Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

&nbsp;

&nbsp;

&nbsp;

Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
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Ellen Walker

Off-the-plan property explained: What is stamp duty?

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A mortgagee home in North Rothbury, New South Wales has come onto the market for $505,000.
Located at 35 Bendeich Drive, the residence is situated on a 644 square metre block.
It features four bedrooms, two bathrooms, and a double garage.
It is a five-minute drive to Branxton, and two minutes away from a currently-under-construction Coles shopping precinct.
Kane Bradley, from LJ Hooker Maitland, holds the listing.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/Subscriber%20strip%20ad.jpg" alt="">
The median house price in North Rothbury is $499,000.
 
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North Rothbury, NSW mortgagee home listed for sale

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A mortgagee house in Lugarno, New South Wales has been listed for sale.
Located at 1047 Forest Road, the brick home is situated on a 562 square metre block.
It features five bedrooms, two bathrooms, a wood fireplace, and a double garage.
The property last traded in 2010, when it was sold for $690,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/Subscriber%20strip%20ad.jpg" alt="">
Lugarno’s median house price is $1,152,500.
Hayden Duncan and Olivia Duncan, from McGrath South Hurstville, hold the listing.
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Lugarno, NSW mortgagee home listed for sale

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EXPERT OBSERVER
Consumers stockpiled food and supermarket groceries in February ahead of restrictive self-isolation and social distancing measures announced by governments to counter the fast-spreading coronavirus (COVID-19) outbreak.
Retail spending grew by a solid 0.5 per cent in February – the second strongest growth rate in 12 months. But this followed declines in spending of 0.6 per cent in December and 0.3 per cent in January, due to disruptions from big city smoke hazes and the bushfire emergency.
Many Aussie retailers decided to close their businesses before government orders to shut down to protect both the health of their employees and customers from the ravages of the virus. Tens of thousands of workers in the retail trade industry were stood down indefinitely. And shoppers decided to scale-back purchases of non-essential discretionary goods, such as clothing and footwear. In fact spending on shoes and apparel fell by 2.3 per cent over the year to February – the biggest annual decline since 2011.
Consumer caution is also evident in spending on motor vehicles. As Aussies began to hibernate from the virus at home, national new vehicle sales posted their weakest March month in 11 years.
Aussie builders and construction workers are in for a tough time over the next few months. According to the AiGroup, construction businesses reported that, “Economic uncertainty due to the COVID-19 pandemic has dampened client confidence, increased risk aversion and lowered demand. Some businesses reported supply disruptions due to COVID-19 measures, particularly for imported building materials.”
Retail trade – February
‘Final’ retail trade rose by 0.5 per cent in February, above the preliminary Bureau of Statistics (ABS) estimate of 0.4 per cent. The lift in spending follows spending declines of 0.3 per cent in January and 0.6 per cent in December. The annual growth rate fell from 2.0 per cent to 1.8 per cent – the weakest rate in over 2 years.
Non-food retailing rose by 0.2 per cent in February following a 0.8 per cent decline in January. But the annual growth fell from 1.4 per cent to 1.0 per cent – the slowest growth rate in over 2 years.
Sales by chain-store retailers and other large retailers rose by 0.3 per cent in February to be up 1.8 per cent from a year ago – the weakest annual growth rate in over 2 years.
The share of online retailing rose from 5.6 per cent to 6.6 per cent over the year to February.
Spending rose most in February: Department stores (up 3.1 per cent); Pharmaceutical, cosmetic and toiletry goods retailing (up 2.2 per cent); Hardware, building and garden supplies retailing (up 1.3 per cent); and Supermarket and grocery stores (up 1.1 per cent).
Spending fell most in February: Clothing retailing (down 3.1 per cent); Footwear and other personal accessory retailing (down 2.4 per cent); and Newspaper and book retailing (down 2.0 per cent).
Across states/territories in February: Spending rose the most in Western Australia (1.2 per cent), followed by the ACT (up 1.1 per cent), Queensland (up 0.8 per cent), Victoria (up 0.5 per cent), South Australia (up 0.4 per cent). Tasmania and NSW were broadly unchanged. Spending in the Northern Territory fell by 0.7 per cent.
New vehicle sales - March
The Federal Chamber of Automotive Industries reported: “The March 2020 market of 81,690 new vehicle sales is a decrease of 17,752 vehicle sales or -17.9 per cent on March 2019 (99,442) vehicle sales. March 2020 had the same number of selling days as March 2019 (25.5) and this resulted in a decrease of 696.2 vehicle sales per day.”
