<p>The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.</p>

<p>Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."</p>

<p>That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.</p>

<p>Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.</p>

<p>[smartcode_project:default project_id=144913 project_image_fid=297740]</p>

<p>Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.</p>

<p>The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.</p>

<p>[smartcode_project:default project_id=144913 project_image_fid=297741]</p>

<p>The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.</p>

<p>Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.</p>

<p>[smartcode_project:default project_id=144913 project_image_fid=297735]</p>

<p>Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.</p>

<p>Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.</p>

<p>[smartcode_project_cta:default project_id=144913]</p>


Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

<p>National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.</p>

<p>Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.</p>

<p>[smartcode_project:default project_id=145922 project_image_fid=373556]</p>

<p>The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.</p>

<p>Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.</p>

<p>"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.</p>

<p>"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.</p>

<p>"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."</p>

<p>[smartcode_project:default project_id=145922 project_image_fid=373559]</p>

<p>Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.</p>

<p>The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.</p>

<p>[smartcode_project:default project_id=145922 project_image_fid=373583]</p>

<p>Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.</p>

<p>Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.</p>

<p>[smartcode_project:default project_id=145922 project_image_fid=373571]</p>

<p>Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.</p>

<p>Completion of Crest &amp; Walker is slated for late 2028.</p>

<p>[smartcode_project_cta:default project_id=145922]</p>


Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

<p>The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.</p>

<p>It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 52-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.</p>

<p>Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.</p>

<p>While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.</p>

<p>[smartcode_project:default project_id=6515 project_image_fid=68833]</p>

<p>Developer Bensons Property Group is behind the 52-storey tower, which has just shy of 250 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.</p>

<p>The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.</p>

<p>"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.</p>

<p>"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.</p>

<p>"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."</p>

<p>[smartcode_project:default project_id=6515 project_image_fid=360215]</p>

<p>One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.</p>

<p>"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.</p>

<p>While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.</p>

<p>"The size of the site is something that would be incredibly difficult to replicate today," she says.</p>

<p>"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."</p>

<p>[smartcode_project:default project_id=6515 project_image_fid=68839]</p>

<p>There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.</p>

<p>As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.</p>

<p>"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.</p>

<p>A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.</p>

<p>The remaining apartments are ready to inspect in person, by appointment.</p>

<p>[smartcode_project_cta:default project_id=6515]</p>


A decade in the making: Residents to move into Chevron One as construction wraps up

<p>A general rule of thumb in new apartment developments is that the penthouses get the rooftop.</p>

<p>It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.</p>

<p><a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.</p>

<p>Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.</p>

<p>The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=374053]</p>

<p>"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.</p>

<p>"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.</p>

<p>"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=374052]</p>

<p>The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.</p>

<p>Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=372547]</p>

<p>The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.</p>

<p>The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=374054]</p>

<p>Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.</p>

<p>Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=370962]</p>

<p>While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.</p>

<p>It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.</p>

<p>Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.</p>

<p>[smartcode_project:default project_id=146527 project_image_fid=366550]</p>

<p>That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.</p>

<p>Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.</p>

<p>[smartcode_project_cta:default project_id=150017]</p>


Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

<p>As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.</p>

<p>At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.</p>

<p>[smartcode_project:default project_id=426 project_image_fid=359199]</p>

<p>The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.</p>

<p>Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.</p>

<p>In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.</p>

<p>[smartcode_project:default project_id=426 project_image_fid=360299]</p>

<p>The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.</p>

<p>Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.</p>

<p>This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.</p>

<p>[smartcode_project:default project_id=426 project_image_fid=360300]</p>

<p>What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.</p>

<p>The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.</p>

<p>Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.</p>

<p>[smartcode_project_cta:default project_id=426]</p>


Elevated amenity anchors daily life at Aeris, Melrose Park

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>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;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>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.</p>

<p>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).</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<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>

<p>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.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

<p>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.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>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.</p>

<h2>What is NatHERS?</h2>

<p>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;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>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.</p>

<h2>How NatHERS Ratings Work</h2>

<p>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.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> 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.</p>

<p><strong>Cost Savings:</strong> 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.</p>

<p><strong>Environmental Impact:</strong> 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.</p>

<p><strong>Improved Comfort: </strong>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.</p>

<p><strong>Market Value and Desirability:</strong> 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.</p>

<p><strong>Compliance with Building Codes:</strong> 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.</p>


