Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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?

ANZ believes the Reserve Bank is in no rush to move again.

Following the release of the May Monetary Policy Board Minutes, ANZ has taken the view that the RBA is now firmly in a holding pattern, with the cumulative impact of previous rate hikes giving the Board scope to assess how the economy evolves from here.

That positioning, in ANZ’s view, makes a June rate hike unlikely.

The bank continues to expect the cash rate to remain unchanged at 4.35 per cent for an extended period, with the RBA adopting what is effectively a wait-and-see approach.

The Minutes point to a Board that sees financial conditions as already restrictive, but without a clear read on just how restrictive they are. That uncertainty has shifted the focus away from immediate policy action and toward monitoring both domestic conditions and global developments, particularly the conflict in the Middle East.

As ANZ interprets it, the Board is deliberately avoiding strong forward guidance.

Instead, it is allowing itself flexibility, acknowledging that monetary policy has limited ability to influence the near-term trajectory of inflation, while also recognising that economic growth is likely to remain below potential for some time.

Despite that pause in momentum, ANZ notes that the Board still carries a tightening bias.

The Minutes reveal that, in weighing up its decision, the Board seriously considered another 25 basis point increase. The key debate centred on the trade-off between inflation and activity, particularly in the context of global uncertainty.

Ultimately, most members leaned toward the inflation side of that equation.

Underlying inflation is still expected to remain above target for an extended period, regardless of how external risks evolve. That has led to a view within the Board that the risks to its inflation objective have increased, and that the current cash rate may not be sufficiently restrictive to fully contain those pressures.

That’s important.

While the decision, for now, is to hold, the underlying tone of the Minutes suggests the door to further tightening has not been closed.

ANZ also points to commentary from Assistant Governor (Economic) Sarah Hunter, who highlighted the risk that inflation could pass through the economy more quickly and broadly than in previous cycles. Both Hunter and a majority of the Board expressed concern that inflation expectations could become less anchored after such a prolonged period above target.

That combination, persistent inflation and the risk of expectations shifting, is what continues to underpin the RBA’s cautious stance.

However, where ANZ diverges from the RBA is on the outlook for activity.

The Board appears relatively comfortable with current spending patterns, effectively downplaying recent declines in business and consumer sentiment. It notes that sentiment has historically been only weakly correlated with actual spending, and that feedback from its liaison program has not yet pointed to a meaningful slowdown in consumption.

ANZ is less convinced.

The bank believes the link between household disposable income, sentiment and spending is more direct than the RBA is currently acknowledging. With inflation continuing to erode real incomes, ANZ expects household spending to soften more materially than the central bank is forecasting.

That divergence matters because it shifts the balance of risk.

If activity weakens more than expected, the trade-off between inflation and growth changes. In ANZ’s view, that would reduce the need for further tightening and reinforce the case for the RBA to remain on hold.

It also suggests that the current policy setting may already be doing more work than the Board fully appreciates.

The broader takeaway from ANZ’s interpretation is that the RBA is walking a narrow path.

On one side sits the risk of inflation remaining elevated for longer than expected. On the other is the growing pressure on households and the potential for a sharper slowdown in activity.

For now, the Board is choosing to wait.

But it is a pause that still carries an underlying tightening bias, rather than a clear pivot toward easing.

In practical terms, that leaves the cash rate anchored at 4.35 per cent for the foreseeable future, with the next move still uncertain.

For borrowers, it reinforces the reality that relief is not imminent.

And for the broader economy, it highlights the delicate balance the RBA is trying to strike, between bringing inflation back to target and avoiding an unnecessarily sharp slowdown in growth.

According to ANZ, it is a balance that is becoming increasingly difficult to maintain.