“The Passenger Vehicle Market is down by 7,222 vehicle sales (-24.9 per cent) over the same month last year; the Sports Utility Market is down by 6,489 vehicle sales (-14.2 per cent); the Light Commercial Market is down by 3,326 vehicle sales (-15.5 per cent); and the Heavy Commercial Vehicle Market is down by 715 vehicle sales (-21.7 per cent) versus March 2019.”
Sales across states and territories over year to March: NSW (down 16.4 per cent); Victoria (down 21.3 per cent); Queensland (down 20.2 per cent); South Australia (down 27.9 per cent); Western Australia (down 14.4 per cent); Tasmania (down 21.2 per cent); Northern Territory (down 33.5 per cent); ACT (up 77.0 per cent).
The biggest selling vehicle in March was the Toyota Hi-Lux (3,556) from the Ford Ranger (3,108) and Toyota RAV4 (2,991).
The rolling annual total of new vehicle sales in March was 1,027,690, down 9.1 per cent on the year after falling 8.1 per cent in the year to February. Passenger car sales fell by 17.6 per cent on the year with SUVs down 2.6 per cent and “other vehicles” down 9.8 per cent.
In the year to March, SUVs accounted for a record 61.7 per cent of combined SUV and passenger vehicle sales.
Services Purchasing Managers’ index - March
The ‘final’ CBA/IHS Markit Services Purchasing Managers' Index fell from 49.0 points in February to a record low 38.5 points in March. Any reading below 50 indicates a contraction in activity.
According to the CBA and IHS Markit, “The global outbreak of the coronavirus disease 2019 (COVID-19) weighed heavily on the Australian service sector in March, with the latest PMI data showing a slump in business activity. This was concurrent with a deepening downturn in new sales, led by a record fall in new overseas business. With backlogs of work falling markedly, firms reduced jobs further. Business confidence also fell to a survey-record low, while price pressures moderated.”
Performance of Construction - March
The Performance of Construction index (PCI) fell by 4.8 points to 37.9 points in March – the lowest level since May 2013. A reading below 50 points indicates construction activity is contracting.
Construction activity (down 6.0 points to 39.1 points) and, new orders (down 10.3 points to 35.4 points) fell by the most. Construction employment fell by just 0.5 points to 36.4 points, depressed at the second lowest level in 7 years.
By sector, house building lifted by 0.3 points to 53.2 points in trend terms, but apartment (down 1.5 points to 31.9 points), commercial construction (down 1.6 points to 35.1 points) and engineering activity (up 2 points to 42.2 points) all contracted in March.
According to the AiGroup, “The Australian PCI® suggests that house building activity has remained resilient in 2020 to date, although contacting new orders and the sector’s vulnerability to the deteriorating COVID-19 situation will weigh more heavily on conditions in coming months. In other sectors, activity is experiencing on-going declines amid a weak flow of work opportunities and new invitations to tender.”
And, “Respondents in the Australian PCI® reported further price rises for imported materials and subsequent pressure on margins due to the weak Australian dollar. Businesses are bracing for worsening construction conditions as virus-related impacts on economic activity and demand increase.”
What are the implications for interest rates and investors?
The next preliminary retail trade data from the Bureau of Statistics is not due until the week of April 20. The nation’s statisticians are having some difficulty obtaining spending data – with trend series data unavailable in February – due to COVID-19 associated disruptions.
But more timely data on consumer spending patterns is available from both the Commonwealth Bank (CBA) and Kepler Analytics. According to Kepler Analytics data, shopping centre foot traffic fell by 56 per cent in the week ended March 29 from a year ago. And around 55 per cent of stores had closed nationally by March 31. Retailers have also acted to cut fixed costs, such as wages and rent. And some retailers are remaining open by focusing on online sales. Of course, the announced JobKeeper government wage subsidy is also designed to cover store wages – where possible – and keep retail employees attached to their jobs ahead of an eventual recovery.
And recent weekly CBA credit &amp; debit card spending shows strong increases in consumer spending on food and alcohol, as well as on household furnishings and equipment. But spending on clothing, transport, recreation and personal care – all deemed “non-essential” due to self-isolation measures – continue to decline.
The slowing in demand for new residential homes is evidenced by the sharp slowdown in new orders for both apartments and houses. Commercial construction new orders declined for a 20th successive month. And engineering new orders also weakened “due to a lack of new contracts to replace completed infrastructure projects”, according to the AiGroup.
CRAIG JAMES is the Chief Economist at CommSec
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cjames-5S2v74qSNK

