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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The auctions market may have delivered yet another poor result, but Westpac's prediction that interest rates will drop 100 basis points over the next 18 months has caused some property experts to raise their hopes of a recovery.

Clearance rates remained in the 50s in both major markets – Sydney and Melbourne – this weekend as the cold weather kept buyers away.
In a shock move last week Westpac amended its forecasts for interest rates, now suggesting they will drop by 100 basis points over the next 18 months as the RBA attempts to cope with the economy moving at multiple speeds.
Despite other economists contradicting the change by confirming its forecasts for rates to move up by the end of the year, Housing Industry Association chief economist Harley Dale says such a move "would certainly be a positive development".
"If you were to see forecasts from Westpac come to fruition, then you'd be talking about a total 1% percentage point drop in mortgage rates. That's got to be good for confidence."
Part of the downfall in new home building can be attributed to rising interest rates, keeping prospective buyers out of the market despite prices having effectively halted during the past year.
Such a dramatic fall in rates would surely be enough to prompt prospective buyers back into the market, although Dale says it would require quite a bit more to get that market moving again.
"I think there's a lot more going on, including a considerably tighter lending environment on both the demand and supply side of the housing equation."
"The other factor is that if you're looking at 100 basis points in drops, you're staring down the barrel of a pretty bad global situation."
Brian Welch, executive director of the Victorian branch of the Master Builders' Association, agrees that such a dramatic drop in rates would spur the industry into movement.
"That is the main factor in people's willingness to spend. To say that interest rates would drop rather than the reverse, that would be a bit of tonic for the industry as a whole."
"Volume builders are noticing the change away from first home buyers, and the sensitivity of the market. People are cautious, too cautious to make commitments, and all that tells me people are being careful in the industry."
Dale says the economy is "first and foremost sentiment driven", and seeing interest rates fall would be a boost to confidence.
However, there is no sign of any boost in confidence in the property market yet. Auctions results this weekend were subdued as the colder weather kept buyers away.
In Victoria, the clearance rate was 56%, with 377 homes put up for auction. Only 211 sold with 166 passed in.
"The REIV June quarter median prices showed that over the last three months there was little difference between demand at auction to that at private sale with the median price of houses sold at auction increasing by 1.2%, and those sold at private sale increasing by 1%," REIV chief Enzo Raimondo said in a statement.
In Sydney, the clearance rate was 55.9% on 181 reported auctions, while Adelaide and Brisbane recorded clearance rates of 50% and 16.1% respectively.
This article originally appeared on <a target="_blank" title="SmartCompany" href="https://www.smartcompany.com.au/">SmartCompany.com.au</a>
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cknowlton-QnEa6ntUYP

