</strong></p>
<p>Firstly a quick disclaimer: because of my enthusiasm for property, the amount of writing I do and the numbers of emails I send out, I’m sometimes called a spruiker.</p>
<p>But remember, I have no properties for sale and never have had. So my advice is independent and unbiased and my optimism comes from the perspective of over 40 years in property investing.</p>
<p>Interestingly, I seem to have heard of more investors getting themselves into trouble over the last year than I’ve come across for a while.</p>
<p>Some have bought properties off the plan and were disappointed that end project values fell short of their purchase price.</p>
<p>Others bought house and land packages in “affordable suburbs” from developers or their marketing companies, only to find that the vast oversupply at a time when they settled and the valuations on their properties didn’t live up to expectations.</p>
<p>Yet others bought in mining towns.</p>
<p>Some of these investors may not yet realise how much trouble they are in until they try to sell.</p>
<p> </p>
<hr class="system-pagebreak">
<p><strong>Why property is poised for growth</strong></p>
<p>Well, that’s all history, so the question is: where to from here?</p>
<p>As always, the pessimists will find something to worry about, but I think we’re in for a good year in property driven by:</p>
<p>&gt;A stable global economy</p>
<p>&gt;A strong local economy</p>
<p>&gt;Low unemployment – around 5.4%</p>
<p>&gt;Inflation at 2.2%, which is at the bottom of the Reserve Bank’s comfort band</p>
<p>&gt;Low interest rates stimulating consumer and business confidence</p>
<p>&gt;Strong immigration, rising rents and generally low levels of supply of good quality property</p>
<p>&gt;Robust household budgets</p>
<p>&gt;Funds flowing into self-managed super funds – much of it looking for a home in bricks and mortar.</p>
<p><strong>The final nails in the doomsayer's coffin…</strong></p>
<p>Over the last week, a number of leading indicators have made me feel even more confident about property in 2013 as they tend to pre-empt stronger property values.</p>
<p><strong>1. Consumer confidence rose again in March</strong></p>
<p>The Westpac Bank-Melbourne Institute reported consumer confidence rose a further 2.0% in March. The current level of the consumer confidence index is now around 10% higher than the long-term average and has risen 17% since April 2012. This will translate into increasing sales in all areas of our economy, including our real estate markets.</p>
<p><strong>2. Strong jobs growth</strong></p>
<p>While our unemployment rates stayed the same at 5.4%, payrolls rose 71,500 in February, the biggest jump in just over 12 years.</p>
<p><strong>3. The RBA has confirmed the property markets turned last year</strong></p>
<p>RBA governor Glenn Stevens confirmed our property markets turned last year (something those of us on the ground have known for months) and assistant governor Christopher Kent suggested construction of houses and apartments would pick up in 2013-14, and play some role in helping to support a gradual pick-up in economic growth.</p>
<p><strong>4. Rising finance approvals</strong></p>
<p>Australia’s housing finance approvals (in value terms) rose by 2.4% in January, driven in particular by investors responding to the lower interest rate environment.</p>
<p><img src="/images/stories/2013/03/yardneymarch22two.jpg" width="470" height="318" alt="yardneymarch22two"></p>
<p><strong>The bottom has now passed</strong></p>
<p>While some of our property markets offered fantastic opportunities, lack of confidence held back many would-be homebuyers and property investors last year.</p>
<p>I can understand them: it’s hard to go against the crowd and make a significant investment in property if you think the market could fall further.</p>
<p>But as the year goes on and confidence grows, more and more people will realise the markets have turned and this will propel the upturn phase of the real estate cycle, particularly in the middle brackets of our capital city property markets.</p>
<p>The property cycle bottomed in the middle of last year – right at the time the doomsayers were having a field day.</p>
<p><i style="font-size: 14px;"><strong>Michael Yardney</strong> is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>.</i></p>
<p> </p>
<p><i style="font-size: 14px;"><br></i></p>
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myardney-DFoGhGbSJX