Biggest fall in clothing sales in 8 plus years: CommSec's Craig James

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EXPERT OBSERVER
Developers must change their business strategies and pricing for off-the-plan units to avoid insolvency, according to RiskWise Property Research. 
RiskWise CEO Doron Peleg said the selling price of most off-the-plan units should be far more attractive to investors, the majority of off-the-plan buyers, and developers should not expect high property prices.
“In the past three years a few big events have had a major impact on developers and have resulted in bankruptcy,” Mr Peleg said.
“These events include oversupply, credit restrictions, the potential introduction of changes to negative gearing and capital gains tax, construction defects and now coronavirus. The entire business model of developers is based on meeting pre-sales and sales targets and for that they simply need buyers. Therefore, the risk assessment for each project should also address the potential events with a material impact on home buyers and particularly investors.”
He said the best case scenario in areas of oversupply was they simply underperformed the market, but the worst case scenario was they were actually losing money. And these days investors are well aware of these risks.
“For example, while Domain’s House Price Report shows in the 2019 December quarter prices rose 4.3 per cent, this was not the case in suburbs with high oversupply and particularly those affected by construction defects, such as Mascot where prices fell 4.6 per cent to $880,000. In Homebush West, where the Centenary Park building is located, prices also fell 9.3 per cent to $565,000.
“These areas not only have the risk of being in the Danger Zone due to oversupply but also the construction defect risk – and the reputational damage from the construction defects has also carried through to high-rise towers across Australia.
“The number of transactions, which is a key factor when assessing the risk of not meeting pre-sales and sales targets, is often very low. For example, the number of apartment sales in Sydney Olympic Park fell dramatically by 75 per cent following the defects identified in Opal Tower with buyers showing little interest for apartments across the suburb.
“What we are seeing is that new units in high-supply suburbs either resulted in a loss or underperformed the market, even during periods of strong price increases. This has an adverse impact on investor confidence and particularly their expectations regarding the potential price increases of these dwellings.”
Mr Peleg said the introduction of credit restrictions in 2017 completely altered the landscape of the housing market with investors demonstrating their responsiveness to the changes.
Overall investor market share in Sydney decreased between January 2017 to March 2018 from 50.4 per cent to 43 per cent. A similar trend was witnessed in Melbourne with a reduction in investor activity from 39.1 per cent to 34.9 per cent during that period.
“In addition, the potential introduction of the changes to negative gearing and capital gains tax, as RiskWise projected in June 2018, also increased uncertainty and fears due to the creation of two markets (a primary and secondary market) and this led to a major reduction in the sales of units.
“According to the ABS, the number of new homes approved for construction in the month of November 2018, dropped by 2.2 per cent from the previous month and 18.3 per cent from November 2017. Westpac break reported in August 2018 that sales volumes had dropped to a 28-year low.
“The Brisbane unit market is a case study in poor risk management. When a developer pays inflated prices for the land, the risk will be realised, and you will have loss. Even as early as June 2016 in Statistical Area Level 4 (SA4) Brisbane Inner-City, price growth was -1.8 per cent with a massive oversupply of units (17,417 in the pipeline - an addition of 24.5 per cent to the current stock).
“As a developer when you are paying for a piece of land based on the potential selling price of the end product, you must factor in the risks rather than base it on optimistic scenarios. If you do factor in very tangible financial risks, you will see that the fair-value of the lot is lower in comparison to an optimistic scenario. In a vast majority of developments, the lot price is the major variable on the selling price.”