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?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>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.</p>

<h3>Convenience and accessibility</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>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.</p>

<h3>Vibrant lifestyle and community</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>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.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>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.</p>

<h3>Enhanced security and maintenance</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>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.</p>

<h3>Live-work-play balance</h3>

<p>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.</p>

<p>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.</p>


alisonwarters@gmail.com

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

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><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></p>

<h2>Who pays Stamp Duty?</h2>

<p>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.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>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.</p>

<p>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!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<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>

<p style="line-height:1.38">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.</p>


Ellen Walker

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

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>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.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><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" /></p>

<p>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</p>

<p>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.</p>

<p><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" /></p>

<p>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.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><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" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>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;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


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

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<div>Although commentary often tends to focus on the dollar value of loans written in the housing market (which in the case of Sydney have been going through the roof) the actual number of home loans being written in Australia on a monthly basis is still some way below the levels seen across 2006-8. </div>
<div> </div>
<div>In Sydney home loan volumes have even been tracking well below where they were in 2003 when the headount of the harbour city was considerably smaller, though the past two months of figures have recorded a big surge which is not yet fully reflected in the trend data. </div>
<div> </div>
<div>Looking at the high level figures the trend in home loan volumes has generally been up for the three most populous states since 2012, but transaction volumes can hardly be said to be high compared to where they have been in the past. </div>
<div> </div>
<div>Volumes have been trending down in Western Australia since July 2014, while the trend in the Northern Territory for want of a better word has "crashed" by a third since September and is threatening to soon take out the lowest levels seen in more than a decade. </div>
<div> </div>
<div>Home loan activity levels in South Australia are...flatlining. </div>
<div> </div>
<div><a href="/images/2015/09/15/HF1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/15/HF1.jpg" alt=""></div>
<div> </div>
<div><span>A similar pattern is also evident when looking at the below chart of home loans by property type, with home loans to purchase established properties in a multi-year uptrend but still not even close to previous heights.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/09/15/hf5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/09/15/hf5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">Stamp</span></strong></div>
<div> </div>
<div>There are a number of reasons for these muted home loans volumes, not least the more significant market share of investors seen through this cycle in Sydney and Melbourne in particular.</div>
<br><span>I'll offer another: stamp duty.</span><br><br><div>With rising property prices already pushing the boundaries of detached housing affordability in Sydney and Melbourne close to breaking point, stamp duty - a levy which is ratcheted up as the purchase price increases - acts as a further disincentive to trade.</div>
<div> </div>
<div>This has long been an issue in London at the premium end of the market, where plainly ridiculous<a href="https://www.gov.uk/stamp-duty-land-tax/residential-property-rates" target="_blank"> </a>rates of stamp duty above GBP 925,000 absolutely discourage buying and selling, and instead encourage owners to sit on prime location sites for as long as they feasibly can. </div>
<div> </div>
<div>I can't speak for others, but certainly whenever I've written a stamp duty cheque to the OSR the last thing I am thinking of is subsequently selling a property, and indeed neither my wife nor I have ever sold a property in 19 years, in part for that very reason.</div>
<div> </div>
<div>While stamp duty can serve one useful purpose in making the market more stable and less attractive to "flippers", it also discourages labour market mobility and creates a royal pain in the tail for homeowners who are required relocate for work. </div>
<div> </div>
<div>Arguably both homeowners and investors are becoming more inclined to such buy and hold strategies while accepting that there will be inevitable market downturns, in part because the transaction costs are so punitive: buy, hold, and hold some more. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">First homebuyers</span></strong></div>
<div> </div>
<div>On a related note, the share of first homebuyers loans in the market has trended down to 15.4 per cent, which is at least a couple of full percentage points below what was seemingly becoming the norm before the financial crisis struck (whereupon market incentives led to an enormous spike in first homebuyer market share). </div>
<div> </div>
<div>We know that the data may be incompete, but affordability - and specifically the deposit hurdle - is playing an obvious role here too, nudging a proportion of first time buyers towards buying an investment property as a first step onto the housing ladder instead of a place of residence. </div>
<div> </div>
<div><a href="/images/2015/09/15/HF3.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/15/HF3.jpg" alt=""></div>
<div> </div>
<div>
<div>Stamp duty is a key consideration for first homebuyers or new market entrants too.</div>
<div> </div>
<div>It is often said or implied that first homebuyers should start with an entry level property and then look to trade up later, but with the average first homebuyer <strong>loan</strong> <strong>size </strong>now passing $340,000, new entrants to to the market must be seriously considering how many times in their lives they want to be trading property. I know that I would be. </div>
<div> </div>
<div><a href="/images/2015/09/15/HF4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/15/HF4.jpg" alt=""></div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Dwelling starts to peak in 2015</span></strong><br><br><div>A number of forecasts and indicators have suggested that dwelling starts could peak in 2015, and the new dwellings data does not contradict them, although with so many new builds being sold offshore to Asia through this cycle arguably this data series is a less useful indicator than it once was. </div>
<div> </div>
<div><a href="/images/2015/09/15/HF2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/15/HF2.jpg" alt=""></div>
<div> </div>
<div>
<span>Construction loans written to owner-occupiers have also been trending down in recent months.</span><br><br><div>On the other hand the rise in property prices and associated equity gains has for some time been predicted to cause a renovations boom. Certainly this is what we witnessed through 2003 as the preceding Sydney market boom approached its peak. </div>
<br><div>There has already been a decent uplift in renovations activity in Sydney, but the "alts &amp; adds" figures to date have barely even hinted at much going on elsewhere. </div>
<div> </div>
<div><a href="/images/2015/09/15/HF6.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/09/15/HF6.jpg" alt=""></div>
<div> </div>
<div><span>Driving around Brisbane it certainly "feels" as though there is more renovation work underway, but this may just be good old anecdotal evidence giving a bum steer. </span></div>
<div><span> </span></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</div>
</div>
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pwargent-M4siyDbqQY

