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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Things have moved on since a Shakespearean character in King Henry VI advocated "the first thing we do, let's kill all the lawyers". These days the prime imperative is to get rid of all the economists. I can't think of another profession so guilty of earning money on false pretences. Newspapers fill up large chunks of daily space with the predictions of people whose track records are quite appalling. The outlandishly inaccurate forecasts of the nation's most talentless profession are made worse by the suspicion that many commentators don't really believe what they're saying. Their objective is to generate media sound bytes. Something sensationally negative usually does the trick. Truth is optional. I still have the forecasts of economists about interest rates last year ringing in my ears. If they'd been right, Australia would have had multiple rate rises in 2011. The year ended without a single rise, but instead, two rate cuts. Never in the history of human conduct has so much been wrongly predicted by so many, for the benefit of so few. The weekly pattern of economic reportage is this: economists publish their tips about the upcoming release of data by the ABS; the bureau announces the latest figures on unemployment or economic growth or building approvals; and then economists fill up news pages with their exclamations of surprise, if not disbelief, at how different the official figures were from their predictions. Economics is indeed the art of explaining tomorrow why the predictions they made yesterday didn't come true today. The short explanation is: they haven't the faintest idea what's going on. The greatest mystery in Australian media is why journalists continue to give credibility to talking heads who constantly blunder. The bottom line is that newspapers don't give a damn, as long as there's a pithy quote and a cheap headline in it. So the chattering economist who got it horribly wrong last week can line up in front of cameras again this week to deliver another burst of misinformation. Accuracy is not only optional, it's downright inconvenient. <a href="https://www.propertyobserver.com.au/hotspots/tourism-helps-broken-hill-shed-its-one-horse-mining-town-investment-status-as-deloitte-s-questions-mining-boom-longevity/2012072255635">One of the greatest offenders is Deloitte Access Economics</a>, whose talking heads apparently believe there's no such thing as bad publicity. A major metropolitan newspaper this week described the firm as "Australia's leading private-sector budget forecaster". Despite my cynicism about economists, I had no idea the state of economic analysis in Australia was this bad. If DAE is the best, we're doomed. The firm's head media junkie Chris Richardson, the pin-up boy for economists who cherish getting it wrong in a spectacularly noisy fashion, will be remembered for his January 2009 media grab that "the budget is buggered". This was part of the firm's promotional effort for its Quarterly Business Outlook, which predicted Australia would fall into recession in 2009. The economic boom, it said, would "unwind scarily fast", corporate profits would halve and hundreds of thousands would lose their jobs. "Batten down the hatches," it declared. "This is not just a recession. This is the sharpest deceleration Australia's economy has ever seen." Oh dear. You'd think anyone who had got it so wrong would be a bit gun-shy about microphones and cameras thereafter. Hell no. This is about corporate profile, not credibility. And this week the firm delivered another prediction about the budget and the national economy. Naturally, its bold declaration that the budget surplus has evaporated and the mining boom had only two more years to run was regurgitated without hesitation by an adoring media. "The strong bit of Australia's two-speed economy won't stay strong for more than another two years or so,'" DAE confidently misinformed us. If you want proof that the exercise is more about headlines than economics, the reference to a "two-speed economy" is all you need. No serious expert attempting genuine analysis would resort to this cheap creation of a shallow media. As for the so-called boom in the resources sector running out in two years, I'm willing to predict it will this be with us when my grandchildren are my age.
Terry Ryder is the founder of <a rel="nofollow" href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a> and can be <a rel="nofollow" href="https://www.twitter.com/hotspotting" target="_blank">followed on Twitter</a>.
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Why listening to the so-called economic “experts” is a futile exercise

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Today's Business Spectator CEO Pulse survey puts the matter beyond doubt: Australia's chief executives do not like the Fair Work Act one bit.
They think it's bad for their businesses, they think it's bad for their industries and they especially think it's bad for the country. What's more, two-thirds of them think Fair Work Australia is doing a worse job than its predecessor, the Fair Pay Commission, because it's bureaucratic, inefficient and, worst of all, biased.
Do the nation's business leaders think the Rudd/Gillard system of workplace relations has anything going for it at all? Well, er, 3% of them think it has made things better.
The latest quarterly survey of Australian CEOs carried out by GA Research*, contains a devastating critique of the Fair Work Act and a rebuttal of the government's argument that the legislation improves productivity and is supported by business. It doesn't, and it's not.
