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]

Joel Robinson

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

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

&nbsp;

&nbsp;

&nbsp;

Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place

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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Three common mistakes are made by those who promote regional properties as a superior investment to Australian capital city properties.
1 .  Recency bias towards downside risk
Throughout history the greatest oversight of investors has been to assume that what has happened over recent times will continue to occur. Human nature dictates that we build a frame of references around our past experiences and project them into the future. Investment history is awash with examples, from tulip mania (1637) to Black Tuesday (1929) to the tech stock bubble (2002).
While the debt binge tide continues to lift all Australian property boats, some regional properties will continue to perform. All tides turn, however, and this is precisely why regional property is risky.
Australians are fortunate. Fuelled by a surge in mining investment, we’ve not experienced recession since Keating’s infamous “recession we had to have” of 1991-92 following the collapse of the Soviet Union. Interest rates are receding to 50-year-lows, and we’re close to effective full employment.
While high interest rates and high unemployment have long been perceived to be idle threats in Australia, investors who fail to heed history will eventually be caught out. If the US economy averts its fiscal cliff and China’s GDP growth powers along then Australia’s implied yield curve will cease to be an ugly inverted asymptote and even our dovish Reserve Bank board will ratchet up the cash rate.
The demographics of affluent suburbs and regional areas are markedly different in Australia. Cheaper, outlying households are heavily reliant on linear salary income and become prone to mortgage stress when the cost of debt capital is increased, which causes regional property prices to drop. Prime-location households tend to have substantial equity, diverse income streams and greater capacity to ride out elevated interest rates for their duration.
2. Long-term real growth in regional properties is poor
A second error that promoters of Australian regional property make is confusing periods of high inflation or credit growth with real value growth. No question, with skilful timing it’s possible to find a cheap property where prices increase over the short term. Over the long term, however, real capital growth in regional properties is poor, which clearly accounts for why the cheap regional property of yesterday remains cheap today, and yields remain high.
A standard rental combined with lacklustre growth results in a high yield, for a yield is simply a spot percentage calculated at any given point in time. A standard rental combined with outstanding long-term growth results in lower yields.
Be clear about this: property "growth" cannot continue to be fuelled by ever-greater mortgage debt in perpetuity. Australia had persistent inflation throughout two decades in the 1970s and 1980s, devaluing associated mortgage debt, and spiralling credit growth in the 1990s inflated property prices. But real growth was often negligible as those who elected to sell and re-buy property discovered.
 