RBA to hold rates for "prolonged period" rather than hikes: ANZ

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<img src="/images/stories/exo1.jpg">
<place><placename>Victoria</placename><placename>Harbour</placename></place>’s latest residential complex, Lend Lease’s Exo building, is 50% sold three weeks after coming onto the market.
The building will comprise 32 one-bedroom apartments of about 55 square metres, which start at $395,000. It will have 64 two-bedroom apartments, which range from 79 square metres to 93 square metres and start at $665,000. Lend Lease brought them onto the market on July 31.
<img src="/images/stories/exo2.jpg">
Exo will be have a distinctive perforated white façade, with its irregular holes designed to bring to mind river rocks or forest paths. It was designed by Lend Lease Design’s architectural team.
<img src="/images/stories/exofacade.jpg">
“Exo is the latest in a line of commercial and residential projects adding panache to Melbourne’s Victoria Harbour precinct – a unique fusion of city and water,” says Lend Lease Victoria Harbour project director Claire Johnston.
The development will back onto <street><address>Collins Street</address></street>, and although its address is technically <street><address>Merchent Street</address></street>, Lend Lease aims for it to be “characteristically <street><address>Collins Street</address></street>”.
<img src="/images/stories/exo3.jpg">
The building will be designed to be both part of the city and apart from it, much like the burgeoning Docklands precinct itself.
“The design demonstrates an innate understanding of the need for sanctuary from the hustle and bustle of urban life, with each apartment purposely designed to maximise space and minimise noise, allowing residents to reside in the heart of the city without having to compromise on their quality of living,” says Johnston.
The 10-year-old Docklands precinct has been something of an urban experiment, with the new suburb home to 15,000 residents and a growing number of businesses. Companies like Myer, NAB and ANZ are headquartered in Docklands on the eastern fringe of Melbourne CBD, and they bring thousands of young professionals to the area every day. The ANZ building alone is full of 6,000 office workers on a busy workday.
Lend Lease aims to provide accommodation for the influx of workers, with investors and young professionals its target demographic for Exo. Docklands is expected to house 30,000 people by 2021.
“The <placename>Victoria</placename><placename>Harbour</placename> retail precinct offers a selection of cafes, restaurants, shops and convenience stores, including a Safeway supermarket, and of course <street><address>Collins Street</address></street> extends into <place><placename>Victoria</placename><placename>Harbour</placename></place> and offers a convenient tram service to the CBD. Exo will also contribute to the growth of the area with the inclusion of seven retail shops at the base of the building,” Johnston says.
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cknowlton-QnEa6ntUYP

Docklands development half sold in three weeks on market

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When it comes to developing, we have all heard about the development application (DA) and the construction certificate (CC), but how and what exactly is involved with each council approval?  It is important to understand this process before you start developing.
The DA and CC are two very different approvals. If you find a DA approved site but the CC has not yet been issued, then you should understand that there is still a lot of work to do before you can start to build.
Development Application (DA) The DA is a request for permission to carry out proposed development. It also categorises the developments as requiring consent, developments not requiring consent (Complying Development, CDC) and prohibited development.
A development application is required for the following reasons:
<ul>
<li>Construction of new building or structure, including swimming pools, outbuildings, retaining wall, jetties, etc </li>
<li> - Add or alter an existing building or structure </li>
<li> - Demolish a building or structure </li>
<li> - Display an advertising sign </li>
<li> - Change the use of an existing building or land </li>
<li> - Carry out excavation, earthworks or adding fill </li>
<li> - Development on or near a heritage listed item </li>
<li> - Development within a heritage conservation area </li>
<li> - Subdivide land or strata subdivide a building</li>
</ul>
A development application must consist of at least:
<ul>
<li>Completed application form and fees. </li>
<li>Copies of site plans indicating location of the proposed development on the land. </li>
<li>Copies of plan/drawings of the proposed development indicating elevations heights. </li>
<li>Other supporting documents (if required) </li>
</ul>
 Construction Certificate (CC) A Construction Certificate is required after the DA consent is issued and before any building work is carried out.  You can apply for a Construction Certificate only if you have prepared detailed plans, specifications or engineering details.  And importantly, if all the council and other service fees and charges have been paid.  This is where some first time developers may get caught out when buying a DA approved site.  It’s very important to understand the conditions of the DA consent and how they will impact the development.
The Construction certificate certifies that relevant matters are adhered to, this includes:
<ul>
<li>the construction plans and specification comply with the relevant standards (ie Building Code of Australia);</li>
<li>the construction plans and specifications are consistent with the development consent; and </li>
<li>all conditions of the development consent requiring compliance prior to the issue of a construction certificate are finalised.</li>
</ul>
Note: The CC is not required for complying development, where building details are covered by a Complying Development Certificate (CDC).
If you are unsure of the planning process, then use a qualified planning consultant or development project manager.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
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jochivers-wq5Bp59R5a

