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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It’s been a bad year for Queensland. Floods, a cyclone and a weak tourism market have taken their toll, and now the April RP Data?Rismark Hedonic Home Value Index ranked Brisbane as Australia’s weakest capital city housing market. House price depreciated by 4.8% during the first four months of the year and by 7.2% over the past 12 months.
These statistics make for gloomy reading for anyone who currently owns property in Queensland’s capital.
However, for investors looking for medium-term growth potential, Brisbane could well present the most attractive opportunities.
It currently sits at 5 o’clock on the Property Observer Property Clock, meaning Brisbane is closest to bottoming out – and importantly, recovering.
Building activity and the resources boom are expected to light the spark of recovery and potentially the next housing recovery. Next in line is Perth, which has also undergone significant house price depreciation of late. As for the other capital cities, they’re only just heading into downswings, meaning many of the best investment opportunities in these cities have already passed investors by.
 
 
At 12 o’clock the market is at its peak (demand exceeds supply), at 3 o’clock the downswing has set in (an evenly supplied market0,) and by 6 o’clock it has bottomed out (an oversupplied market). At 9 o’clock the market is rebounding (supply is tightening).
 
<img src="/images/stories/clocksandtables/clock-generic.jpg">
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 Sydney
Population: 4,575,532  Median house price: $590,000  Rental yield: 4.3%  Property clock time: 1.30
<img src="/images/stories/clocksandtables/clock-sydney.jpg">
Consensus is that the Sydney market has peaked and is heading into a downswing, though no dramatic collapse in prices is anticipated. 
According to Terry Ryder, director of hotspotting.com.au, the Sydney market has been falling since early 2010, though “long-term prospects are solid”. “The change of state government will help [the market], if infrastructure promises are kept,” he says.
Louis Christopher, founder of property research firm SQM, also anticipates further house price falls as a result of higher interest rates and a downward swing in housing finance approvals. “However, the magnitude of the decline will be minimal compared to most other cities. This is one city that really is experiencing a genuine shortage of rental properties,” he says.
Digging a little deeper into the Sydney market, Chris Lackey, NSW state manager at WBP Property Group, observes two different cycles operating in the Sydney market: “Activity in the top end has slowed, with $1.5 million plus properties currently at 3 o‘clock in the property clock cycle. The middle and bottom markets are also softening and likely to remain flat for the year. There are some select areas that remain at their peak.”
Following publication of the RP Data-Rismark Hedonic Home Value Index for April, which showed Sydney prices up 0.5% year on year on a seasonally adjusted basis, Rismark joint managing director Christopher Joye also highlights the threat to homes at the top end of the market: “Luxury homes in areas like Sydney’s eastern suburbs will continue to face valuation headwinds as banks deal with the new normal of subdued credit growth,” he says.
<img src="/images/stories/data%20table%20sydney.jpg">
 
