The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

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?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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It would be fair to say I’ve lost count of the number of times people ask me about the secrets for a successful negotiation.
Once you know how to negotiate… this will provide you with your ultimate passport to success.
You see, the success of every negotiation is based upon these elements. However, you also need to master various strategies, tactics and nuances… in order to truly become a master negotiator.
But the good news is… all of these are teachable skills — which you’re able to quickly and easily learn, with little or no effort.
Naturally, over a career of 40+ years… you tend to see and use virtually every negotiating technique there is. And one by one, I have tested them and noted down those that work.
Agendas
Everyone going into a negotiation will have an agenda. But the mistake most people make is in assuming that your agenda is the same as theirs.
You know, in all my years as a negotiator… I’ve never seen two identical agendas. Sure, there may be a few common items — but they never appear in the same order of importance, on both agendas.
As such, the No. 1 item on their agenda may well be No. 7 on yours. And the secret lies in uncovering just how to determine that… which is one of the other 25 techniques.
Because, once you know what’s on their Agenda … you are then in a far stronger position to trade your “lesser” items, on the way to achieving your ultimate objective.
In fact, the biggest mistake you can ever make is to allow your negotiation to reach the point where price becomes the only item under discussion. From there on, one party has to lose… in order for the other to win.
As you will soon realise, there are only four outcomes for every negotiation …
 
<img src="/images/2015/06/24/Neg-Chart.png" alt="">
 
Therefore, your aim ought be to take control of the negotiation and steer it towards a win-win result. That way, it ensures the deal will ‘stick’ … while the documentation is being prepared.
CHRIS LANG is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can contact Chris <a href="https://commercialpropertymadeeasy.com/" target="_blank">here</a>.
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The secret lies in discovering a hidden agenda: Chris Lang

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The Australian Bureau of Statistics (ABS) released demographic data for the December 2014 quarter yesterday. The data highlighted a continuing slowdown in the rate of national population growth, with the quarterly increase now lower than slump in population growth recorded during the GFC. In particular the mining states and territories are recording the biggest slowdown in population growth fueled by a slowdown in both interstate and overseas migration.
<a href="/images/2015/06/26/Chart-13.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/26/Chart-13.jpg" alt="">
 
The data showed that throughout 2014 Australia added another 330,202 persons.  Although this is still a relatively high rate of population growth, it is the lowest annual increase in population since the population increased by 327,637 persons over the 12 months to September 2011.  Over the final quarter of the year the national population increased by 64,010 persons which was its lowest quarterly increase since June 2006 (52,834).
<a href="/images/2015/06/26/Chart-23.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/26/Chart-23.jpg" alt="">
 
At a national level population growth is comprised of overseas migration (arrivals minus departures) and natural increase (births minus deaths), any interstate migration is neutral at a national level.  Over the past year, the country experienced a natural increase of 146,067 persons and net overseas migration of 184,135 persons.  The rate of annual natural increase is at its lowest level since December 2006 (139,793) and annual net overseas migration is at its lowest level since June 2011 (180,372).  On a quarterly basis, natural increase was recorded at 36,517 persons (its lowest level since December 2006) and net overseas migration was recorded at 46,034 persons (its lowest level since June 2011).
<a href="/images/2015/06/26/Chart-33.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/26/Chart-33.jpg" alt="">
With the national population increasing by 330,202 persons over the past year, the majority of population growth has taken place in the largest states.  NSW (31.2%) and Vic (30.7%) accounted for a combined 61.9% of national population growth.  If you add Qld (19.4%) and WA (12.1%) the four largest states accounted for 93.5% of national population growth over the year.
As far as the rate of population growth goes, for the first time since September 2006 WA is no longer the state with the most rapid rate of population growth with Vic taking over the mantle. Vic’s population increased by 1.8% over the year followed by: WA (1.6%), NSW and Qld (both 1.4%), ACT (1.1%), SA (0.9%), NT (0.4%) and Tas (0.3%).  Qld, WA and NT in particular are seeing the impact of the mining downturn with fewer workers required in these states as the pipeline of major infrastructure projects winds down translating into slower population growth. Two years ago these states were recording annual population growth of 2.0% in Qld, 3.7% in WA and 2.8% in NT.
<a href="/images/2015/06/26/Chart-42.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/26/Chart-42.jpg" alt="">
Net overseas migration has been slowing at a national level and as the above chart shows, all states are experiencing a fall in net overseas migration.  The full brunt of the slowdown in net overseas migration is once again being felt by the resource states.  Annual net overseas migration is -30.9% lower in Qld, -47.6% lower in WA and -56.0% lower in NT.  All other states except for NSW (+1.9%) and ACT (+4.1%) have recorded a fall in net overseas migration over the year, but nowhere near the extent of the mining states and territories.  The declines in these states were recorded at -4.2% in Vic, -9.0% in SA and -2.9% in Tas.  The data also highlights that overseas migrants have a clear preference to settle in the larger states.  Over the past year, 37.9% of net migration occurred in NSW with a further 30.4% in Vic, 13.2% in Qld and 10.3% in WA.
<a href="/images/2015/06/26/Chart-53.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/26/Chart-53.jpg" alt="">
 
