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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Emerging integrated property group Top Spring Australia has announced their latest project in the company’s Sydney portfolio, with the submission of a development application for a site in Elizabeth Bay.
Located at <a href="https://www.commercialrealestate.com.au/property/11-13-greenknowe-avenue-elizabeth-bay-nsw-2011-2015655477" target="_blank">11-13 Greenknowe Avenue, Elizabeth Bay</a>, the disused 1,347 sqm site has most recently been occupied by SHMH Group Australia and is the former headquarters of the NSW Country Women's Association.
SHMH previously planned to develop the property themselves.
Top Spring Australia's plans for the site include the construction of a six-storey residential development comprising 30 luxury one, two and three-bedroom residences, above a single level of basement car parking accommodating 31 vehicles.
Sydney Ma, Director and General Manager of Top Spring Australia said, “as property in this suburb is traditionally very tightly-held, with very little new stock coming to market, we expect there to be significant interest in this project.”
With multiple smart and adaptable living spaces, including outdoor communal areas, Top Spring Australia hopes buyers will recognise the proposed residences. 
The project’s landscape architects Taylor Brammer have also curated a series of landscaped elements intended as an urban oasis, with green walls and privacy screening, plus an outdoor entertaining terrace for residents with water features, a BBQ and a kitchenette, and a sensory garden with productive garden beds and in-built work pods.
A more detailed vision of the project will be released in the coming months, with expected completion by 2023.
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j.ballantyne1990-6AQqhLzZaK

Top Spring Australia unveil Greenknowe Avenue, Elizabeth Bay CWA redevelopment proposal

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The adverse impact of the <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">COVID-19 pandemic</a> on Australian industries has been a widely circulated narrative for the past two months with many speculating a ‘new normal’ is on the horizon. As we navigate through these uncertain times, the property industry, in particular, has demonstrated its ability to quickly adapt to changing circumstances and consumer behaviour.

It is a responsibility that falls on us, as property <a href="/developers/icd-property">developers</a>, to aid the industry in any way we can and despite an overall unfavourable impact, COVID-19 has perhaps been the catalyst to expedite changes that were forthcoming.

<h2>Adapting to new buyer behaviour</h2>

New regulations in regards to <a href="/guides/covid-19-is-it-possible-to-practise-social-distancing-at-home-absolutely">social distancing</a> have resulted in developers swiftly shifting their regular customer service and sales offering to private appointment only. As a result, this has led to fewer enquiries but the enquiries that have come in are much more qualified and serious.

This is due to the fact that by the time these individuals have stepped into our sales centres or display suites to meet with an agent, they have most likely already visited our website, read the brochure, and looked up the project in the news. By doing this, they have essentially pre-qualified themselves so by the time they reach their private appointment, they have a clear understanding of the project and a list of specific <a href="/guides">questions to ask</a>. 
  
With a large proportion of the population in self-isolation, the industry has also witnessed a spike in online visitation to resources such as <a href="/">Apartments.com.au</a>, with project websites and social media channels also growing in popularity.

We’ve also seen a greater demand for project brochures, floor plans and price lists to be made available online for purchasers to browse from the convenience and comfort of their homes. Similarly, many projects are looking to have showroom videos and 3D virtual tours of apartments created to upload online. This level of convenience has even stemmed to e-contracts, as individuals refrain from in-person interactions.

<h2>
Shaping the future of the property market  </h2>

This technology has been available for a number of years but the uptake wasn’t there. The way agents and businesses have operated has been largely dictated by the way consumers behave and now that this behaviour has pivoted, a new way of operating is being explored. Prior to social distancing and new regulations, we continued to do what we had always done because it seemed to work but now we’re exploring how to be more efficient. The changes we’re currently witnessing would have come eventually but COVID-19 has inadvertently caused us to adopt them sooner; it has made us reflect on whether the way we do business is the smartest way. This isn’t exclusive to the property industry, with many industries forced to reconsider their ways of working. 

Take for example telemedicine - Australia has been slow to adopt this practice but amidst a pandemic, everything went digital. Why would we ever go back to in-person consultants for a script refill when it can be done online?

Only time will tell whether these changes will be short-lived or if as a collective, we will put a greater emphasis on technology and efficiency. But for the time being, the most important thing we can do is to support Australians and local businesses. Within our own business, we are working hand in hand to navigate this tough market with our partners and consultants. 