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Adelaide
Population: 1,203,186 Median house price: $400,000  Rental yield: 4.1%  Property clock time: 1.30
<img src="/images/stories/clock-adelaide.jpg">
<h2>Adelaide appears to be heading towards a moderate downswing, with rental vacancy rates steady and construction activity levelling off. House price depreciation appears to be accelerating slightly, with RP Data showing prices falling by 0.9% in April and 2.5% for the year to date.</h2>
Terry Ryder, who is the most bearish of Adelaide analysts Property Observer spoke with (he puts the Adelaide clock at 4 o’clock), says the market is in a period of “mild decline” though overall prospects are strong, “thanks to infrastructure, defence and resources projects”.
The South Australian capital also has the benefit of cheaper housing overall compared with other capital cities. Bart Quinn, WBP’s SA state manager, says that although prices and volumes have fallen in Adelaide, particularly in the first-home buyer segment, “underlying demand is steady for properties that are priced right”. “Generally, the Adelaide market remains cautious, but there are pockets that continue to remain well supported,” he says.
Louis Christopher says Adelaide vendors are only now cutting their asking prices, and he expects more pain to come. “However, there is a chance the magnitude of the declines will be modest.”
<img src="/images/stories/data%20table%20adelaide.jpg">
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Darwin
Population: 127,532  Median house price: $470,000  Rental yield: 5.6%  Property clock time: 1.45
<img src="/images/stories/clocksandtables/clock-darwin.jpg">
<h2>“After five to six strong years, Darwin’s market has finally paused and there is evidence of price decline,” Ryder says. However, he believes the recovery will be swift, once major gas projects move into the construction phase.</h2>
Such sentiments are not shared by Christopher, who says the Darwin bubble has “popped”.
“It is going to be a steep decline from here, particularly if the RBA lifts rates again,” he says.
RP Data-Rismark statistics for April show a 2.9% increase in prices in April, but just 0.3% growth for the quarter.
<img src="/images/stories/data%20table%20darwin.jpg">
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</h2>
Canberra
Population: 358,222  Median house price: $560,000  Rental yield: 4.8%  Property clock time: 2 o'clock
<img src="/images/stories/clocksandtables/clock-canberra.jpg">
<h2>RP Data-Rismark research for April shows that the Canberra market has not yet run out of steam, with prices continuing to rise steadily. House prices increased by 1.8% in April, are up 2.2% in 2011 and 2.3% for the April quarter.</h2>
A shortage of available property relative to demand, a tightening rental market, a fair demand for new houses and a steady volume of new home building are all keeping the housing market buoyant. However, this is offset by declining sales volumes and the second highest capital city prices after Sydney.
Terry Ryder says any dip in the market is likely to be small. “Canberra remains our most reliable city market, buoyed by strong incomes and low unemployment,” he says.
A bullish outlook is also held by Louis Christopher: “Stock levels are rising, however this is also another city where the magnitude of the declines may well be modest as the ratio of income to house prices appear to be fair.” 
<img src="/images/stories/data%20table%20canberra.jpg"> 
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Melbourne
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Population: 4,077,036 Median house price: $535,000 Rental yield: 4.1% Propety clock time: 2.25
<img src="/images/stories/clocksandtables/clock-melbourne.jpg">
Experts are in agreement that an oversupply of houses in Melbourne is contributing to the market heading into a moderate downswing, though no crash is expected. RP Data's April figures show Melbourne house prices are down 0.5% for April and down 3% for the year to date.
Brendan Smith, valuations manager at WBP, anticipates “tempered growth over the next 12 to 18 months” in Melbourne compared with what has transpired over the past decade. “This is due to the decline in the population growth of the region and the current oversupply of listed stock and property under construction,” he says.
However, Smith says auction clearance rates averaging around 60% to 65% for the first quarter of 2011 are further evidence that there is unlikely to be any “crash” or “bust” in the short term, but rather a return to more measured and sustainable growth.
Louis Christopher notes that stock levels in Melbourne have increased 105% during the past 12 months. As a result, he says vendors have just started to drop their asking prices, and he anticipates a 5% decline in house prices in 2011.
<img src="/images/stories/data%20table%20melbourne.jpg">
<hr class="system-pagebreak">
Hobart
Population: 214,705  Average house price: $322,800 Rental yield: 4.8% Property clock time: 2.30
<img src="/images/stories/clocksandtables/clock-hobart.jpg"> 
Terry Ryder calls Hobart “the city with the weakest prospects”.
“The state economy and population growth is weak and political situation is unhelpful,” he says. “The market likely to fall further.”
Hobart prices have fallen 2.4% this year to March (because of the low volume of sales in Hobert, RP data on Tasmania are a month behind) according to RP Data-Rismark data, with demand for new housing soft and a decline in new home building approvals.
“Hobart stock levels are rising,” Louis Christopher says. “However, this is also another city where the magnitude of the declines may well be modest, as income-to-house prices appear to be fair.” 
<img src="/images/stories/data%20table%20hobart.jpg"> 
 
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Perth
Population: 1,696,065  Median house price: $481,825 Rental yield: 4.2% Property clock time: 4.40
<img src="/images/stories/clocksandtables/clock-perth.jpg"> 
According to RP Data-Rismark, Perth prices have fallen further than prices in any other capital city and the downward swing is accelerating, as reflected in Perth’s position on the property clock. For the 12 months to April, house prices are down by 7.3%. For the first quarter of 2011, they’re down 3%, and for the month of April they’re down 1.5%.
Analysts Louis Christopher and Brendan Aylmore, WA branch director at WBP, both highlight Perth’s sensitivity to interest rates. Christopher says another interest rate rise could send the property clock back to 2 o’clock, pushing back Perth’s recovery.
Aylmore says Perth’s housing market has been soft for an extended period, and although a slight lift in rental rates could result in an increase in first-home buyers “looking to exit the rent rut”, buyers remain cautious about upgrading, given the possibility of further rate rises and unstable economic conditions abroad.
Terry Ryder is more bullish and expects the market to recover on the back of the resources boom and government infrastructure spending.
<img src="/images/stories/data%20table%20perth.jpg">
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Brisbane
Population: 2,043,185 Median house price: $449,250 Average weekly rent: 4.5% Property clock time: 5.20
<img src="/images/stories/clocksandtables/clock-brisbane.jpg"> 
RP Data ranked Brisbane as the weakest performing capital city in its April index, with home values down 3.1% in the April quarter. For the year to date, home values are down 7.2%. RP Data research director Tim Lawless says Brisbane along with Perth have undergone a significant correction in home values, whereas other capital city markets have flattened out.
But Brisbane could be the next capital city hotspot once rebuilding efforts get into full swing. Experts anticipate a turnaround in the next 12 to 18 months.
Terry Ryder notes the impact of the floods on the market but expects Brisbane to show signs of recovery before the end of 2011. “The rebuild program and the resources boom will spark revival. Investor activity will pick up in the second half of 2011, with prices attractive and rents strong,” he says.
Louis Christopher is more bearish and says the downswing has another 12 months before the market bottoms out. “There is over six months’ worth of stock on the market,” he says. The Sunshine Coast and Gold Coast are basket case situations.”
WBP Queensland state manager Daniel Lewis has a more positive outlook and does not expect prices to fall any further. “Increasing rental prices are a positive sign for Brisbane moving forward, with hopes that this positive development will lure investors back into the market. Another positive factor is the relative affordability of housing when compared with other Australian capital cities,” he says.
<img src="/images/stories/data%20table%20brisbane.jpg">
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lschlesinger-FZcF9M3vE6