Auctions still weak but experts welcome forecast rate drop

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Property developing can be very rewarding and it can also be overwhelming, especially if you are building in an unfamiliar area for your first development.
The best way to become familiar with your choice of location is to find out how the local council works and what it would like to see built in their area. Developing relationships with the local town planner could save you a lot of time and money, and help make the difference between a frustrating project and a fabulous development.
To get off on the right foot, do some research on the type of new development you see around the town, and consider what you would like to build. Then call the council and organise a meeting with a town planner. Discuss your plans and find out what will help your development application get across the line with minimal stress.
You’ll also need to do some reading so you know what is and isn’t permitted in the area. This way you won’t be wasting the town planner’s time asking basic questions, and you can get straight to the details of your particular development.
Some documents to read include:
Local Environmental Plan (LEP)
You will find this on the council's website. An LEP defines the land zones and outlines permissible land uses within the zones. This will determine what type of building you can put on the land: low, medium or high density. Currently, a number of councils in NSW are preparing draft LEPs so check to see if your council is working on a new LEP, as when processing your application, councils will take the draft LEP into consideration, even if it has not yet been gazetted. Development Control Plan (DCP) 
 This document contains more detailed provisions than the LEP. Its information is specific to geographic zones or development types. It will give you a thorough understanding of the guidelines to follow when developing in your chosen area.
Regional Strategy Report
While not all councils have one, this is commonly used to outline areas with the greatest potential for development. It will outline plans for land releases, land rezoning, population and employment projections and will pinpoint specific areas earmarked for future growth.
When you meet a council planner, come prepared with the 149 planning certificate from the contract of sale of the property or land you are looking to develop. The 149 will indicate if the land is in a bushfire or flood zone, for instance, and it will tell you what is prohibited on the site, and whether it is heritage listed. If you are not sure about some of the information in the 149, the planner can explain it to you. Also bring a survey and sewer diagram, which can be found in the sales contract.
Council meeting minutes will sometimes give you valuable information on other similar applications that have gone to a council meeting and comments made about the developments. You can also read other development application consents to get an insight into the type of conditions that council may impose.
Some questions to ask your planner:
What kind of development does the council want to see in the area?
It’s important you work with your council, rather than against it, if you want a smooth process. You want to align your project with the council’s vision for the community.
Are there any problems in developing this particular site?
They may see a problem such as access onto the road, if it is a major road, or they may be privy to information on neighbouring properties.
Is the land in a flood zone?
 Although this will be included in the 149 planning certificate, it is really important to ask this question. The planning certificate you have may be out of date or lacking information. For example, the council might be working on a new flood study, but this won’t be reflected on the planning certificate. By the time a development application is lodged, the property's flood zone may have changed, and it could be rejected. The council will have a flood and/or drainage manager who can give you up-to-date information over the phone. If the land is in a bushfire-prone area, be aware that you’ll need to comply with current fire-safety regulations, which will add to your building costs. What is the minimum lot size? 
 This will be specified in the DCP subdivision guidelines, however, sometimes the council may be a little flexible on this. If you are looking for land to subdivide, you will need to look for land more than twice the minimum lot size.
Are there any issues that may arise in developing in this area? A town planner will be aware of any social issues outside the constraints of the DCP. For example, I developed in an area where the local neighbourhood fought any application lodged for more than one dwelling on a title. I soon learned that the deputy mayor lived there and was rallying neighbours to fight the development applications. I sought legal advice and was able to negotiate with the council and gain consent, as my application met all the requirements of the DCP.
Once you have secured your development site, have your draftsman or architect put a concept plan together. You can use this to show the council your design and get valuable feedback from an early stage. Check if there are any specific reports that may need, such as acoustic reports or traffic counts. You can easily make changes at this stage to ensure your application is processed as quickly as possible.
After it has been lodged, check to see if your council has a development application tracker on its website that you can follow progress on. If you see it is not progressing as forecast on the tracker, call the planner and find out what the hold-up is. If there is no online tracker, make regular calls to your planner to keep on top of progress.
All councils work to different timeframes and according to their resources. Sometimes I am surprised at the speed of a council, but mostly we find the process takes too long. Staying in close communication with your council can help fast-track the process. Enjoy this important part of your development journey; you will learn so much from the planning process.
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