By remaining involved in advocacy groups such as the <a href="https://www.propertycouncil.com.au/">Property Council of Australia</a> and the UDIA, we can safely keep construction sites open to stimulate the economy and keep Australians in jobs, while ensuring <a href="/developments">developments</a> are progressing healthily through planning and construction. It is times like these you need to remain agile when the going gets tough - it will only make us stronger on the other side.
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Melvie

The future of the Australian property market post COVID-19 according to ICD Property's Sal Quah

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For many <a href="/guides/how-to-ensure-financial-return-on-your-property-investment-in-15-simple-steps">property investors</a>, including both private investors or self-managed superannuation funds, one option that many investors like to consider is whether to invest in a hotel, serviced apartment or resort.

Investment Options

There are several ways purchasers can participate in <a href="/expert-insights/buying/concerned-about-your-hotel-development-during-covid-19-a-lesson-from-hotel-broker-michelle-matthews">hotel ownership</a>, and these include:

1. Managed Investment Scheme (which <a href="https://www.asic.gov.au/regulatory-resources/funds-management/">ASIC</a> notes are also known as “managed funds”, pooled investments” or “collective investments”)  
2. Individual Lease to the tenant/operator 
3. Management letting rights agreement

1. Managed investment schemes 

According to ASIC (Australian Securities and Investments Commission), in a managed investment scheme:

<ul>
<li>People are brought together to contribute money to get an interest in the scheme ('interests' in a scheme are a type of 'financial product' and are regulated by the Corporations Act 2001 (Corporations Act))</li>
	<li>Money is pooled together with other investors (often many hundreds or thousands of investors) or used in a common enterprise</li>
	<li>a 'responsible entity' operates the scheme. Investors do not have day to day control over the operation of the scheme.  The Responsible Entity has the dual role of trustee and manager of an investment scheme and must be appointed if an investment scheme needs to be registered.</li>
</ul>
If the Scheme invests in a Hotel, it will generally enter into either a Lease Agreement with an operator (where the tenant/operator pays a monthly rent to the Scheme, thus providing consistent income), or it appoints a manager under a Hotel Management Agreement, whereby a professional management company is paid a fee to manage the hotel on behalf of the Scheme, which provides a more variable return. 

<ul>
<li>With a Lease Agreement:</li>
</ul>
<ol>
<li>The Tenant will pay an agreed monthly rent and a share of outgoings (building expenses) to the Scheme, but the Tenant wears all risk and upside of the business. </li>
	<li>Rent may be fixed, variable, or a combination of the two.</li>
	<li>The Scheme is still responsible for all major structural repairs.</li>
	<li>Leases can run from 15 to 25 years with further options.</li>
</ol>
<ul>
<li>With a Hotel Management Agreement:</li>
</ul>
<ol>
<li>the management company is paid a fee to oversee the day-to-day operations of the hotel (including sales and marketing, finance, staff supervision etc) however all expenses are paid by the Scheme and most of the risk rests with the Scheme. </li>
	<li>Any profits are shared amongst the investors in the Scheme according to their entitlements.</li>
</ol>
No matter which of the above applies, the Responsible entity manages all legal/compliance aspects of the Scheme on behalf of the investors.

2. Individual Leases are a much simpler structure, and generally apply to a Hotel that operates within a strata-titled building such as a multi-storey apartment building. In these instances:

<ul>
<li>The tenant enters into individual leases with each owner. </li>
	<li>Typically, these leases may have been established by the original developer who has standardised all terms and sets the initial rental amount.</li>
	<li>Rental is a set amount with annual increases set by reference to CPI or a fixed percentage amount. The first owners may have a guarantee of a minimum gross return on their investment (for example, 5% or 6%).</li>
	<li>Some rental agreements may also be variable, where they are based on a percentage of revenue generated OR they could have a fixed base rent plus a percentage of revenue.</li>
	<li>Most strata-titled buildings have an <a href="/expert-insights/buying/an-owners-corporation-s-response-to-dealing-with-covid-19">Owners’ Corporation</a>, Body Corporate, Community Corporation (or similar) who will manage the common property on behalf of all owners and will arrange insurance or maintenance to structure within a building, however they have no control over the Hotel other than where agreements have been entered into for use or management of common property.</li>
	<li>These types of investments generally have low capital growth due to the fixed nature of the rent.</li>
</ul>
3. Management Letting Rights are another common management solution for strata-titled Hotels. In this instance, typically:

<ul>
<li>The Manager will enter into an exclusive arrangement to manage letting rights within the building </li>
	<li>They will operate the Hotel or letting business and undertake caretaking of the building as well as operating the Hotel. </li>
	<li>The Manager may enter into a lease (as noted above) or agree to share the revenue generated for each room/apartment with the individual owner.</li>
	<li>Occasionally, these agreements will see revenue pooled with other owners and the revenue split.</li>
	<li>If the Manager does not have exclusivity in the building then there may be competing rooms/apartments that may compete and/or detract from yours.</li>
</ul>
Questions to consider

No matter which of the above options you may be considering, there are a number of questions that will help understand both the risks and opportunities inherent in each. Some of these include:

1. Who is the operator?

<ul>
<li>Is it an internationally recognised operator in this space or a small mum-and-dad operation?</li>
	<li>Do they have a strong balance sheet able to support any lease or rental guarantees?</li>
	<li>What other properties do they manage, and can you seek testimonials from other owners?</li>
</ul>
2. How does the rental return compare to leasing out an apartment or room by yourself?