Property doomsayers have been slayed by latest stats: Michael Yardney

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<p>This weekend is expected to be Melbourne's fifth biggest in history with 1,210 auctions.</p>
<p>"There are two reasons for the high number of auctions, firstly as consumer confidence levels are slowly rising more owners are prepared to sell and secondly a traditional spike in listings caused by Easter the following weekend," the REIV spokeperson Robert Larocca said.</p>
<p>In Sydney there are 710 auctions which is just down on last year when the weekend before Easter had 735 listings and in 2010 when there was a 750 listings super Saturday, according to Australian Property Monitors. In Sydney, <a target="_blank" href="/news">Strathfield</a> leads the way with 15 scheduled auctions and <a target="_blank" href="/news">Concord</a> and <a target="_blank" href="/news">Maroubra</a> are each expected to host 13 auctions.</p>
<p>The Melbourne suburb with the highest volume of auctions this weekend is <a target="_blank" href="/news">Brighton</a>, which has 28 homes going under the hammer. There are also 22 scheduled in each of <a target="_blank" href="/news">South Yarra</a> and <a target="_blank" href="/news">Glen Iris</a>.</p>
<div>
<div>Jellis Craig group chief executive Nick Dowling told <em>Property Observer</em> it would be a "huge weekend" for Melbourne and a "true test" of the strength of the property market.</div>
</div>
<p>The group, which operates in the upmarket inner east and eastern suburbs, will hold around 100 auctions on Saturday and Dowling expects strong clearance rates which will be "proof" of the recovery."</p>
<p>The largest weekend in history was 14 and 15 March 2008, when there were 1,351 auctions and a clearance rate of 67%.</p>
<p>On one weekend in November 2003 there were 1,241 auctions and a clearance rate of 47%, while on one weekend in December 2010 there were 1,235 auctions with a clearance rate of 57%.</p>
<p>In October 2007 there was a weekend with 1,211 auctions with a very strong clearance rate of 83%.</p>
<p>The Melbourne suburbs ranked by volume of auctions in the week ending 24 March, according to the REIV are:</p>
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<p>Suburb</p>
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<div class="column">
<p>Number of auctions</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.419980pt; border-bottom-width: 0.480010pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>YTD Clearance rate</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.480000pt; border-bottom-width: 0.480000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Brighton</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.420000pt; border-bottom-width: 0.480000pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>28</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.419980pt; border-bottom-width: 0.480000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>66 %</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.480000pt; border-right-width: 0.480000pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>South Yarra</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480000pt; border-right-width: 0.420000pt; border-bottom-width: 0.420000pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>22</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480000pt; border-right-width: 0.419980pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>78%</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.480000pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Glen Iris</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.420000pt; border-bottom-width: 0.420000pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>22</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.419980pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>76%</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.480000pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Prahran</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.420000pt; border-bottom-width: 0.420000pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>19</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.419980pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>79 %</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.480000pt; border-bottom-width: 0.480000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Richmond</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.420000pt; border-bottom-width: 0.480000pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>19</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.419980pt; border-bottom-width: 0.480000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>87%</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.480000pt; border-right-width: 0.480000pt; border-bottom-width: 0.480010pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Malvern East</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480000pt; border-right-width: 0.420000pt; border-bottom-width: 0.480010pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>19</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480000pt; border-right-width: 0.419980pt; border-bottom-width: 0.480010pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>74%</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.480000pt; border-bottom-width: 