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Ultimately, sustainable growth can only be sourced from productive enterprise and value being created. Three decades ago in Australia this simply meant ripping an ever-greater volume of minerals out of our weeping planet, with 75% of our stock market’s value being resources-based. Today only a quarter of the market’s value is founded upon resources. Instead, wealth is created through technological ingenuity and intellectual expertise, particularly in financial services.
Sustainable property price growth needs real wages growth and growing demand. Speculating in remote areas, outlying cities such as Cairns or tourism-dependent regions where real wages growth is negligible carries a material risk premium.
3. The yield trap and stunted upside potential
The third mistake I see in the markets every day: mum-and-dad investors and pundits who aren’t from a financial background confusing yield and income, and thus falling into the insidious yield trap. Yield can be a devastatingly misleading indicator as to investment performance.
The "strongest" stock yields are in exporting companies who bravely maintain dividend payments in the face of the crippling appreciation of the Aussie dollar, but with market caps that have been crucified.
Similarly, in Australian property yields are highest in regional properties, where real capital growth has been dire. 
The yield trap
Chasing yields can be very costly for investors. In Australia in 1990 you could have invested for the long haul in ‘safe’ term deposits (around 12% yield, but a diabolical long-term performance), listed property trusts (around 10% yield; mediocre performance) or the ‘risky’ industrials index (around 6% yield, massive outperformance, both in terms of income and growth).
Yes, in property investment, yield is important, but you must be able to source sustainable long-term capital growth. All properties might perform when times are good, but when times are bad – and recessions do recur in a cyclical economy – it pays to be holding properties for which there is the highest demand located in capital cities.
The yield trap in property
Observe what happened overseas where recession hit. UK regional property prices dropped by a quarter through the financial crisis and negative equity abounds, even years later. How cheap is regional property in the US, Ireland or Spain today? Quality inner suburbs of London and major capitals, however, continue to be powered to fresh heights by domestic and international capital.
I know of Aussies who bought three-bedroom flats in Mayfair and the prestigious W1 postcode in the 1980s – ostensibly “low-yield properties”. Indeed, yields remain low today but the rental income is vast – £125,000 to £350,000. Capital growth has been phenomenal with prices measured in millions, though few such properties change hands – why would you ever offload such a cash cow?
Sure, you can wax lyrical about rental yields in Australia’s regions. But frankly, who cares about spot percentage yields when you can have staggering long-term outperformance from properties with wealth-creating growth and income?
When the Australian dollar depreciates and investors from Asia re-enter our property markets, will they research obscure regional areas, or will they flock to capital cities?
In Australian real estate, continual high demand which can ride out recessionary times is vital, not the obsession with an abstract yield calculation. As immigrants continue to flood to the capitals, investment grade residential property in land-locked city suburbs will continue to be a wonderful investment for the risk-averse over the long term.
<img src="/images/stories/2012/12/wargentbook.jpg" style="margin: 5px; float: left;">
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial freedom.</a>
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Three reasons you should invest in a capital city property rather than regional area: Pete Wargent

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CBRE has sold more than half of the apartments in new Lenland complex The Castlereagh Sydney, which hit the market two weeks ago.
Thus far some 26 of the 50 one-,  two- and three-bedroom apartments have sold.
Located on the corner of Castlereagh and Bathurst streets, the upper floors of the 15-storey Tony Owen-designed building have distinctive bronze-coloured louvres.
<img src="/images/stories/2012/11/castlereagh1.jpg">
Some upper floors overlooks the iconic Hyde Park.
Owen has designed two other apartment buildings in the Sydney CBD: the Ceerose Hyde Park prestige dress circle development, and Eliza in Elizabeth Street, which has an expected completion date of mid-2013.
<img src="/images/stories/2012/11/castlereagh2.jpg">
The 22 one-bedroom apartments in the Castlereagh start from $560,000, with sizes between 50 to 60 square metres.
Its 26 two-bedroom apartments have a starting price of $820,000 and range from 82 to 90 square metres.
There are only two three-bedroom apartments, which have 111 square metres of space and start from $1.25 million.
<img src="/images/stories/2012/11/castlereagh3.jpg">
The Eliza apartment complex has 83-square-metre two-bedroom apartments costing $1.7 million.
RP Data indicates the median sale price for a unit in the Sydney CBD is $530,000. This is 0.5% lower than it was a year ago.
The median rental price is $650 a week, with an indicative gross rental yield of 6.4%.


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The ground level of The Castlereagh Sydney complex will be a lively retail precinct of restaurants, cafes and designer shops.
The upper levels have bronze-coloured louvres, which were designed to control sun and privacy and create an animated urban façade.
An atrium is located in the centre of the building, acting as a ventilation shaft as it draws out hot air.
Apartments located on the third level will have winter gardens, and the higher levels will have balconies.
Each apartment will have hardwood floors, European kitchen appliances and floor to ceiling windows.
“Residents of The Castlereagh Sydney will enjoy a privileged lifestyle on the edge of Hyde Park, surrounded by world-class restaurants, fashion boutiques, shopping and facilities,” said Ben Stewart of CBRE.
“As well as owner-occupiers, the apartments will appeal to astute investors seeking to take advantage of the CBD’s lure with tenants.”
The marketing agents noted The Castlereagh Sydney will offer low strata levies as there are no costly communal facilities.
CBRE forecasts them to be $382 quarterly for one-bedroom apartments, $585 for two-bedroom apartments and $798 for a three-bedroom apartment, per quarter.
There is no car parking offered on site to apartments buyers.
“The Castlereagh Sydney is in the heart of the city so we deemed expensive in-house facilities unnecessary,” said James Chryssafis, Managing Director of Integrated Project Services, which is overseeing the project for Lenland Property Development.
The existing 1925 building, Bathurst House  was bought by Lenland for $15.45 million in 2010. It sold in 2006 at $14.25 million. Lenland's managing director Harvard Shen sais the company had previously undertaken residential development on Sydney's north shore at Killara and St Ives.
The building - close to the NSW Fire Brigade HQ -will be demolished next March with construction to start in May.
The Castlereagh Sydney - which had an estimated $16 million construction cost in its City of Sydney development application - is expected to be completed by late 2014.
Of the 26 early sales, only a few have been to investors, with others including CBD workers as well as empty nesters.
The display suite is at 209 Castlereagh Street.
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Matching the median, The Castlereagh Sydney half-sold after two weeks