Brisbane clocks in near bottom of market

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Sydney and Melbourne are noticeably absent from the most recent nationwide list of the country's most discounted suburbs and have had minimal presence in recent weeks.
We think to a certain extent that this reflects <a href="https://www.sqmresearch.com.au/" title="SQM Research" target="_blank">SQM Research</a>'s initial forecast for 2011, that the state of Queensland is set to suffer a little more than the others, and is already showing declines on a larger scale comparatively. With three properties in the top end of our list with discounts in the percentage range of 37% to 43%, Queensland is taking the lead so to speak where the slashing of prices is concerned.
Of course this is suburb-specific, and not all areas are suffering similarly, but the regions that are being hit this year are being hit hard.
 
<h2>1</h2>
 <a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579" title="1350 Wynnum Road, Tingalpa" target="_blank">1350 Wynnum Road, Tingalpa, 4173</a>
On the market since: November 6, 2010
Initial asking price: $700,000
Current asking price: $400,000
Reduction: 43%
Days on market: 196
 
<h2>2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670" title="1/21 Ocean Drive, Coogee" target="_blank">1/21 Ocean Drive, Coogee, 6166</a>
On the market since: May 23, 2010 
Initial asking price: $2,700,000
Current asking price: $1,600,000
Reduction: 41%
Days on market: 364
 
<h2>3</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106223877" title="12 Mcclure Road, Upper Carboolture" target="_blank">12 Mcclure Road, Upper Caboolture, 4510</a>
On the market since: December 26, 2009
Initial asking price: $1,600,000
Current asking price: $999,500
Reduction: 38%
Days on market: 511
 
<h2>4</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106766036" title="16/153 Kensington Street, East Perth" target="_blank">16/153 Kensington Street, East Perth, 6004</a>
On the market since: August 21, 2010
Initial asking price: $845,000
Current asking price: $529,000
Reduction: 37%
Days on market: 273
 
<h2>5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500" title="232-234 High Central Road, Macleay Island" target="_blank">232-234 High Central Road, Macleay Island, 4184</a>
On the market since: January 11, 2009
Initial asking price: $279,000
Current asking price: $175,000
Reduction: 37%
Days on market: 861
 
<h2>6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614" title="25 Vicary Street, Triabunna" target="_blank">25 Vicary Street, Triabunna, 7190</a>
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 294
 
<h2>7</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007649611" title="128/151 Adelaide Terrace, East Perth" target="_blank">128/151 Adelaide Terrace, East Perth, 6004</a>
On the market since: May 18, 2009 
Initial asking price: $1,250,000
Current asking price: $799,000
Reduction: 36%
Days on market: 735
 
<h2>8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295" title="290 Viveash Road, Swan View" target="_blank">290 Viveash Road, Swan View, 6056</a>
On the market since: June 5, 2008
Initial asking price: $2,290,000
Current asking price: $1,500,000
Reduction: 34%
Days on market: 1082
 
<h2>9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903" title="3 Boolari Road, Gosford West" target="_blank">3 Boolari Road, Gosford West, 2250</a>
On the market since: July 8, 2009
Initial asking price: $990,000
Current asking price: $650,000
Reduction: 34%
Days on market: 682
 
<h2>10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106138206" title="1/16 Dewar, Ledge Point" target="_blank">1/16 Dewar, Ledge Point, 6043</a>
On the market since: November 15, 2009
Initial asking price: $375,000
Current asking price: $250,000
Reduction: 33%
Days on market: 552
Louis Christopher is the managing director of SQM Research. More information on discounted properties can be found in the free SQM weekly newsletter or on the <a href="https://www.sqmresearch.com.au/news.php">SQM Research website</a>.
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louischristopher-TWpYcZDLBK