<ul>
<li>Remember to factor in all the other costs involved in self-management ie agent leasing fees, general maintenance, refurbishment costs, etc.</li>
</ul>
3. What are the refurbishment obligations?

<ul>
<li>Is the tenant/Manager responsible for undertaking this? If so, how often and to what extent (for example, who is responsible for repainting and replacing carpets? What about renovating bathrooms, kitchens, and common property?)</li>
</ul>
Seeking advice

No matter the purpose of your investment, it is vital that you seek expert advice. 

On that basis, it is vitally important to find a good lawyer, accountant, and financial adviser who are specialists in the hotel sector to advise you.

Conclusion

As you can see from the above, hotels are an interesting means of investment however there are numerous ways in which this can occur, each of them with their own challenges. No investment is fireproof, however taking the time to understand how each model works will hopefully contribute to much better decisions.

Disclaimer 
The information provided on this website is general in nature only and does not constitute personal financial advice. 

<h2>Recently added properties: </h2>

[smartcode_project:default project_id=3490]

[smartcode_project:default project_id=29358]

[smartcode_project:default project_id=3783]
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Investing in Hotels, Resort or Serviced Apartments?

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Traditional drivers of the western Sydney property market include interest rates, the availability of credit, affordability, employment and infrastructure spending, according to the latest Herron Todd White (HTW) residential report. 
The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.
The report notes that first home buyer market has seen a bounce back in recent months with many local agents noting an increase in buyer activity. This can be attributed to continued low interest rates and some confidence returning to the market after a period of decline.
"St Clair is a suburb within the Penrith LGA and is well positioned within the first home buyer’s price range," the valuation firm said. 
With a $662,000 current median dwelling price (source: CoreLogic), this suburb offers buyers detached brick dwellings on slightly larger parcels of land compared to their more easterly neighbouring subdivisions.
A St Clair dwelling at <a href="https://www.realestate.com.au/sold/property-house-nsw-st+clair-132656006" target="_blank">8 Ontario Avenue</a> (pictured above) recently sold for $642,000 and comprised four bedrooms, one bathroom and a single garage on 568 square metres of land.
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"Upgraders rely on the strength of the first home buyer and entry level market to allow them to secure the right price in order to upgrade," the valuation firm said.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/27/box%20hill.jpg" alt="">
Traditional areas for upgraders have been new estates with low maintenance blocks such as in Box Hill in the north-west and Leppington in the south- west. 
These new estates allow local upgraders the opportunity to buy a larger modern house with quality inclusions, the report noted. 
A recent sale at Box Hill achieved a price of $1.01 million.
The four-bedroom, two- bathroom home is situated at <a href="https://www.realestate.com.au/sold/property-house-nsw-box+hill-132775106" target="_blank">47 Longerenong Avenue </a>(pictured above) on a low maintenance 375 square metre block.
Note regarding COVID-19
<div>This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.</div>
<div> </div>
<div>This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.</div>
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Western Sydney first home buyer market sees a bounce back: HTW residential 

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EXPERT OBSERVATION
The NSW Government has announced the first tranche of projects to be fast tracked through the Planning Acceleration Program.
The Minister for Planning along with the Department of Planning and Treasury deserve praise for developing strong criteria for assessment of projects and using those criteria to fast track projects which will create employment.
All of the projects in the first tranche released today have the support of Council and were already well progressed. Many are government sponsored projects including Snowy Hydro and projects submitted by the Department of Education.
We are particularly pleased that some of the projects that were caught up in the St Leonards stalemate have been progressed. This is a good start indeed.
We hope that this can be used as a precedent to stimulate activity in other corridors which are supported by new infrastructure including Parramatta Road (supported by WestConnex); Sydenham to Bankstown (supported by the new Metro).
Urban Taskforce supports the publication of a strong set of criteria for assessment of projects which have been submitted for consideration.
These criteria will be used to consider further tranches of projects for fast-tracking in the coming weeks and months.
We welcome the NSW Government’s recognition of the private sector property and development industry to the NSW economy. Representing 10% of the economy, the measures taken to support the industry are critical to tens of thousands of workers.
There are a number of significant projects across greater Sydney and Newcastle that can be fast-tracked to unlock construction activity, employment and provide housing without compromising the integrity of the planning assessment process.
Tom Forrest is the CEO of property development industry group Urban Taskforce.
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wdavis-8cCN98p7xp