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In my<a href="https://www.propertyobserver.com.au/developments/cbus-property-s-mark-percy-in-conversation-with-colliers-international-s-peter-chittenden/2012101557171" target="_blank"> recent conversation with Mark Percy</a>, executive manager of residential of Cbus Property, we explored some of the main issues confronting our sector. I was also very pleased to hear Mark express some refreshing thoughts across a range of ongoing topics impacting the housing market, as well as some timely points directly related to project marketing.
As we come to the end of this topic, I asked Mark what he thought were among the key marketing challenges for the next few years, not only limited to supply and costs but also the big shifts in demographics.
“I see the biggest marketing hurdle as being an almost complete lack of confidence among buyers at all levels of the market, and while this might move up and down at the margins it remains a problem.  Affordability, the demand for smaller homes and the number of kids living at home later and later with mum and dad are just some of the more obvious pointers we see today.”
According to Mark, statistics such as low residential rental vacancy, low interest rates and limited new supply should be contributing to a bubbling along New South Wales market.  He believes that many of the indicators are positive and that now is a good time to buy.
“But confidence to commit to a new purchase is lacking.  I think it’s almost a perfect storm working against market sentiment.  Overshadowing everything is the post-GFC flow-on, the global economy looks a concern, it’s not going to improve quickly and we are now seeing its shadow reaching Australia.  Consumers are being told so every day, it’s an endless negative background conversation.
“We also now have unemployment concerns and announcements in the media of large job cuts in certain sectors contributing to a nervous housing market. I think that it’s a subject watched more closely than usual.
"We are talking to a cautious market where many young adults are just staying put with mum and dad and not entering the real estate market. Mum and dad are also deferring downsizing while the children are still at home.
“It’s a complex picture and as locals see housing affordability slip away, it’s one reason I think that foreign investment gains so much attention but without it, the local market would be significantly worse off.
“We also have state governments who are scared of taking on debt as they are hell-bent on keeping their credit rating.  This is adding to pressure on local governments, who are struggling to meet their local infrastructure needs."
Mark Percy’s 35 years of experience has helped to frame what has been a wide-ranging discussion with<a href="https://projectagenda.com.au/" target="_blank"> Project Agenda</a>.  Many points are common industry concerns and the debate will go on, but possibly there needs to be more action and less debate.  For anyone working in project marketing, there are many ongoing challenges to address.
Funding, affordability, development design and quality, higher and more complex marketing, lack of infrastructure, professional roles and shifting consumer needs are all big issues to work with and address.
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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The biggest challenges to residential property development: Mark Percy talks to Peter Chittenden