At a national level net interstate migration has no impact however, it does have a significant impact across individual states.  Over the 12 months to December 2014, there were 335,256 interstate movements across the Australian states.  Historically Qld has attracted as high number of interstate migrants however; net interstate migration to the state has slowed sharply over recent years.  Across the states, Vic now attracts the most net interstate migrants (9,336) followed by Qld (5,598) and these are the only two states that have recorded a net gain in interstate migration over the year.  Vic’s net gain from interstate migration is a record high while migration to Qld is at its lowest level on record.  The net outflow of residents from the remaining states was recorded at: -5,572 persons in NSW, -2,744 in SA, -400 in WA, -1,278 in Tas, -3,392 in NT and -1,548 in ACT.  Despite the net outflow, the net number of residents leaving NSW is at a record low.  On the other hand the loss of residents from WA is the largest since September 2003 and the outflow from NT is the largest on record.
In terms of natural increase the states with the largest overall populations also have the greatest natural increase.  There has been a sharp decline in natural increase in NSW over the past few years while natural increase is trending higher in WA.  The state-by-state shares of natural increase are: 26.5% in NSW, 24.8% in Vic, 23.5% in Qld, 4.9% in SA, 14.8% in WA, 1.0% in Tas, 2.0% in NT and 2.6% in ACT.
The demographic data highlights challenges for the Australian economy and individual states. Gross domestic product has been slowing and is much lower on a per capita basis. With population growth slowing and set to slow further in coming quarters (as foreshadowed in the monthly overseas arrivals and departures data) this poses a challenge for the national economy.  The resource states in particular are being impacted as they are attracting fewer migrants from both interstate and overseas. Conversely, NSW and Vic (which are a proxy for Sydney and Melbourne) are the places that both domestic and international migrants want to head to. 
This in turn fuels demand for housing, creates the need for more jobs and requires more spending on infrastructure. To-date it doesn’t look as if the sharp rises in home values in Sydney and to a lesser degree Melbourne over recent years is stopping migrants heading to these areas. You would have to think that at some point this will change but no one has a crystal ball to know exactly when that inflection point will occur. Particularly given how low the cost of debt currently is with interest rates so low, furthermore rental pressures are easing given already high new housing construction and a record high pipeline of approvals to potentially follow.
Cameron Kusher is RP Data’s senior research analyst. Follow Cameron on Twitter <a href="https://twitter.com/cmkusher" target="_blank">here</a>. 
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Australia’s rate of population growth continues to slow: Cameron Kusher

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Newly approved housing supply has moved to new record heights, with 214,331 dwelling approvals recorded nationally over the past year.
The proportion of these approvals which were for units is also at a record high, accounting for 45.9% of all approvals.
The surge in dwelling approvals has coincided with very low interest rates and surging demand from the investment segment of the market. 
Across the combined capital cities more than half of all dwelling approvals are for units and in each capital city (except Adelaide, Perth and Hobart) more than 50% of approvals over the past year were for units. 
Data from the 2011 Census shows that across the country units are more than twice as likely to be rented as houses. This would indicate a clear preference from the investment segment which is currently so active, for units over houses.
While the number of new dwellings being approved is significant, it is worthwhile examining on a smaller scale the regions where the new housing supply is being approved. Looking at dwelling approvals across SA4 regions of the country, we have listed the top 20 regions for approvals for both houses and units over the 2014-15 financial year to April 2014.
For houses, the region with the greatest number of approvals over the financial year to-date was South East Melbourne (which includes council regions such as Casey and Cardinia) with 4,874 approvals. Looking at the top 20 list published, 15 of the 20 regions listed are located within capital cities with only Geelong, Sunshine Coast, Gold Coast, Latrobe-Gippsland and Bunbury in non-capital city areas. The top 20 list shows 3 NSW regions, 6 regions from Vic, 5 regions from Qld, 1 SA region and 5 regions from WA.
<a href="/images/2015/06/30/2015-06-22--01--house-approvals-2014-15-financial-year-SA4-regions.jpg" target="_blank">Click to enlarge</a>
 <img src="/images/2015/06/30/2015-06-22--01--house-approvals-2014-15-financial-year-SA4-regions.jpg" alt="">
Turning to unit approvals, the list highlights the magnitude of approvals in Inner Melbourne with 12,516 approvals so far this financial year.
This region is already seeing a huge volume of new construction and the pipeline just keeps growing.
To put the volume of approvals in perspective, Brisbane Inner City with the second highest number of approvals (5,808) has less than half as many unit approvals as Inner Melbourne.
The Gold Coast is the only non-capital city area listed amongst the top 20 regions for unit approvals. Looking at the state-by-state breakdown there are 6 NSW regions listed, 6 Vic regions, 4 Qld regions, 1 SA region, 2 WA regions and 1 ACT region.
<a href="/images/2015/06/30/2015-06-22--02--unit-approvals-2014-15-financial-year-SA4-regions.jpg" target="_blank" style="line-height: 1.3em;">Click to enlarge</a>
<img src="/images/2015/06/30/2015-06-22--02--unit-approvals-2014-15-financial-year-SA4-regions.jpg" alt="">
 