Fast-tracked projects are a welcome and much-needed economic stimulus: Tom Forrest

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Premier global construction company, Multiplex, has completed Hengyi’s $350 million high-rise residential development, Swanston Central, delivering a new addition to Melbourne’s inner-city skyline.
Located on the former Carlton United Brewery site at 160 Victoria Street in Carlton, the 71-level Swanston Central was designed by architects Elenberg Fraser. It comprises 1,045 residential apartments, 2,500 square metres of retail space over podium levels and a 345 square metre office space on Level 22.
With its highest point at 257 metres above street level, Swanston Central offers residents panoramic views across Melbourne.
Multiplex Regional Managing Director Graham Cottam said the contractor was delighted to complete the landmark high-rise development for Hengyi.
“With a rich history dating back to the mid-1800s, the delivery of Swanston Central has seen the original Carlton Brewing site reborn into a vibrant vertical village,” said Mr Cottam.
“Supported by our extensive experience in high-rise construction, we’re proud to have delivered Swanston Central on time and to an exceptional standard for residents.”
Work on the Swanston Central project spanned 3.5 years commencing on August 23rd 2016 and according to Multiplex over 1,000 people worked on site throughout construction.
A range of innovative construction techniques have been used by Multiplex including the use of precast formwork to build outriggers on the face of Levels 22, 47 and 48 and the installation of the entire curtain wall behind screens to improve safety. Swivel arm technology was used to install curtain wall glass to free-standing hero columns without the need for tower cranes or mobile cranes.
ESD features include a 50,000 litre rainwater tank for irrigation, pool top-up and filter backwash.
Swanston Central features a landscaped common area plaza providing access from Victoria Street right through to Queensberry Street, with a mixture of retail and shops at Ground and Level 1.
Resident facilities include a lap pool, two spas, sauna, steam room and four cabana areas.
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Level 47 features private dining rooms, golf simulators, games rooms, a library and two cinema media rooms. An exclusive sky lounge on Level 69 provides an open plan common area that can be booked for events and parties.
A signature element of Swanston Central’s design is its striking interlocking glass panels that change colour from green to silver and pink. The heritage-listed two-level Carlton United Brewery building at the front of the site has been refurbished and will be leased out to future retail or commercial tenants. It incorporates a refurbished heritage board room from the 1800’s.
The site operated as a brewery for over 100 years from 1864 until 1987 when it was demolished. It was then vacant until Hengyi acquired it in 2016 and commenced construction on Swanston Central.
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Multiplex completes $350 million Melbourne residential development 