He said the risks included not meeting presales or that sales targets have a major impact on the financial results. Even if the targets are eventually met, the funding costs associated with those targets increase and add up to material amounts. However, even after meeting the presales and sales targets, there’s still a settlement risk that buyers who paid very low deposits could back away from the deal completely if there was a significant reduction in the pre-settlement valuation, and cash flow issues.
Mr Peleg said Covid-19 added another layer of complexity as its significant impact is yet be fully determined.
Meanwhile, there has already been a sharp reduction in auction clearance rates over the past couple of weekends falling to a preliminary rate of 61.3 per cent as of March 22 across the combined capital cities with the final result expected to be in the 50s within a couple of weeks.
The Westpac-Melbourne Institute Index of House Price Expectations Index fell 6.6 per cent in March, the largest monthly decline since February last year.
Risk identification and assessment
“We need to identify and assess the key risks. There are some very obvious and common risks that must be addressed by developers and these are oversupply and inflated selling prices that are included in the financial models of the developers when they make their decision to develop the property,” Mr Peleg said.
“On top of that there are other risks that should be identified by implementing proper risk-management practices. In addition, there are obviously other risks that cannot be foreseen, such as the coronavirus, which create major and unexpected economic shocks.
“The point is that we don’t know and do not expect to know all the potential major events that could occur in the period of at least two years or more (until a developer meets their financial obligations). Many things can happen and what developers need to do is to factor that in and improve risk-management practices to include them in the prices they are proposing.
“Then if they see the discounted pricing, including the risk aspects, is too low – and that others are willing to pay more inflated prices for a lot – they should move on.
“The decision should be very structured, risk based and non-emotional. The first step is risk management, where we need to assess the obvious risks (e.g. oversupply) and the potential risks that are less obvious (e.g. a major economic downturn) and then, based on that, we need to set the price taking into consideration the results of the risk assessment."
Mitigating the risks – develop in the ‘missing middle’
Mr Peleg stressed the importance of risk mitigation by developing properties in popular areas in the middle rings of Sydney and Melbourne, i.e the ‘missing middle’.
“Due to lower supply for house-and-land packages in the missing middle, even when there are some negative shocks, due to limited supply and generally good demand, these shocks are better absorbed with lower price reductions. Another development option in the missing middle is family-suitable units that are more attractive to owner-occupiers looking for larger floor space, lower price per square metre and in smaller building blocks generally close to transport hubs, employment and schools.
“There are actually many areas that have great potential and carry a low risk, it is only a matter of business strategy and proper risk-management practices.”
“Marketing expenses are, in many cases, materially lower for development in the missing middle in high-demand areas where they can be done through the local real estate agents with the standard, up to, 2 per cent commission (as opposed to high commissions required for intrastate and international property marketers).
“And usually in the missing middle, the scale of the development is far smaller which makes them easier to sell.
“The point is developers are at risk of insolvencies and this means they need to mitigate this risk by ensuring they have a sustainable business model, focus on the missing middle ring and address imbalances in the property market.
“Focusing on the missing middle is by far more of a solution than taking the risk of off-the-plan high-rise development.”
DORON PELEG is the <a href="http://www.riskwiseproperty.com.au" target="_blank">CEO of RiskWise</a>
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j.ballantyne1990-6AQqhLzZaK

