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

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

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

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

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

Juliet to sit quietly amid Roseville apartment boom

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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One of only four newly constructed townhouses on Tara Avenue, Kew is available for purchase seeking offers in excess of $2.9 million.
Located only six kilometres from the Melbourne CBD, the townhouse measures 464 square metres (50 squares) over three levels with a lift accessible to all floors.
The <a target="_blank" href="https://www.kayburton.com.au/property/1-tara-avenue-kew">townhouse</a> is on its own title and comprises of four bedrooms and four bathrooms.
Also included is a cellar, outdoor pool and a large carpeted leisure area ideal for a home cinema, gym or studio.
The <a target="_blank" href="/news">Kew</a> townhouses are designed by Coy and Yiontis Design and landscaped by Julian McCarthy Landscapes.
A four-bedroom plus study townhouse has already sold for a price in the mid- to high- $3 millions.
The other two townhouses will soon be released.
Michael Armstrong and Tim Picken from Kay and Burton have listed the property for expression of interest, closing March 26.
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Tara Avenue, Kew townhouse available for $2.9 million-plus

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The Property Council’s Outlook Series is designed to fuel an informed debate about what are the various social, economic and unavoidably political influences impacting the residential market as we well all settle into 2013. The format usually involves developers, planners and marketers and taking the focus of marketing I would like to share my views as recently presented and looking to the year ahead.
My theme was ‘Bridge The Gap’ by which I explore the gap between how buyers in the residential market anticipate what people want from their homes and how affordability impacts the reality of the marketplace. Fully aware of the reality that affordability is a fundamental issue, one that is made up of many factors, most of which as markets we have to either directly or indirectly address.
In 2013, firstly we need to consider a reality check that clearly tells us that ‘today’s teens consumer’ is a very complex demographic, having been markedly impacted by the GFC while mixed with the varied aspirations Generation X and Y combined with those of the Baby Boomers presents some very fascinating markets within the residential matrix.
While some quarters have started to argue that it is well and truly the time to look beyond the GFC it is not possible to dismiss many of the lingering influences that are now apparent across the residential market. From a marketing standpoint, where our message has to gain traction with the teens consumer the GFC has along with other demographic shifts re-cast how many consumers see home ownership.
Despite a <a target="_blank" href="https://www.propertyobserver.com.au/observers/fhbs-still-struggling-to-enter-the-market-catherine-cashmore/2013031559897">variety of barriers</a> people still want to own their own homes, there is still a society wide aspiration that anticipates that most of us will eventually do so and it’s a fact that every politician also understands. It’s a big part of the reason why infrastructure has climbed into such prominence and the aspiration to own a home is not limited to one set of demographics.
Family formation is still the central driver of demand, but when it comes to financing a home we are dealing with a more conservative market, consumers are more debit adverse than they have ever been, while house prices continue to rise as do rents we are still left in a market where future capital growth looks less robust. Taking on a higher level of debit with an eye to future ‘gains’ has lost much of its appeal.
The Financial Hard Yards
In the <a target="_blank" href="/news">Sydney</a> market we now have a median house price that is sitting very close to $650,000, median rents are $490-$500 per week and almost despite their location apartments have an average cost of $10,000 per sqm.
Looking at the apartment market in particular what this mix leads too is a fairly daunting financial hurdle that is now a constant when it comes to marketing any new project.
So it’s sobering to consider some current figures to illustrate my point. If we take the average sale price of new apartments now on the market at $518,000, then compare that to the average monthly household income of $7102 and assume a 6% mortgage rate over 25 years our buyers are looking at monthly repayments of $2670 and that’s 40% of their income.
It’s no wonder that first time buyers in the market are less active and this is also leading to a big impact on what type of apartments are in demand and also where buyers are concentrating their search.
To stress this point, as if any further emphasis was needed, last week it was reported that the federal government’s independent adviser on housing, the National Housing Supply Council warned that poor planning and high costs could be taking Australia towards being a nation of renters that would also influence the composition of our housing stock.
Poor Planning Too Long Neglected
Poor planning is a theme that is not new to anyone in our field and is a constant source of concern expressed in Project Agenda. The tone of many presentations at the <a target="_blank" href="https://www.propertyoz.com.au/Article/NewsDetail.aspx?p=16&amp;id=7237">Property Council’s Outlook Series</a> made reference to the impact of poor planning and the lack of infrastructure and in marketing new projects these issues remain a constant problem.
It’s notable that comments made during the PCA function indicated that planning issues are now being tied more closely with restrictive regulations and planning delays at the state and local government level, while policy makers were keen to see solutions and real progress made, there were still concerns that grass roots implementation was proving more difficult to achieve.
 