0.480010pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Elsternwick</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.420000pt; border-bottom-width: 0.480010pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>18</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.419980pt; border-bottom-width: 0.480010pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>79%</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.480000pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Kew</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.420000pt; border-bottom-width: 0.420000pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>18</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.480010pt; border-right-width: 0.419980pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>69%</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.480000pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Hawthorn</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.420000pt; border-bottom-width: 0.420000pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>18</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.419980pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>80%</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.480000pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Reservoir</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.420000pt; border-bottom-width: 0.420000pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>17</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.419980pt; border-bottom-width: 0.420000pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>67%</p>
</div>
</div>
</td>
</tr>
<tr>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.480000pt; border-bottom-width: 0.479980pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>Toorak</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.420000pt; border-bottom-width: 0.479980pt; border-left-width: 0.480000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>17</p>
</div>
</div>
</td>
<td style="border-style: solid; border-top-width: 0.420000pt; border-right-width: 0.419980pt; border-bottom-width: 0.479980pt; border-left-width: 0.420000pt; border-color: rgb(0.000000%, 0.000000%, 0.000000%);">
<div class="layoutArea">
<div class="column">
<p>67%</p>
</div>
</div>
</td>
</tr>
</tbody>
</table>
</div>
<p> </p>
<p>A three-bedroom home at <a href="https://www.realestate.com.au/buy/in-brighton%2c+vic+3186/list-1?includeSurrounding=false&amp;persistIncludeSurrounding=true" target="_blank">51 Montclair Avenue, Brighton</a> (pictured below), will go to auction tomorrow with a price guide of $730,000 to $790,000.</p>
<p><img src="/images/stories/2013/03/brightonmarch22one.jpg" width="470" height="350" alt="brightonmarch22one"></p>
<p>A five-bedroom house at <a target="_blank" href="https://www.realestate.com.au/property-house-vic-brighton-113047407">37 Drake Street, Brighton</a> (pictured below), will also go under the hammer tomorrow.</p>
<p><img alt="brightonmarch22two" height="350" width="470" src="/images/stories/2013/03/brightonmarch22two.jpg"></p>
<p>RP Data expects that over the week to Sunday 24 March, 2,415 auctions will be held across the nation's capital cities.</p>
<p>The bulk will be held tomorrow.</p>
<p> </p>
<hr class="system-pagebreak">
<p>Last week across the combined capital cities, the auction clearance rate was recorded at 62.2%, up slightly from 61.6% the prior week.</p>
<p>Auction volumes rebounded to 1,851 over the week, up from 996 the week prior.</p>
<p>At the same time last year, there were 1,454 auctions and the clearance rate was recorded at 51.4%.</p>
<p>Over the past four weeks, the combined capital city auction clearance rate has been in excess of 60% each week.</p>
<p>In Melbourne, Australia’s largest auction market, there were 928 auctions last week with a clearance rate of 66%.</p>
<p>In comparison, over the previous week of the Labour Day long weekend, there were 227 auctions held and the clearance rate was recorded at 62.4%.</p>
<p>In Sydney, the auction clearance rate was recorded at 65.6% last week, down from 67.6%.</p>
<p>Sydney auction volumes across the city increased from 533 the week prior to 647 last week.</p>
<p>Auctions continue all the way through to Easter Thursday.</p>
<p>A<a target="_blank" href="https://27springroadmalvern.com/"> four-bedroom, four-bathroom trophy home in Malvern</a> (pictured below) will be auctioned next week with price expectations of $3.5 million-plus.</p>
<p><img alt="brightonmarch22three" height="312" width="470" src="/images/stories/2013/03/brightonmarch22three.jpg"></p>
<p>Located on Spring Street on an 897-square-metre lot, it is the second time the two-year-old residence has been offered for sale.</p>
<p>It was last listed for auction in June 2011 for $3.7 million plus.</p>
<p>It is owned by Con Tangalakis, co-owner of Sinapse, a business consultancy company.</p>
<p>Architecturally designed by David Edelman architects, the home boasts a home theatre room, a miele-equipped kitchen with white stone benches and a children’s retreat.</p>
<p>The property also includes a solar heated pool and landscaped gardens.</p>
<p>Joanna Nairn from Marshall White has listed the home for a March 28 auction.</p>
</body></html>