The main problem, nominated by 54% of respondents, is that the Act sets up tension between wages and productivity. Other issues that need to be resolved are provisions around industrial action, collective bargaining and unfair dismissal – basically all the important things.
A lot of CEOs said that the new regime sets up an adversarial relationship between the unions and business, and is based around conflict. Some said that costs had increased and that they were dealing with more disputes and others said that the losses to productivity were hampering their ability to compete internationally.
To be fair, there were some positive comments. One CEO told our surveyors that there was "greater clarity and simplification via modern awards", while another praised Fair Work Australia: "Overall, Fair Work has presided over a necessarily complex area competently."
But Australia's CEOs have given the system a resounding thumbs down, with 82% saying it's bad for Australia, 60% concluding it's bad for their industry, and 51% that it's bad for their own company.
The interesting difference between those three figures lies in varying numbers of CEOs who think it has no impact at all: from 45% for the individual businesses to 9% for the nation. There was no change in the percentage that thought it was good, which was 3% for all categories.
Unsurprisingly, perhaps, the CEO collective now gives the Labor government 2.8 out of 10 for managing the economy. When we started these surveys in February 2010 the score was 5.4 out of 10, almost double today's score.
The decline in the government's standing has been remarkably steady, apart from a few months after Julia Gillard took over as prime minister and again just after the Future Jobs Forum was held late last year, accompanied as it was by a brief flurry of optimism that there would some action to help businesses lift employment.
Another interesting trend in the survey is around what's keeping them awake at night: achieving top line growth has now clearly replaced "sourcing and retaining skilled staff" as the key issue for CEOs. Even though unemployment is still low, CEOs are now much more worried about growing sales than finding staff.
Broadly, optimism about both the economy as a whole and individual businesses has fallen a long way versus this time last year: from 72% feeling somewhat or strongly optimistic about their own business to 56% now.
As for optimism about the Australian economy as a whole, that's down from 51% a year ago to 28% now, and no one is "strongly optimistic" at all – the whole 28% is now just "somewhat optimistic".
This is not good. CEOs are, by their nature, optimistic creatures because they spend their lives selling hope to their staff and their customers. That nearly a half of them are pessimistic about the nation's prospects, and a fifth of them are gloomy about their own companies is kind of shocking.
* Research design and analysis for the CEO Pulse was conducted by GA Research and fieldwork by AFS. The sample comprised n=96 CEOs of organisations with an Australian turnover of $100 million or more who opted to participate in a five minute survey conducted over the phone or online between July 17 and July 29, 2012.
This article first appeared on <a href="https://www.businessspectator.com.au/" rel="nofollow">Business Spectator</a>.
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Fair Work anger at the heart of CEO pessimism: Kohler

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It surprises me that some people are still suggesting Australians should invest in US real estate.
The US economy is still grim, as outlined in the <a href="https://business.financialpost.com/2012/07/09/11-ugly-facts-about-the-u-s-economy-david-rosenberg/">Financial Post</a> by Gluskin-Sheff chief economist David Rosenberg in a recent article.
Sure, the US economy is improving and jobs are being created, but the tepid 80,000 jobs the economy added (10,000 below already low expectations) slammed stock markets and sent the price of oil into a nosedive.
But the real devil, as they say, is in the details, and there was no shortage of disturbing details in this report.
Here’s Rosenberg’s list of “cracks in the jobs market”:
1. The jobless rate has topped 8% for 41 consecutive months, a post-World War record.
2. Only half of the jobs lost in the recession have been regained. Normally at this stage of the cycle – even in the most acute jobless recoveries – employment would now be back to all time highs, says Rosenberg.
3. More than one in four households have at least one member looking for a job – that’s another record.
4. 5.4 million Americans who are still looking for a job have been out of work for more than a year.
5. More than 8-million Americans are working part time because they can’t get a full-time job
6. Self-employment has risen 242,000 since March. “We are becoming a nation of freelancers and consultants in this era of corporate downsizing.”
7. More workers have signed up for federal disability benefits than new jobs have been created since the end of the recession in June 2009.
8.  The number of people who have vanished from the workforce altogether has surged 7.3 million over the past three years.
9. The current labour force participation rate of 63.8% is below the rate at the end of the recession – a record low for a post-recession recovery.
10. Household income is 5.3% lower now than it was when this “alleged” recovery began.
11. Food stamps are surging to record levels, up 32% since 2009.
Rosenberg’s conclusion?