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Making The Connection
Against this background there is clearly a shift that has taken place in what type of apartments are in demand and in marketing projects where sales are strongest and who is buying. Both vital elements if a project is to be successfully sold.
As the above comments highlight it is finance and affordability that are the main factors influencing buyers, but there are also other key issues that we need to take into consideration in planning and in our marketing.
Did you know we now have in Australia an average of 2.7 persons per household? While the number of sole person households has been increasing for some decades. Across the apartment market as might be expected this has markedly influenced the type of product being sold and to whom and this shift is also having a material impact on what these same buyers see as priorities influencing where they buy.
These are all key points that must be considered in addressing the viability of any project that will profoundly impact the marketing.
How we work in this environment I feel requires a mix of marketing solutions that I can fully appreciate may at first appear to be a somewhat daunting tasks. Many factors like those we have already discussed here including planning, finance and a shift in consumer sentiment are well outside our control but non the less this is really nothing new as external factors have always driven the level of activity and this certainly includes residential property.
I do acknowledge that apartment markets because of the much higher numbers and density involved might well tend to concentrate some trends, but as I will go onto to explore in another post, with a full appreciation of market drivers there are clear solutions to consider as we seek to ‘bridge the gap.’
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
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Bridging the gap between buyer expectations and affordability: Peter Chittenden

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The property market is continuing to <a target="_blank" href="https://www.smartcompany.com.au/property/054444-hope-rises-for-property-market-on-yet-more-solid-auction-sales">grow in strength</a>, as Melbourne and Sydney recorded another weekend of positive results on the back of low interest rates and an improving economy.
Sydney recorded its fourth weekend of clearance rates above 70%, with 75% of the 450 houses up for grabs sold at auction on Saturday and Sunday, according to Australia Property Monitors figures.
Melbourne, the auction capital of Australia, also continued to perform well, with the Real Estate Institute of Victoria reporting a clearance rate of 69% for the 806 auctions listed.
APM senior economist Andrew Wilson told SmartCompany the prestige market in Sydney is just starting to respond after an extended slow period – and described the year so far as being "exceptional".
"Certainly the trend is consistent over the year so far, averaging about 70% for clearance rates, the highest since the beginning of 2010.
"Next weekend is one of the biggest weekends for auctions for the year and the scene is set for a very big day of sales if the current trend is upheld. There is no reason for the trend not to be, as the market appears to be strengthening," he says.
Over the weekend, APM reported seven properties selling in Sydney with values over $2 million.
The most expensive house sold at auction in Sydney, a four-bedroom home in <a target="_blank" href="/news">Vaucluse</a>, went for $3.35 million, but it was beaten for the title of top auction result by a Lavender Bay property which went for $5.6 million following negotiations after it was passed in.
Wilson says, overall, Sydney's bayside and inner city suburbs continued to do best, with these areas having clearance rates of about 80% and the eastern suburbs having a rate of 89%.
Next weekend, over 700 properties are expected to be auctioned in Sydney. Over 1,200 auctions are expected in Melbourne, which the REIV says is likely to be the fifth highest on record.
Wilson says Melbourne, like Sydney, is seeing a greater spread of activity.
"Similar to Sydney, we're seeing a bit more of a spread. The middle ring, north eastern and eastern suburbs of Melbourne had clearance rates of around 70%.
"We're reasonably confident these trends will continue, with <a target="_blank" href="https://www.smartcompany.com.au/property/054665-low-interest-rates-strengthen-overall-property-market-but-resistance-remains-rba">low interest rates fuelling increased demand</a> and confidence in the market place," he says.
In Victoria, the REIV reports the total value of residential sales at auction is at $1.8 billion, compared to $1.5 billion this time last year. The value of private sales is also estimated to have risen from $3.9 billion to $4.5 billion.
Melbourne's top five sales were all above $2 million.
However, while the property market flourishes in Melbourne and Sydney, it continues to struggle in Canberra.
RP Data estimates sales of houses and units were down 20% on the five year average in 2012 and down 13% from 2011.
Wilson says the local economy has impacted the market in Canberra.
"I do believe the main driver in a smaller market like Canberra is what's happening in the local economy. A rise in unemployment and job losses in the public sector does trickle into the property market," he says.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
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Auction boom continues in Sydney and Melbourne