The 10 most discounted properties in Australia at June 1

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A key focus for many buyers at the moment is to not pay too much. Fair enough – it’s a healthy focus But if this is the only focus, then as a buyer of a good home or a good investment you might miss out on the main game – to buy well.
Take a golfer who is totally preoccupied with looking at the flag, until his partner points out the water hazard to the left. That’s good factual information and healthy to focus on if it makes you change your aim a little to the right. But it’s an unhealthy focus if it becomes so encompassing that you end up duck-hooking into the very hazard you are trying to avoid.
The hazard that all buyers, whether emotional home buyers or first-time investors, are trying to avoid is making bad decisions that don’t achieve their outcomes. Let’s say your desired outcome is to buy a good home for your family, but also to make a good investment purchase. In this market, is that best serviced by a focus on buying a good home at a fair price or by beating the agent and getting a discount? Of course both aims are worthy, but in my opinion the former is a more important focus.
Here’s a question: When are you more likely to be buying a good home: when the selling agent tells you a property is bargain, when you find yourself negotiating at 10% below the asking price, or when you find you are competing against multiple bidders in an “on the market” auction?
The fact is that when there are multiple bidders for a property, it’s a clear signal that the property is likely to be a good future investment. Multiple bidders signal consensus on price, and that is good for capital growth; multiple bidders also signal that there is a high chance this is a good home. An obsessive focus on not paying too much is actually not a buying strategy and could even be counter-productive in a competitive auction situation.
Take this recent auction at 7 McLaughlin Avenue in the Melbourne bayside suburb of Sandringham. This was a roughly 30-year-old house on more than 1000 square metres with an older-style façade. It is a bit dated but has a classy floor plan and internals. It is a good home, and I was interested to see how it would sell.
After an opening bid of $1.5 million, a second bid came in at $1.55 million and a third at $1.65 million. Another bid came in at $1.66 million, and then finally we were “on the market” at $1.71 million – but by this point people seemed to be running out of money.
Bidder number two was slow to bid, and bidder three responded more authoritatively, nearly buying the house for $1.71 million. A fourth bidder then came in at $1.72 million but didn’t look that strong, and this seemed to allow the third bidder back in with a bid of $1.751 million. The final result: $1.752 million.
Not bad, and the under-bidders probably thought they’d given it their best shot, but my thought was that at least two of them looked weak and that was what let the winning bidder back in each time. I can’t help thinking that there might have been a different result if the other bidders had gone in with a different mindset.
It’s human instinct for others to battle on when they think the other party is injured and almost out of the race. If you’re the weak one, you may end up paying more or even worse missing out on the property, when it is quite possible that the winning bidder would have stopped $10,000 below you if you had put in a stronger bid.
The fact that you showed you were gone was what energised him for one last final effort. So what are the real issues in this market?
1) Get your main goal clear in your mind.
2) Understand value before you start bidding. Why? Because uncertainty makes us all look weak.
3) Sure, don’t overpay – but don’t miss out either (as long as it’s worth it)
4) Don’t assume you will have no competition 5) Have multiple bidding strategies to deal with pass-ins, vendor bids, etc, but also have ones to deal with bullet bidding, strong competition, weak competition and so on.
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maljames-vHwm28JUAa

Don't show weakness

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Warren Buffett is arguably the greatest investor of all time. He has a great track record of creating and maintaining his wealth through share investments, but many of his principles also apply to property investors. So let’s look at some of Buffett’s investment principles and see how we can apply them to our property investing.
 Adhere to a proven strategy.
Buffett’s success has often been put down to his extraordinary patience and discipline, never deviating from his proven investment strategy even when faced with short-term changes in the market.
 This is a great lesson for property investors, as most don’t have a plan or adhere to a proven strategy. In fact, many investors spend more time planning their next holidays than they do planning their financial futures.
 If you don't have an investment strategy to keep you focused, how can you hope to develop financial independence? It's too easy to get distracted by all the "opportunities" various interests keep spruiking. Unfortunately many of these supposed opportunities don't work out as expected. Look at many of the investors who bought off the plan or in the next "hot spot", only to see the value of their properties underperform.
 Invest counter-cyclically.
Buffett is a renowned counter-cyclical investor, advising: “We attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
This is also the investment strategy of many successful property investors and has proven to be a winning formula for many who invested in property last year, when many predicted that property prices would fall further. So be sceptical of conventional wisdom – not because the crowd is always wrong, but because the crowd is always late.
Sometimes it’s best to do nothing.
A great quote from Warren Buffett is “The trick is when there is nothing to do, do nothing.” Yet many investors get itchy feet and want to do more, put another deal together or buy another property. There are stages in the property cycle and times in your investment journey when it is best to sit back and wait for the right opportunities, because wealth is the transfer of money from the impatient to the patient.
Specialise, don’t diversify.
Buffett has adopted a focused investment philosophy, investing the bulk of his funds in a few companies. However, most advisers suggest diversifying. This is really just playing the game of investment not to lose, rather than playing the game to win, and leads to average results.
A successful investor specialises. He or she becomes an expert in one area or niche and reproduces the same thing over and over again, getting great results.
Invest for value.
Buffett is a value investor who says: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price," and it’s the same with property. Lock in your profits by buying the “right property” – one that will outperform the averages in the long term because of its scarcity or the potential to add value.
In today’s flat property market bargains abound, but they don’t necessarily represent good long-term investments. Rather than buying a cheap property, buy the best property you can afford. Remember, the price you pay for a property isn't the same as the value you get. Successful investors know the difference.
 