“The labour market is broken and needs fixing; clarity over the fiscal policy outlook, a coherent energy policy and tax reform that provides incentives to save and invest as opposed to conspicuous consumption would be a good start.”
I’ve given my thoughts on investing in US property in previous blogs which you can <a href="https://propertyupdate.com.au/category/property-investment/property-investment-usa/">read here</a>.
Steer clear.
Source: <a href="https://business.financialpost.com/2012/07/09/11-ugly-facts-about-the-u-s-economy-david-rosenberg/">Financial Post</a>.
Michael Yardney is the director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a rel="nofollow" href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Why US property investment is a no-no – 11 ugly facts about the US economy: Michael Yardney

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<img alt="Port-Hedlandv2" src="/images/stories/2012/Port-Hedlandv2.gif" height="225" width="400">
High-flying WA residential property developer Finbar has been selected as the preferred developer to turn the former Port Hedland Hospital site in the iron-ore rich Pilbara region into 367 serviced apartments.
The $300 million project will overlook the state government’s $152 million Spoilbank Marina Precinct in Port Hedland and is part of its "Pilbara Cities" initiative, which aims to turn Karratha and Port Hedland into sustainable and attractive cities of 50,000 people each by 2035 as well as grow the population of Newman to 15,000 by 2035.
Finbar’s shares on the ASX were placed in a trading halt today $1 per share ahead of the announcement.
Trading has since re-opened with the share price rising to $1.06 following the announcement.
In choosing Finbar, the WA government would have taken account of Finbar’s successes in the Pilbara to date.
The developer recently completed <a href="https://www.propertyobserver.com.au/developments/developer-finbar-making-an-impact-in-wa/2011102051937">stage one of its $225 million Pelago project</a> in Karratha and has since commenced work on stage two.
The project features 292 residential apartments and 22 commercial lots.
The completed Pelago West component comprises 114 apartments while Pelago East will comprise 184 apartments, upon completion.
Following the Port Hedland appointment, Finbar will now enter into an exclusive working period with WA’s land and property development agency Landcorp.
Finbar will firm up design concepts for consideration by the relevant authorities followed by the intended purchase of the site from the state government for redevelopment.
Subject to approvals, Finbar plans to proceed to market and commence construction on the Port Hedland site early in 2013.
The former Port Hedland Regional Hospital site is a 3.15 hectare parcel of land located on Sutherland and Morgans Streets in Port Hedland, situated directly opposite the Port Hedland Yacht Club.
Aside from the 367 short stay serviced apartments along, the project will also feature ground floor commercial office and retail units, which will reflect the requirements for the State Government funded $152 million marina and tourism precinct.
The former hospital site is next door to Mirvac's $125 million hotel and residential project which will consist of 178 hotel rooms and 116 residential dwellings. “Port Hedland represents a significant opportunity for Finbar and allows us to demonstrate further innovative housing in the Pilbara area,” said Finbar managing director, Darren Pateman following the announcement.
“The Spoilbank Marina project itself will be a milestone for the Port Hedland area and will provide real relief to local residents and businesses that are crying out for alternative recreation and accommodation options.” “Accommodation in the North West is certainly in strong demand and Finbar’s agility will enable us to respond quickly for the benefit of the town, its businesses and our shareholders."
“Ideally, the Spoilbank Marina precinct will enliven the Port Hedland community and become a destination which workers would prefer to call home.”
“From what we have witnessed, there is a pent up demand for cosmopolitan living and we believe that Spoilbank Marina will become the prime Port Hedland location.”
In its most recent Pilbara Cities Newsletter update for Port Hedland, LandCorp said will release development sites this year will have the potential to accommodate an additional 1,200 dwellings.
The Pilbara – the epicentre of WA’s iron ore boom – has a total of $175 billion committed to new resource and resource related infrastructure projects.
According to the WA state government, the total value of minerals and petroleum production in the Pilbara by 2018 will be approximately $211 billion.
The WA government identifies the key challenges for the Pilbara due to growth in recent years are:
<ul>
<li>Housing is less affordable due to unmet demand.</li>
<li>Infrastructure upgrades/expansion are not keeping pace with growth.</li>
<li>Small business numbers have declined partly due to rising costs.</li>
<li>Education and health services are below expectations.</li>
<li>Community services facilities are aging and inadequate.</li>
<li>Sense of community is in decline, adversely impacted by workforce fly-in, fly-out rosters and 12 hour shifts.</li>
</ul>
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Finbar wins tender to build $300m serviced apartment project in Port Hedland 

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Changes in median house and unit prices don’t "inform" on whether the housing market is rising or falling, says Rismark, joint compiler of the RP Data-Rismark Daily Home Value Index.