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A Bay Street, Brighton house was Melbourne's highest weekend auction sale.
The $4.85 million sale through Buxton came after two bidders in a weekend when the REIV reported a 69% auction success rate.
Recent <a target="_blank" href="/news">Brighton</a> private treaty results have included a quiet one in Blairgorwie Court, Brighton which has been on the market for some time.
The buyers agent Mal James suggests it was sold for over $6 million through Jonathan Dixon of JP Dixon.
It was sold by the mining executive Peter Reeve and his wife Anne.
Mr Reeve, an executive director at Havilah Resources, put the 1920s-era house on 2700 square metres with a pool and tennis court,with initial $7.5 million hopes.
The Reeves had paid a reported $7.05 million at the peak of the market.
Brighton was in the news last week with still unconfirmed reports that a St Ninians Road property was bought by the retired Australian cricket captain Ricky Ponting for about $10 million.
And another private treat sale was 17 Albert Street, Brighton that has been sold for just over $4 million through Ian Jackson having previously sold in April 2010 for $3.9 million.
The weekend Melbourne clearance rate of 69% was compared to 61% last weekend and 58% this weekend last year.
There were 804 auctions reported to the REIV this weekend, with 557 selling and 247 being passed in, 134 of those on a vendor bid.
"This year there has been an increase in the overall value of residential sales at auction with $1.8 billion worth of homes having sold compared to $1.5 billion this time last year," Enzo Raimondo, the REIV chief said.
"The value of private sales is also estimated to have risen from $3.9 billion to $4.5 billion."
Next weekend the REIV expects around 1,210 auctions and this is likely to be the 5th biggest weekend on record.
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Bay Street, Brighton $4.85 million weekend top seller adds to the $1.8 billion 2013 Melbourne auction sales tally

<html><body>Australian Property Monitors (APM) has released a list of results from 332 auctions in Melbourne for the weekend of  March 16. <a style="font-size: 14px;" target="_blank" href="https://www.homepriceguide.com.au/saturday_auction_results/Melbourne.pdf" rel="nofollow">Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

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APM's Melbourne auction results for March 16 weekend

<html><body>Australian Property Monitors (APM) has released a list of results from 312 auctions in Sydney for the weekend of March 16. The clearance rate was 75%. <a href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf" target="_blank" rel="nofollow">Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

APM's 312 Sydney auction results show 75% clearance rate

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Large measurements such as inflation, employment and balance of trade are important indicators of economic wellbeing, but economies come down to households having enough confidence to commit to property purchases.
I’ve been keeping my eyes on property markets for the last two years, wondering when we would break out of the spiral of low confidence, a withdrawal from property and the consequential flattening of property values.
In the past week we’ve seen a couple of flickers of a revival.
In the latest Australian Bureau of Statistics figures, the total value of dwelling commitments (excluding renovations) rose 0.6% in January over December.
It’s a modest shift, but it’s in the right direction.
More dramatic is the RP Data-Rismark Home Value Index, which found that five of Australia’s eight capital cities experienced house value rises in February.
The eight capital cities’ average house values rose 0.3%, following on an eight-city rise of 1.2% in January. Canberra house values rose 1.9%, Melbourne by 1.5% and Sydney had a 0.1% rise.
RP Data singled out Melbourne: because it’s Australia’s second biggest property market, it pulled up the research company’s index. It’s a good sign.
A few rises in house prices does not make me totally relaxed. We also have to find evidence of renewed consumer confidence.
This week I found such evidence with the release of the The Westpac-Melbourne Institute Index of Consumer Sentiment, which rose 2.0% in March and produced the highest confidence figure in that index for two years.
Could it be that Aussies are waking up to the fact that credit is cheap right now?
Interest rates began their drop in November 2011, so we’ve had slightly more than a year of lowering interest rates to make people rethink their financial commitments and to reassess the property market.
There’s no cause for breaking out the champagne just yet. But from my perspective, it’s looking like a very good time to buy property with a home loan.
Property has only just started its revival, meaning it’s coming off a low base in most parts of Australia and is still largely a buyer’s market. Also, interest rates are at historic lows – the cash rate was at 3.0% in those middle months of 2009, but other than that, we have the lowest cash rate since 1996.
With employment still looking strong and inflation low and stable, it’s an excellent time to buy property.
Also, the cost of funds to mortgage lenders is easing this year, so this isn’t just a good time to raise a new mortgage and buy the dream. It’s also a good environment to ask your current lender for a better deal.
There are no free lunches with property. As I tell people, you have to do your homework, buy well, borrow smart and remember that property makes its greatest sense when held for at least ten years.
Good luck.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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It’s looking like a very good time to buy property with a home loan: Mark Bouris