jchancellor-FAypfDUnLy

Sydney and Melbourne pre-Easter Super Saturday auctions at near record rush with Brighton 28 listings overload

<html><body>
<p>A Lavender Bay property topped the RP Data top 10 sales of the week.</p>
<p><a href="https://www.propertyobserver.com.au/international/local-chinese-buyer-snaps-up-sydney-s-highest-weekend-auction-offering/2013031759763?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">The four-bedroom unit was sold after auction by McGrath Estate Agents for $5.6 million</a>.</p>
<p>The week's most expensive sales:</p>
<p>2/9 Waiwera Street, Lavender Bay, NSW, 2060, four-bedroom unit, sold at auction on March 16 by McGrath Estate Agents for $5.6 million</p>
<p><a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/24_bay_street_brighton_vic_3186/10003950">24 Bay Street, Brighton</a>, VIC, 3186, five-bedroom house, sold at auction on March 16 by Buxton Real Estate Brighton for $4.85 million</p>
<p><a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/61_union_street_mcmahons_point_nsw_2060/4169730">61 Union Street, McMahons Point</a>, NSW, 2060, four-bedroom house, sold on March 15 by Belle Property Neutral Bay Neutral Bay for $3.485 million</p>
<p><a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/13_john_dykes_avenue_vaucluse_nsw_2030/7141422">13 John Dykes Avenue, Vaucluse</a>, NSW, 2030, four-bedroom house, sold at auction on March 16 by Laing + Simmons Double Bay for $3.35 million</p>
<p><a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/11a_huntingfield_road_brighton_vic_3186/15691966">11A Huntingfield Road, Brighton</a>, VIC, 3186, four-bedroom house, sold on March 15 by Biggin &amp; Scott Brighton for $3.27 million</p>
<p><a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/14_gladstone_avenue_mosman_nsw_2088/4484397">14 Gladstone Avenue, Mosman</a>, NSW, 2088, four-bedroom house, sold at auction on March 14 by L J Hooker Mosman for $2.95 million</p>
<p><a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/3_boorroo_street_kangaroo_point_nsw_2224/3186557">3 Boorroo Street, Kangaroo Point</a>, NSW, 2224, two-bedroom house, sold at auction on March 16 by McGrath Estate Agents for $2.63 million</p>
<p><a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/11_wellesley_road_hawthorn_vic_3122/11196389">11 Wellesley Road, Hawthorn</a>, VIC, 3122, four-bedroom house, sold at auction on March 16 by Marshall White Real Estate Armadale for $2.45 million</p>
<p><a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/50a_champion_road_tennyson_point_nsw_2111/6755087">50A Champion Road, Tennyson Point</a>, NSW, 2111, four-bedroom house, sold at auction on March 16 by McGrath Estate Agents for $2.395 million</p>
<p><a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/48_sackville_street_maroubra_nsw_2035/4050256">48 Sackville Street, Maroubra</a>, NSW, 2035, four-bedroom house, sold at auction on March 16 by Century 21 Coastline Properties for $2.36 million</p>
</body></html>