Responding to a number of articles in the media, <a href="https://www.propertyobserver.com.au/residential/house-prices-the-latest-june-quarter-data-may-not-lie-but-its-rarely-in-agreement/2012072955754">including one on Property Observer</a>, commenting on the divergent nature of June quarter housing market data, Rismark says median prices are good for asking questions like: “Can the average wage earner afford to buy up to the 50th percentile (ie. the median) of the houses that happen to be selling in the last quarter?"
“Equally, the 25th or 75th percentiles are just as useful as the 50th for these types of questions."
Rismark says it cannot imagine anyone advocating that an index of the 25th or 75th percentile of house prices (stratified or otherwise) being representative of changes in the value of the housing market.
“However, when it comes to the word 'median' (ie. the 50th percentile) a lot of people seem to become spellbound."
According to Rismark “repeat sales indices” – where the sample of properties included in an index is limited to that sell more than once is a “poor reflection of changes in the market”.
“Repeat sale indices have very low coverage of the dwelling stock which is trading and massively revise, though time as new trade pairs (ie. houses selling more than once) become observable.
The RP Data-Rismark Daily Home Value Index is a hedonic model.
“This index utilises comprehensive information on the attributes and characteristics of residential properties (such as location, land size, and bedrooms) to measure “quality-adjusted” changes in property value over time and to also impute the value of dwellings having a certain set of characteristics (but no current sales price) by observing the sales prices and characteristics of other dwellings which have recently been observed as selling," RP Data explains on its website. 
<a href="https://www.rpdata.com/research/types_of_indices">Click here for RP Data's full explanation of its methodology.</a>
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Change in median prices don’t inform on housing market direction: RP Data-Rismark

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With 15,000 suburbs across the country, investors are spoilt for choice.
Especially when – if you had two lots of $9.95 to spend – Australia’s two leading property investor magazines simultaneously published their annual guides on the best 100 suburbs in which to buy.
It’s a year since <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/of-15000-suburbs-21-rise-to-the-top-as-worth-a-look-for-investors/2011072750933">Property Observer ascertained there were 21 hotspots that featured on both annual hotspot lists.</a>
The lists represented the shared outlook of two dozen property industry talking heads who helped Australian Property Investor and Your Investment Property compile the lists.
Sadly, few have performed very well, with Property Observer unable to find much evidence of double-digit hotspot growth in the list.
But more than half of the 21 offerings recorded negative momentum.
Ainslie in the ACT was said to be well located, with good services and still affordable, despite 12% average annual growth over the past decade leading to 2011. It all sounds rosy but RP Data figures show the median house price has actually dropped 5% over the last year. Unit prices experienced a slight growth of 1.5%.
Warrnambool in Victoria was said to have good prospects as a town in the centre of a regional Victorian district with gas-fired and geothermal power stations, plus wind farms. It was forecast to have a strong unit market. The figures show house prices have stayed unchanged and unit prices have dropped 5%.
In Queensland, Townsville, Gladstone and Rockhampton were all expected to do well. Townsville wasn’t brilliant – house prices dropped 8.9% and the unit price median plummeted 21.6%. Gladstone has been hot – but just for houses, not units. House prices in Rockhampton have risen 4.4%, while units have dropped 1.0%.
Again in Queensland, this time in the Surat Basin, the mining towns of Toowoomba and Chinchilla were both tipped to do well. In Toowoomba, house prices have risen 4.2%, while unit prices have dropped 5.5%. RP Data shows the median house price in Chinchilla has risen 4.7% but unit prices have dropped 1.1%.
In Brisbane, the suburb of Paddington was the only entrant in the 21. The lists celebrated its easy CBD access and lifestyle at affordable pricing for unit landlords. House prices dropped 5.1% over the year though units grew 4.4%.
Sydney had three suburbs in the list with Dulwich Hill, Tempe and Baulkham Hills. House prices in Dulwich Hill dropped 1.6% and unit prices dropped 1.1%. In Tempe RP Data noted house prices dropped 10.9%. In Baulkham Hills house prices rose 1.4% and unit prices fell 1%.