Invest for the long term.
Even Buffett can't predict which way the markets will move in the short term, and he is quite certain no one else can either. So instead, he takes a long-term view of the market, saying if you don't feel comfortable owning a stock for 10 years, you shouldn't own it for 10 minutes.
 Similarly, those investors who have created wealth out of property take a long-term view. This doesn’t mean buy and forget – you should regularly reviewing your property portfolio.
When was the last time you checked to make sure you were getting the best rents or that your mortgage was appropriate for the current times? Maybe it's time to refinance against your increased equity and use the funds to buy further properties?
And sometimes it is appropriate to consider selling an underperforming property to enable you to buy a better investment.
 
Don’t invest in anything you don’t understand.
During the boom years investors’ hunger for high returns took them into exotic terrain, whether they realised it or not. Promoters often promised large profits using opaque schemes, and the same has been happening in the last year or two from a new breed of property pretenders.
Warren Buffett never invests in anything he doesn’t understand – neither should you.
 Manage your risks
Many investors don't fully understand the risks associated with property investment and therefore don't manage them correctly.
 One common error is not having sufficient financial buffers to see them through from one property cycle to the next. Smart investors have financial buffers in their lines of credit or offset accounts to not only cover their negative gearing but also to see them through the down times like we’re currently experiencing and through times of increasing interest rates.
 Savvy investors don't only buy properties; they but themselves time.
 Another way smart investors minimise risk is to buy their properties in the correct ownership structures to legally minimise their tax obligations and protect their assets.
 A final lesson from the master is that bad times will come and go with surprising frequency over our investing lifetimes, but if we have a plan and stay focused on sound financial strategies, we can gain financial independence through prudent investing.
Michael Yardney is the director of Metropole Property Investment Strategists, a best-selling author and one of Australia's leading experts in wealth creation through property. For more information about Michael visit <a href="https://www.metropole.com.au/">www.metropole.com.au</a>  or <a href="https://www.propertyupdate.com.au/">www.propertyupdate.com.au</a>.
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Invest like Warren Buffett

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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.
 
With Australia’s population exploding, the residential building market is continuing to grow to allow more people to achieve the great Australian dream of home ownership. The housing sector is also vital to Australia’s strong economy, providing a fiscal and monetary policy link between the private and public sectors.
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Safe as houses