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High-rise apartment blocks are already a dominant feature of our major capital city skylines.  It’s somewhat inevitable that an increased population will bring with it greater density in inner-city areas and skyscrapers will bear prominence. The recent announcement of the new “super tower” planned for Melbourne’s CBD – <a href="https://www.propertyobserver.com.au/victoria/australia-108-has-a-few-hurdles-to-overcome-before-its-the-southern-hemisphere-s-highest/2012111157754" target="_blank">the tallest skyscraper in the southern hemisphere</a> – reaffirms this.
Melbourne in particular has undergone a recent boom in unit construction, leading to record levels of supply in this sector of the market.  Most of the accommodation has been sold to foreign investors who have no restrictions when it comes to purchasing off the plan – and without knowledge of Australia’s housing market and our home buyer predominant preference for detached dwellings, or “boutique” apartment buildings, overseas buyers often see high-rises as an attractive investment venture.
From an owner-occupier perspective, unless the purchase is for one of the “luxury” units in a high-rise block, the relatively small one- and two-bedroom apartments featured as “affordable” tend to fall into the investment sector of the market due to tight lending restrictions banks impose on first-home buyers.
In addition, the high owners’ corporation fees set aside to service the lifts and other security features necessary in tall buildings tend to deter a large proportion of owner-occupiers from downsizing into high-rise accommodation rather than smaller apartment blocks or townhouses.
It’s therefore no surprise that much of the accommodation is set aside as serviced apartments or student rentals and as such, offers limited investment potential for capital growth-seeking buyers.
Anyone who follows my column will know I’m not a fan of high-rise accommodation – however, I concede there is a market for it – albeit a somewhat limited market. The restrictive provision of inner-city land supply necessitates we go up rather than out (although this needs to be balanced with an adequate supply of lower-density inner suburban developments to fulfil requirements from families).
However – if we are really to maintain our “liveable” status – particularly in Melbourne (currently holding top spot on most “best/liveable city” surveys) we must get it right.
 
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Planning Minister Matthew Guy is currently responsible for shaping Melbourne town and he certainly hasn’t resisted getting his hands dirty with some pretty hefty reforms.  To be fair, he hasn’t got an easy job – over the next 40 years, Melbourne’s population is set to expand to some 6.4 million – all of whom have to be accommodated.
In his current role as planning minister, it’s going to be nigh on impossible to please everybody. Years of poor policy have already ensured we have sparse facilities to attract significant numbers to “fringe” suburbs – the price of commuting forgoes any benefit gained from paying a lower price for the privilege of more space and accommodation further from the city.  However, the current reforms being debated are set to change Melbourne’s character dramatically – and it should concern every Australian who cares to maintain the unique attraction our cities hold on the world stage.
The current tabled proposal for Melbourne’s new planning laws will cause residential zone 1, 2 and 3 become “residential growth zone, general residential zone and neighbourhood residential zone”. For each suggested zone, the density restrictions alter.  You can go <a href="https://www.dpcd.vic.gov.au/planning/theplanningsystem/improving-the-system/new-zones-for-victoria">here</a> to find a full rundown of the changes – however, in most instances, planning controls are loser, maximum height restrictions have been removed or increased (with the proviso they can also be exceeded) – and the size of land needed for subdivisions reduced.
The plans indicate councils will have some degree of discretion over what they choose to allow, however this is debatable considering Port Philip Council was reportedly “furious” with Guy when he recently took over planning control for the Fishermans Bend renewal contract – an area that will soon be dominated with high-rise accommodation reputedly blocking out many residents’ views, which will diminish the value of their units considerably.
It can only be hoped Fishermans Bend will not be a repeat of Docklands – however at this stage, the prospect is not looking positive.
While I can see the dilemma from both sides of the table – and somewhat sympathise with the economic challenges our housing market present to the “powers that be” – I am increasingly frustrated with poor policy that fails to enforce necessary quality requirements on new accommodation, and more importantly fails to protect existing residents who have purchased their units, only to see an immediate loss of equity when supply is increased disproportionally.
It therefore interested me greatly when I listened to Radio National’s Background Briefing program on the 28th October, which told the woeful story of  the tallest residential apartment block in Australia – the Q1 building situated at Surfers Paradise south-east Queensland, which it seems, does not comply with Australian Fire Safety standards.
You can download the full program on the <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/radionational/programs/backgroundbriefing/2012-10-28/4326460">ABC website</a> – and it’s also worth logging on to see some of the reader comments in relation to the story.
For example – one viewer writes:
“I have carried out approximately 100 mechanical, i.e. stair pressurisation, air-conditioning shut down and fire mode operation inspections, in Queensland. In three years I have found only one building that complied with the Building Fire Safety Regulation.”
There are other comments from readers claiming to have direct experience of the “incompetence” surrounding Queensland Building Authority, which is worrying – especially when you consider Surfers Paradise is awash with high-rise accommodation and currently has over 1,200 units up for sale (including those off the plan).
If there is any suggestion that the design of any residential tower is “unsafe”, it should concern us all.  The ABC report mentions “a growing concern” in the fire protection industry over current standards and quotes technical director of Fire Protection Australia, Matthew Wright, commenting:
"At the end of the day someone needs to check that the design demonstrates compliance before construction commences." 
Clearly in the case of the Q1 tower this was not achieved and we have to ask, how many others have fallen short of the mark?
 