Understanding the planning process

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Australand’s Greenhills Beach project at Cronulla in Sydney’s southern Cronulla has achieved quick success, with 31 of its initial 33 lot offering being sold following marketing over the past two months.
There are 236 lots in the Australand precinct, with blocks ranging in size from 550 square metres to 800 square metres.
The price guide for the first release of lots was between $770,000 and the low-$900,000s, for those closer to the beach.
Greenhills Beach is Sydney’s newest suburb, having its name recently approved by the NSW Geographical Names Board last month.
There are two separate residential developments at Greenhills Beach – one by Australand and the other by Breen Property.
More than 100 prospective buyers have paid a reservation fee to secure an appointment when sales officially opened last weekend.
Some 1,200 registered a buying interest in the Australand lost since June.
Greenhills Beach is positioned between Wanda Beach and Botany Bay, with entry from the main access road of Captain Cook Drive.
There will be direct beach access for the residents.
The Australand NSW residential general manager Nigel Edgar says the masterplanned community had no comparable developments that offered beach access in the Sydney metropolitan area.
“Greenhills Beach combines a beautiful beachside environment with natural fauna and flora that forms part of the coastal landscape,” Edgar says.
The precinct will include more than 90 hectares of public open space, including 10 playing fields – baseball, soccer, hockey, cricket and skate park – along with nature reserves with frog habitat ponds that will be dedicated to the Sutherland Shire Council.
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jchancellor-FAypfDUnLy

Shire buyers snap up blocks in Sydney's newest beachside suburb

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Many articles have been written about buying properties off the plan. Most are critical of this approach to buying and conclude that the numbers simply don’t add up. However, as with all investments, there are pros and cons that warrant a balanced analysis based on your own personal circumstances.
Developers sell off the plan because this is usually a requirement for them to secure upfront construction financing from a lender. A certain percentage of the development usually has to be pre-sold before the release of funds by the bank. Buyers would pay a deposit to secure the property, with the balance payable upon settlement.
Below I consider some of the pros and cons of buying off the plan in NSW.
Pros
•             Brand new. Everybody likes the feeling of “newness” – be it new cars or new houses.
•             Developer discounts. Developers may sell some units at a discount if they need to meet sales targets to get the construction underway.
•             Extended settlement period. With delivery usually over a year or two away, it gives you time to sell your place or to obtain financing (or even to increase your income before financing needed).
•             Stamp duty concessions. Over the last five years, various concessions on stamp duty have been offered in NSW such as for retirees and first homebuyers.
•             Customisation. It is often possible to provide input on final design if a property is purchased before construction (e.g. to merge two apartments into one large one or to choose certain fittings and fixtures).
•             Warranty periods. All builders are required to provide seven-year warranty on building structure (in addition to a preliminary period covering finishes defects). However, note that home warranty insurance (with a third-party insurer) is only required to be taken out by builders on residential projects valued over $12,000. Larger developments (buildings of more than three stories) are exempt and the purchaser must rely solely on the builders’ warranty. Clearly this presents a significantly greater risk to buyers. The certificate of insurance, when issued, must be attached to the contract of sale.
•             Lifestyle. Newer units are built to reflect today’s tastes and preferences such as open-plan living areas, larger balconies and amenities such as pool, gym and concierge services.
•             Potential for capital gains before settlement. Many investors are speculators and love to bank on off the plan properties going up in price before the property is even finished. Beware however, that the reverse is also possible.
•             Leveraged investment. The down payment is usually low for the construction period (i.e. it can be a leveraged investment without the need for bank financing).
Cons
•             Final product is unknown. Buying something on paper without having seen the item is a significant risk. The finished product may not live up to your expectations (e.g. aspect, quality, etc.)
•             Premium price for newness. Just like cars, brand new properties have a certain premium. This is partly due to the newness factor, but also due to Australia’s Foreign Investment Review Board (FIRB) regulation which stipulates that foreigners can only buy brand new properties and not second hand ones. There is a larger consumer base for new properties (as foreigners can also buy) and consequently new prices are higher than in the secondary market. When this property is later sold, it cannot be sold to foreigners (lowered demand possibly leading to a lowered price).