Property hot, but volumes not: Pete Wargent

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<p><span style="line-height: 1.3em;">You’ve found what you think is a brilliant development site.  Now it’s time to jump on that roller coaster and start the ride of your life as you commence the analysis process.  Will the project be feasible?  What is feasible anyway?  </span></p>
<p>Feasible is really another word for “is it going to be financially worth it for you to spend your time, energy, money, blood, sweat and tears developing this site?”</p>
<p>Some advice I can give you about property investing and anyone in property will also tell you, to stay emotionally unattached to the property, as this is where bad decisions can be made. I have seen it many times and this is where it can all come undone.</p>
<p>Firstly, it’s important to determine your development strategy and your investing criteria prior to looking for a development site.  Your strategy may include:</p>
<ul>
<li>Land Subdivision</li>
<li>Renovate an existing dwelling</li>
<li>Dual occupancy or low density development</li>
<li>Renovate an existing dwelling and build new villas/units also on the land</li>
<li>Medium density development</li>
<li>All of the above</li>
</ul>
<p>Your budget will help to determine your development strategy. A simple land subdivision will be less costly (but not necessarily quicker) than a larger villa/unit development for instance. </p>
<p>As part of your strategy, you will need to think about what profit margin you would feel comfortable making from a development.   You may have heard about the ‘20% profit margin’ rule for developers?   Once all development costs are taken from the potential sale result of the properties, (when selling the properties) there will be a 20% profit margin.  Personally, I don’t always work back from a certain profit margin as I find this restrictive.  </p>
<p>Most Property Bloom clients are looking to boost their portfolios, create some equity and hold the new properties long term, so we also need to meet other criteria such as rental returns and depreciation benefits on completion.  </p>
<p>To determine the feasibility of a site, you will need to:</p>
<ul>
<li>Talk to an accountant who specialises in property and one who preferably develops property themselves as they can advise you on the best structure or entity to purchase under and explain the tax implications when developing such as GST and CGT.  </li>
<li>Meet with a finance broker or a bank to determine your budget and the best loan structure for your development.  It’s important to choose a lender that offers construction loans for more than one dwelling and find out what their lending criteria is around this i.e. not all residential lenders will lend to you for a four unit site for instance.  Check interest rates on these loans.</li>
<li>Meet with solicitor to determine their costs. They will check for restrictive covenants or easements that may affect the land. They will also make sure services are available and connected especially if you are developing in a new area as well as finalising the deal for you.</li>
<li>Read the local Development Control Plan (DCP) and Local Environment Plan (LEP) and speak with your council’s town planner to find out DA and CC (Construction Certificate) fees and charges. </li>
<li>Meet with an architect and builder to determine what you can build on the site and estimated construction costs.  Some builders offer standard designs which will save you design fees.  If they do this, then they will be familiar with the local planning requirements.  If you are not happy with a standard design, engage a local architect to design specifically for the site. Get a quote.</li>
<li>A surveyor will give you advice on the subdivision process and estimate costs relating to the subdivision including sewer extension and service connection costs.  </li>
<li>If you are time poor and/or inexperienced, then factor in a cost to use a project manager. The cost can be taken up in the depreciation schedule and you will save a lot of time.</li>
<li>Talk to real estate agents to determine the value of your development and rental returns on completion and their management costs if you are holding as this will have huge impact on the success of the feasibility.  It's important to take current market conditions into account.</li>
<li>Research other costs such as Stamp Duty and if there are any government grants applicable that  may offset some of the stamp duty, insurance costs and interest/holding costs.</li>
</ul>
<p>The aim is to keep the above costs to a minimum so you will receive a higher profit margin. At Property Bloom we have negotiated discounts with all our suppliers, builders and consultants. Even our preferred property managers give our clients a discounted management fee, so if you can do the same, you'll make a good saving.  </p>
<p>Compile a spread sheet for the costs or there are software programs available to help you with this process.</p>
<p>The more development sites you assess, the quicker you'll understand which ones are feasible and which ones just don't stack up. Have fun and enjoy the ride!</p>
<p><span style="line-height: 1.3em;"><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em> </span></p>
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jochivers-wq5Bp59R5a