po-LsXgBTHBmX

Lavender Bay and McMahons Point dominate the week's top sales podium: RP Data

<html><body>
<p>In times past many savvy investors would buy apartments off-the-plan, leaving only a deposit of 10%, and sell them on before settlement to make a tidy profit.</p>
<p>It made many people rich. When the GFC hit these leveraged investments also made many people broke. Some speculators are tied up in court with developers chasing their money on units that have dropped in value to much less than the investor agreed to pay. This investment strategy is only for those who are willing to take big risks with a deep understanding of residential investment.</p>
<p>“You don’t see this sort of speculation now, and as a result it is a much more stable and realistic market,” says Rees.</p>
<p>Leveraging is simply using other people’s money, either as a mortgage from a lender or sometimes from the developer, to increase the potential gain from a property investment over a fixed period of time.</p>
<p>What separates leveraged investment from long-term investment is that it must have an end date that can be calculated. It is the opposite of taking a mortgage out to buy your house, paying it off over 25 years and owning the property.</p>
<p>For example, if you buy <a href="https://www.propertyobserver.com.au/developments/don-t-underestimate-the-risks-in-off-the-plan-buying/2013031959692?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=off-the-plan" target="_blank">off-the-plan</a> and put a $10,000 deposit on a $100,000 property, you would need to borrow $90,000.</p>
<p>If the $90,000 borrowed costs you 5% in interest, it would add $4,500 to the entire cost, therefore the $100,000 investment is in fact $104,500, if you sell within that one-year period. To make a profit, the property must be sold for more than $104,500. If the property sells for $110,000 you have made of profit of $5,500.</p>
<p>The profit is impressive when calculated as a percentage gain on the capital, however take note: if the property sells for $102,000 it will cost you money rather than making it.</p>
<p><em style="font-size: 14px;">For great tips on buying off the plan, download </em>Property Observer<em style="font-size: 14px;">’s free ebook – <a target="_blank" rel="nofollow" href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=14e9848476&amp;e=7a53fc6dd9">14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.</a></em></p>
</body></html>

mlaurence-vhAHaLZT8y

Weigh up leveraged investments carefully: Tips for off-the-plan

<html><body>
<p>A feature of real estate’s recent history is the poor growth in sea change locations. A feature of the present is that many of these places are on the rise. A likely feature of the future is considerable price growth in Australian places where tourism is big.</p>
<p>Over the past five years coastal centres where the economy turns largely on tourism have struggled to deliver real estate growth. Many have gone backwards. In Queensland, the Gold Coast, <a href="/news">Cairns</a> and the Whitsundays have been among the worst of them.</p>
<p>The message has been that tourism economies are highly vulnerable to economic, political and natural disasters, both at home and abroad, as well as currency fluctuations and wild weather.</p>
<p>A tale of two northern cities illustrates how much things changed. Cairns was king in the 1980s when tourism was thriving and Japanese investors were the prime movers and shakers. Townsville down the road was the poor cousin.</p>
<p>That is a distant memory. <a href="/news">Townsville</a>, with its broadly diverse economy, has taken over as the capital of the north, while tourism-dependent Cairns has struggled. Townsville has delivered good real estate growth while Cairns has been one of the great under-achievers.</p>
<p>But change is the only constant in real estate. We’re now seeing evidence of those coastal markets rising again and Queensland property consultant Simon Pressley believes it’s a sign of major things to come.</p>
<p>Pressley, who runs 6 Point Property and the propertyology.com.au website, has published a research report which makes a strong case for a strong future for tourism-based locations. And it’s all to do with the Asian Century in which we are now immersed.</p>
<p>“I believe that Australia’s tourism industry will be the next sector to produce investment riches,” he says.</p>
<p>Pressley says the major force behind this is “the enormity of the rise of Asia’s middle class”.</p>
<p>“Asia is in the midst of urbanisation which has created unprecedented demand for ‘rocks and crops’ – the iron ore and coal to construct numerous new gigantic cities plus the agricultural products to support <a href="/news">Asia’s new-found modern diet</a>.</p>
<p>“Dinosaurs, koalas, crocodiles and casino chips will be Asia’s next interest in Australia. The numbers are already showing that Australia is high on their list of most desirable holiday destinations.”</p>
<p>Incomes are rising in nations such as Malaysia, India, China and Indonesia and our proximity to these expanding Asian markets heralds the beginning of a new era of tourism growth and investment opportunities.</p>
<p>Pressley says: “China has already overtaken the UK as our second highest source of tourists, behind only New Zealand. And we are only a couple of laps into this Asian Century marathon.”</p>
<p>His report includes some impressive numbers on the importance of tourism to the national economy: it adds $35 billion to GDP each year, employs 500,000 people and is on target to attract six million international tourists this financial year – spending, collectively, $102 billion.</p>
<p>We are now getting half a million Chinese visitors a year and the Tourism Forecasting Committee predicts one million per year will arrive by 2020.</p>
<p>“Asia’s middle class is rising faster than Gina Rinehart’s bank balance,” Pressley says.</p>
<p>It’s probably not coincidence that Chinese investors are becoming a major force in Australian residential property, spending increasingly large sums on real estate in Sydney, Melbourne and the Gold Coast.</p>
<p>Pressley also warns that investing in tourism-based economies can be a trap for Australian investors. “Tourism locations deliver one of the biggest sucker punches imaginable for the DIY property investor,” he says. “People confuse the emotion they feel when away relaxing with property market fundamentals.”</p>
<p>Very true – it’s why so many people have blown their savings on a high-rise apartment on the Gold Coast.</p>
<p>But the latest statistics show that the strongest growth in sales of residential property in Queensland are being seen in those coastal tourism-based markets, headed by Hervey Bay and the Sunshine Coast, but also including Cairns and the Gold Coast.</p>
<p>Keep watching this space.</p>
<p><i><strong>Terry Ryder</strong> is the founder of <a target="_blank" href="https://www.hotspotting.com.au/">hotspotting.com.au</a></i></p>
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terryryder-YECXbqmri2