•             Lower land to asset ratio. New homes and units alike are usually built at much higher density than those built 25+ years ago. Since land value is the primary influence on capital gains for property, it is not uncommon for capital gains associated with a new property investment to be lower.
•             Developer bankruptcy risk. There is always a risk that the developer goes bankrupt before completion (with loss of deposit if the legal structure is not sound) or during the warranty period.
•             Expected financing may not be available in the future. While banks may be lending on attractive terms today, and while the buyer may have the capacity to borrow the required amount at the time of purchase, this may be very different in the future when the financing is actually needed.  At settlement, when the property is completed, banks may not be willing to lend the same amount (LVR), the valuation may be lower than the purchase price, or the buyer’s income and circumstances may have changed. In all these cases, the buyer would need to come up with a larger down payment than expected. In addition, the interest rates at time of settlement may be very different from those prevalent at the time of purchase.
•             Lower capital growth can be expected (at least in the early years) as depreciation is high. The new property will depreciate significantly in the first few years as it goes from new to second-hand – just like a car when you drive it off the dealership.
•             Defects can be extensive. There is often a 1-5 year period in which building defects materialise and become visible. In the best case scenario, a very good builder will address these with minimal inconvenience and hassle. A bad builder however, may not fix the defects properly. In which case extensive time and cost is required to address the defects through negotiation, mediation and possibly even court.
Tips for buying off the plan
•             Buy from trusted developers with a proven track record. Established developers obviously have much more experience and resources than small developers. Reputable developers tend to make fewer mistakes (which can be extremely costly in the long run) and when problems occur, they tend to be in a position to rectify it more effectively and efficiently. Although many new development projects have mandatory 7 years structural warranty with an insurer as back-up, it is not uncommon for developers to simply go bankrupt before this period is over. It then becomes much more complicated to claim for defects from the insurance company.
Where possible, try to inspect other properties which the developers have completed so you can gauge the quality of the workmanship first hand.
•             Understand exactly what you are buying. Read the fine print and seek legal advice before signing any documents. Don’t make assumptions as to quality based on promises made by the salesperson or model/showroom. If detailed specifications are not provided, don’t be afraid to demand more information in writing or to provide you own list of requirements/specifications.
For example, even if the shower screen for the bathroom is specified as glass, this does not tell you whether you will be getting 5mm thick semi-frameless glass screen or 10mm fully frameless ones. There is a significant difference both in quality and price. Most developers know that buyers look at the quality of the kitchen appliances and they tend to splurge on high-end brands. However, most buyers are not as educated or discerning when it comes to accessories such as tap ware, cornices, skirting boards, balustrades, etc. You need to understand whether your money is going towards quality German tap ware or cheaper Chinese ones, for example.
•             Understand your rights. What modifications or substitutions are possible without additional costs to you? Can the apartment be on sold by you prior to completion? Where is the down-payment being held (i.e. is it in a trust account? Can the builder use it for construction?). Are you able to get out of the contract if the property is not finished on time? Are you able to visit the site during construction? What is the process to ensure that defects are fixed in a timely manner?
•             Have a contingency plan. Few developments are completed according to schedule and you need to make sure that you will not be overly inconvenienced should this occur. In addition, make sure you are financially prepared and able to pay a higher strata levy (where applicable) than what the developers calculate in order to appeal to buyers during the sales process.
•             Consider your exit strategy. When it comes time to sell, will it be easy to offload your new property? Without the newness factor, will it still appeal to many buyers? Has the property been well designed to have a timeless appeal? Will there be lots of other similar properties to compete with yours (in the area) when you want to sell? Will buyers be attracted or put off when they find out who the developer is?
At the end of the day, the logic of buying an off the plan property is similar to other investments. You need to weigh the pros and cons as they apply to your life and circumstances. You will also need to understand your level of appetite for taking risks and your ability to mitigate them; because buying off the plan means that you are buying something you can neither see nor touch. You are essentially buying a promise.
Oliver Stier is the director of <a href="https://www.ohpropertygroup.com/" target="_blank" title="OH Property Group">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>
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oliverstier-Cu9aF99VRm