Is that development project feasible? Jo Chivers

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<p>I can count on the fingers of one of Homer Simpson’s hands the number of people who commentate on real estate and actually understand it.</p>
<p>There are plenty of people at the coalface of the industry who get real estate. It’s just that you’re never likely to hear about them in the media.</p>
<p>Among the public pontificators, there’s a lack of understanding about the drivers of events in real estate that’s become a contagion on the industry.</p>
<p>There certainly aren’t any journalists working for metropolitan newspapers who have any knowledge of market dynamics. It’s become very last century to actually know about the subject on which you write.</p>
<p>They compound their ignorance and confound their audience by seeking enlightenment from others who know little, notably economists. </p>
<p>When I consider all the economists who have been regular lecturers about real estate – Shane Oliver, Saul Eslake, Gerard Minack, Paul Bloxham, poor old Steve Keen, pretty much everyone who works for Moody’s, absolutely everyone employed by CommSec – I can’t think of one who understands this business.</p>
<p>Most of them employ the Graham Richardson method of media commentary – a big ego connected to a hyperactive mouth, without the intervention of coherent thought processes. It works a treat.</p>
<p>It’s how much noise you make that matters. Knowledge is optional.</p>
<p>There are specialist real estate research companies that should bring some expertise to the table, but they’re all so devoted to making money out of computer-generated numbers they don’t conduct any real analysis. They just shovel out median price data to generate publicity. Most of their employees could write their real estate smarts on the back of a postage stamp in crayon.</p>
<p>The lowest-common-denominator mistake they all make – and it’s the curse of real estate consumers trying to understand what’s going on – is that they generalise. To do more would require genuine real estate wisdom.<span style="line-height: 1.3em;"> </span></p>
<p>And because they generalise, they mislead and confuse – themselves and others.</p>
<p>This is why none of the chattering economists and others who sermonize on property can explain why this prolonged era of record low interest rates has managed to produce a property boom in only one Australian city.</p>
<p><span style="line-height: 1.3em;">They’re all so flummoxed by this that they pretend it’s not happening. Quoting a single generalised national figure to describe what happening to “Australian property values” is the limit of their contribution.</span></p>
<p>But the statement “Australian house prices rose 9.8% in the year to 30 June” (the latest ABS Property Price Index) is an absurdity, because prices have risen that much only in Sydney. In six of the eight capital cities, it’s been less than 3%, including two with “negative growth”.</p>
<p>If genuine market analysis happened in this country, someone would be making a study of this strange occurrence. Why has Sydney boomed and nowhere else? (Here’s a clue: it’s not related to interest rates, as I explained in my column on 18 August).</p>
<p>Last time real estate went seriously ballistic in Australia, everywhere boomed. In 2003, all of the eight capital cities had double-digit growth in their median house prices. The worst was a 13% rise. Four did better than 20% and the city average rise was 19%.</p>
<p>That’s what everyone expects a property boom to look like. And that’s why economists and media can’t get their heads around the current situation. </p>
<p>It’s all about interest rates, isn’t it? So why isn’t it booming everywhere? Why are Perth and Darwin going backwards? Why aren’t Canberra, Brisbane and Adelaide firing?<span style="line-height: 1.3em;"> </span></p>
<p>Maybe the tools we use to measure things aren’t up to the task. Perhaps the blunt instrument of median price data, with a single figure to describe each capital city, needs to be replaced.</p>
<p><em>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></em></p>
<p> </p>
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terryryder-YECXbqmri2