Bathurst and Port Macquarie were NSW’s two regional appearances on the list. House prices in Bathurst rose 3.4% and unit prices rose 1.3%. Port Macquarie wasn’t so lucky with house prices dropping 3.9% and unit prices down 5.8%.
<img alt="Hotspots-eBookv3-9" src="/images/stories/2012/Hotspots-eBookv3-9.gif" height="689" width="470">
WA’s only appearance on the list was Geraldton, where house prices have slipped 0.3% but unit prices have skyrocketed 27.3%.
Melbourne was expected to do well with the five suburbs, Broadmeadows, Thornbury, St Kilda, Brunswick and Balaclava, all appearing. Broadmeadows house prices fell 9.2% and unit prices dropped 13.9%. In Thornbury, house prices fell 4.2% and units fell 2.9%. In St Kilda house prices fell 3.2% and unit prices fell 2.8%. Brunswick house prices fell 6.5% but unit prices rose 2.4%. And in Balaclava, house prices fell 9.8% and units increased 0.3%.
In South Australia, Kensington and Port Noarlunga both featured on the lists, respectively four and 27 kilometres from the Adelaide CBD. Kensington house prices fell 10% while unit prices increased 1.4%. In Port Noarlunga, house prices slipped 0.1% with no data for units.
So from the 21 offerings, only Gladstone houses and Geraldton units withstood the current downtown. With double-digit growth, they stand, at the moment, above all other nominations.
For advice on navigating hotspots, download our free eBook: <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-tools-for-getting-through-the-hotspot-tipping-maze">Tools for Getting Through the Hotspot Maze.</a> 
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The 21 hotspots that weren't

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Rain delays has prompted Australand to reduce its targeted lot sales in its Greenhills Beach residential development in the Sutherland Shire from 170 to 135 for 2012.
And sales at Clyde North, its Melbourne greenfields project, have also slowed, with south east Queensland sales still at historical lows.
But the property group's sales was quite resilient in its $89 million full year net profit after tax representing a six percent boost.

The Greenhills Beach project, two kilometres from Cronulla, has land priced from $690,000 with beach lots priced from $845,000 and lakeside lots priced from $850,000
Despite the lot sales slowdown, Greenhills Beach remains among Australand’s top 10 residential projects and is listed as one of the project contributing to the strong first-half year result from its residential division.
Australand has also downgraded lot sales expectation in it Clyde North project on the outskirts of Melbourne with 140 lots expected to be sold in 2012 financial year compared to previous forecasts of 168.
In relation to both these projects, Rod Fehring, head of residential at Australand, said strong earlier momentum in both these projects had seen the developer release lots to the market earlier, but anticipated stronger sales had not eventuated.
The Clyde project has been impacted by the overall weaker state of the Melbourne market while the Shire project had been impacted by rain delays.
Overall, Australand identified South East Queensland and Melbourne as the two most challenging residential markets as it reported a 12% rise in revenue from its residential businesses to $260 million for the six months to June 30.
Lot sales declined to 489 compared to 605 in the corresponding period last year but contracts on hand increased from 605 and 824.
The average value of lot sizes were higher than the previous period.
The strongest performing residential project were Cockburn Central (WA), Kangaroo Point (Queensland) and Parkville (Victoria) with key contributions from residential land projects in Greenhill Beach (NSW) and Greenvale (Victoria).
The residential division now holds 1,316 contracts in hand as of June 30, an increase of 40 % more than the 951 contracts held at the end of December with Australand expecting 59% of these contracts to be realised in the second half of the year.
Australand managing director Bob Johnston said solid momentum from 2011 had been carried into 2012, but “consumer clearly remained cautious and house prices have eased.
Fehring described the Melbourne market, where Australand has 54% of its projects, as one that has now ticked over into “mild oversupply” although this oversupply is not “uniformly spread” with activity impacted at the lower end of land markets and high-end discretionary markets.
He says sentiment has softened with a weaker employment outlook, while the ending of first-home buyer concessions had also pulled demand forward and is expected to impact on the market in the future.
But he says "earnings resilience" is being supported by the diversity of the projects in its pipeline with its Point Cook project among the top performers
Australand has 11 Victorian projects underway with over 500 contracts in hand, including projects in Carlton and Cranbourne West.
Australand has only a small exposure to the South East Queensland, where 9% of its residential projects are located.
It says activity levels in this market remain at historic lows with interstate migration remaining low though affordability has improved relative to other markets.
Its inner city projects at Kangaroo Point and Hamilton have been among the stronger performers which are attracting enquiries and sales.