Seven traps for unwary off-the-plan buyers

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5 Alex Place, Bligh Park, NSW, 2756
<img src="/images/stories/blighplace.jpg">
This property is currently rented at $400 per week and could make a good prospect for investors. The lease was negotiated about six months ago and has expired, but the tenant is keen to stay on. The three-bedroom, one-bathroom house is light and airy, close to schools and transport and includes a garage or shed with workshop. It is being marketed by <a href="https://www.vibeproperty.com.au/bligh-park-5-alex-place-2/" title="Vibe Property " target="_blank">Vibe Property Richmond</a> agent Michael Mahboub with price hopes of $399,000 plus. If it sells for $399,000 it would net investors a yield of 5.2%, about the same as the suburb's gross indicative yields for houses of 5.3%. It goes to auction on Saturday, August 13 at 11am.
For more information about prices and yields in Bligh Park, see the RP Data suburb page.
For other investment prospects going to auction this weekend, see pages 2 and 3.
 
<hr class="system-pagebreak">
64 Emu Parade, Jacana, Victoria, 3047
<img src="/images/stories/emuparade.jpg"> 
A rent assessment of this three-bedroom property estimates the potential for $310 to $340 per week in rent. The land size is 788 square metres, and it includes two carport spaces and one garage space. It is being marketed by <a href="https://www.raywhite.com/vic/jacana/643350/" title="Ray White" target="_blank">Ray White Tullamarine</a> agent Danny Coffey with price hopes of $320,000 plus. The property was passed in at auction on Saturday, August 13 at 11am. 
For more information about prices and indicative yields in Jacana, see the RP Data suburb page.
 
<hr class="system-pagebreak">
  
8/178 Kurraba Road, Neutral Bay, NSW, 2089
<img src="/images/stories/kurabnuetral.jpg"> 
This studio apartment is well located near ferries, parkland and shops and could appeal to tenants. It is within easy community distance of the city and North Sydney. Listing agent Simon Nakhla of <a href="https://www.mcgrath.com.au/buy/apartment-neutral-bay-nsw-2089/131845/?searchID=8202177" title="McGrath" target="_blank">McGrath Neutral Bay</a> says the property has generated a lot of investor interest. It is being marketed with $250,000 plus hopes. Indicative gross yields in the area are 2.5%, according to RP Data. It was passed in with a vendor bid on Saturday, August 13 at 9am. 
For more information about prices and indicative yields in Neutral Bay, visit the RP Data suburb page. 
<div id="_mcePaste" class="mcePaste" style="position: absolute; left: -10000px; top: 344px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">https://www.propertyobserver.com.au/data/suburb/bligh-park-nsw</div>
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Friday Form Guide: Yields of up to 5.2% in Bligh Park

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Tuesday this week was the most volatile day for Australian share markets in 27 years, with shares down 5.6% at one point. Apparently, it was the only day where the market was down by such a significant margin, only to turn and finish in the black. Talk about a rollercoaster ride.
We are seeing very low consumer sentiment, in fact confidence has fallen for the past four months straight as everyone is spreading their doom and gloom thoughts.
This week, the Australian dollar fell below parity for the first time since March this year and the US Central Bank announced they would keep interest rates at zero for the next two years.
Retail spending across the country is growing at its slowest pace in 50 years. This is just some of the data I’ve been pondering today when writing this column.  It wasn’t hard to Google up the negative news, so when I was asked to write about my take on it all and how it may affect starting a new development, I really had to stop and think.
Because what is extremely interesting right now, as we see these turbulent times in the stock market and world economies, is that we are getting a lot of enquiry from people wanting to take the next step into developing property.  We’ve never been busier. You might think this strange as developing is often referred to as a ‘risky’ strategy. And if there’s one thing we don’t need now in these volatile times is more risk.
But is developing really that risky?  Not compared to what else is going around right now.  By developing, you are adding value to your property.  I’m not suggesting you build a block of 50 units, perhaps look at a simple dual occupancy development, creating two properties from one.  By doing just this, you can also create equity rather than wait for capital growth to come.  If you take it one step further and build three villas on your land, you will see the equity creation grow substantially with little further risk.  Three villas may take only a little longer to develop than two.  Minimise the risk by using a project manager to help you fast track your development.
Our clients at the moment are also holding investment properties.  They want to add to their portfolios quickly and they see opportunity in today’s buyers market.  Hmmm....on one hand there is the doom and gloom of what they are calling the ‘Second GFC’ and on the other hand we have clients lining up to buy development sites.
I think I know why.  Over the past few years, we’ve seen our rental markets tighten and tighten and keep tightening.  So those of us holding investment property have finally been able to reap the rewards of higher yields.   In the meantime, our access to credit has loosened up, a little bit anyway.  Most lenders are offering higher LVRs and softened serviceability criteria compared to the drastic changes that were made in 2008 as a result of the global credit crises.  Construction loans are becoming easier to obtain for multi unit developments and I’m working with one lender who is now lending on Tentative on Completion valuations, meaning developers can borrow against the end value of the development, maximising their finance and using less of their own cash.  As a result, investors holding high yielding investment properties can service a development.
Property Bloom develops property in the Hunter Region of NSW, but only in large towns where the government is spending up on major infrastructure projects and where there is growing employment.  The coal mining industry has an impact on most of our towns but we still like to develop where there is a diverse economy.  We choose towns that have already been earmarked for high growth to take up the area’s growing populations and where there is strong rental demand.  In fact, these towns are powering along, some are even opening retail stores, it’s like they are on another planet, oblivious to what is happening in some parts of Australia and other parts of the world.
So is property development a good strategy right now. It’s a yes from me, but only in the right areas.  I think we’re on the cusp of a growth phase that may be triggered when interest rates drop. The demand will come from mainstream investors wanting less volatility than the share market is offering.  If you are adding value to your property at the same time as the market moves up, it’s a double whammy.  I really think this is a window of opportunity rather than a gloomy dark place.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
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Property a window of opportunity in dark times