Apartment developers must rethink their business model: RiskWise's Doron Peleg

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A Camillo, West Australia mortagee home has sold for $235,000.
The sale price is slightly less than sought as the home was listed for $245,000
The house last sold for $200,000 in 2008.
Shane Denniston of The Professionals is marketing the property at <a href="https://www.realestate.com.au/property-house-wa-camillo-132875758" target="_blank">39A Westfield Road</a>.<a class="agent-info__name sc-kpOJdX khYtfc" href="https://www.realestate.com.au/agent/shane-denniston-236716?cid=agent-profile-page%7Cbuy:pdp:contact-side-panel"> </a>
The five bedroom, two bathroom house is set on a 773 sqm block.
The abode was built in 1986 and is according to the listing, "a handy man's dream, with work to be completed throughout the home."
It holds an outlook over Westfield/Heron reserve and is close to both the train station, and Kelmscott shopping centre.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median price for a house in Camillo is $215,000 according to CoreLogic data.
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Camillo, WA mortgagee home sold for minor profit

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A Gawler West, South Australia, mortgagee home has sold for $115,000 after an unsuccessful auction in early February.
It was listed with a $115,000 - $125,000 price guide.
Ken Loft of Harcourts marketed the three bedroom, one bathroom house.
Situated at <a href="https://www.realestate.com.au/property-house-sa-gawler+west-132764986" target="_blank">19 Mulga Street</a>, the abode was built in 1975.
Set on 471 sqm, it positioned in the heart of Gawler West.
It last sold for $56,000 as part of a multisale by the SA Housing Trust in 2002.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
To learn more about Gawler West, click here.
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Gawler West, SA mortgagee home sold after unsuccessful auction

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A Tallwoods Village mortgagee vacant lot has been listed for $110,000. 
The Illusions Court property's corner position allows for views over the Tallwoods Golf Course. 
The 801 sqm parcel of land offers opportunities for building and construction. 
Previously sold for $84,000 in 2002, the property is listed by Andrews Gardner Real Estate agent, Greg Walton. 
According to Realestate.com.au, a similar vacant Tallwood Village lot at The Saddle sold last month for $125,000. 
Tallwoods is located close to the beaches of Hallidays Point. 
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Learn more about Tallwoods village here.
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Vacant Tallwoods Village mortgagee lot with golf course views listed