The keys to a successful first development

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One of the main obstacles people have in understanding the dynamics of Australia’s $3.5 trillion housing market is what I like to refer to as an “anchoring bias”.
Since 70% of households own the homes in which they live, they tend to think they are experts on the subject. But, as I noted in my<a href="https://www.propertyobserver.com.au/observers/not-as-safe-as-bricks-and-mortar/2011071150768"> previous column</a>, an individual home, with all of its idiosyncrasies, is actually a very poor proxy, or representation of, Australia’s overall housing market.
Perhaps the strongest anchoring bias one finds is in the luxury market. Most newspapers and real estate publications tend to focus their reporting on high-end property sales. There are good reasons for this: reading about multimillion-dollar homes is fascinating. It sells newspapers and attracts eyeballs.
But how relevant is the $1-million-plus market to the average Australian? And could it be the case that all of the financial services executives and corporate titans who live in higher-end suburbs, and who exercise so much power and influence over “consensus thinking”, are most adversely affected by anchoring bias?
I consistently find that the more well paid somebody is, the more bearish they seem to be on housing, especially during downturns. For example, during the GFC, countless top executives would relay stories about how Australian house prices plummeted in the 1991 recession, and predicted the same would likely happen again.
Yet when we went back and looked at every available house price index, we found that Australian house prices hardly budged in 1991 despite the fact that unemployment peaked at around 11%. According to the ABS house price index, home values actually rose on average over the period January 1990 through December 1992, albeit at a very slow pace. Of course, within the national index there was a great deal of cross-sectional variation.
As was the case during the GFC (when average prices only declined by 3-4% peak-to-trough), by far the worst affected suburbs back in 1991 were the luxury markets. In places like Toorak, Point Piper, Mornington Peninsula and Palm Beach, prices indeed fell by 10-20%. And while this was doubtless a painful experience for the “big end of town”, it had no bearing on the average Australian family.
In psychology, anchoring denotes the tendency of people to rely far too heavily on small pieces of non-representative information when making decisions or estimating probabilities. In 2002, Daniel Kahneman was awarded the Nobel Prize in economics for his work (with the late Amos Tversky) documenting that anchoring biases and other behavioural dysfunctions interfere with objective human decision-making.
These frailties in our judgment have, for instance, been shown to exacerbate the protracted booms and busts in share prices that we have observed over the past 30 years.
When it comes to house prices, purported experts tend to make the mistake of extrapolating from their individual circumstances and using this information as a credible proxy for the wider market. More specifically, I would contend that the luxury market is afforded far too much weight in experts’ assessments of wider conditions. So how important is it?
In the chart below I have dissected out the price distribution of all home sales in Australia over the past year. Recall that the median dwelling price across Australia is $420,000 (including both capital city and regional areas).
<img src="/images/stories/joyejuly14-1-cropped.png"> 
Unsurprisingly, about 65% of all sales in Australia are for homes worth less than $500,000. If we widen the price band to between $0 and $700,000, we capture 83% of all sales.
 
In contrast, only 6.4% sales were for homes worth more than $1 million. That is, the $1 million-plus market is irrelevant to over 93% of households. If we boost the granularity of our analysis and concentrate on the $2 million-plus market, we find that it accounts for only 1.1% of all sales (ie: meaningless to 98% of people).
 
The next question is whether the luxury segment performs differently to the broader market. In the chart below I am have illustrated the year-on-year capital growth rates realised by the bottom 20% of suburbs (ranked by price), the middle 60% of suburbs, and top 20% of suburbs in Sydney. The results are similar across Australia.
 <img src="/images/stories/joyjuly14-2-cropped.png">
What should be clear is that the most expensive homes are significantly more volatile (or risky) than the remaining 80% of dwellings. During the good times they experience much faster house price appreciation, while in the downturns they perform by far the worst.
This probably helps explain why the talking-heads who frequently live in these areas are prone to the most pessimistic exclamations on Australian house prices. That is, they forget that their $1 million-plus home is a poor guide to overall conditions.
Christopher Joye is a leading financial economist, and works with <a href="https://www.rismarkinternational.com/" title="Rismark International" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">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