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You often hear that Australian housing is more expensive than, say, <place><country-region>UK</country-region></place> or US housing, if not the dearest in the world.
Wild fluctuations in currencies make international comparisons hard, to say nothing of profound differences in house price data, household formation and population growth rates, the availability of new housing supply, the urban structure of nations, interest rates, and the legal, tax and institutional features of housing markets around the world.
By way of example, the rate of home ownership in Germany is about 40%, compared with circa 70% in Australia, the UK, Canada, and New Zealand.
In the US there is capital gains tax levied on the owner-occupied home while mortgage repayments are tax-deductible. In contrast, the owner-occupied home is CGT-exempt in Australia, the UK, Canada, and New Zealand, but this comes with a cost: mortgage repayments are not tax-deductible.
One country Australia does share strong commonalities with is, naturally, the UK. The UK also has the benefit of very good housing data that is not plagued by “sample selection biases” (i.e., when you only get a fraction of the total population of home sales, as you do with US house price indices).
So today I wanted to address two simple questions.
First, have Australian housing costs risen more rapidly than their UK equivalents during the last couple of decades?
And, second, how far did UK house prices fall during the GFC, given the near complete disintegration of its banking system, with the whole or partial nationalisation of many of its largest lenders? (UK taxpayers ended up owning 100% of Northern Rock, 83% of RBS, and 41% of Lloyds.)
I ask this question because the correspondence between the Aussie and UK banking systems, which are both dominated by a <personname>sma</personname>ll number of big institutions, and their housing markets (both have near-identical approaches to tax and similar demand and supply fundamentals) makes a study of the UK downturn a credible guide in the event that something – god forbid – catastrophic were to happen here.
That is, it gives us a reasonable indication as to how far Australian house prices might decline if our banking system imploded, the economy careened into an acute recession with soaring unemployment and default rates.
For the purposes of this analysis we have taken the broadest possible <country-region><place>UK</place></country-region> house price measure, which is produced by a group called <a target="_blank" title="Acadametrics" href="https://www.acadametrics.co.uk/">Academetrics</a>. We then compare this with our standard RP Data-Ri<personname>sma</personname>rk Hedonic Combined Capital Cities Index.
The results, which are illustrated in the two charts below (click to enlarge), are fascinating.
First, in the 15 or so years before the GFC, UK housing costs actually increased at a substantially greater rate than their Antipodean counterparts.
Of course, the cataclysmic economic and financial collapse subsequently experienced in the <country-region>UK</country-region> in 2007-08 resulted in a very significant contraction in <country-region><place>UK</place></country-region> dwelling prices.
Specifically, on a peak-to-trough basis, <country-region><place>UK</place></country-region> home values fell by 13.6%. This compares with a <personname>sma</personname>ller 3.9% peak-to-trough decline in Australian dwelling values, which did not have to contend with big increases in unemployment (or arrears).
<a href="/images/stories/joyeaugust111x.jpg" rel="shadowbox" title="Click to enlarge"><img style="border-style: initial; border-color: initial;" src="/images/stories/joyeaugust111thumb.jpg"></a>
Monetary policy also works differently in <country-region><place>Australia</place></country-region>, with almost all borrowers on “adjustable rate” loans. In the UK, the split between variable and fixed-rate loans has historically been around 50:50. This makes it harder for the <country-region><place>UK</place></country-region> central bank to deliver cash-flow relief to borrowers in the event of a crisis.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust112x.jpg"><img src="/images/stories/joyeaugust112thumb.jpg"></a>
The circa 14% drop in UK house prices is noteworthy, but perhaps not as big as some might have expected. For example, the Aussie share market (as measured by the ASX/S&amp;P200) has fallen further in the last month or so. 
And based on a far less-accurate benchmark for US housing costs, the S&amp;P Case-Shiller Index, which unfortunately excludes about 40% of all US homes, the correction on the other side of the Atlantic was twice as steep. This might be partially explained by the fact that <country-region>US</country-region> default rates were nearly three times higher than comparable <country-region><place>UK</place></country-region> arrears (and about 10 times higher than Australian defaults). 
 