Australand has stuck with its forecast of 48 lots sales at Kangaroo Point for the financial year with an average expected price of $980,000
Australand says WA, where it has 14% of its projects, is showing improved fundamentals.
“Perth market fundamentals have improved significantly, listing have normalised with vacancy rates tightening,” says Fehring.
Across the entire residential portfolio, Australand is targeting 15 to 20% rise in earnings before interest and tax for the second half of the year, underpinned by strong contracts that will close in this period.
It also re-affirmed full year distribution guidance of 21.5 cents, but said this was dependent on sentiment not weakening further.
For the half year to June 30, Australian reported a 5% rise in operating profit compared to the same period last year.
Johnston called this a “credible result” given the weak consumer sentiment.
“Trading conditions across the board remain challenging,” he said.
Australand reported statutory profit of $90 million for the half year compared to $85 million in the corresponding previous period.
<img width="400" height="225" src="/images/stories/2012/greenhills.gif" alt="greenhills">
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Sales slow in the Sutherland Shire as Australand identifies several residential weakspots

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Hotspot suburbs are the Holy Grail for property investors, but they oughtn’t be.
By the time of common knowledge or publication in national property magazines on newstands, locations with a red-hot reputation have most likely passed their invest-by date.
Picking and purchasing gems before they have got their shine is the wisest strategy.
The Residex forecaster John Edwards says this involves buying at the right price, in the right place and at the right time. Not an easy trifecta. 
Investors shouldn’t totally ignore the tipsters’ industry that surrounds the spruiking of hotspots, but sensibly should be seeking out individual property that represents good buying value, where ever it’s located. The much published hot spot lists are a terrific resource, but I'd suggest they be more a reference book, and template for individual suburb research, rather than a call to action. 
Much of the current hotspots buzz centres on mining towns.
And there’s no better example of the hotspotting herd getting it wrong that Zeehan, the picturesque small west coast Tasmanian town with a population of around 850.
It saw significant speculative investment from 2003 to 2008, largely driven by mainlanders seeking dwellings with good rental returns at the cheapest end of the national market.
The investor demand had been driven by a number of exposés of the town promoting it as a hotspot.
Things really took off after a 2006 segment on Channel 9’s A Current Affair that highlighted the town as the cheapest for housing in Australia.
Prices that were around $10,000 in the early 2000s, jumped to $80,000 post the ACA story and then typically went as high as $150,000 at the time of the Avebury nickel mine opening. They’re now back to $100,000 according to a recent Australian Housing and Urban Research Institute (AHURI) study by Professor Andrew Beer.
While the June 2008 opening of the mine assisted prices along, the mothballing of the mine in December 2008 – and the loss of almost 200 jobs – has since caused house prices to plummet dramatically.
In its wake there’s been a procession of residential investors defaulting on their mortgages and business closures are all too common.
These have continued into 2012, with the worst case found by Property Observer reselling at $55,000 – its 2004 sale price – after having peaked in 2008 at $190,000.
Currently, Zeehan’s housing market is described as depressed by Beer and unlikely to recover from this position until the Avebury mine reopens. Property Observer has noted however a few very small upticks since 2011, suggesting it might be bouncing along the bottom.
But with poorly maintained stock, lack of services and funding for local infrastructure, along with the poor overall Tasmanian economy, it’s very much a case study of a town in decline.
Professor Andrew Beer wrote in June 2012 that Zeehan was emblematic of the mining industry generating a whole new housing dynamic with great volatility.
Of course, the mere term “hotspots” implies volatility – investors getting in and out of a market in quick succession. None of the wise "property is for the long haul" strategy embedded in this approach.
Boom/bust markets ought to be treated with utmost caution – and are not necessary within the sustainable portfolio of the savviest of investors.
It is true that sometimes the greater the risk, the greater the reward, so for some it represents an engaging endeavour.
Property Observer has the advantage of cherry-picking some of the good ideas of many experts with national profiles.
But do your homework on what's suitable for your individual investment strategy.
Our recently published eBook – <a href="https://bit.ly/O6ekCX">Tools for getting through the Hotspot Tipping Maze</a> – doesn’t intend to scare investors off hotspots altogether, but to ensure that they have their wits about them.
Not only when it comes to the property and its location, but also its promotion.
Investors ought to bear in mind who is making the recommendation, what interest they may have in the hotspot and whether they will earn income from the sale of real estate in this area. By all means proceed with a good deal purchase, so long as you are happy with the transaction transparency.