Change is the only constant in real estate: Terry Ryder

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<p>One of the biggest risks is that a developer or builder will go under before completion or that a project will fail to get off the ground, but this should result in no financial loss for the buyer.</p>
<p>When you pay your 10% deposit to secure your property it is held in trust either by the selling agent or vendor’s solicitor.</p>
<p>If the developer is unable to go ahead for whatever reason buyers will get their money back.</p>
<p>Another big issue is often the final product. Carolyn Chudleigh, a partner at law firm Holding Redlich, says the best way to protect yourself from a nasty shock is to check every detail on the sale contract, particularly regarding the finishes.</p>
<p>“Most disputes arise from a buyer not being happy with the end product. The best way to avoid this is to be aware of exactly what all of the finishes should be,” she says.</p>
<p>“You should look at the schedule of finishes for all parts of the property, including floor coverings, colour schemes and kitchen appliances. Know everything about the interior, down to how many power points there will be in every room. All of this can be negotiated before exchange of contracts and should be included specifically in the contract if you want to be able to enforce performance against the vendor. If a contract is skinny on detail, there may be little room for complaints at the end of the day,”she says.</p>
<p>Timing of delivery can also be an issue for people buying property <a href="/guides" target="_blank">off-the-plan</a>.</p>
<p>“Developers do need flexibility in the sale contract so they can ensure successful delivery of the apartments, and there are many situations that may cause the delivery date to be extended, such as wet weather.</p>
<p>“Become familiar with what is on the contract that will allow the ‘sunset’ completion date to be moved. Leave no room for surprises. If you do not understand the contract, take it to a conveyancer and have them read it and explain it to you. Do not cut costs, because with buying off the plan you cannot see exactly what you are signing up for,” Chudleigh says.</p>
<p>Purchasers have successfully been awarded large sums of money through the courts where their views have been built out contrary to assurances from marketing agents, so there is recourse.</p>
<p>In Victoria, a new consumer law aimed at improving transparency and disclosure for off-the-plan property came into force early 2012.</p>
<p>The front page of all sales contracts must state three things: that the amount of a deposit is negotiable but cannot exceed10% of the purchase price; a “substantial period of time” may pass between signing the contract of sale and when the buyer becomes the registered owner of the property; and the value of the property may change between the time the contract is signed and when the buyer takes ownership.</p>
<p>These detailed and clear warnings on the contract highlight the risks that are taken when buying off-the-plan.</p>
<p>When it comes to signing the contract you should be completely satisfied with all terms. If you are not satisfied by certain clauses, you should ask to have them amended, though the developer may refuse.</p>
<p>The bottom line is that if you are not happy with the contract, you should seek legal advice. If the developer adopts a “take it or leave it” approach, your best bet may be to leave it.</p>
<p><em style="font-size: 14px;">For great tips on buying off the plan, download </em>Property Observer<em style="font-size: 14px;">’s free ebook – <a target="_blank" rel="nofollow" href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=14e9848476&amp;e=7a53fc6dd9">14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.</a></em></p>
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Don't underestimate the risks in off-the-plan buying