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National house values grew a further 0.7 per cent over March, however growth tailed off toward the end of the month due to the economic impact of COVID-19, CoreLogic found.
It was the lowest monthly gain since the market began to bounce back in July last year.
The housing market began to soften however towards the end of the month, with social distancing and a move to online auctions taking its toll on consumer confidence.
In a shock turnaround, CoreLogic's monthly Hedonic Home Value Index found Darwin to be the best performer over the month, with dwelling values jumping two per cent, although they remain -5.6 per cent down annually.
Only Hobart (-0.2 per cent) saw dwelling values decline over March.
Sydney confirmed its status as the nation's best performing real estate market with a +1.1 per cent rise in dwelling values, pulling away from Melbourne who saw a more modest +0.4 per cent. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/1/CoreLogic%20March%2031.jpg" alt=""> CoreLogic's March 2020 dwelling index. Source: CoreLogic
The harbour capital has seen its dwelling values rise +3.9 per cent over the quarter and +13 per cent annually, followed by Melbourne's +2.9 per cent quarterly rise and +12 per cent annual growth.
Sydney's March value rise was spread evenly across houses and units, whereas Melbourne's houses (+0.7 per cent) outperformed units (+0.1 per cent).
CoreLogic head of research Tim Lawless said, “Although Australia’s housing markets have begun to enter a period of disruption, they are coming from strong foundations.”
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/1/CoreLogic%20March%2031%20index.jpg" alt=""> CoreLogic's March 2020 value index. Source: CoreLogic
He said that recent trends in the market have become less relevant as we move into a period of unprecedented uncertainty which is likely to impact further on household confidence and drag Australia’s economy into a recession for the first time in almost 30 years.
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“The housing market won’t be immune to a drop in sentiment and weaker economy, however the extent of the impact on dwelling values remains highly uncertain", Lawless suggested.
"Capital growth trends will be contingent on how long it takes to contain the virus, and whether additional constraints on business or personal activity are introduced.”
Lawless says he is expecting the number of sales to fall dramatically over the coming months due to a decline in consumer confidence, a rising jobless rate and more cautious lending practices.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/1/Top%2010%20performers%20annually%20March%2031.jpg" alt=""> 
Sydney regions dominate the best annual performers. Source: CoreLogic
"Restrictions on open homes and on-site auctions will compound the slowdown in buyer activity, as would any future policy announcements related to peripheral services such as building and pest inspections, conveyancing and furniture removals", Lawless said.
“Considering the temporary nature of this crisis, along with unprecedented levels of government stimulus, leniency from lenders for distressed borrowers and record low interest rates, housing values are likely to more be insulated than sales activity.
“The extent of any fall in housing values is impossible to fathom without first understanding the length of time this health and economic crisis persists. Arguably, the longer it takes to contain the virus and bring economic operations back to normal, the higher the downside risk to housing values.” 
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jrobinson-rf4aSBido9

March sees last gasp property price rise, but growth tails off: CoreLogic

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<h2>OPINION:</h2>

Earlier this month, I wrote about <a href="/expert-insights/buying/how-will-the-coronavirus-impact-australia-s-property-market">how the market will react to the Coronavirus (COVID-19)</a> before it became a pandemic. Now, three weeks on, we have seen the impact it has on numerous <a href="/guides/covid-19-how-to-adapt-to-working-from-home">businesses and our daily lives</a>. Currently, Australians are living through one of the <a href="/news/covid-19-how-the-world-previously-recovered-from-sars-and-whether-or-not-we-can-do-the-same-this-time-round">most significant economic and social upheavals</a> in our history.

For the real estate industry, the most direct impact from changes announced by the government would certainly be the social distancing restrictions prohibiting open inspections and auctions. These restrictions have forced a lot of new changes to the way they operate, including virtual inspections and online auctions. Last weekend we saw a mix of selling via online and phone auctions, as well as going back to more traditional ways of selling such as private sale or selling by tender.

Virtual Reality for real estate has been around for many years, allowing people to “try before you buy” without spending time and money travelling to scope out properties. However, the traditional open house has always proved popular as one can physically see, touch, hear and even smell the house and environment they may potentially be living in. But with these restrictions in place now, <a href="/guides">technology will again come into the forefront</a> and will eventually become the new norm.

While the industry is able to change and adapt, the more telling signs will be the impact on the number of listings and days on the market. From the seller’s point of view, if they are not under pressure to sell, they may hold off until after this pandemic is over. On the other hand, if we continue to see job losses, many house owners under financial stress may be forced to sell.

For investors, at a time when many people sit on the sidelines waiting to see what’s going to happen, many will see this as a great opportunity to buy a property considerably cheaper than they would have a few weeks ago and much cheaper than they will have to pay for it in 12 months.

The government has no choice but to offer relief for those affected by the crisis. The Prime Minister reinforces that they are “building bridges” to help us get to the other side. At this stage, it looks like commercial and residential landlords will be receiving some type of support, such as concessions on negative gearing and land tax. This will mean they will be asked to forgo rent, hence easing some pressure off renters. Already several major retailers, particularly those in shopping centres, have said they will not pay rent while closed. This is likely to extend to office tenants that are under similar stress.