Troubled prestige prices don’t signal woes for suburbia

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The current Brisbane market is throwing challenges at vendors and marketing agents, with large volumes of listed properties and a dwindling buyer group.
The buyers who are around are educated, and by majority, cautious and uncertain about where property prices and interest rates are heading.
This is a market where vendors have to be very careful about price-positioning their property. The auction process can deliver a best sale outcome in such conditions.
When offering a property with a predetermined asking price, vendors tend to err on the high side. That is widely recognised – it’s human nature.
This is potentially damaging to sale prospects, as it attracts less buyer interest and can increase time-on-market, which generally translates to negative buyer perception.
There are buyers in the market, but they can easily dismiss a property based on its initial listed price, and we are dealing with educated buyers who know roughly what price range they can expect without the listed price.
With an auction program, there is a rough four-week deadline which spurs on buyers to make up their mind. Through that period vendors get real feedback on where buyers are prepared to go with a price.
With a fixed price, in reality there is little a marketing agent can do in this market to encourage a buyer to act within a given time period.
In the current market, choosing which property to auction is far more about the seller being genuine about the sale and price expectation than about any particular ‘type’ of property.
In Brisbane a four- to six-week sale period is very achievable for realistic vendors.
Nothing creates interest and profiles a property better than an auction marketing program.
In most reports, auction results quoted are ‘under the hammer’ results and not a true indication.
At LJ Hooker Sunnybank Hills, a top-performing LJ Hooker office internationally year after year, 6% of auctioned properties sell prior to auction, 40% sell under the hammer, 16% in the 10 days post auction and a further 12% between 10 and 30 days.
That is a total of over 70% in six to eight weeks on market; add another 10% withdrawn from market because a vendor has had a genuine change of mind or decides that the result available to them does not suit their needs.
Presentation of a property to market and fair expectations on price are proving the best positioning for a sale and the auction marketing process delivers this best to vendors.
In Brisbane, prices are back to where they were three years ago. At that time, everyone was very excited – and they never thought prices could go even higher.
Prices being achieved on the current Brisbane market are very solid. The Gold Coast market is lagging a bit behind, but it’s also looking promising on the whole.
My final word is about choosing the right marketing agent for the job. Auction is a specialist method of sale so select an auction marketing specialist and agency just as you would engage a specialist for any other valuable asset, like your car – or your health!
Paul Moore has been principal of LJ Hooker Sunnybank Hills, Brisbane, for 10 about years.
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paulmoore-sDCB2jZz3n

Post-auction negotiations take Brisbane clearance rates closer to 70%: LJ Hooker 

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Increased confidence in the housing sector is the only positive aspect to emerge from Westpac/Melbourne Institute’s latest survey of consumer sentiment.
Against a backdrop of overall sentiment falling 8.3% in July, confidence in the housing sector increased by 3.3%, reaching its highest level since January 2010.
The improvement in housing market sentiment comes as ABS lending figures for May reveal owner-occupier financing commitments increased by just 2.2% to $14 billion on a seasonally adjusted basis, compared to stronger gains for commercial lending (up 8.7%) and personal lending (up 3.8%).
According to RP Data, national city dwelling values have fallen 2.3% over the last 12 months while properties for sale listings have reached 280,000 compared with 217,000 at the same time last year.
Westpac chief economist Bill Evans attributes the improvement in housing confidence to modest recent falls in house prices, improving affordability.
The survey found the majority of respondents still expect house prices to rise, though Evans notes that the majority has “shrunk noticeably since we last asked the question back in April”.
“Recognition that houses have become a little more affordable might improve sentiment but concerns that prices may fall further are likely to continue to restrain households’ buying intentions,” Evans says.
Buying intentions may also be tempered by a 16.5% drop in the confidence of mortgage holders, due to the RBA persisting with “its strongly hawkish rhetoric”, he said.
“This is continuing to undermine confidence amongst households who it would appear are incredulous that such a policy is favoured given the current circumstances,” Evans says.
The ABS figures reveal that total commercial finance commitments rose 8.7% on a seasonally adjusted basis in May to $32 billion, compared with $29.5 billion in April – their highest level since September 2009.
Fixed commercial loans increased 9% following an 11.2% fall in the previous month, while revolving commercial credit commitments rose 8% during May.
Personal loans ticked up by 3.8% to just over $7 billion.
Leasing finance fell by 5.7% in May on a seasonally adjusted basis, reversing rises of 2.1% in April and 11.2% in March 2011.
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lschlesinger-FZcF9M3vE6