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EXPERT OBSERVATION
Following times of crisis, real estate is traditionally the first to bounce back.
COVID-19 bears striking similarities to the Spanish Flu pandemic of 1919, when despite the media creating fear and hysteria through alarmist headlines, capital city housing prices didn’t fall at all. They boomed in 1919 and then continued to rise by more than ten per cent each year until 1921.
After the national recession (1990-91) and after the GFC (2008-09), it was the real estate market that most quickly saw a return to pre-crisis activity and values.
Why? Because everyone needs a roof over their head  - be that as an owner occupier or a tenant, a business owner or employee, an educator or student, a surgeon or a patient. Be that as a grower or manufacturer, wholesaler or retailer.
I see no indication that this crisis, this pandemic, will be any different. And look what the federal government has done in light of COVID-19? It has stepped in to look after the real estate market as an asset class. I haven’t seen any similar level of intervention in other asset classes, including the share market.
I look at the stages we have already gone through since the first suggestion of COVID-19 affecting the real estate industry some six or seven weeks ago, and what is still to come.
For some perspective, the coronavirus pandemic was confirmed to have reached Australia on January 25, 2020. The first death in this country was recorded om March 1st. On 24th March, realestate.com.au reported that ‘Every day is changing in the wake of coronavirus and it is becoming clear that the property market will not be immune.’ On 12th April, it reported ‘The coronavirus pandemic is having a catastrophic effect on Australia’s economy. While it’s still too soon to tell what damage has extended to the property market, it will unlikely come out unscathed.’
Stage 1 - Outbreak. Taking away of freedom.
Our federal and state governments introduce necessary rules and guidelines to restrict the spread of COVID-19.
Stage 2 - Acceptance
We are adapting to the new way of doing things. Businesses are adapting and pivoting, but initial acceptance turns to ‘get me out of here’ as the novelty wears off. (Staff gravitate back to the office environment, for example). Real estate transactions still occur as people still want and need to buy, sell and rent. Rules around inspections change. Auction go virtual. The real estate industry responds and the better the leadership, the more continuity is ensured and the more fluidly this this carries us through the peak crisis period. We are now starting to see a light at the end of the tunnel.
Stage 3 - Return to ‘normal’. Almost there.
This is ahead of us. It is a re-entry into life as we knew it. It will be complex to navigate, and business leaders and employees alike have critical roles to play in restructuring and moving forward. Courage, confidence, compassion and above all, great leadership, are required.
Stage 4 - The ‘new’ normal
There is a need to re-imagine the old, to bed down new or adapted strategies, and thrive. Businesses won’t go back to what they knew before the pandemic. They will reinvent themselves to be more resilient.
The real estate industry has got this.
We are at the cusp of the positive phase but stage 3 will not be a ‘bang, bang, bang’ like stage 1. This will be more gradual – over three to six months rather than a matter of weeks.
In the medical landscape, the focus is on the flattening of the curve. In the real estate landscape, we look to the upward curve of positive indicators.
This COVID-19 pandemic is going to give us a ‘new normal’ but those trends will shape the way we live and work.
Nothing will change the need for a roof over our heads.
Share market losses and recessions are not necessarily predictors of property declines. Confidence will drive economic recovery, and real estate activity will be significant as ‘flight to safety’ sees property offering better options in comparison to other asset classes given the low interest rate environment and the fiscal policies put in place by governments in response to COVID-19. (Relief packages, stimulation packages, funding and support)
One of the most googled questions right now is: How will coronavirus affect house prices?
Some markets may experience this more than others, with a decrease in values – but not at alarmist levels. I do not believe we’ll see significant drops or forced sales across the board.
Right now, around one-third of the world’s population is living under some sort of lockdown. Only public health indicators will bring an ‘end’ to the pandemic.
Three factors determine the severity of economic downturn: the degree of isolation and social distancing expected; how long these things go on for; and monetary and fiscal policies.
Australia is in a good space. As is New Zealand.
While no sector of the economy is being spared from COVID-19 impact, real estate is Australia’s biggest industry and its greatest contributor to employment. It represents more than 13 per cent of GDP, which is why those leaders who must manage and plan the economic and policy response to this pandemic will keep their focus firmly on real estate.
Housing is Australia's single largest asset class. Residential property outperformed all other investment types, including shares, over the past 20 years.
Real estate makes the economy stable, has tangible value, provides jobs and is an income generating asset. Real estate exists to provide shelter. Real estate will be a major pillar of recovery.
And when we come out the other end, our leaders – across government, real estate and other sectors, will be even better prepared for any crisis of the future.
MICHAEL DAVOREN is the Managing Director at RE/MAX Australia
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All roads lead to real estate: RE/MAX's Michael Davoren

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When <a href="/guides">purchasing apartments</a> or seeking to refinance lenders have restrictions and tighter lending criteria regarding size.

Any <a href="/guides/top-7-tips-on-how-to-value-a-house">valuation</a> undertaken for <a href="/guides/how-to-secure-a-mortgage-free-lifestyle-sooner">mortgage</a> is required to include commentary and risk if the unit has a living area of less than 50 square metres. This is not a valuers opinion as to whether it is a risk, it is an instruction from lenders that the valuer must identify risk in this circumstance.

The method of measurement used is to be in accordance with The API Standard which is a Founding Member of the International Property Measurement Standards Coalition (IPMSC).

The difficulty is in executing this standard.

Developers and agents often advise purchasers of the living area being 50 sq m or more. If it is less than 50 this often results in <a href="/expert-insights/buying/why-we-shouldnt-have-a-minimum-size-for-melbourne-apartments">harder lending requirements</a>.

In arriving at the <a href="/news/is-australia-ready-for-smaller-footprint-apartment-living">size of an apartment</a> the valuer is required to measure in accordance with a standard however this requires measurements to midpoint of walls and exterior faces of walls – as the valuer cannot determine the width of walls it must be estimated.

The problem can be best demonstrated from the below surveyors plans which show both the internal living areas and the measurements in accordance with the standard. In accordance with the standard the area is 50 square metres; as noted on the plan; however the area of the internal measurement is only 44 square metres.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/how_to_properly.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="559" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/how_to_properly.png?itok=fqn7JCoT" width="580"></a></figure>In this case, the valuer measured the living area accurately at 44 sq m however added only 5% to allow for the depth of walls resulting in a living area of 46 square metres; and included the required risk and as a result, the purchaser's finance was declined.