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Roughly 3 million people across Australia (estimated to be around one in eight) live in strata-titled accommodation.  Furthermore, contractors of new multi-storey (high-rise) buildings (anything over three levels) are not required to arrange home warranty insurance in respect of their work.  And when it comes to the much advocated “due diligence” of gaining an independent building inspection report prior to purchase, you can guarantee the inspector engaged to assess an individual unit will not be climbing on the roof, checking for cracks in exterior walls and making sure fire exits adhere to safety requirements.
It’s not just safety that should concern us, it is also design.  The exterior of a residential tower can be viewed from miles in all directions and needs to fit into the overall panoramic view of the city skyline.  Additionally, it’s also essential the accommodation provides a quality of lifestyle that lasts long after the initial shine has worn off and fits in with our environmental responsibility to build “green”. This means incorporating items such as solar power, rooftop gardens and ensuring each unit gets a daily proportion of natural light.
This is a challenge – and not one currently front of mind for developers cashing in on the high-rise craze.  Recently <a href="https://www.theage.com.au/victoria/the-land-dragons-20121020-27y74">The Age</a> featured an article that demonstrated the level of demand from Asian property developers, all with their sights well and truly fixed on transforming our cities in to Hong Kong-style metropolises.
In the report, Jeff Xu, a young Chinese developer, suggests Melbourne needs to learn the “Asian” approach and “enable high-density housing to bloom”. In this respect, he makes it clear that Docklands (our biggest “underperforming” high-rise suburb) doesn’t come close to the vision holds for the world’s most liveable city!  However, unlike China – where in some areas buildings of more than 30 storeys are completed on average one every 12 days – our population demands are comparatively insignificant.
As the report correctly pointed out, the Chinese buyers who reach our shores with property investment in mind easily outbid Australian developers who struggle to get finance and cannot match the wealth Asian investors currently sport.  Moreover, our current requirements for planning approval pale in comparison to some cities in China, which in order to do as Xu suggests and enable high-rise to “bloom” – demand each building obtains a standard number of hours sunlight in the winter months along with good “air” and/or a good view.
In Melbourne, the suggestion from one developer – which plans to build an apartment block just three metres from its next door high-rise neighbour, thereby causing the balconies opposite to fall into constant shadow – is to incorporate mirrors to reflect sunlight onto the windows.
This requires developers to incorporate it into their initial design and town planners to guarantee it will remain so when neighbouring buildings are constructed.
The developer obviously assumes this is an adequate solution, however, can you imagine how you would feel if you had purchased one of those units, which is set to have its once sunny outlook obscured and natural light beamed down via a leaf-shaped mirror?!
Hours of natural Aussie sunlight, air to breathe, a view of a little more than a neighbouring wall, and most importantly, safety, are standards a home buyer would consider basic when purchasing into a large development. However, when it comes to the nuts and bolts of providing or guaranteeing the above list, we are clearly falling short.
It’s important not to paint every developer that hits our shores in a bad light.  Some actually want to build what Australian’ home buyers wish to purchase – <a href="https://www.theaustralian.com.au/business/property/quality-key-to-couples-boutique-apartments/story-fn9656lz-1226502597333">smaller boutique blocks</a>, in which all the above requirements will be taken into account.
If we’re going to protect the “liveability” of our cities while making skyscrapers part of the solution for any proposed population boom, it’s vital we have the correct regulations in place to ensure eagerness from developers – which understandably want to fit as much accommodation as possible on small CBD sites – does not risk undermining the standard expectations of every Australian home buyer.
If we don’t get it right now, years down the line Melbourne and other Aussie capitals risk becoming residential ghost towns – plenty of office foot traffic during the day, but an abundance of poor-quality high-rise apartment blocks, which fail to attract anyone other than short-term renters.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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High-rise accommodation must be done right