Housing confidence at 18-month high: Westpac

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Auction clearance rates have become one of the more widely reported property statistics over recent times.
But even in the big capital cities auctions account for a small number of sales – 11% of all house sales in Sydney in the 2009 financial year, according to Australian Property Monitors. For units, the proportion was even lower, with auctions accounting for 6% of all unit sales in Sydney in that period.
Canberra is the only other capital city where auctions accounted for more than 5% of all property sales.
But Rob Forde, a Ray White South Australian auctioneer, recommends vendors consider putting their properties to auction despite the slowing conditions of the current market.
“Auction in this market should not be feared – it should be embraced,” Forde says.
“In a market with so many unknowns, auction is one of the few things that provides certainty to buyer and seller alike.
“Especially with above-average listings, it is crucial to not put a price on the property.
“By not putting a price on the property, all buyers have the opportunity to look at the market and see where they think the value lies,” Forde says.
Auction has been producing results in all market and demographics, he suggested.
“I think all types of property should use the auction process in this market to get the best result – a cash unconditional contract with no cooling off, in a short time with a short settlement.
“Still, some vendors are choosing to be on the market for extended periods of time, in a climate where days on market are increasing, and then having to sign a contract with certain conditions, like subject to finance or subject to the sale of another property.
“At a time when days on market are blowing out and getting finance approval is becoming more and more difficult, it’s reaffirming to see the power of the auction process still proving itself.”
He suggested the initial clearance rate figure doesn’t necessarily take into consideration the power of the auction process in engaging buyer offers before the auction date.
He says often the buyer and seller have divergent opinions on the value of a property and the agent is there to find a middle ground.
“People may hold back hoping that they will be able to negotiate with the agent post auction,” Forde says.
“A well-run auction campaign identifies buyers and helps to determine a realistic price in today's market.
“It enables the negotiation process to get started and, most importantly, achieves the best price in the shortest possible time.”
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jchancellor-FAypfDUnLy

Auctions versus private treaty: certainty in uncertain times

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In general property investors are all after the same thing. They buy property because they want to develop a degree of financial freedom. While some are looking to quit their jobs, others just want to have the choice of whether they work or not. Some are trying to save for their retirement while others want to leave something for their children.
Yet most property investors never achieve the financial independence they strive for, with close to 90% never owning more than one or two properties. On the other hand, a small group of investors manage to build substantial property portfolios.
Over the years I found that investors tend to fall into three main categories, which led me to investigate if one style of investing was more successful than others.
So let’s look at the 3 main types of property investor.
Firstly there is the passive investor, who tends to spend little time looking for a property. They are not interested in understanding all the ins and outs that go along with creating a property portfolio and are more likely to buy the first thing they come across, rather than conducting any due diligence or consulting others for advice.
The more active investor puts in some degree of work in order to find a good investment prospect. They gain a basic understanding of the principles involved in property, finance and taxation. They seek professional advice regarding structuring their portfolio and conduct some due diligence in the hope of increasing the likelihood of making a viable investment purchase.
Finally, there is the analytical investor, who tends to run around for months, sometimes even years, examining every nook and cranny of our property markets, endlessly comparing values and sales, reading reams of material regarding property do’s and don’ts and seeking advice from as many experts as possible before committing to anything. They like to conduct as much due diligence as possible and look for the ‘perfect' investment property.
If property investment is like many other things in life, the more effort and energy you sink into property investing, the greater your rewards are likely to be. In other words, the passive investor would enjoy smaller gains than the active investor, while the analytical investor would come out on top as they were willing to do the hard yards.
In reality this is only partially true!
Many passive investors purchase their investment properties the way they would buy their home – emotionally. They tend to buy their investments near where they live, or close to where they want to retire or holiday – all emotional reasons. Some live to regret their investment decisions and have difficulty holding on to their investments and end up selling their properties after only a year or two. Those who can hold on usually do well, but more of that later.
The more active investor puts in some degree of work in order to find a good investment prospect. They gain a basic understanding of the principles involved in property, finance and taxation. They also tend to seek professional advice with regard to the structuring of their portfolio and tend to conduct some due diligence in the hope that they can increase the likelihood of making a viable investment purchase.
What about the analytical investor? Let me share a story with you.
A while ago I bumped into Leonard, a successful IT engineer. When I first met him years earlier he said he was going to invest in property, so I asked him how his investments were going.
He explained that he was still researching the markets. Now Leonard is very intelligent but has a tendency to over-analyse things, hence he was still waiting for the perfect property, the perfect time and the perfect set of circumstances in which to buy.
What he doesn’t realise is that this will never happen.
If he had invested in a well-located property in his home town of Melbourne (or in almost any major city) three or four years earlier, when I first met him, despite that time frame including some of the worst years in property market in more than a decade, his property would have increased in value significantly.
While the value of many properties has gone by 20 or 30% in that time, Leonard had $500,000 sitting in the bank waiting for the ‘right opportunity’ to come along.
On the other hand, let’s look at Mark – a passive investor who was so naïve that he bought the first property that he could get their hands on 20 years ago for $50,000. At the time, everyone told him he was “crazy” – it was a bad time to buy; it was a foolish thing to do and he paid way too much.
Although he may not have done all of his homework, Mark bought in a popular inner suburb and the value of that property is now in the order of $500,000. And if he was half smart, Mark has borrowed against its increasing equity to allow him to buy more properties.
The lesson from all this is that it really doesn’t matter if you’re a passive, active or analytical investor, as long as you are taking action and are in the market.
Of course, you can’t just buy any property and hope it will increase in value – particularly in the current market. Educate yourself and make informed investment decisions, as long as you don’t get so absorbed in the process of learning that you forget to use that knowledge to buy something!
If you have been thinking about investing in property, maybe now is the right time to act. After all, we are in a buyer’s market – a time of great opportunity.
Buy a property that suits your current circumstances and investment strategy. If you are in it for long term, as you should be, doing something some might consider foolish right now could be much better than waiting to do something “smart” later.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a>, a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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What type of property investor are you? 