Prospective purchasers/brokers/developers should be aware of the ramifications of living areas on value and commentary.
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How to properly measure apartment sizes according to a valuation expert

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<h2>OPINION:</h2>

What a rollercoaster this has been for us all. The last two months have rocked the world on many levels and we are still navigating our way out of both the health crisis and the subsequent financial crisis. There is a lot of uncertainty and many are fearful of what the future holds. Businesses are <a href="https://www.health.gov.au/resources/publications/coronavirus-covid-19-temporary-closure-poster-for-businesses">shutting down</a> and many of those will not reopen, unemployment rates have doubled almost overnight, and some are predicting unemployment to reach levels anywhere from 15-20%, depending on who you listen to. 

So that raises a valid point - who should you listen to? And even in ‘normal’ times, who is best placed to assist you on your property journey and how do we get through this without too many battle scars? Is all this just doom and gloom or is there a silver lining on the horizon that we just can’t see yet? 

The effects on individuals and businesses alike have been devastating. Companies, such as Virgin Australia, entering <a href="https://thenewdaily.com.au/finance/finance-news/2020/04/22/virgin-australia-voluntary-administration-coronavirus/">voluntary administration</a> in the space of just a handful of weeks would have been unthinkable back in January. But is this a ‘shake-up’ of society that we needed in one way or another? Has this had an effect on the way we look at our work lives and our personal lives?

Over the last few weeks, I have had dozens of meetings with new and existing people about exactly these points. It’s interesting to listen to investors’ fears and concerns at the moment; some are worried about their incomes, some about the market crashing and some are deeply concerned about their ability to retire in the next few years. 

The general consensus I've found is that overall there is an underlying level of optimism which is encouraging to see and hear.  However, for the next little while, the overwhelming uncertainty surrounding both the health risks and the financial risks are going to weigh on people’s minds just as much as on our healthcare resources and the economy. 

Australian residential property, in general, has performed well over the last decade or so following on from the global financial crisis, and we have achieved significant growth in most capital city markets. Changes to APRA requirements have allowed banks to take a slightly more relaxed approach to lending, and of course, interest rates have dropped to drastically <a href="https://www.rba.gov.au/statistics/cash-rate/">record lows</a>.

For me, I see a perfect storm of opportunity right now, enabling savvy investors to take advantage of low-interest rates and market uncertainty. With many buyers and sellers sitting on the sidelines this is a great time to be <a href="/guides">buying property</a> and building your asset base. 

We have experienced this before. In 2000 we had the tech bubble, in 2001 we had the September 11 attacks in the USA, and since then we have had to deal with SARS, MERS, the Global Financial Crisis, Ebola and now COVID-19. History has shown that Australian property prices have been temporarily and only mildly affected before making a solid comeback in the following years. Each time these end game scenarios occurred, commentators were out in force saying ‘this time it's different’. Maybe at the time, it was difficult to see how we would make it through to the other side, and just maybe, the same thing is playing out again in front of our eyes all over again. 

Long-term property investors understand that market conditions are always going to change and that external factors are simply a part of investing. Investing for the long term is almost guaranteed to involve periods of uncertainty and being outside of your comfort zone, but of course, this goes back to the old saying ‘if it were easy everyone would be doing it’. Now is as good a time as any to refocus on your long term goals and what you really want out of life. 

I saw a post on social media recently that summarises our current scenario succinctly:

<blockquote>
“Traffic has gone, fuel is affordable, bills extended, kids are at home with their families, parents are at home taking care of their children, fast food has been replaced with home cooked meals, hectic schedules replaced by naps, rest and relaxation. The air seems cleaner. The world, quieter. People are conscious about health and hygiene. Money doesn’t make the world go around anymore. Doctors and nurses are being praised instead of athletes and celebrities. And collectively, we now have time to finally stop and breathe”. 
</blockquote>

Our long-term goals do not change because of these external factors; nor should they. 

This short-term health crisis has most certainly had a massive impact on the economy and, while governments at both state and federal levels have responded swiftly, there is likely going to be a debt hangover for some time to come. 

Regardless of these external factors, I encourage you to look to the future and navigate your way through these difficult times. Find your own pathway forward. Team up with experts who have the experience to guide you and don’t be afraid to ask for help. Use this time to think about what is truly important in life and link that to the opportunities that will present themselves in the months and years ahead. Sitting on the sidelines and waiting for the perfect time to buy certainly won’t move you any closer to achieving your goals. 

Our financial markets and property markets will recover, and things will return to normal – even though we are likely facing a ‘new’ normal that neither you nor I have any direct control over. Stay positive and don’t let the noise get in the way – it could cost you your financial future.
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COVID-19 and the pathway forward for property

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<h2>OPINION:</h2>

There are inherent risks involved in buying any property, however, in recent years the <a href="/guides">off-the-plan market</a> has received a lot of the scrutiny, with variables such as construction quality, settlement value and affordability keeping purchasers up at night.