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Property investors can use limited recourse borrowing (LRBA) to fund off-the-plan investments using their self-managed super funds.
Under this strategy, your SMSF receives a concessionally taxed rent, pays off the loan while you are still working, and transfers the property to you upon retirement.
After your retirement, you can either:
• Take the property as a non-cash, lump-sum benefit (although capital gains tax is payable on any capital profit, the tax rate is an effective 10% – if the property was owned by the fund for at least 12 months); or
• Buy the property from the fund for its market price. No CGT is payable if the property is backing the payment of a superannuation pension, but you are personally liable for stamp duty.
Under limited recourse borrowing rules SMSFs require a separate lending arrangement for each “single asset”.
In May last year, the ATO clarified what constitutes a single acquirable asset and provided a specific example of what constitutes a single asset in relation to a completed apartment: “The trustees of an SMSF enter into a contract to purchase a strata-titled apartment off the plan. A deposit is required upon entering into the contract, with the balance to be paid upon settlement for the completed strata-titled apartment.
“A single LRBA can be entered into to fund both the deposit and the balance to be paid under the contract upon settlement. Both the deposit and the settlement payment are applied for the acquisition of a single acquirable asset being the completed strata-titled apartment.”
According to AMP financial planning, the ruling recognises that “generally speaking, under LBRA rules, the single acquirable asset is considered to be the completed strata-titled unit, or land with a completed house on it – despite the fact that the building activity is yet to occur”.
As a result, where a contract is entered into for a unit off the plan or a house and land package, both the initial deposit and the final payment upon settlement can now be funded by a LRBA.
Previously, under the draft ruling, it had been suggested that the initial deposit for these types of transactions would need to have been made from existing SMSF assets.
Mortgage Choice broker Michelle Towner,who specialises in helping investors acquire apartments off the plan using SMSF borrowing rules, stresses the importance of these investments being structured correctly and that buyers must engage a qualified financial planner, lawyer or accountant to draft up the contracts.
She says the contract needs to be worded correctly so that when the asset is transferred from the bare trust to the super fund, the SMSF beneficiaries don’t risk having to pay double stamp duty.
The bare trust is the arm’s length holding trust that holds the property until the mortgage has been paid off.
In particular, any off the plan contract must be written to say the deposit is for the acquisition or deferred purchase of the property, not just an option or right to buy the property.
Investors will need to work with a professional to ensure the borrowing arrangements are worded and structured correctly.
For great tips on buying off the plan, download Property Observer’s free ebook – <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=14e9848476&amp;e=7a53fc6dd9" rel="nofollow" target="_blank">14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.</a>
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Consider buying off-the-plan using your self-managed super fund

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Accessing financing for new residential developments continues to be a problem for smaller developers, says assistant RBA governor Christopher Kent.
“While finance is available to households on relatively favourable terms, some developers continue to report difficulties in obtaining finance for new construction, with banks requiring a higher proportion of pre-sales than was typical prior to the global financial crisis,” said Kent in a <a href="https://www.rba.gov.au/speeches/2013/sp-ag-140313" target="_blank">recent speech</a> to The Australian Institute of Building in Sydney.
Obtaining funding is not so much of a problem for large developers.
“According to the Reserve Bank's industry liaison, large developers that have a good reputation and a strong balance sheet have access to credit, while small developers have tended to experience more difficulty in borrowing funds,” said Kent.
A 2013 insolvency and distressed assets white paper by Colliers International found that development sites overtook industrial property in 2012 in terms of number of distressed assets on the market across Australia, followed by the industrial, commercial, residential and rural and agribusiness sectors.
<img src="/images/stories/2013/distressed_assets.gif" width="600" height="391" alt="distressed_assets">
“Three sectors, in particular, saw a big spike in the number of distressed assets coming to market; being development sites, rural and agribusiness, and mixed-use developments,” says Felice Spark, director of research at Colliers International and author of the report.
Queensland had the highest number of distressed property assets listed for sale over 2012 with 395 properties listed for sale - a 3.5% increase compared with the 382 properties advertised for sale over 2011.
The biggest increase in distressed assets listed for sale state-by-state occurred in Victoria where there was a 56% increase with numbers rising from 61 properties listed for sale in 2011 to 95 properties listed for sale in 2012.
New South Wales saw a decline in the number of distressed properties on the market, falling back slightly from 256 properties to 242 properties.
“The banks have now begun pushing through, forcing properties to be put to market, with a trend towards secondary or regional-based property,” says Spark.
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Smaller developers struggling to get funding as banks require higher pre-sales: RBA