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Even in a buyers’ market it is still possible to buy badly. You can buy the wrong home for your family, or you can commit the lesser but still significant sin of paying too much for a home.
Why is paying too much a sin?  Because it not only lessens your capital growth, it also puts more of your disposable income towards your mortgage.
What if I promised you a free family holiday in Europe each year for the next 20 years or agreed to pay your children’s school fees until they have left the most expensive private schools?
That’s what you’d be losing if you paid $3,200,000 for a home that you could have bought for $2,900,000. Over the life of a 20-year loan you would need to pay back approximately $580,000, or $29,000 per year (after tax) assuming an average 7.5% interest rate. That’s an overseas holiday or fees for two kids at private school.
Paying too much upfront means your capital growth will be lower too. Our investment division has the constant challenge of explaining to firs- time investors that the price tag of a home is not always the start point for capital growth – the market value is.
Take the example of paying $2,100,000 for a home that you could have negotiated down to $1,800,000 in this buyers’ market. If you sold the property in seven years for, say, $3,600,000, your capital growth would be 100% if you’d originally paid $1,800,000, but only 72% if you’d paid $2,100,000. Do that a couple of times, and the smart buyer gets to keep a free home and the not-so-smart buyer gets to keep a big mortgage.
Want some more evidence that this is a buyers’ market in which you should be able to negotiate a better price?  Here are three big stats that show the May 2011 million-dollar-plus market is a buyers’ market:
Clearance rates – these have dropped into the 40% and 50% levels at auctions. That means that abouut half the homes currently up for sale can’t find anybody to agree with the seller on price.
The Weekly Review Bidderman – This stat is derived from the 30 auctions we attend each week. It’s a simple count of all the bidders who bid divided by the number of auctions, giving a measurement of underlying demand for what is on offer. With Bidderman currently around one, i.e. an average of just one bidder per auction, you can see that there ain’t a lot of leftover bidders for the next home.
Lone Ranger Auctions – Single-bidder auctions are currently the most common type of auction, at one in three auctions. This is why buyers need to be on firm foundations in terms of price.
What those three stats tell us is that there is little group consensus on price right now, which makes it all too possible to overpay.  It also makes possible to miss a bargain. Sellers sometimes get prices too low as well.
Even professionals can get it wrong, as this personal story shows: I sold one of my own investment properties during the GFC. I’d bought a ripper little investment in Brighton, but it had put me out of my comfort zone and I decided to get rid of another investment home I’d owned for around 10 years at 13 Durrant Street, Brighton, Victoria. It failed to sell at auction (I wanted too much), I got the squeeze and despite everything I knew, because I was emotionally involved I let it go in the $800,000s a couple of months later. If I’d sold a year either side of that, either 2007 and 2009, it would have gone for more than $1 million. Shows how much easier and better it is to deal with others than your own.
The point is that this market is a great market to buy in if you have a longer-term view, have found the right home and you have a good plan, good strategies and good execution. But you can pay too much for a home in this market, and for most of us that doesn’t makes sense.
Mal James is principal of <a href="https://www.jamesbuyeradvocates.com.au" title="James Buyer Advocates" target="_self" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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Don't buy badly

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Just because we’re in a buyer’s market, with some great opportunities to buy good properties well, don’t think that means you have the upper hand when it comes to bidding at auction.
Many first-time buyers think an auction is a matter of turning up and “winging it”. But when you are bidding on a home, you are not just competing against other buyers. You are also bidding against the agent, whose job is to maximise the selling price for his client. You will often be up against a collective brains trust of three or four, and the agents will probably know who you are, what you have already bid on and what you’re likely to do at the auction.
And lately we have been seeing too many examples where buyers are making it especially easy for skilled agents to do their job.
 Take this scenario we witnessed a couple of weekends ago, which highlighted what a skilled agent can do even in a buyer’s market when presented with an inexperienced and overenthusiastic buyer.
 The house was a lovely little single-fronted at 48 Emo Road, Malvern East, in one of my favourite family and <a href="https://www.marketnews.com.au/tag/investment/" title="Posts tagged with Investment">investment</a> areas, the Ardrie Park precinct. The property was middle of the road in terms of quality, with plenty of space inside and outside and good flow. The agent  was Peter Bennison of Marshall White, a seasoned operator who showed his stripes and his skills to perfection on this particular day.
 
The house had been quoted at a very reasonable $890,000 to $950,000, so even Peter was a little shocked when a strong and emotional opening bid came in at $950,000. The rest of the 100-strong crowd seemed stunned into silence as Peter tried, with no avail, to elicit further rises of $10,000.
 
Repairing inside for a strategic half-time break to consult with the no doubt ecstatic vendor, Peter returned to tell the crowd that the property would be passed in to the highest bidder if there were no further bids. After a pause, a second bidder piped up with an extra $10,000. Back like a shot, eagerness written all over his face, the original bidder responded with a crowd-hushing $1 million.
 No one else was prepared to go any higher than that one, so the bidder was taken inside to negotiate a final price with the vendor. A few minutes later a final result of $1.15 million was declared.
 How did that happen? Why didn’t the bidder ask outside whether the property was “on the market” (over the vendor’s reserve price)? If he had, the final negotiation would have happened out there on the pavement instead of inside. Maybe the price would have gotten up to $1,150,000 anyway – who knows? At least it would have happened openly and transparently, which is what auctions are good for. But the bidder had made his enthusiasm so completely clear that the agent was able to play him like a violin.
I don’t want to be critical of the bidder. There are worse “sins” in home buying than paying more than you need to for a good house. But this scenario does point to some things to keep in mind if you are bidding on a property yourself.
1) As a bidder, by all means look strong to ward off other nervous buyers. But it doesn’t help to look emotional – an experienced agent will pick up on that, and it will cost you money
2) In this market you have to test every step of the way. Ask questions. There was nothing wrong with the opening bid, but the winning bidder’s second bid should have been presented in a very different way. The post-auction problems snowballed from this one decision.
3) In this market, when your bid is well above the quote and there is no proven competition, why rush up the pole? If you have to pay more, at least let it take a few hours of testing.
4) Consider getting professional help.
 The result of the Malvern East auction might have been no different if a professional were managing the buying side. But I think a number of safety procedures could have been implemented before the buyer agreed to that amount.
 It’s a great market to buy in, but you still need to be careful.
Mal James is principal of <a target="_self" title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au">James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website. 
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Don't show your hand too soon