The reality of today’s market is that off the plan purchasers have never been more in control of their buying experience or ultimately their finished product at settlement. Today the power is with the purchaser to mitigate these risks by electing to work collaboratively with a developer and getting involved in the development process.

Never before have the expectations on developers been so extreme. Purchasers expect world-class design and a financially <a href="/guides">sound and transparent developer</a>. They expect a trusted builder to construct their home with care and diligence.

Below are five key risk-management strategies for potential purchasers or developers in the current marketplace.

<h2>1. Problem: Potential building defects</h2>

We only have to look at recent news reports on newly completed projects deteriorating rapidly, to understand the legal, emotional and financial hardship that an ill-constructed building results in.

Not knowing how to repair your <a href="/new-apartments">new home</a>, how long it will take and who pays for it are certainly not the kinds of decisions you should be navigating after settling your brand new apartment.

No other industry operates with the same nonchalance that some developers, unfortunately, get away with. It is unfathomable to think that a car dealership would suggest they have 12 months to fix faults and issues associated with your brand new car. This shouldn’t be the case for a brand new apartment either.

Minor defects or issues should always be covered under good warranty, repaired quickly, and the materials and finishes should remain perfect for many years to come.

<h2>Potential problem solution:</h2>

Ensure you have trust in the developer. Meeting directly with the developer can be a way to feel comfortable and gain trust in not only the company, but the team behind the brand who are responsible for creating your future home or investment property.

Ask whether the builder has been appointed, and understand what similar projects they have delivered in the past. A builder with a strong track record stands for a lot. Having a builder appointed means the developer knows exactly how much the construction is going to cost. This allows the developer to deliver what is being sold and significantly reduces any risk of value management (code for cutting corners) and reduction of the building specification.

Get professional advice. Speak with people in construction, real estate agents, developers, valuers – seek their professional thoughts on the marketing material, specification, builder, developer and status of the development project. If the advice is based on knowledge versus just personal opinion and it all lines up, it certainly assists in reducing the risks of the unknown.

<h2>2. Problem: Delay</h2>

Development of any product in any business can be delayed due to many reasons, and there can be consequences to those delays.

If you’re an owner-occupier expecting to be moving into your new apartment on a certain date and the project becomes heavily delayed, you may be caught out having to pay additional rent in your current premises, or be forced to find accommodation alternatives at short notice.

As an investor you do not have to face the issue of not having somewhere to live, however it might impact your tax situation, depreciation, financial approval, arranged tenants and even your personal plans should you need to be physically available for settlement.

<h2>Potential problem solutions:</h2>

Take the time to fully understand not just when construction is scheduled for commencement, but the details of the construction program. Construction on a typical residential project will likely take between 12 – 24 months, depending on the size of the development project you’re purchasing into. This is plenty of time to coordinate everything, even enough time to sell your home if you’re <a href="/news/is-australia-ready-for-smaller-footprint-apartment-living">downsizing</a> and moving into your new apartment.

If the developer doesn’t give you regular construction progress updates, then ensure you are proactive and seek program status information regularly. The developer should immediately highlight any delays incurred. You can also request the monthly builder’s report and/or the quantity surveyor’s monthly assessment of the construction status and program.

Ask your lawyer to review the sunset clause and advise you on your best course of action to protect yourself from the impacts of long-term delays. The sunset clause stipulates the amount of time the developer has to deliver the dwelling following the signing the contract of sale.

<h2>3. Problem: Changing market conditions</h2>

Being able to forecast fluctuations in the property market is extremely complex, and whilst it may appear that <a href="/guides">buying off the plan</a> is even more involved than buying an established property, it does not have to be.

There’s no denying that some experts are touting a property bubble, and others are suggesting that you need to buy in quickly before prices get further away from us. It can be challenging to navigate the varying recommendations but premium properties in blue-chip suburbs may be susceptible to different swings from the rest of the market.

Because of this, trying to pick the bottom and top of the market is futile. Demand for property in Australia’s most sought after areas will always be consistent, so seeing long term strong capital growth is a matter of patience. Buying off-the-plan in one market, and selling your existing property in another, can never be perfectly timed. We need only look to history to see that the property market is cyclical but has consistently demonstrated long term upside irrespective of seasonal fluctuations or economic swings. Hold on for long enough and the returns from property can be hugely rewarding.

<h2>Potential problem solutions:</h2>

The primary reason why you are buying the property makes a large difference to how you should assess the market and your individual purchase criteria.

As an owner-occupier, purchasing your next home is a much more emotional decision and generally, the return in the short term is not so important to some. The average Australian owns their home for 11.1 years According to Corelogic data, and Greater Melbourne’s annual capital growth over the last 10 year period is 4.9% of just shy of a 50% increase in total.