Investors need to arm themselves with sufficient research to make a considered investment.
The due diligence should include a thorough investigation of the local rental market, vacancy rates in the area and zoning issues. Investors should also do a study incorporating a cashflow analysis, looking at return on investment and depreciation.
And endeavour to bounce off any investment ideas with a team of advisors. Start with an estate agent or two and add an accountant. Try to touch base with the local valuer. Ensure you have a good solicitor. Then maybe extend it to include an architect, or town planner, if there’s the possibility for improving its value beyond its current state.
Remember of course even the local experts can get it wrong, not just the tipsters in the national magazines.
For advice on navigating hotspots, download our free eBook: <a target="_blank" href="https://bit.ly/O6ekCX">Tools for Getting Through the Hotspot Maze.</a>
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Why hotspot suburbs should not be the Holy Grail for property investors

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Inner city infill residential property developments have the advantage of being close to the CBD and benefiting from nearby established infrastructure, but the returns can be mixed, Monique Sasson Wakelin has warned.
She says investors should tread carefully when considering these investments.
“Done well – built in a good inner suburban location, with quality design and construction – a new estate can perform reasonably well, eventually,” says Wakelin, director at Melbourne-based Wakelin Property Advisory.
“But they do tend to struggle capital growth-wise for the first few years. Moreover, they never seem to quite match the performance of top grade, established investment property."
“When the property market is booming, it is understandable that some budget-constrained investors who struggle to outbid others for established property resort to buying in new estates."
“But in a slow property market where competition is light, and it is possible to buy into the established inner suburban market, there’s really no need to settle for second best.”
As an example, house prices in an established suburb like Albert Park have risen 321% over the past 15 years, while a suburb like Port Melbourne, where Mirvac built its Beacon Cove project on former industrial land in 1996, have only recorded 249% growth.
Over the last three years, houses prices have risen by 51% in Albert Park compared to 26% in Port Melbourne.
In a column penned for the Eureka Report, Wakelin writes that while much of the new housing construction will take place in fringe suburbs, there is a drive among governments and developers to reassign large tracts of former industrial and other redundant land within inner and middle suburbs for residential use.
Wakelin says there are a number of positives about infill development closer to the city compared to new greenfill housing in the fringe suburb counterpart.
“The most obvious is location. Many of these new residential estates are only a few kilometres from the CBD, as opposed to 40 or 50 kilometres,” says Wakelin, writing for the Eureka Report.
Aside from shorter commutes to the city, she says the other positive factors in favour of infill developments are the existing hard infrastructure in the surrounding area (roads, schools, childcare facilities, medical facilities) as well as closer proximity “to the things that give an area a 'soul’,” – shops, cafes and restaurants.
But she warns investors to keep in mind the experience of Beacon Cove in Port Melbourne, which shows that there is a lifecycle for infill developments.
She quotes Biggin &amp; Scott Port Melbourne agent David Lack, who says there were long queues and people camped overnight when the project first came on the market in 1996.
But according to Lack, the Beacon Cove properties struggled at first on the resale market in the early years and it was only from around 2001 that they started to show a good profit on resale.
Lack also says Beacon Cove properties may have been overpriced at their first offering, asking $305,000 for a three bedroom house.
“The lesson from Beacon Cove for investors considering buying into infill developments is to tread carefully,” she says.
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Investors need to be aware of cyclical ebbs and flows of inner city new housing projects like Beacon Cove: Monique Sasson Wakelin

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On Saturday I attended Australia’s biggest property investment convention – the annual Home Buyer &amp; Property Investor Show. And, what a day it was! Crowds were in high attendance on Saturday, and I’d even argue there were more people in attendance than last year’s event.
Today I thought I’d cover off some highlights of the event by expanding on some trends I noticed while roaming around the Sydney Convention &amp; Exhibition Centre. US property investment, while always present at this expo, easily had the greatest presence I’ve seen, in terms of the number of exhibitors in attendance. I counted at least six different exhibitor stands of companies with American investment products and offerings. There were a variety of offerings from these companies; some offering completely integrated finance and property sales solutions; others offering only the property purchase process in itself, but across many different US cities/markets. There was even one company, Select American Homes, that offered property only (no finance) to exclusively one market – Atlanta, Georgia. I sat in on a seminar from them and was quite impressed as to the scope of their offering. This company had an integrated Australian and American team who, while not offering or assisting with finance, charge one lump sum fee that covers off the entire acquisition, renovation, LLC company structure (for finance), and ongoing tenant property management. Their degree of due diligence on their focus city was second to none. The sophistication of US property investment options on offer at the show is, in my mind, an indication of the degree of maturity that American property investment has reached in the Australian marketplace. A few years ago we’d have been lucky enough to hear from perhaps one or two such companies, with a “take it or leave it” approach to their offering. Fast-forward to today and the degree of sophistication and product offerings in the US market is clearly apparent. Some, including myself, would argue that the jury is still out when it comes to success in this type of investment, but judging by the crowds flocking to the stands in droves, clearly interest is at an all-time high.