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Syndicated property investment options provide investors with access to high value, high quality properties with strong capital growth potential and the ability to attract and retain quality, long-term tenants.
The two favoured vehicles for investors looking to spread risk by investing in syndicated property are listed property funds or trusts – also known as LPTs or AREITs – or their unlisted counterparts.
When it comes to listed vehicles, some issues have become apparent, both from a portfolio construction perspective and when considering returns.
On the portfolio construction side, over the years it has become apparent that, as an asset class, listed property behaves like equities – to the point where many commentators now class LPTs as such.
In tracking the market and the index alongside the equities in the portfolio, they provide no real diversification should the sharemarket begin to slide, as recent performance figures show.
The second issue is volatility of returns, which in the case of listed property, is far higher than unlisted. As an example, the listed property index fell 76% through the worst of the GFC.
High volatility means total returns can be greatly diminished by poor timing of purchases and sales by investors who make decisions driven by strong sentiment – as we have seen in the current market.
So in the case of listed property, while an investor might have the perceived benefit of lower liquidity risk, other risks, such as correlation with a volatile sentiment-driven index, with a poorly performing index, may well countervail it.
The performance of unlisted property, on the other hand, while to an extent reliant on the broader property market, is also dependent on two more rational and controllable factors: the quality of the underlying core assets and the quality of its management.
It is far less volatile and, historically, has offered much steadier returns than its unlisted counterpart, as the chart below shows.
Unaligned to an index, the right unlisted vehicle can offer investors the benefit of genuine diversification throughout the investment cycle. 
Comparison of 10-year returns from listed and unlisted property funds
<img src="/images/stories/mcbain1again-cropped.png">
<img src="/images/stories/mcbain2-cropped.png">
<img src="/images/stories/mcbain3-cropped.png">
John McBain is the CEO of Centuria.
 