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I wrote a few weeks ago regarding the potential stagnation that is likely to affect our property markets into the future, due to an increasing number of first-home buyers failing to enter onto the initial rung of the property ladder - and the evidence continues to mount.
Despite the widely spruiked improvement in ‘affordability’ (which comes on the back of continually low lending rates and renewed optimism from investors, in turn helping transaction figures increase from a very low base), first-home buyers are simply not responding.
As <a href="/news">Larry Schlesinger</a> reported on Property Observer last week, overall numbers for this demographic have fallen to a near eight-year low with the latest ABS data showing a drop of 11% in mortgage commitments between December 2012 and January 2013.
It paints a woeful picture buried in an economy which remains the envy of our Western counterparts, and has subsequently left some wondering: can it continue to rise without a consistent contribution from the first-home buyer sector?
Recent research from RP Data is also emphasising the potential side effects of our stagnated home-buyer market, with the average length of ownership for both houses and units now sitting at 9.3 and 8.2 years respectively.
Cameron Kusher from RP Data assessed the increased holding periods in light of an overall lower volume of transactions. He concluded that high property prices, along with inflated agent commissions and stamp duty charges, were acting as a disincentive for owners wanting to sell.
However, considering there’s been such a marked increase in the length of time property owners choose to ‘stay put’ – periods which have jumped well over 30% on those recorded 10 years ago – I’d suggest deeper concerns are playing into the equation.
For units, the rise in the relative holding period over this ten-year period is even more so than that of houses – pushing towards a 39% increase. As apartments are generally considered the ‘foot through the door’ property type that attracts a younger first-home buyer demographic, and a forthcoming supply of new unit developments has been fairly robust across the major capitals, you could be forgiven for expecting the turnover of home buyers upgrading to larger dwellings to be evidenced by a shorter holding period rather than longer as shown.
However, the vast majority of inner city established unit and apartment stock is investor-owned (close to 70% in some localities), therefore it’s fair to assess the ‘buy and hold for the long term’ mindset is bearing a significant influence in restricting supply for the lower-priced sector of the market. This results in a bottleneck of demand and longer holding periods; demand that a proportion of first-home buyers struggles to compete against.
As I previously pointed out, property to some extent connects together like a flowchart. Supply is fed in from the bottom to allow those upgrading (and then downsizing) a ready market to sell to in order to make the move.
When this flow is intercepted and holding periods subsequently increase, a growing minority of low-income workers find themselves sandwiched between rising rental prices and scant opportunity to exit the merry-go-round of funding someone else’s investment.
It has puzzled some that, regardless of this first-home buyer lull, there’s been a marked improvement in most markets across Australia. The latest RP Data mortgage index is also showing a strong surge in the number of loans advanced over the eight weeks to March 10, reaching “the highest reading since August 2009.”
The question remains whether the upsurge in price growth can be sustained without the first-home buyer sector; can it produce the annual 10% rise for 2013 many ‘economists’ are now all but assuming based on barely three months of daily and somewhat bumpy data?
This would once again push median values past both inflation and wage growth – good for those who already have a property and for the real estate industry as a whole – but increasingly painful for a younger generation who will no choice but to take out increasing levels of ‘debt’ to fund their accommodation.
As the champaigne corks are being popped, a few moderating voices have come to the fore. David Llewellyn-Smith in his piece <a target="_blank" href="https://www.smh.com.au/business/is-australian-property-worth-the-risk-20130308-2fpgd">‘Is Australian Property worth the Risk?’</a> was one such voice to provide a balance to some of the bullish commentary we’ve seen of late - commentary which on the one hand happily informs how ‘affordable’ property is, whilst blithely high-fiving an onward return to ‘peak’ prices with the other.
David suggested that due to APRA enforcing banks to lend dollar for dollar against deposit growth (“growing at 7% per annum and falling”), credit availability was bound to be constrained.
It’s a fair point, although I often wonder exactly what APRA is doing to ‘constrain’ lending, considering individual bank risk models are arguably developed and manipulated behind closed doors.
This aside - inflation to some extent has less to do with the overall money circulating in the system, and more to do with where the current supply of money is being channelled.
In other words, although constrained lending has an impact (particularly for first-time buyers), and GDP data highlights a fall in disposable household incomes by approximately 0.2% over the past year, Australians are still saving more, and aiming to shore-up these remaining funds into ‘safer’ long term assets.
Therefore, as housing acquisition continues to be the preferred model of investment for around 42% of our current buying market – even with constrained lending – inflation can be expected, at least for the short term.
 