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The conflicting messages in the media lately have left many investors wondering where Australia’s property markets are heading. Even the different research organisations seem to be coming out with conflicting reports about what’s happening to property prices.
 Then there has been increasing concern about economic problems overseas, plus reports of further interest rate rises on the horizon. No wonder so many investors are wondering: what comes next?
The problem is that many of these investors have not owned properties throughout a complete property cycle, and this makes them uncomfortable as we move through the various stages.
Today I will delve into my memory and see what we can learn from previous cycles to help you understand where our markets are heading.
 But before I do I’d like to remind you that while we’re currently in the slower stage of the property cycle, the bottom line is that as a long-term investment, property is hard to beat.
I remember reading a research report from Massey University suggesting that Australian residential property has been the best-performing asset class over the long haul. The study dated back to 1920 and showed that property produced an average return of around 15% per annum (combining rental income and price gains) since that time.These figures don't really reflect how good property is as an investment, as they don't take into account the power of leverage and the higher returns you can obtain on your own funds. When you factor this in, property far outperforms all other asset classes over the long term.
 But while there's little doubt that property is a potent wealth-builder in the long term, it goes through the same kinds of cycles as other investment classes, which means that the reported high long-term average returns take into account periods of very high growth and also periods when property went nowhere for a few years.
 
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Think of the ’80s
 Back in the early 1980s house prices across most of the capital cities were stagnant. Melbourne's median house price languished at about $50,000 from 1980 to 1983, then grew steadily but unspectacularly before really taking off in 1987.
 In Sydney, the median house price reached about $80,000 in 1981 and stayed there for the next four years. Perth prices were falling in 1983, and Brisbane house prices were going nowhere after a year or two of 25% returns in the early 80s. It took until 1987 before these property markets all began to boom again.
 After crashing in 1990, property prices in Sydney and Melbourne stayed flat until 1995 and then they started moving slowly upwards. And it wasn't until 2000 that prices in Brisbane finally took off after a decade of growing at 5% or less per year. Interestingly, this was despite a huge influx of immigrants from other states coming to the sunshine state.
 In Perth, a short recovery followed the boom and bust of the late 1980s and early 1990s. The market there ambled along, with annual returns at about 6% until its boom in the middle of last decade, where Perth's median property price overtook all capital cities other than Sydney.
 In the last year or two some of our property markets performed strongly while others languished. Melbourne and Sydney were of course the shining stars, with a couple of years of strong growth.
The lesson to learn from all of this is that as a property investor you must be aware of and prepared for these cycles.
Sure, it's hard when you are in the middle of the flat period of the property cycle, as Brisbane and Perth have been for a few years. But look at the property prices that prevailed 10 and 20 years ago and look at property prices today. Property investment is a long-term play – you need to be patient, as values in our major capital cities have doubled every seven to 10 years.
 What causes the cycles?
 What were the factors behind those cycles? It's the old story of supply and demand. Property prices are pushed up by the demand created by a healthy economy, by high levels of employment, population movements caused by migration and immigration and positive market sentiment.
They are dragged down when the economy performs poorly, when interest rates rise, when employment and immigration figures fall, when supply exceeds demand and when the marketplace is nervous about wealth and the future.
 Cycles are an inevitable part of any investment market, and our property markets are behaving normally at present.
 One more thing: there are local, as well as national, property cycles. Each state is at a different stage of its property cycle, and within each state there are cycles within the various suburbs.
 