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Listed versus unlisted property: balancing performance and volatility

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Property auctions have lost their lustre, with falling clearance rates contributing to a pall over the market.
The decline in clearance rates has been accompanied by a rise in poorer voluntary reporting of results.
Some 20% of Melbourne’s auctions results now come with the price marked ''undisclosed'' – a significant increase from last year when it was sitting at about half that level.
A recent survey also revealed that 43% of properties scheduled for auction in June had no published price range, frustrating buyers' attempts to obtain basic listing information, according to The Age.
The same trend has not been as evident in the reporting of Sydney results.
Not that long ago, houses were selling for prices undreamed of with many already-inflated reserves being topped by thousands of dollars as frenzied purchasers bid for what they believed to be their last chance of acquiring a home.
The lowest clearance rates in Melbourne have been in Sunshine North, with just a 42% success rate over the past year, according to APM, along with Highton, at 44%, and Sunshine West, at 46%.
In the first six months of the year, according to the REIV, Melbourne clearance rates city-wide 59%, with four suburbs having a success rate of more than 80%, led by Chadstone with 86% of auctions resulting in a sale. Windsor's clearance rate was 82%; Abbotsford and Donvale were 81%.
The Sydney housing market remains relatively quiet, with auction clearance rates stabilising at levels consistent with the normally-subdued winter selling season, according to Andrew Wilson, the senior economist at Australian Property Monitors.
Recent data shows that while much of the Sydney property market has cooled, many suburbs in the inner-west have been well above the overall 55% Sydney clearance rate, including Enmore, Lilyfield and St Peters, which all achieved 80%-plus success rates.
But some suburbs lag considerably behind, including Church Point at 45% over the year to April, Darling Point at 43% and Yowie Bay with 44% success rate under the hammer.
The stark overall drop in clearance rates from the 70% and 80% of recent years coincides with the typical winter slowdown in auctions, so the reduction in stock might typically be expected to provide a floor for the clearance rate.
A recent Real Estate Business poll found 64% of 322 estate agent respondents indicated that private treaty was the most effective sales strategy in the current market.
But some agents argued that agents who were not actively embracing auctions in the current flat market were not being honest with their clients.
“As the price of properties fall, only the poor agents fall back to private treaty,” says Ray White Caloundra Group director Tom Garland.
“This type of agent shies away from the true, tough nature of our industry: the truth and brutal honesty. That truth is to be honest with our clients and give the news from potential buyers back to the seller as to what they believe properties [are] worth.”
Results this year show his Caloundra office has been clearing 79% of properties in 48 days through the auction process, while private treaty clearance is running at 18% on 121 days.
Ray White auctioneer in South Australia Rob Forde maintains auction in this market should be embraced, rather than feared.
“In a market with so many unknowns, auction is one of the few things that provides certainty to buyer and seller alike,” Mr Forde says.
General manager of sales at McGrath Estate Agents, Matt Lahood, says where there are not a lot of comparable sales, people are probably better off paying for an auction.
He says the decision could depend on the area, as some markets are less amenable to auctions. Larger properties, which can take longer to sell, might suit a private treaty sale.
"If it's a unique waterfront or something that's rare, you'd definitely auction it," Mr Lahood says.
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Auctions versus private treaty: the debate over the right listing decision 