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A private investor has paid $16.5 million to acquire a B-grade Adelaide office building leased to Westpac wealth management subsidiary BT Financial.
The BT Centre located at at 1 Hugh Cairns Avenue comprises a net lettable area of around 6,224 square metres on a total site area of 29,353 square metres. It formed part of the Mirvac Property Trust and had a book value in 2010 of $16.5 million as of June 2012.
The office building generates net annual income of around $1.74 million, which equates to a yield in excess of 10.5%.
Mirvac acquired the building  in 2010 as part of its acquisition of the Westpac Office Trust.
The BT Centre is 13 kilometres south-east of the Adelaide CBD in a commercial precinct adjoining the Flinders University campus and is tenanted by BT Financial on a 12-year lease, commencing in 2007, with two five year renewal options.
CBRE’s Philip Rundle and Alistair Laycock negotiated the sale on behalf of Mirvac as trustee for Bedford Park Office Trust.
Rundle says the campaign provided a "rare opportunity to acquire a strong commercial investment".
“The property has been occupied by Westpac since its construction in 1997 and their further commitment to a long-term lease in 2007 clearly demonstrates the building’s strong fundamentals.
Laycock says the precinct is an important commercial hub incorporating the Westpac call centre, Florey research and development building and the major southern districts police centre.”
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Private investor snaps up BT call centre for $16.5 million on double-digit yield

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First-home buyers will benefit from the high number of properties on the market, according to the Real Estate Institute of Victoria's Robert Larocca.
Larocca notes that the state government's 30% reduction in stamp duty comes into effect in January, which would benefit first-home buyers who purchase property now and settle after the first of the new year. 
<iframe src="https://player.vimeo.com/video/53254934" width="470" height="260" frameborder="0" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>
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Consistent Victorian property market, with another super Saturday on the way

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The top sale at weekend auctions was a North Bondi penthouse within the former site of Blue Water Grill restaurant.
It sold under the hammer for $4.02 million.
It last sold for $5.75 million in 2006 when bought by the horse breeder Dean Fleming's family. The $1.73 million loss equated to 5% decline annually during its six-year ownership. 
The <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/apartment-bondi-nsw-2026/163214" target="_blank">three-bedroom apartment </a>is one of six in the Ramsgate Avenue block.
The block's last ominous sale was $1,785,000 for a three bedroom 189 square metre apartment that fetched $2.15 million in 2007.
The <a target="_blank" href="/news">North Bondi</a> penthouse offering had about 110 square metres of internal space plus 164 square metres of outdoor decking.
It was listed as now with a family of five, the Flemings are moving to something bigger.
Pre-auction he suggested he was realistic when it came to price with the McGrath agents Di Baker and James Dack giving the price guide as "between $4 million and $6 million".
"That's the market. You've got to meet it," Fleming told Fairfax Media after the weekend auction.
"It's disappointing, but it's time to move on."
A buyer from Melbourne secured the property with just one bid over the telephone.
Sydney recorded a 60.3% weekend clearance rate, according to Australian Property Monitors.
<div class="wysiwyg">
 
In Melbourne there was a clearance rate of 60% compared with 59% last weekend and 51% for the same weekend last year, according to Enzo Raimondo at the Real Estate Institute of Vicoria.
 