With the pipeline of construction activity remaining high and much of it high-density development, the multiplier effect from heightened construction activity should continue for a number of years. 
Of course the biggest hurdle may start to be achieving necessary presales for these projects commence particularly given that many financial institutions are now starting to tighten their lending practices on the request of APRA. 
With a particular focus on investment mortgages this may have an impact on demand from investors who are seemingly a key driver of the surging demand for inner city units.
Cameron Kusher is RP Data’s senior research analyst. Follow Cameron on Twitter <a href="https://twitter.com/cmkusher" target="_blank">here</a>. 
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Surge in dwelling approvals: Cameron Kusher

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Figures from the Rental Bond Board appeared to show that the supply of rental accommodation was below growth trends for NSW. With this is mind what do the median rental statistics collected by the board reveal? 
A number of interesting trends emerge. In 2010-11 the areas with the highest median rentals were the South Sydney and Upper North Shore. However between 2011-12 up until the most recent figures for 2013-14 it has been the Eastern Suburbs that consistently records the highest median rents. 
In the Board’s figures the Eastern Suburbs covers a very diverse area across postcodes 2021-2036.
According the Board’s figures the median rental across this area is $610, and while rents have been on the rise, given the area’s diversity across suburbs like, Paddington, Moore Park, Little Bay, East Gardens, Vaucluse, Watsons Bay and Bondi the range of rents would be wide-ranging.
However what is more interesting is the general trends of median rents across the metropolitan area between 2010-11 and 2013-14, interesting because the figures show, somewhat surprisingly that the growth in median rents has been slowing. In 2010-11 the increase was 4.5% and in 2011-12 4.3%. However in 2012-13 the figure fell below 4% to 3.1% and in 2013-14 the increase was 2.9%. 
Over the same period there have been suburbs where median rental growth in the top five areas has been both above and less than the metropolitan figures. Looking at the Board’s figures here are some of the notable figures.
Rental Growth
All of the figures following are taken from figures published by The Renal Bond Board in its annual report.
In 2010-11 median rental growth across metro Sydney was 4.5% at $460.00, with some notable variations among the top three postcode groupings as follows: 
<ul>
<li>Eastern Suburbs, Lower North Shore &amp; Mosman/Cremorne all increase by 10% to $550.00</li>
<li>South Sydney &amp; Upper North Shore grew by 9.8% to $560.00</li>
<li>
Inner Sydney 5.7% to $560.00 
</li>
</ul>
In 2011-12 median rental growth was 4.3% to $480.00, and the top three postcode groupings were:
<ul>
<li>Many/Warringah grew by 5.8% to $550.00</li>
<li>Eastern Suburbs grew by 5.5% to $580.00</li>
<li>Lower North Shore grew by 4.5% to $575.00</li>
</ul>
Across this period it is notable that in three areas – Inner Sydney, South Sydney and Upper North Shore the Board’s figures showed no growth.
In 2012-13 rental growth fell to 3.1% to $495.00, the top three postcode groupings were:
<ul>
<li>Inner Sydney and South Sydney at 5.4% to $590.00</li>
<li>Eastern Suburbs at 3.4% to $600.00</li>
<li>Lower North Shore 1.7% to $585.00</li>
<li>Upper North Shore 1.7% to $570.00</li>
</ul>
Again it was notable that the Inner west showed no growth.
The most recent figures for 2013-14 growth fell again to 2.9%,a cross the metro region the median rental was $510.00 and the top three groupings were:
<ul>
<li>Inner West grew by 4.3% to $575.00</li>
<li>Many/Warringah at 3.4% to $580.00</li>
<li>Mosman/Cremorne at 2.5% to $590.00</li>
</ul>
In the same period rents on the Lower North Shore, according to the Board’s figures dropped by (0.9)%, which was the only negative result over the total period between 2010-2014.
Supply Catches Up
The big increases in 2010-11 (at 10% in some areas) have not been repeated, and this would appear to reflect more properties in particular apartments coming onto the market along with a rise in the number of investment properties being sold.
Currently the gap between the least and most expensive market is modest, based on median rentals $35.00 with Fairfield/Liverpool and Canterbury/Bankstown the most affordable and the Eastern Suburbs the most expensive market followed closely by the Inner Sydney and South Sydney, with both theses areas seeing a big increase in apartment developments.
It is also interesting to note that the gap between the least and most expensive rental markets has remain constant, although since 2010-11 the Upper North Shore has lost it’s spot as among the most expensive rental markets.
However we need to go to the country median rentals to see the most volatile figures, because in 2010-11 rents in Mudgee grew by 19.5% and in the following year by 14.1%, but in 2013-14 rents fell by (20%), which would largely reflect the changing fortunes of the mining industry. 
For the metro Sydney market, the demand for rental accommodation and rents continue to rise, although the patterns are not uniform. Some areas of the market have and will continue to see new developments added both as apartments and houses in new estates, as these remain popular with investors. 
The details and values outlined come from a very big pool of tenants as the Rental Bond Board looks after more than 726,337 tenancy bonds, and so the figures are a valid reflection of the wider rental market.
Given all of the activity across our property market in the last 12 months the Board’s report for 2014-15 should reveal some interesting trends.
<div class="entry-content">
To read the final part of Peter's two-part post, click here.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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NSW rental supply below growth trends: Peter Chittenden