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Since 2003 I've argued that many academics, economists, commentators and consumers confuse two fundamentally different concepts: the risk observable in a broad-based house price “index” and the probability of loss (or risk) faced by individual homeowners. This is a profoundly relevant issue for us all. 
The popular notion of bricks and mortar being a safe investment for owner-occupiers is at least partly based on the observed volatility, or risk, associated with regional house price indices.
The problem here is that a house price index proxies for literally millions of homes worth billions or trillions of dollars. An index is, therefore, an incredibly well-diversified portfolio.
In contrast, an individual homeowner is making an economic commitment to one highly idiosyncratic asset. 
You are buying one home, on one street, facing one direction, with all of its manifest peculiarities. This is, by definition, a poorly diversified investment with a much larger prospect of loss. 
A similar analogy can be found when comparing the risk of a micro-cap listed on the ASX with the fluctuations observed in the ASX All Ordinaries index, which captures every company listed on the exchange.
The micro-cap’s volatility will be much greater than the variations observed in the index. This is why your average super fund's portfolio invests in the index, and not micro-caps. 
Diversification is meant to be the one “free lunch” in economics. It’s the one time you really can walk along the street and pick up 100-dollar bills.
Since the circa 7-8 million property owners out there do not get the benefit of a national portfolio comprising millions of assets, understanding and managing individual asset-level risk (ie: your own home) is of great importance.
Regrettably, there is very little research on the economic hazards faced by single family homeowners. Rismark's team has, however, spent a lot of time thinking about this subject. 
Applying one methodology developed by professor William Goetzman, a leading financial economist at Yale, we found that the total risk of an individual home is about 15-20% per annum depending on the holding horizon. If we take a seven to eight-year ownership period, the individual property volatility is about 15% per annum. The chart below illustrates the results of this research based on all purchases and sales of Australian homes between 1990 and 2009. 
<img src="/images/stories/joyegraph1-cropped.png">
 Based on this analysis, owning a home outright is slightly less risky than owning every company listed on the ASX, which has exhibited historical volatility of nearly 20% per annum over the past 30 years. The next diagram shows a simulation of the risk profile of an individual home compared with capital city and national house price indices between 2004 and 2009. For the purposes of this analysis, the team used RP Data-Rismark's Hedonic Home Value Index. Importantly, we have also assumed that the individual property owner, which is represented by the red dotted line, has no mortgage debt. You can see that the value of the individual asset varies strikingly through time, compared with the capital city and national indices. 
<img src="/images/stories/joy-new-graph-cropped.png">
To highlight these differences further, here are approximations of the expected return ‘distributions’ attributable to both a national portfolio of housing and a single family home. 
<img src="/images/stories/joyegraph3-cropped.png">
 Observe how the individual property’s return distribution, which is proxied by the blue bars, has far 'fatter' tails and a lower peak. This tells us that the prospect of realising positive or negative capital growth outcomes is much higher than a nationally diversified portfolio, which is represented by the comparatively narrow red distribution. The latter demonstrates that the dispersion in the range of possible outcomes is very tightly wound around the average, or expected, capital growth rate. 
This is just one way of saying that a national housing portfolio has exceptionally low risk of just 3-4% per annum. If you had this holding, the value of your investment would have fallen only 2.5% in 2008. If, on the other hand, you had a single, million-dollar-plus property in Sydney or Melbourne, it probably fell by about by 10 to 15%.
The final chart illustrates the monthly returns attributable to a simulated Australian home between 2004 and 2009. Critically, we have created both 'geared' and 'ungeared' capital growth profiles. The blue line denotes the value changes associated with a homeowner with 70% mortgage debt. The red line represents a homeowner with no debt (they own the property outright). The impact of leverage is vivid: it amplifies the probability of loss, with the blue line dipping far below the zero% (ie, no change in value) axis with disturbing regularity.
<img src="/images/stories/joyegraph4-cropped.png"> So, what is the message from all of this? Over and above simple portfolio diversification, one take-away is that households have a profound (latent) desire to deleverage their balance sheets. This is an obvious statement today – but it was not something that many folks focused on back in 2003, when I first made it.
The only way to reduce debt is by boosting equity. This brings us to an economic puzzle: equity markets for housing finance don’t exist. While listed and unlisted companies raise debt and equity every day of the week, homeowners are stuck with debt. So, whereas a company with 90% gearing would be punished by the market for being excessively risky, we happily allow first-time buyers to leverage up to the tune of 95% against far riskier underlying assets.
The principal value of equity finance, as opposed to debt, is that the equity provider wears the risk of loss alongside you.
When times get tough, equity costs you nothing. In comparison, you always have to service your debt. Equity only has a positive cost when things go well, and you can afford to pay. This is precisely why financial markets and regulators like to see companies with more equity and less debt. 
The Bank of England's Andy Haldane recently arrived at this conclusion: policymakers need to revisit the housing finance paradigm and promote the design of smarter instruments that help households better mitigate their risks. Of course, real change is an awfully difficult thing to implement.
Christopher Joye is a leading financial economist, and works with <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" target="_blank" title="Rismark International" href="https://www.rismarkinternational.com/">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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