 
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North Bondi wipeout at weekend auction

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The sale of 11 Struan Street, Toorak, has been a long, drawn-out affair for its owner. Earlier in the year the property was sold for $3 million, but the purchaser was unable to settle on the property. So when an offer just above $3 million was put on the table late Friday afternoon the vendors jumped at it and the auction was cancelled.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a target="_blank" rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
<img src="/images/stories/2012/11/struan.jpg">
The exact sale price for the <a href="/news">Toorak </a>property (pictured above) has been undisclosed, but RT Edgar agent Anthony Grimwade says it was somewhere between $3 million and $3.1 million.
One property that did go through to auction this weekend was <a target="_blank" href="https://www.realestate.com.au/property-warehouse-vic-fitzroy-111921555">5/108 Moor Street, Fitzroy.</a>
The warehouse apartment had a mixed-use zoning, which made it enticing to both home buyers and those who were looking for a funky warehouse office.
While three bidders entered the fray throughout the auction it was only two who did most of the heavy lifting.
After the half-time break the property was declared on the market at $651,000 and was sold after a flurry of bidding for $684,000.
You can watch the auction highlights <a target="_blank" href="https://www.facebook.com/photo.php?v=307648876014397">on our Facebook page.</a>
There were so many bidders putting up their hands at 4/75 Kirribilli Avenue, <a href="/news">Kirribilli</a> (pictured below), that most people lost count, but let's just say it was more than 10. The extremely scarce piece of real estate had been very well inspected, and more than 1,700 people had viewed the property on realestate.com.au.
<img src="/images/stories/2012/11/kirr.jpg">
The lack of car parking was not a concern for the crowd as the bidding flew past the $500,000 reserve before settling at $529,000.
It maybe a few years before we see another one like this come onto the market.
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Toorak auction tipping competition property sold before auction, and a flurry of bidding in Kirribilli

<html><body>Australian Property Monitors (APM) has released a list of results from 413 auctions in Sydney for the weekend of November 10. The clearance rate was 60.3%. <a target="_blank" href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf"> Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