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<h2 class="post_title"> </h2>
Every year, as Sydney hits winter we can expect the inevitable property market predictions to come in thick and fast. Now before we get into the nitty gritty of these predictions there are a few observations that I made when I read these somewhat bizarre predictions.
Let’s look at some facts – the Australian Bureau of Statistics (ABS) released their latest data on Residential Property Prices in March 2015 which showed that the total value of Australia’s 9.500 million residential dwellings had increased to $5.500 trillion. At the end of the March quarter 2015 the ABS also advised that household net worth was $8,090.9 billion so we are talking big numbers here.
Researcher BIS Shrapnel noted that house prices (I assume this includes the investor apartment market too) have soared by 45% since 2012 – and they don’t expect a correction to arrive until 2017. Because in 2017 they are expecting the cash rate to start increasing – which I don’t agree with as I expect we will have a low cash rate for quite a few years to come.
A recent PwC study found that more than one – third of Australia was enduring recession conditions as the economy is increasingly driven by a small group of regions. The PwC analysis found about 20% of the national income was now produced in just 10 out of 2,214 locations across Australia, with Sydney, Melbourne and WA’s iron ore belt in the Pilbara among the dominant areas. 
It is also worth noting that Queensland and NSW are on a massive infrastructure spend with Victoria not that far behind.
For those intently following the Sydney infrastructure model, I suggest that you read<a href="https://www.strategy.planning.nsw.gov.au/sydney/the-plan/#section-224&amp;265" target="_blank"> Your Future Sydney</a> – “The Government must accelerate the delivery of new housing in Sydney to meet the needs of a bigger population and to satisfy a growing demand for different types of housing. Making sure that Sydney will have adequate shelter for its future population is a high priority of this Plan.
Over the next 20 years, the population in Sydney will grow much faster than in the last 20 years. Projections indicate that Sydney will need around 664,000 additional homes over the next 20 years. 1 – New housing will be needed in Greenfield locations and the established urban area. Providing housing in a variety of sizes, types and locations will be essential to meeting Sydney’s future housing need. Increasing housing supply will boost economic activity and generate viable infrastructure and business investment opportunities.
Sydney’s house prices are high compared with other Australian capital cities, 2 – and while house prices are the result of consumer demand, governments can help to put downward pressure on prices. Accelerating the supply and the variety of housing across Sydney, such as apartments and townhouses, will make it easier for people to find homes to suit their lifestyle and budget.”
It is also worth noting that the 664,000 additional new homes will be of the strata title variety with many high density subdivisions of air space to be contained mainly on the transport corridors. The Baird Government is well aware that NSW has fallen well behind where present reports have Sydney at approximately 140,000 new homes short of where it needs to be.
When these huge infrastructure models come to fruition which one would assume we will find ourselves somewhere around the 2017 mark – so it makes plenty of sense that investors will be watching this massive construction phase with great interest. By then the councils will have been merged into the new larger councils and we will see major high density subdivisions being rolled out across Sydney.
I have been reliably advised that the Abbott Government will not be changing the foreign ownership laws so foreign buyers can acquire 100% of all new developments – and we need to know that there are plenty of foreign buyers wanting to invest in Sydney, Melbourne, Brisbane and regional areas.
Mosman house levels are now down over 50% on recent years where this week we hit 36 houses on the market which is the lowest in living memory – so no correction happening here as is also the case in the vast majority of suburbs across Sydney.
At the end of the day despite what some may predict the Sydney real estate market is all about that old mathematical equation supply V demand. With the easing of foreign ownership rules the Australian property market is now an international market and that’s where the demand is coming from.
<h4>MOSMAN – 2088</h4>
• Number of houses on the market this time last year – 62
• Number of houses on the market last week – 43
• Number of houses on the market this week – 36
• Number of apartments on the market this time last year – 56
• Number of apartments on the market last week – 39
• Number of apartments on the market this week – 43
<h4>CREMORNE – 2090</h4>
• Number of houses on the market this time last year – 5
• Number of houses on the market last week – 4
• Number of houses on the market this week – 3
• Number of apartments on the market this time last year – 12
• Number of apartments on the market last week – 12
• Number of apartments on the market this week – 16
<h4>NEUTRAL BAY – 2089</h4>
• Number of houses on the market this time last year – 3
• Number of houses on the market last week – 2
• Number of houses on the market this week – 2
• Number of apartments on the market this time last year– 42
• Number of apartments on the market last week – 39
• Number of apartments on the market this week – 25
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000. 
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Property is just a simple mathematical equation: Robert Simeon