<hr class="system-pagebreak">
 
A more interesting finding speaks to relative value. Because of the much stronger run-up in UK house prices prior to the GFC, the overall change in housing costs over the last 18 years has been virtually identical to Australia’s, notwithstanding the sharp recent correction. 
This can be seen in two ways. First, the levels in the charts are similar after accounting for a couple of decades’ worth of value changes. Second, the compound annual growth rates between 1993 and 2011 are statistically indistinguishable (7.3% in the case of <country-region>Australia</country-region>, and 7.0% for the <place><country-region>UK</country-region></place>). 
If we plot the two house price benchmarks on a so-called “logarithmic scale” we can also evaluate their changes on a truly like-for-like basis. A log scale transforms the first chart such that movements in the two lines represent the same percentage change. As you can see in the second chart, the two lines look like one. 
As a final test, we can compare house price-to-income ratios. Luckily the economists at ANZ, which happens to have a British CEO, have done this for us (see the third chart below). It turns out that the <country-region>UK</country-region> house price-to-income ratio is actually higher than <place><country-region>Australia</country-region></place>’s, which suggests that Aussie housing may actually be better priced.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust113x.jpg"><img src="/images/stories/joyeaugust113thumb.jpg"></a>
Based on the analysis above, residential property in <country-region>Australia</country-region> looks to be just as good value as <country-region><place>UK</place></country-region> housing today. Indeed, with demonstrably superior economic and household income prospects, and faster household formation rates, one might reasonably project superior returns in future. 
Christopher Joye is a leading financial economist and works with <a target="_blank" title="Rismark International" href="https://www.rismark.com.au/">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Aussie housing showing up the Brits with all their woes

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The “time to buy a dwelling” sentiment dropped by 3.9% in the latest Westpac-Melbourne Institute Index of Consumer Sentiment.
But the level interest still sits as above the index lows of earlier this year. The index tracking views on whether it was time to buy a car fell by an even sharper 6.2% to register the lowest point since 2008.
The overall Westpac-Melbourne Institute Index of Consumer Sentiment fell by 3.5% in August from 92.8 in July to 89.6 in August.
“Coming after a fall of 8.3% in July, this latest fall is sending a significant message,” Westpac chief economist Bill Evans says.
The Index is now at its lowest level since May 2009 based on the survey conducted over the period August 1 to 6.
Some 76% of respondents had answered the survey before Friday, August 5, when confidence was jolted by turmoil in global financial markets with the reported 4.3% fall in the Dow Jones Index of US shares and the 4.2% fall in the Australian Index.
For the period before August 5 the Index was at 91.4 and for respondents in the period of August 5 to 6 the Index stood at 83.9.
“The index had fallen by 1.6% even before the financial turmoil,” Evans notes.
“As expected this financial turmoil has added another dimension of risk to consumers over and above those issues associated with interest rates, house prices, carbon tax, and potentially, jobs.”
The modest fall in sentiment is despite the Reserve Bank holding rates steady at its recent meeting and (until recently) a surging Australian dollar. It comes after an 8.3% fall from already low levels and clearly points to the consumer remaining cautious.
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Houses perhaps but certainly cars off the shopping list as consumer sentiment falls

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Twenty-one out of the 48 apartments in a new development in the Melbourne suburb of Blackburn have sold in the first three weeks since its launch.
Q2, which will comprise 48 one- and two-bedroom apartments, was designed by Hayball architects and developed by Kokoda property. Construction is expected to begin in late September and is expected to be completed by late next year.
<img src="/images/stories/blackburn1.jpg">
The development is at 2 Queen Street, close to <a target="_blank" title="Blackburn" href="/news">Blackburn </a>railway station and shops and cafes on the Maroondah Highway.
“At the end of Queen Street is the station and all of the shops, so convenience-wise it’s a great spot,” says David Howard, sales associate at Castran Gilbert, which is marketing the property. “You can walk to the end of the street, jump on the train and you’re off to work.”
<img src="/images/stories/blackburn2.jpg">
One-bedroom apartments, which range from 50 to 63 square metres, start from $345,000. Two-bedroom apartments, which range from 61 to 68 square metres, start from $475,000. 
According to RP Data, the median price for apartments in Blackburn is $550,000, and the gross indicative yield for the area is 3.3%.
<img src="/images/stories/blackburn3.jpg">
Howard says most of the interest has come from owner-occupiers who already live in the area.
“We’ve had some people downsizing who already live out in the eastern suburbs and no longer need the big family home,” he says. Howard estimates that most of the buyers come from a five- to 10-kilometre radius of Q2.
However, “you’ll always get investors as well”.
The development launched the weekend of July 16 and 17.</body></html>