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<p>When we talk about the strength of the property market it is very easy to point to clearance rates as the main barometer. Although clearance rates are a good indicator of what is happening week to week, we need to look a bit deeper to anticipate where the market is heading.</p>
<p>Once an auction is finished, the property is sold and the successful buyer exits the market. The result becomes historical the moment it occurs. The under bidders who are left to lick their wounds will determine what happens next. They are the ones we need to focus on.</p>
<p>The Melbourne market was weak throughout 2012 with clearance rates hovering between 50% and 60%. However, hiding behind the clearance rate was that fact that many of these properties were passed in and sold shortly after. This means the properties either failed to reach the expectations of the vendor and/or there was only one bidder. This means there was not much support underpinning the sale result and very little chance of market growth throughout 2012.</p>
<p>Fast forward to 2013 and <a href="https://www.propertyobserver.com.au/news/apm-s-melbourne-auction-results-for-march-16-weekend/2013031759905" target="_blank">auction clearance rates have lifted</a> by around 10%. Many people are asking if this will continue for the remainder of the year. I think there are clear signs it will. I have attended many auctions in the first weeks of 2013 and although not all of them have had a strong result there is no doubt we are seeing more competition.</p>
<p>Take, for example, <a target="_blank" href="https://www.realestate.com.au/property-house-vic-malvern+east-113084891">1/86 Paxton Street, Malvern East</a>. It (pictured below) was advertised to sell for between $560,000 and $610,000 prior to the auction and had a reserve in this range. On the day of the auction the rain was pouring down and usually this would drive the crowds away. When the auction started for the two storey, three bedrooom townhouse style offering, bids were flying left, right and centre and when the flurry stopped everyone was soaking wet and the price had reached $760,000. This was around $150,000 above the vendor’s expectations.</p>
<p><img src="/images/stories/2013/03/armstrongmarch20one.jpg" width="470" height="351" alt="armstrongmarch20one"></p>
<p>In <a target="_blank" href="/news">Collingwood</a> a couple of weeks ago, the penthouse apartment at <a href="https://www.realestate.com.au/property-house-vic-collingwood-112993683" target="_blank">24/125 Oxford Street</a> (pictured below) was sold for more than $300,000 above the vendor's reserve. Multiple offers were received prior to the auction and the vendor correctly decided to let the buyers fight it out.</p>
<p><img alt="armstrongmarch20two" height="353" width="470" src="/images/stories/2013/03/armstrongmarch20two.jpg"></p>
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<p>While it is clear these results are the exception rather than the rule, they are ‘spikes’ in the market. These ‘spikes’ are underpinned by multiple bidders – in some cases as many as 8 to 10 buyers – who have missed out and now form part of the future market.</p>
<p>This week <a href="https://www.realestate.com.au/property-apartment-vic-prahran-113157899" target="_blank">10/36 Grandview Grove, Prahran</a> (pictured below) will go under the hammer and the agents have been run off their feet with around 100 groups inspecting the property. The property was originally quoted to sell for $500,000 to $550,000 but due to demand the quote has been lifted throughout the campaign and is now expected to sell closer to $600,000.</p>
<p><img alt="armstrongmarch20three" height="350" width="470" src="/images/stories/2013/03/armstrongmarch20three.jpg"></p>
<p>The sale of this property will set a new bar for this style of property and although the successful bidder will leave the market the remaining buyers and spectators will readjust their price expectations as they branch out into the market. This will result in increased pressure on prices and a greater chance of price growth throughout the year.</p>
<p><em><strong>Mark Armstrong</strong> is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.</em></p>
<p> </p>
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