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The top 20 locations in Australia for long-term capital growth are all regional locations.
That may surprise many people because the general theme in media is that the capital cities out-perform their regional markets. 
The misconception arises when research houses spit figures out of their computers and rush them off to media without providing any analysis of the realities behind the generalised figures.
A general figure describing growth in regional New South Wales will often produce a low growth figure because there are lots of mediocre small town markets, which drag down the average. The generalised number for regional Queensland will be low because there are numerous markets in decline, thanks to their links to the resources sector and/or developer oversupply. 
But the best individual towns often deliver higher long-term growth than the best of the capital city suburbs.
The latest Hotspotting survey for the Capital Growth Superstars report - examining long-term capital growth rates for every suburb and town in Australia - shows that, once again, the best growth rates are all regional.
The best of the capital cities are two suburbs of Darwin, Gray and Fannie Bay, which average 10.2% per year. But that’s barely good enough to make the Top 20 list for regional Australia.
The Top 20 regional locations have growth rates ranging from 10.2% to 20.7% per year.
Most of them are mining towns, resources regional centres or country towns boosted by recent resources activity. This is despite the sharp decline in prices in many resources-impacted towns over the past 2-3 years.
But the No.1 location in Australia for long-term capital growth is not a mining-related location. It’s the oddly-named Humpty Doo, a town of 6,000 about 40km from Darwin on the road to Kakadu National Park. It has a capital growth rate of 20.7% per year, largely because of growth generated by the outward sprawl of Darwin. 
Newman, an iron ore town in the Pilbara region of WA, is No.2 with a price growth average of 18% per year over the past decade. This is actually a significant drop on the town’s peak, about three years ago, when it averaged 30%-plus as the median price reached $780,000. It has dropped back to $685,000, according to the latest figures, but the growth rate is still the second best in the nation. 
Let’s be clear. I don’t advocate investing in mining towns or mining regional centres. They are just too volatile and too high risk. 
A few short years ago the iconic coal-mining town of Moranbah in Queensland had a long-term capital growth average above 30% per year. Back then its median price was $750,000. Today it’s $250,000 and the capital growth average for the past 10 years is now minus 0.2%. 
In other words, all that capital growth since 2005 has been wiped out and values are now lower than they were 10 years ago.
Moranbah is the most extreme boom-bust story I have encountered in Australian real estate, but there are other mining-impacted locations which have soared and are now very busy plummeting.
Port Hedland once had a median house price above $1.2 million and a capital growth rate close to 30% per year. Today the median is around $800,000 and the capital growth rate has dropped to 11.6%. 
That’s still good enough to rank No.10 in Australia and it means that if you bought there 10 years ago you’re still well in front. But if you bought there three years ago, you’re feeling a tad sick.
Despite the sharp decline in their markets in recent years, mining towns and resources regional centres still have the highest long-term capital growth rates in Australia – other than Humpty Doo. By comparison, the best of the capital city suburbs fade into insignificance.
<a href="/images/2015/07/09/ryder_chart.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/09/ryder_chart.jpg" alt="">
 
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
Terry was recently joined by Property Observer editor at large Jonathan Chancellor for a webinar on why research is the key to successful property investing in 2015. You can download slides and audio from the webinar here.
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Regional areas offering long-term capital growth: Terry Ryder

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Last week, I noticed Craig James, chief economist of Commsec, pointing out to David "Kochie" Koch that although wages growing have been growing slower than prices, household incomes are actually growing at the fastest pace in two years, increasing by 4.7% in the last 12 months.
While wages growth has indeed slowed (<a href="https://petewargent.blogspot.co.uk/2014/05/wages-grow-at-26" target="_blank">as I analysed here,</a> among other places), apparently household disposable incomes have been rising more quickly. Interesting statistic I thought, so I asked "CJ" for the source.
<img src="https://3.bp.blogspot.com/-7SzKL4Y4BIU/VCF5vBSJ3TI/AAAAAAAAP70/Yhw_QqERMLs/s1600/HICJ.jpg"> 
Straight from the National Accounts, advised CJ. So I thought I'd take a little look to confirm or deny.
Household gross incomes rising
First, I ran the seasonally adjusted household income data from the National Accounts.
As you can see from the green line circled below, after a rampant boom in employee compensation spurred on by Australia's mining boom, income growth from paid employment has slowed since December 2012.
Although the trend does remain up on a national basis, in real terms wages are at best flat and at worst declining moderately.
Of course there are many forms of income including dividends, rent, social assistance, other transfers, and more besides, and overall household incomes have increased at the significantly faster pace of 4.4% seasonally adjusted over the last year according to the Australian Bureau of Statistics (ABS) - in essence, everything that is not wages has increased in real terms.
 