If you look more closely, inner-city suburbs outperform, enjoying higher than the average percentage increase. <a href="/new-apartments/south-yarra-vic-3141">South Yarra</a>, for example, was assessed as the most liveable Victorian suburb in 2019, while Melbourne was voted most liveable city in the world in 2018 and second in 2019. South Yarra’s nominal change (percentage) since 2010 has been an increase of 104%.

If this is a “stepping stone” home – one that is an interim step towards your dream property - then this decision requires more careful consideration through an investor lens in order to ensure it will further you toward the goal of that next property.

Property investors need to consider market conditions and statistics such as vacancies, supply levels, population growth, valuations and rental yields. The critical figures to keep an eye on is a vacancy level of above or below 3% - under 3% indicates it’s a vendor’s market, with rents going up and therefore yields increasing too. Over 3% vacancies indicates you might be offering a few weeks rent free or dropping the rent. Purchasers need to do their research.

There is a formula for assessing the <a href="/expert-insights/buying/4-reasons-to-have-faith-in-australia-s-property-market-for-the-long-run">Australian property market</a>. However, ensuring you are buying (or developing) a first class product, in an outstanding location, that will stand the test of time will certainly assist when it comes to ensuring capital growth and an attractive resale value in the future.

<h2>4. Problem: Product not as advertised</h2>

Legally there is a 5% or less variance provision for purchasing off the plan. This allows builders to have a very small amount of construction flexibility. For example, if a wall is 10mm thicker than on the plan it could have an impact of 1sqm on the total apartment area. A very minor change which can happen but not enough to detrimentally impact your apartment’s liveability.

If items are drastically different and you do not support the changes, or were unaware they were happening, then you may have grounds for concern. This is, however, very unlikely.

<h2>Potential problem solutions:</h2>

Make sure that the building specifications are listed within the contract of sale. We ensure they are specific and that materials are listed clearly and precisely. This will ensure items cannot be substituted into your apartment that are of a lesser quality than what was specified.

Investigate the consultant teams including structural, services, geotechnical, acoustic, lighting, traffic and waste engineers. The team of consultants determine the quality of the project alongside a good builder.

This team of consultants can impact the notion of quality which can take on different meanings depending on the team in place to deliver that quality benchmark. For example, quality materials can be purchased and included within a project, however a quality design team ensures the materials are installed, utilised and will continually perform at their best.

It’s important to be clear about what is base build and what constitutes upgrades. Understand what you need to pay extra for. This is the buyer’s responsibility and it is very important to manage this so that expectations are clear and there are no surprises when you settle and move in.

<h2>5. Problem: Valuation risk upon settlement</h2>

The price the developer sells you an apartment for isn’t necessarily its market value. The price you pay for your apartment could be well above (or potentially below) the value that the market determines. When it comes time to settle, the valuation of your apartment could be less (or more) than the purchase price. This is potentially an issue because in this case, your financier is likely only going to lend you a percentage of the valuation (versus the purchase price) and if the valuation is lower than your contracted price, you (the purchaser) will need to contribute more of your own cash or savings (equity) to settle the purchase of your property.

<h2>Potential problem solutions:</h2>

Research the surrounding area before you buy and do not just compare the apartment you are considering to other off the plan sales. It is important to review your purchase against a mix of established products. This is because valuations are assessed against resold stock only, and valuers do not take into account any other off the plan sales. Basically, the property has to have re-transacted once completed to be included in any valuation assessment.

Also, assess the value of any car parking included with the apartment you are considering buying. Car Parking spaces are often sold over and above the apartment price for significantly more than the valuer will give them.

<h2>Conclusion</h2>

Taking into account these considerations, it’s understandable that some purchasers can be wary about purchasing off the plan, as too are developers about the potential risks to their reputation. However, there are avenues to ensure the risks are mitigated and you have greater confidence in the final outcome.

An additional obvious measure is stamp duty concessions available to buyers of off the plan property development projects, making off the plan property an attractive investment strategy when used prudently.

In Australia our immigration and population growth will always mean that demand for housing is strong – people are always going to need somewhere to live. As such, apartments will need to continue to be built to ensure that housing supply meets demand. The proximity of inner suburban development to CBD-based work opportunities will deliver steady growth in demand for quality, medium-density apartment living. Financial restrictions on the capital available to property developers mean that apartments must be sold off the plan to buyers willing to embark on a property development journey with the partnership of a quality property developer who can professionally manage the project on their behalf.

Buying a high-end property might be the biggest financial decision you will make. It’s natural to want to be able to see it, feel it, imagine your family at the dining table, and dream about coming home after a day’s work. This visualisation can be easier with established stock. But it’s harder to get exactly what you envisage without having some input into the development. You can regain some of this control, and mitigate many of the aforementioned risks.
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