APM's 413 Sydney auction results show 60.3% clearance rate

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The NSW O’Farrell government is facing an interesting dilemma – does it borrow and risk losing its precious triple-A credit rating or sell off state assets? I’m sure everyone has mixed feelings about which is the smarter alternative, although I must admit I favour losing the triple-A credit rating for one simple reason: it makes the government leaner and meaner.  Business is run under that economic philosophy, so why not the NSW government?
There is nothing wrong with <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2012-10-04/infrastructure-funding-questions/4295198" title="infrastructure funding questions">infrastructure funding questions</a> given that in previous governments the taxpayer waste defied all logic, e.g. the failed/aborted Rozelle Metro, for which the previous NSW government wasted $500 million and all for no gain. The O’Farrell government has $53 billion earmarked for transport and roads infrastructure and services over the next four years – <a target="_blank" href="https://www.transport.nsw.gov.au/media-releases/rebuilding-nsw-20-year-vision-transport" title="Rebuilding NSW: 20 – year vision.">Rebuilding NSW: 20-year vision.</a>
You may be surprised to learn that on November 19 to 20 the <a target="_blank" href="https://www.expotrade.net.au/events/nsw-major-projects-conference-2012" title="4th Annual NSW Major Projects Conference 2012 ">4th Annual NSW Major Projects Conference 2012</a> is being held, where they will state the obvious. “New South Wales is entering an exciting time of renewal as the challenges to build and exceed beyond its past achievements is reaching critical tipping point. The NSW economy has grown to become the largest and most diverse economy in Australia, contributing one third of the nation’s gross domestic product and is home to 32% of Australia’s population, with even more significant population growth on the near horizon.”
One would be correct in asking why NSW holding is just its fourth annual NSW major projects conference when it should be around the 24th. The simple answer is that due to "no infrastructure" under the previous government, in all probability it was formed from pure desperation to simply get something happening. <a target="_blank" href="https://www.smh.com.au/opinion/politics/city-might-appear-to-be-down-but-it-is-far-from-out-20121107-28y98" title="City might appear to be down, but it is far from out">City might appear to be down, but it is far from out</a>, which takes me to James Packer’s article – <a target="_blank" href="https://www.smh.com.au/nsw/for-the-good-of-sydney-back-this-plan-20121102-28p9t" title="For the good of Sydney, back this plan ">For the good of Sydney, back this plan</a> – a very interesting read, and I back his plan.
The biggest news for the property market this week was <a target="_blank" href="/news" title="Macquarie Group takes Yellow Brick Road into home loans market">Macquarie Group takes Yellow Brick Road into home loans market</a>, which will cause Yellow Brick Road to go  head-to-head with the big four banks. Under the deal, Yellow Brick Road will try to undercut the big banks by offering a 1.15 percentage point discount on all new homes in the first 12 months of the loan. The big four have actively acquired all the second-tier banks to protect their market share, which is approximately 80% of the Australian home loan market. It should also be noted that most of the biggest real estate agencies within Australia bank with Macquarie Bank (us included), so this announcement provides Macquarie Bank with direct access to Australia’s biggest and most successful real estate agencies. I will make a prediction Yellow Brick Road will be the first bank to respond to a rate cut by the Reserve Bank of Australia (RBA).
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We predicted last week that the RBA would keep the cash rate at 3.25%, which I believe is directly aimed at what happens in the United States of America following the re-election of Barack Obama –<a target="_blank" href="https://www.smh.com.au/world/us-election/superman-has-just-54-days-to-save-the-world-20121107-28yls" title=" Superman has just 54 days to save the world."> Superman has just 54 days to save the world.</a> The simple reality is that the <a target="_blank" href="https://www.smh.com.au/business/rba-holds-rates-but-with-a-loose-grip-20121106-28w3t" title="RBA holds rates but with a loose grip.">RBA holds rates but with a loose grip.</a> So the stark reality of the decision is quite simple:<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/RBA-rates-decision-Glenn-Stevens-commodities-dolla-pd20121106-ZS7EF?opendocument&amp;src=rss" title=" RBA keeps its powder dry."> RBA keeps its powder dry.</a> Congratulations to the ANZ economists, who have correctly called the RBA’s cash rate announcements seven for 10 thus far in 2012.
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<a target="_blank" href="https://www.smh.com.au/business/building-data-still-gloomy-outlook-brighter-20121107-28x8p" title="Building data still gloomy, outlook brighter ">Building data still gloomy, outlook brighter </a>although it should be noted that construction activity in Australia has now been in contraction for 29 months. If that is not a warning to the Gillard government then nothing is.  When the economic principle of supply v demand is applied, you don’t have to be Einstein to work out which demographic market is going to benefit.  Australia already is recording the highest ever rental markets, which are  being further driven by the Gillard government decision: <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/sydneys-rental-market-feeling-the-sting-of-changes-to-living-away-from-home-allowance-carlie-ziri/2012092556792" title="Sydney executive rentals stung by Living Away from Home Allowance reform.">Sydney executive rentals stung by Living Away from Home Allowance reform.</a> An idiotic decision that punishes business simply because our elected government is marred by reckless spending deficiencies – decisions are made solely on re-election not economic competence.
Fascinating that 12 months ago, <a target="_blank" href="/news">Mosman </a>houses and apartments reached their peak numbers for 2011. The same can’t be said for 2012, with house listings down 32% from 365 days ago. For property voyeurs, this clearly indicates a strong market and it will be interesting to see whether  the house numbers fall below 100. In 2011, Mosman recorded 38 weeks with house volumes below 100, the lowest recording being just 78.
Robert Simeon is a director of <a target="_blank" href="https://www.rwm.com.au/" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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