 <img src="https://2.bp.blogspot.com/-8H1Wz0wmWcQ/VCF5psR7OkI/AAAAAAAAP7Q/opfMA4K1EVA/s1600/HI1.jpg">
Still, even this income growth cannot fully account for a 4.7% rise in household disposable incomes.
Payables down?
The big mover in terms of payables in recent decades has of course been interest paid on dwellings, which skyrocketed until September 2008, then collapsed as interest rates were slashed and house prices eased. Then it repeated the trick once again from September 2011 as the latest easing cycle took hold.
With interest rates significantly closer to the zero bound than historically has been the case and household debt levels today much higher than they were before the deregulation of the banking system, relatively small adjustments to mortgage rates can result in wild swings in total interest payments on dwellings. And how!
<img src="https://3.bp.blogspot.com/-xFfk72ZbyRo/VCF5p2fT1FI/AAAAAAAAP7U/ucfhOLYzSDo/s1600/HI2.jpg"> 
With most mortgage debt being charged on variable rate products, this explains why Australia's housing market is so sensitive to shifts in interest rates, and why only a few rate hikes would quickly quell speculative sentiment and swiftly end the property price uptrend for this cycle.
Why? Because the people lumbered with the highest mortgage debt as a percentage of their household income are those at the margin i.e. those buying much of the property which transacts.
It is difficult to draw hard conclusions from macro level data, but the two charts above show that for existing homeowners on variable rate mortgages, disposable income has surely roared higher in the period since the dramatic peaks in interest repayment levels of September 2008 and September 2011 respectively.
Anyone with existing mortgage debt who has remained in employment will appreciate just how comparatively easy life is with a standard variable rate of 5.2% rather than the 9.6%, we saw as recently as July and August 2008.
<img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph11.gif"> 
This article continues on the next page. Please click below to continue. 
<hr class="system-pagebreak">
Household income accounts
On a national basis total gross income dwarfs property payables largely because most Australians are not mortgaged to the eyeballs as is widely believed. 
Depending on your state, between a quarter and a third of homes <a href="https://petewargent.blogspot.co.uk/2014/05/dynamics" target="_blank">are owned debt free</a> while mortgage holders over recent years have been moving well ahead on their repayments. 
Meanwhile income taxes payable have moved higher in concert with rising taxable incomes. 
The trend in gross disposable income is shown by the red line below.
 <img src="https://4.bp.blogspot.com/-ew6soAsW11s/VCF5umNs6jI/AAAAAAAAP7w/d8MQCRJdCdQ/s1600/HI4.jpg">
So, in this sense, Commsec's observation is correct - gross disposable incomes are indeed 4.7% higher than a year ago.
However it is a fair bet that those who are not homeowners and are 100 percent reliant on a salary for their income do not feel much better off, if they even do at all.
Homeowners and in some instances those with diversified income streams are clearly benefiting very significantly from record low borrowing rates.
These things naturally tend to work in cycles, though - when interest rates were much higher and rising and dwelling prices easing, the boot was on the other foot entirely.
 
 <img src="https://3.bp.blogspot.com/-CV4uoAihbTI/VCF5tvRx9fI/AAAAAAAAP7k/dN77fz2dzgw/s1600/HI5.jpg">
Gross disposable income nationally has been launched massively higher by more than 80% in the past decade, unadjusted for population growth.
However, the trend disposable income growth per capita seems likely to slow, and if interest rates are hiked several times gross disposable income in aggregate could plateau unless wages growth rebounds.
 <img src="https://2.bp.blogspot.com/-fXYwdyho_XE/VCF5vQP6fjI/AAAAAAAAP74/O2tfGis_r1o/s1600/HI6.jpg">
 
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pwargent-M4siyDbqQY

Are household disposable incomes really increasing at 4.7%?