The RBA and the government’s focus is on supporting businesses and households who will suffer significant income hits, forcing an emergency rate cut to a record low of 0.25%. RBA governor Phillip Lowe explained,

<blockquote>
“We are clearly living in extraordinary and challenging times, the Coronavirus is first and foremost a very major public health issue, but it’s also become a major economic problem and it’s having deep ramifications for financial systems right around the world.”
</blockquote>

It is still uncertain as to what the ultimate economic impact of COVID-19 will be, as well as what the fall out will be for property. However, with most economists accepting that we’re heading for, if not already in, a recession, some are wondering if COVID-19 will finally cause our property markets to crash. 

The bright side is that historically, after each global disruption, there has been a rebound and increase in property prices, and there is no reason to suggest this will be any different as the underlying property fundamentals are still strong.

<a href="/news/covid-19-understanding-what-you-can-and-cant-control-the-importance-of-cross-referencing-facts">Look after one another</a> and <a href="/guides/covid-19-how-apartment-dwellers-can-keep-themselves-safe-during-self-isolation">stay safe</a>.
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Changes the real estate industry will experience as a result of the Coronavirus

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EXPERT OBSERVER
There are some challenges coming that are going to reshape our industry. I’m not trying to panic anyone, and I’m not being alarmist. But the impact of what we’re all going through with the virus and the pandemic that’s spread across the world is hitting the economy, and it’s going to keep on doing that.
Over the next six months, we’ll start to understand just how the country will recover financially, and what shape every industry will be in.
But in the short term, there are some questions a lot of people will be asking themselves.
One of the first is going to be around short-term vs. long-term gains in property, and what the right moves are from a strategic vantage point.
The Airbnb problem
Owners who have been planning on investing in or who already have built up a portfolio of short stay properties for guests using Airbnb are going to be worrying right now. The drop in travel, both domestically and internationally, is already being felt by the airlines, and it’s being felt by the hotel industry, and it’s being felt by individual owners too. Airbnb properties are designed to cater to a short-term stay, and when those guests dry up, the asset dries up too. 
Owners are going to be looking towards longer term rental options and wondering if that shift will be the right one for their portfolio. The higher nightly rate that Airbnb rentals can bring in is always going to be attractive, and it’s what drives many owners to embrace that option in the first place. What it brings with it, unfortunately, is that instability that we’re seeing in times of a downturn. If we’re anticipating that the current downtown could last a while – and at this point, we’ve got no idea of when international travel will pick up – the nightly rate becomes far less attractive when you can’t get guests into your asset. 
The stability of a longer-term occupancy gives you the chance to start recovering a lot sooner.
Longer-term rentals are still growth assets
The flexibility of the Airbnb market does appeal to owners who want to work on their property actively and push their income from it. But short stays aren’t the only way to do that. In fact, when you are able to rely on the longer-term occupancy of your tenants, and they are reliable, and they are dedicated to their living space as a home, you can actually do so much more. Where you could make minor experience, cleaning and fee adjustments on an Airbnb to change the real-time cashflow, if you invest into a longer term property in a smart way, making improvements and working with your tenants to better understand their needs, you can often increase your gains far more, over a longer period. A 12 month increase in rent that you know will last, is worth more than a spike over a few weekends.
Longer-term right now will need some patience
Yes, the longer-term rental market is going to be more stable. It’s a fact. Australian residents and local residents need a home, and renting is going to be the option. But with the downturn in the economy, you might find that you’ll need a little patience, a little empathy and space for tenants who might be hit hard financially, and the room to wait it out, in exchange for the longer-term wins and steadiness. But if you’re able to do that now, you actually have the chance to build a lasting and trusting relationship with good tenants who will stay with you for years, support rental increases in-line with your own investments in the property, and take care of it themselves while they do so.
You won’t get that from an Airbnb guest.
MARK TROWELL is the cofounder and CEO of <a href="https://www.yabonza.com" target="_blank" style="font-size: 12.16px;">yabonza</a> 
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