Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

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Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

&nbsp;

&nbsp;

&nbsp;

Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

[smartcode_project:default project_id=95606 project_image_fid=378732]

A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

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?

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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The South Australian government has introduced a draft bill with the aim of addressing the issue of “bait pricing”, otherwise known as underquoting.

If passed, it will make it illegal for properties to be passed in at a higher price than advertised or for vendor bids to be received at a price higher than advertised.
The bill was introduced by SA Deputy Premier and Mnister for Business Services and Consumers John Rau yesterday afternoon.
Rau said the government continued to receive complaints from potential home buyers regarding situations where properties were either passed in at a higher price than advertised or vendor bids were received at a price higher than advertised.

"The government believes that the most effective way of eliminating the practice of bait pricing is to create a nexus between the price sought by, or acceptable to, the vendor and marketing a property based on that price.

"The expectations of the purchaser will be realistically met when the auction of a property is based on advertising that reflects the genuine selling price of the vendor," he said. 

Real Estate Industry of South Australia (REISA) president Greg Troughton told AdelaideNow that underquoting was a “blight on the real estate profession” and those agents that underquoting risked being kicked out of the industry.

“It punishes the vendor and removes competition from the marketplace so that everyone knows what the reserve is,” he said.

<a href="https://www.propertyobserver.com.au/news/underquoting-still-rife-in-melbourne/2012100456988" target="_blank">Analysis by Property Observer </a>of 74 Melbourne sales catalogued by National Property Buyers over the last four weeks of October found that almost 75% of them sold for more than the upper bracket of the quoted price range.

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South Australian government to make underquoting illegal

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For the week ending November 11, 2012, the combined capital cities clearance rate was recorded at 53.2%, a slight increase from the previous week’s clearance rate of 53%. Over the past week, there were 1,891 auctions held across the capital cities, which is higher compared with the previous week. At the same time the one year ago, there were just over 1,900 auctions held across the capitals. The clearance rate over the past week was much higher than one year ago, when the clearance rate was recorded at 48%.
The clearance rate in Melbourne, which is Australia’s largest auction market, was recorded at 57.6% over the last week, a decrease from the previous week’s clearance rate of 58.5%. There were 819 auctions held in Melbourne over the past week. Next week, there are 1,031 upcoming auctions scheduled across Melbourne. In Sydney, auction clearance rates decreased to 55.8% last week from 57.7% the previous week.
Over the coming week, there are 2,081 auctions scheduled across the capital cities, which will be a busy auction week.
Click to enlarge
<a href="/images/stories/2012/11/rpnov15.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/rpnov15thumb.gif"></a>
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
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Busy property auction week ahead: RP Data

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The problem with a million-dollar view in Sydney is it now costs a lot more than $1 million.
There’s a website, <a href="https://www.propertytycoon.com.au/" target="_blank">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 style="font-size: 14px;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
<img src="/images/stories/2012/11/shackel.jpg">
To get the view that million-dollar view <a href="https://www.realestate.com.au/property-house-nsw-clovelly-111965679" target="_blank">15 Shackel Avenue, Clovelly</a>, has on offer you will first need more than $2.5 million just to get your hands on the land. From there you will drop another million to build a two-storey home and then you will truly have a spectacular million-dollar view.
This <a target="_blank" href="/news">Clovelly </a>property is certainly what you would call tightly held. It was purchased by the current owner back in 1974 for $49,000 and has been an outstanding investment. If it does crack $2.5 million as Daniel Gillespie from Belle Property expects it will have shown an annual compound growth rate over 10%.
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Sydney auction tipping: Million-dollar view in Clovelly, for three times the price

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The vendors of a Mont Albert property going to auction this weekend hope a significant renovation entices $1.2 million-plus buyers.
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 rel="nofollow" target="_blank" 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.
They just don't build them like <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/1-laurencia-court-mont-albert/Property-Details-buy-residential-4587709">1 Laurencia Court, Mont Albert</a>, anymore. This “Waterfall Art Deco” property was built in 1946 and features an original iron curved staircase. The five-bedroom home is full of character and is located at the end of a quiet <a href="/news">Mont Albert</a> court.
<img src="/images/stories/2012/11/laurenci.jpg">
The current owners purchased the property in 2004 for $613,000 and have made significant cosmetic improvements to the property including an alfresco space that includes a heated below-ground pool. Tom Ryan from Jellis Craig says this property has really struck a chord with a lot of buyers and expects the property will sell in excess of $1.2 million.
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Melbourne auction tipping: Character-filled Art Deco home in Mont Albert

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Consumer confidence soared to its highest level in more than a year-and-a-half in November but a cash rate cut is still likely on December 4, says Westpac chief economist Bill Evans.
The Westpac Melbourne Institute Index of Consumer Sentiment increased by 5.2% in November from 99.2 in October to 104.3 in November - its highest level since April 2011 when the cash rate was 4.75%.
The sub-index measuring whether now is a good time to purchase a dwelling remained unchanged, but at its highest reading since September 2009 of 139.8 (the index average is 122.5) following a jump of 9.6% last month.
Evans says despite no change over November to this sub-index, it is “still clearly signalling a boost to confidence around the housing market”.
“Even those folks who hold a mortgage increased their overall confidence reading by 2.9% despite the likely disappointment from the Reserve Bank’s decision,” says Evans.
Respondents were surveyed between November 5 and November 11 so “largely captured the impact on confidence impact on confidence of the Reserve Bank’s decision”.
However the index is up just 0.9% on a year ago following the first 25 basis point cut from the Reserve Bank on November 2 last year.
<img src="/images/stories/2012/11/sentimentnov14.gif">
“In effect, the subsequent 125 basis points of rate cuts have only really now been successful in holding the index at that level which we reached in November last year,” says Evans.
He says the best policy for the RBA would be to cut the cash rate again on December 4.
“With private rates still comfortably above those levels of recent easing cycles it would be unfortunate if the RBA becomes over optimistic to the first sign that its policies are gaining traction.
“The Australian economy is facing uncertainty around the mining sector and with contractionary fiscal policy and a punishingly high Australian dollar, we need further rate cuts to help build on these early signs that lower rates are having an impact on households’ confidence," says Evans.
All components of the index increased in November with the biggest sub-index rise being for “family finances vs a year ago”, which lifted 11% to 91.8 above the historical average of 90 indicating an improved level of financial comfort among households.
However, confidence fell sharply by 5.2% in Western Australia, “the dominant resources state” and also fell by 8.7%, in South Australia “where ongoing disappointment around the cancellation of the Olympic Dam project may be a factor”.
“In contrast to this, confidence surged 14.2% in New South Wales where mining activity is less significant and, arguably, prospects are brightest for the property market,” says Evans.
According to Evans, the more likely explanation for the strong uplift in November is that “households are becoming more comfortable with the global outlook and are finally responding to the series of rate cuts”.
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Consumer confidence soars to highest level since April 2011 but December rate cut still likely: Westpac

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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.
 
<hr class="system-pagebreak">
 
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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