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Q: Is there a housing bubble?
A: Nationally no, but if we are talking about Sydney, Melbourne and new inner Brisbane apartments, then yes.  That's a YES, in case you somehow missed it.
Sydney and Melbourne have been distorted by an influx of 'grey' money coming from China. Many don't like to hear this, but it is happening. No hard statistics, but our groundtruthing is looking worthy of a hefty bet.  And of late, some of this grey has shifted north, along with local superannuation funds looking for cheap property &amp; a longish timeframe to settle, in the hope of double digit price growth.
Brisbane always follows Sydney, right?  Property is so cheap in Brisbane, hey! You can buy two in Brisbane for the price of just one in Sydney. Bris Vegas here we come.
Sidebar
I have an internal debate several times each month – it's fun, like talking to an imaginary friend – about whether or not to write on a certain topic. 
Do I let blast about China? Publish my thoughts about smaller apartments?  Call out all those BS artists promising double digit price growth &amp; rental increases?  And this week, it's a yes.  Write something about the Reserve Bank (RBA), Foreign Investment Review Board (FIRB) and how we will all be rooned.
We'll all be rooned
Now, there is nothing wrong with a global property market, nor being in the recovery phase of the property cycle and having closer ties to China – or any of our major trading partners for that matter.
But a housing bubble is a different story.
Property values have almost trebled over the past two decades, while wages have not kept pace. House prices in both Sydney, Melbourne, some parts of Perth and now across inner Brisbane, are often over 10 times household earnings. In many cases, weekly rents also far exceed 30% of a renter's income.
And things can start getting out of hand when the proportion of investors buying accounts for around half of all residential sales – double the 25% of the housing market made up by private renters. This happens every cycle, but its current trajectory is unsustainable.
Got some doubts?
Well this year alone, housing credit and house prices have climbed at, respectively, more than two and three times the rate of household income growth. It isn't the actual rate of credit and price growth that is the problem, but their relationship with our ability to afford this inflation.
It's true that this is mostly a Sydney and Melbourne phenomenon, but we only have a few blunt tools in the back of our ute to temper the times. And besides, we have never been that good at small, fiddly renovations. Slash and burn is more our style.
The good and the bad
Yes, there are reasons for property demand to be improving – we have record low interest rates, relatively low vacancy rates, high population growth and a strong penchant for owning property.
But on the flip side, we have falling commodity prices, an employment baton change which, for the life of me, I cannot see happening smoothly nor correspondingly, little wage growth, ageing demographics, high debt, an increasingly economically wobbly China and a close to epileptic Europe. Not to mention what may or may not happen with the rest of the world.
For those who only hear good news, you might have missed that Australia's federal budget deficit last year (2013/14) was close to $50 billion &amp; yet the Palmer United Party wants to keep the red ink flowing until the early 2020s. 
If that happens, then our prized AAA sovereign credit rating could be at risk, especially if something goes wrong with our economy – or that of a major trading partner.
In short, we might see the vulnerable economic conditions of southern Europe down under.
This article continues on the next page. Please click below to continue.
<hr class="system-pagebreak">
True blue
But in true ocker fashion – it's all "she'll be right mate", "nothing to see here". Those questioning our "property at all costs" mentality need to take a double dose &amp; retire to bed early. Keep on moving on. Bid higher at that auction. Buy something tiny and off-plan. Doesn't property double in value every seven years? You cannot lose.
Too far-fetched?
Well, our real wages are falling. Yes, falling, as average earnings rose just 2.3% over the last 12 months – that's 0.3% lower than inflation. Unemployment is over 6%, without counting the 700,000-plus on disability pensions.
True, the RBA does predict higher economic growth next year, real wage growth in some distant future and lower employment one day, maybe, but this is predicated on the assumption that nothing economic will go bang or that China's economy won't slow down further.
Excuse me for being a skeptic, but trying to predict an economic future, these days, is almost impossible.  I would just love to read or hear one of those talking eco heads say something like, "well, frankly we don't have a bloody clue".
If you ask me what's going to happen, your guess is as good as mine.
But I do like to guess, so here goes.
<ul>
<li>Government will not reign in spending; we (the senate) won't allow it.</li>
<li>No workplace reforms, for fear of a union campaign.</li>
<li>The RBA will continue jawboning and keep interest rates where they are (when looking at the whole of the Australian economy – not just housing in Sydney and Melbourne – they really need to fall).</li>
<li>Plenty of talks about macro-prudential action – like higher investment loan to value ratios; changes to property taxation or minimum product sizes – but nothing done. Maybe that is a good thing?</li>
<li>No enforcement by FIRB regarding illegal overseas buying – and it has almost all been illegal in recent years.</li>
</ul>
And it's the last point that is the most pertinent right now.  If you want to slow down the Sydney, Melbourne and inner Brisbane property markets without stopping the rest of the country, then you must enforce offshore buying laws.
Inert FIRB
An inert FIRB has done nothing to inhibit the grey economy that exists to get money out of China (ironically, helping them deflate their own housing bubble) &amp; into safer overseas havens like Australia.
It's true that the Chinese government imposes a $US50,000 a year limit that can be sent out of the country, but cashed-up Chinese bypass this system via personal relationships rather than transparent bank transfers. Heaps of property – just how much is unknown (but it shouldn't be) – is being bought this way in Sydney &amp; Melbourne, Perth, and now in Brisbane and starting to again on the Gold Coast.
Also, the Significant Investor Visa (SIV) is dominated by mainland Chinese who meet the $5 million requirement. They are paying stupid prices for potential development sites (with site values doubling in the past five years), but property economics do not apply here, as the SIV is really a fast-tracked qualification for a permanent visa. Dual nationality is the want, but sadly, too many Chinese just want an Aussie passport as an insurance policy, not a new way of life.
Lower down the chain – much lower, if you ask me – is another sheltered workshop – property spruikers flogging Chinese investors little high-rise boxes in Sydney, Melbourne and now Brisbane. Entire high-rise buildings are financed, built and sold for the Chinese market, with local buyers and developers rendered irrelevant. Small, one-bedroom dogboxes are the norm. The more the merrier. How divine, indeed!
And all of this should be illegal. If only FIRB would enforce the law!
All of this illicit activity is creating a demand that would not otherwise exist. Well at nowhere near the levels that it is increasing spruiked. Quarterly newspaper lift-outs about Australia's sudden urge to live on top of each other – I mean, come on.
And this, coupled with local superannuation investors – many of whom appear to have been sold a pup – has created valuations that are dangerously detached from average weekly earnings &amp; sustainable owner-resident demand.
But then again, it is Australia mate; stop all this fussing; she'll be right; tyranny of distance and all that stuff.
But seriously folks
But seriously, something has to be done.  We are now entering some serious hot water.
Here's another guess.  Nothing will happen until this gets political; economic sense doesn't seem to cut the mustard around here anymore.  The political wedge, for mine, come next federal election, is overseas buying.
But between now then, I will take Terry's advice – take a couple of aspirin &amp; have a good lie down. 
Michael Matusik is the founder of Matusik Property Insights, which has helped over 550 new residential projects come to fruition.  Read Michael's <a href="https://matusik.com.au/missive/" target="_blank">Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank">Facebook</a> and <a href="https://twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" target="_blank">LinkedIn</a>.
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michaelmatusik-49YzLvdmNv

Is there a housing bubble? Or should we all take a wee lie down?