Blackburn development 45% sold in three weeks

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There was no statistical weakening in weekend auction clearance rates after Friday’s rout on sharemarkets. But only the most optimistic expect any flight to property – as occurred a month or so after the October 1987 share market crash. It’s more likely to be a repeat of the aftermath of the initial 2008 global financial crisis.
Melbourne’s clearance rate remained steady, and Sydney’s picked up a tad in weekend results.
But agents did, however, sense a shift in mood, an anxiety among both among the buyers and the sellers.
SQM director Louis Christopher notes “perhaps sellers were more keen to offload”.
And Melbourne buyers’ agent Mal James concluded the top end of the market was tough, “but it was not an absolute shocker”.
There’s no way of telling whether the property herd will panic and flood the market this spring, but there’s not likely to be a flight of purchasers towards property.
There’s just too much despondency about the leading asset classes, except cash.
The best asset class for investors today was fixed interest, not real estate, property guru Mark Bouris told Friday’s Property Council of Australia lunch in Sydney amid plunging equities markets.
“If you’ve got some spare money, there’s only one place you should have invested,“ Bouris, the founder of Wizard Home Loans who now chairs listed wealth management firm Yellow Brick Road, says. “But the question is what’s the best asset to be in at the moment, and really right now, it’s fixed interest.”
Bouris suggested about 70% of a balanced portfolio should be invested in fixed interest, including term deposits and cash management trusts. The rest ought be divided between shares and property, he says.
The turmoil is quite likely to affect the top end of the market, mirroring the aftermath of the 2008 global financial crisis. And on the weekend the James Clearance Rate for $1 million-plus listings in Melbourne was 52% on the 25 auctions the group attended. But only three actually sold under the hammer, and buyer demand was at its weakest since 2008.
“There was not one $4 million-plus bidders’ auction in the 25,” James notes. “The choice of homes on offer was average at best.
“Right now is pretty much a nothing market – and again this weekend, nothing much happened. But nothing much has happened for several months,” James says, pointing out the traditional winter slowdown.
There were 19 sales with prices above $1 million in Sydney, according to Australian Property Monitors, with another four sold for undisclosed prices. There were 12 passed in at prices above $1 million. There were two properties with no bids and four were withdrawn. So a 56% success rate of the 41 $1 million-plus listings.
Uncertainty over the local and international economic climate is clouding what is currently a bright outlook, according to economist Dr Andrew Wilson at Australian Property Monitors.
“Weekend auction clearances rates continue to fluctuate, although they remain reasonably typical of the Sydney winter housing market. Although home buyer activity is set to increase through the usually buoyant spring selling season, the impact on buyer confidence of declining economic activity may prove to have a dampening effect,” Wilson notes.
<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/stories/57per.jpg">
Melbourne’s weekend clearance rate from the preliminary 460 results compiled by the Real Estate Institute of Victoria. There were 510 scheduled auctions held in Melbourne. On the same Saturday last year the clearance rate was 67%. REIV chief executive Enzo Raimondo says there are about 500 auctions next weekend. After some further results came in from the July 30 auctions, Melbourne recorded a 57% clearance rate. “The falls recorded in the stock market do not appear to have impacted the residential auction market,” Raimondo says.
 
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Sydney’s weekend clearance rate from the preliminary 217 results compiled by Australian Property Monitors. There were 264 scheduled auctions in Sydney. On the same Saturday last year the clearance rate was 60%. Clinton McNabb at APM says there are about 310 auctions due next weekend. After some further results came in from the July 30 auctions, Sydney recorded a 53% clearance rate.
 
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The weekend’s highest recorded price across Australia was on South Road at Brighton. There was just the one bidder, who secured it after auction.
“The main road would be an issue but other than that, it is hard to fault,” James Buyer Advocates principal Mal James notes.
It was a good result, according to James, as it reflected just shy of a 10% increase in the two years since its last sale.
<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/stories/auctionsaugust8.jpg">
Marshall White agent Madeline Kennedy listed the five-bedroom French Provincial family residence on 670 square metres (pictured above and below). Photo above courtesy of James Buyer Advocates.
<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/stories/brightonauction.jpg" style="outline-style: none; outline-width: initial; outline-color: initial; padding: 2px; border: 0px initial initial;">
It was built in 2008 with a grand foyer with Swarovski chandelier and sweeping staircase, formal American oak study, marble kitchen and a heated pool.
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