<img src="/images/stories/2012/show-2.gif" alt="show-2" height="300" width="400">
(photo taken Sunday 5pm suggesting sales tally after three days spruiking)  source Jonathan Chancellor 
There was also an increase in non-US offshore property investment options. Luxury high-end villa developments in Bali, resort-style beachfront developments in Thailand, and also one company focusing entirely on New Zealand were all present. The New Zealand market has had substantial growth in the last two years (compared to flatter growth in the two years previous to this), and does offer some interesting incentives, such as zero capital gains tax. Another trend I observed was the offerings from the finance exhibitors. While seeing many traditional bank and non-traditional lender exhibitor stands present was nothing new, seeing their primary product offerings all together did highlight a common theme. The interesting trend I noticed was that most banks and non-traditional lenders present were offering incentivised loan products. Most of these were some sort of cash back or gift voucher promotion (UBank, ING Direct and RAMS Home Loans were all offering vouchers or gift cards to the value of $500-$1,000), which may seem like one of the oldest tricks in the book, but with today’s low-rate environment giving way to highly competitive product offerings from lenders, vouchers and cash-back schemes must be an easy way for these finance providers to get noticed. Also on finance, I noted an increase in the presence of superannuation financiers for investment property specifically. Three exhibitors I spoke to were all offering finance, leveraging the initial deposit of a superannuation fund to become a self managed super fund investment property. One of these even operated exclusively in using one’s SMSF to purchase, yes, you guessed it, US properties with it. This could be a real game changer. <a href="https://www.propertyobserver.com.au/residential/why-buying-property-with-super-is-hard-for-young-and-low-income-investors-cameron-mcevoy/2012042254378">I wrote not too long ago</a> about the challenges of drawing from one’s superannuation fund to finance a deposit for an Australian investment property. The biggest challenge was that with Australian investment property, you’d struggle to find any property for less than, say $200,000, that offered great scope for growth. This means that to “unlock” enough superannuation for an initial deposit, you’d need to reach a seriously big “critical mass” of super before you could act on it. For most Australians, this means you’d have to wait for your super fund to grow a big enough balance (either organically, or by contributing additional funds other than that of your employers’ in to it). However, with US properties one can enter the market for as little as $30,000 or so, meaning a much smaller initial deposit from one’s superannuation fund. It will be interesting to see where and how this trend develops.
<img src="/images/stories/2012/show-1.gif" alt="show-1" height="300" width="400"> So what was new and trending well in the Australian property market then?
Granny-flat developer exhibitors had more presence than last year. Interestingly, I also observed several granny-flat specialist exhibitors at the Sydney Home Show (another show that is more geared towards home owners and home renovators versus property investors, however there is a degree of crossover between both of these). Again, it was not about the volume of exhibitors specialising in granny-flat offerings, but the variety and sophistication of the products and solutions they were selling. Some of them offered purely the kit homes; others offered end-to-end planning, design, construction, fencing, water main splitting and driveway allocation all as part of one offering. There were also a couple of exhibitors focusing on property management, more so towards “portfolio management” as opposed to singular investment property management. Some providers were offering 4% flat rates for the greater Sydney area, with others offering from 5% across any state and territory in one’s portfolio. Another way to observe the popular topics and ideas trending well was by looking at the seminar calendar and the topics covered within. One big shift this year compared to previous years is the volume of seminars geared towards knowing which markets are currently in the best position to start an investment career in, along with superannuation in general (buying property leveraging your superannuation, and also thinking about “superannuation-gearing” versus “negative-gearing”). All in all, an excellent and busy few days, with a great deal of information on offer and some industry “juggernaut” voices providing great integrity and wisdom. Bring on the <a href="https://www.homebuyershow.com.au/melbourne/">https://www.homebuyershow.com.au/melbourne/</a> next show!
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