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In essence, it’s the investor demographic that is primarily placing a floor under the ‘affordable’ bracket of our “estimated $4.86 trillion” (RPData) housing market, thereby preventing any setback in price growth resulting from a lack of first home buyer participation.
Last week <a target="_blank" href="https://propertyupdate.com.au/property-investors-blamed-for-housing-affordability-woes/">Michael Yardney</a> defended investors against any suggestion that large numbers choosing to invest in inner city terrains were adversely affecting first home buyers.  Michael Matusik was another voice that came to the fore suggesting first-home buyer expectations are ‘out of whack’ considering 60% of those purchasing last year chose properties with four bedrooms or more.
In light of the low percentage of first home buyers overall, and taking into account that most take loans around the $300,000 level, I’d suggest those purchasing 4 bedrooms or more are likely to be couples taking advantage of various stimulus grants to purchase in fringe localities - the price point of which is often comparable to a small inner city unit.
Albeit, this should not overshadow core trends which hold the potential to lock up ownership between a reducing number of owners and investors, who in turn have to provide accommodation for an ‘increasing’ number of renters.
To sit on the sidelines and argue that a growing percentage of investors have not played a substantial part in the dramatic growth of capital city property values and consequently placed a strain on first-home buyer numbers is lunacy in light of the data we have to hand.
It’s not a case of labelling individual property investors as ‘greedy’ – the majority are not – they are simply responding to, and taking advantage of, current government policy which assists using property to provide an income stream into retirement - an issue we all need to attend to through the course of our working lives.
It’s also important to understand that as a proportion of any property market, investors are absolutely essential.
However, a report by the National Housing Supply Council titled <a target="_blank" href="https://www.nhsc.org.au/content/publications/housing_supply_affordability_2013/default">‘Housing Supply and Affordability’</a>, released last week, states:
“Couples, both with and without children, have experienced the largest falls in home ownership. There has also been an increase in the share of those approaching retirement age that still have a mortgage. Many of these changes are likely to have been at least partly driven by the increase in house prices over the decade, making it harder for people to get onto the housing ladder and taking out proportionately larger mortgages when they do.”
Surely everyone with an interest in the health and wellbeing of their children and grandchildren should be actively seeking solutions to problems which threaten to adversely affect their future, at the expense of pumping up prices and labouring them with an ever-increasing mountain of debt.
In the UK, there has been a focus on forcing better use of existing homes with policies such as a ‘bedroom’ tax and ‘mansion’ tax – however taxing people who choose to pay more to live in larger properties, or assessing a single individuals ‘need’ for ‘2’ bedrooms rather than ‘1’ without an understanding of their personal circumstances is not the solution.
Rather, the answer lays in making sure lower priced stock that comes to market is directed towards the ‘buying’ demographic most in need – and currently, this is not the investor, it’s the first home buyer.
Under current policy, we’ve managed to lock the established housing market up in a hotbed of ‘speculative’ demand, producing a weak construction sector which is further impacted by years of poor planning for population growth.  This has consequently resulted in an increasing number of ‘potential’ first home buyers pushed into a rental market of rising yields.
Only through a number of changes to current government policy is it possible to slowly reduce inflation in the established sector and open up the potential to provide feasible and affordable ‘new opportunities’ in both inner and outer suburban regions. However, if we sit back and do nothing, then warnings coming from organisations such as The National Housing Supply Council, or McKell institute, will increasingly come to fruition.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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