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With the vast majority of homes sold in the last financial year now settled, it is possible to calculate some of the key numbers in the Ballarat market.
Over the year a total of $639 million was spent on houses in the City of Ballarat and $68 million on units across 1,942 house sales and 281 unit sales. There were 12 million dollar house sales – the median value of a house was $301,001. The median house value rose by 7.1% compared to 7.9% in Melbourne
Largest growth in median house values by suburb:
<ul>
<li>Golden Point</li>
<li>Soldiers Hill</li>
<li>Black Hill</li>
<li>Redan</li>
<li>Mount Pleasant</li>
</ul>
Most house sales by suburb
<ul>
<li>Wendouree</li>
<li>Sebastopol</li>
<li>Alfredton</li>
<li>Ballarat East</li>
<li>Delacombe</li>
</ul>
Most expensive suburbs by median house values
<ul>
<li> Lake Wendouree</li>
<li>Lake Gardens</li>
<li>Invermay Park</li>
<li>Mount Helen</li>
<li>Buninyong</li>
</ul>
Most affordable suburbs by median house values
<ul>
<li>Sebastopol</li>
<li>Wendouree</li>
<li>Redan Mount Pleasant</li>
<li>Ballarat East</li>
</ul>
Highest spend on houses
<ul>
<li>Alfredton ($64 million)</li>
<li>Wendouree ($48 million)</li>
<li>Sebastopol ($42 million)</li>
<li>Ballarat Central ($41 million)</li>
<li>Lake Wendouree ($40 million)</li>
</ul>
Suburbs with million dollar house sales
<ul>
<li>Lake Wendouree</li>
<li>Ballarat Central</li>
<li>Newington</li>
</ul>
Suburbs with the highest proportion of houses advertised for sale:
<ul>
<li>Ballarat Central</li>
<li>Miners Rest</li>
<li>Alfredton</li>
<li>Mount Clear</li>
<li>Newington</li>
</ul>
 
 
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Top 5 for Ballarat residential real estate sales during 2013-2014 financial year

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Research I saw recently showed that Sydney's growth in dwelling values over the past 10 years has averaged 3.8% a year. The figure takes into account the growth of the past 12-18 months.
The figures also show that Adelaide has the same long-term growth rate, while Canberra and Brisbane have slightly lower growth rates. Hobart's is significantly lower (just 1.9% per year).
The figures, from RP Data, are similar to those I've seen previously from Australian Property Monitors and other research entities.
They show prices in five of the eight capital cities have done little better than match inflation. Wages, according to the Wages Price Index from the Australian Bureau of Statistics, have grown more over the past decade (in most years wages growth has ranged between 3.5% and 4.3%).
As a matter of interest, the base salaries of federal MPs have grown almost 7% per year over the past 10 years. Great leadership from the people who want to end the age of entitlement.
The combined capital cities average for growth in dwelling values is 4.7% per year. Only three cities have exceeded that meagre price growth level. Melbourne, according to these numbers, has averaged about 6% per year, Perth around 7% and Darwin 8%.
But the Sydney figure is the one with the most interest, because it's the growth in Sydney dwelling prices that is causing so much hysteria, including in places where you would expect cool heads and rational minds, such as the Reserve Bank.
It's because prices have grown so little, while wages have risen steadily and interest rates have dropped so low, that both of the major affordability indexes report that current levels of housing affordability are the best they've been in 10 years.
Another means of measuring where prices are really at is to compare the change in each of the major cities since their previous market peaks.
According to these numbers, three of the eight capital cities – Brisbane, Darwin and Hobart - still have price levels well below their previous peaks.
Three other cities – Canberra, Perth and Adelaide – are above their previous peaks, but by less than 3%. Melbourne is 6% up on its previous peak.
Sydney is 22% higher than its previous peak, but that earlier high was a decade ago. Net growth of 22% in 10 years is a fairly dismal performance.
This latest set of data also indicates the combined capital cities growth in the past 12 months is a little over 9% per year. That is not a particularly high figure. I wouldn't term anything below double digits as a boom, particularly as only one city (Sydney again) has growth as high as 9%.
Two core messages emerge from this mass of numbers. One is that most media commentary about surging dwelling prices is irrational, unreasonable and inaccurate.
The other is the importance of being selective about where you buy.
Based on these numbers, which talk about city averages, you probably wouldn't invest in real estate at all. It's only when you dig deeper beneath the averages that you find the out-performers, the places where price growth is well above the norm.
Now, more than ever, you need to take great care in selecting location.
 
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