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What’s ahead for property?
 Eventually the cycle will move on – it always has. Traditionally the more affluent suburbs tend to perform well at the beginning of the property cycle, and that's what is likely to happen again this time around.
 As our economy and the sharemarket pick up, more affluent Australians will be back in the market upgrading their homes. Many will be many chasing similar types of property, which will push up values in our more “upmarket” suburbs. As values increase in these innerring suburbs, the price differential between these and their neighbouring suburbs will increase. Soon buyers will start looking for “bargains" in these adjoining suburbs, and the increase in property values will ripple out to the middle-ring suburbs.
 This increase in property values and higher rents will start to draw investors back into the market. However, many beginning investors will hold back at this early stage of the property cycle, waiting for more signs of certainty.
Of course while they are waiting many will miss out on significant property price growth the savvy investors who get in early and buy counter-cyclically will enjoy.
 What about affordability?
 Every cycle I hear the cry "Property prices are too high! They can't keep going up like that", I remember it in the early 1980s and then again in the late ’80s, when people said house prices just couldn’t go up any more. "They are so high our children will never be able to afford a house" was the catch-cry, but prices doubled over the next decade.
 Of course, many are saying the same again now. However, while most of us are sympathetic to the plight of the average first-home buyers struggling to get into their first properties, I feel that even if they don't admit it, secretly most home owners enjoy hearing how house prices keep rising.
Those of us already in the "game" take comfort from the fact that our homes, our castles, are quietly but consistently increasing in value. And deep down we hope this continues because not only does it make us feel wealthier, it actually makes us wealthier.
 There is no doubt that affordability will be an issue for many in the future and this will limit the growth of property prices in some areas more than others. For example, first home buyers and those in the lower socio-economic brackets are more likely to be affected by rising interest rates than those with more disposable income.
 What this means is that some areas – particularly new suburbs and the lower-priced suburbs – will perform worse than the more affluent suburbs as the cycle moves on.
 Business as usual
 In summary, our property markets are behaving normally, working their way through their individual property cycles. Within each state the property markets are fragmented, with some suburbs holding their values well and sometimes slowly increasing in value while other suburbs, particularly the outer "mortgage belt" suburbs, languish.
These cycles mean there are great opportunities out there for property investors who are selective and think long term.
Are you ready to exploit the opportunities that will arise?
 
Michael Yardney is the director of Metropole Property Investment Strategists, a best-selling author and one of Australia's leading experts in wealth creation through property. For more information about Michael visit <a href="https://www.metropole.com.au/">www.metropole.com.au</a> and <a href="https://www.propertyupdate.com.au/">www.PropertyUpdate.com.au</a>.
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Learn from history

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The struggling new home building industry will be in even worse shape should the RBA decide to raise interest rates this year, the Housing Industry Association has warned. 
The warning comes on the back of new home sales increasing by just 0.2% in April, according to the latest HIA – JELD-WEN New Home Sales Report.
Detached house sales increased in NSW (7.8%) and Victoria (2.2%), but fell in Queensland (1.5%), South Australia (0.5%) and Western Australia (10.3%). The sale of multi-unit buildings posted a third consecutive monthly decline, falling by 2% nationwide.
HIA chief economist Harley Dale says the new home building industry is “struggling under the weight of excessive taxation and regulation, a stalled housing supply reform process, and uncertainty over interest rates".
“That profile is an unfortunate indictment of the weak new home building conditions prevalent in 2011 amidst a growing housing shortage, but it’s nothing compared to what we’ll see if another rate hike bullet is fired,” Dale says.
For the year to April, Dale says new detached house sales are running at a volume 22% lower than the long-term average, and new multi-unit sales are down by more than half.
“An industry kick-start is required together with a reinvigoration of the reform process,” he says.
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New home sales could worsen, says HIA

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A combination of low unemployment and rising household incomes should ensure that the rate of prime mortgages 90 days or more in arrears remains under 1%, according to Tim Lawless, head of research at RP Data.
Lawless was speaking to Property Observer on the back of the latest Fitch Dinkum Index, which revealed that rate of second-tier residential mortgage-backed securities (RMBS) loans more than 90 days in arrears had increased. Arrears jumped from 0.54% in the fourth quarter of 2010 to 0.65% in the first quarter of 2011.
This is still under the 0.72% recorded for arrears of more than 90 days in the December 2008 quarter during the height of the GFC.
 “It is very doubtful we will see prime loan delinquencies rise much higher than the current rate, considering unemployment is so low and household incomes are rising at a rate more than double that of CPI,” Lawless says.
“As evidenced by the high rate of household savings, it is likely that most Australian mortgage holders are focusing on paying down debt rather than spending.”
According to Lawless, “Australia’s full-recourse lending regime is a major incentive when it comes to debt payment.
“The vast majority of Australians will adjust their spending patterns and make lifestyle sacrifices before they fall behind on their debt payments,” he adds.
A report in The Sydney Morning Herald highlighted efforts made by the major banks to breathe life into mortgage lending by a combination of discounts on mortgage rates and lower lending requirements on prime mortgages.
Commonwealth Bank of Australia has increased its loan-to-valuation ratio from 90% to 95%, and Westpac is allowing people to borrow up to 85% of the value of their homes without requiring lenders mortgage insurance.
The Fitch Index recorded that delinquencies of more than 30 days in the Australian prime RMBS sector reached a record high of 1.79% in the first quarter of 2011, up 42 base points from the December 2010 quarter. The previous peak was in December 2008.
Fitch analysts believe RMBS delinquencies have peaked in the current cycle and expect them to “fall slightly in either quarter two, 2011 or quarter three, 2011 as the usual seasonal effect dissipates and borrowers affected by flooding are expected to receive financial support and for business conditions stabilise”.
 The prediction does not factor in the impact of likely interest rate rises later this year.
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