Lack of industry knowledge contagious: Terry Ryder

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<p class="Body">There is no one correct strategy for successful property investment.</p>
<p class="Body">There are many diverse ways to grow your wealth with residential real estate. The best strategy depends on the individual.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">But the various methods have one thing in common. They work only if the individual investor implements the plan with intelligence and diligence.</p>
<p>I’ve been involved in a series of seminars in recent weeks, as a speaker and as an organiser. I’ve witnessed discussion of numerous investment strategies. They all work, so long as the individual investor is accesses good information, taps into quality advice and makes good locational choices.<span style="line-height: 1.3em;"> </span></p>
<p>I’ve presented at a number of seminars organised by Melbourne-based Performance Property Advisory. This business has a very clear approach to property investment on behalf of its clients, based on a singular focus on the one capital city that presents the best buying opportunities and potential for capital growth. Three years ago it was Sydney and more recently Brisbane was the focus.</p>
<p>The approach is very much quality homes in inner-city suburbs. From what I can tell, it works well for Performance Property’s client base. It’s a good strategy but there are others equally valid.</p>
<p>One of the approaches used by Brisbane-based PPI Advice is creating equity by buying houses where the land and zoning allow additional dwellings on the property. They’re focused primarily on inner and middle-ring suburbs of Brisbane, when the housing and amenities are of a high standard.</p>
<p>I’ve seen examples where investors have had considerable success with this kind of value-adding exercise. Done well, equity of $400,000 or $500,000 can be generated on one property.</p>
<p>On Saturday I spoke at a Melbourne seminar organised by Louise Lucas and the Property Education Company. Other speakers included clients of the business who have built substantial portfolios of well-performing properties by buying in affordable suburbs of capital cities and in good regional centres.</p>
<p>Some of the properties featured were what I sometimes refer to as “ugly real estate” – the kind of houses that make you think “I’m not sure I’d want to live in something like that”, located in downmarket suburbs with a certain kind of reputation.</p>
<p>But I know from three decades of research that ugly real estate grows strongly in value if it has certain qualities. If it’s solid, affordable and well-located in terms of public transport, schools and shops, it’ll appreciate in value. It doesn’t need to be pretty to achieve good capital growth.</p>
<p>Many downmarket suburbs have excellent capital growth rates. That’s why I often urge investors not to be real estate snobs. The key question is not “Would <span style="text-decoration: underline;">I</span> be happy to live there?” but “<span style="text-decoration: underline;">Who</span> would be happy to live there?”</p>
<p>People may aspire to live in the prime suburbs but most can’t afford it. They buy where they can afford the prices. If it’s solid and located near desirable amenities and jobs nodes, they’ll overlook a lot.<span style="line-height: 1.3em;"> </span></p>
<p>That’s why the greatest demand goes to the cheaper areas.<span style="line-height: 1.3em;"> </span></p>
<p>That’s why 234 people bought in Toorak (median $3.1 million) in the past year, but 801 in Frankston ($388,000) and 1,187 in Point Cook ($470,000). Houses sell twice as fast in Frankston as in Toorak and the rental yields are double.</p>
<p>Which is the right way to do it? It depends on the individual, where their preferences lie and how much they can afford to pay.</p>
<p>They’re all the right way – if the individual investor goes about it the right way. The right way includes undertaking genuine research and being prepared to pay for good information and quality advice.</p>
<p> </p>
<p><em>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></em></p>
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Don't be a real estate snob: Terry Ryder

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<div>The ABS released its Lending Finance figures for August 2015 this morning.</div>
<div> </div>
<div>August was a weaker month for commercial lending, with the trend estimate declining by -2.1% in the month to $44.1 billion, having peaked at more than $48 billion back in April.<br><br>The trend certainly appears to be softening in sympathy with weak capex intentions surveys and macroprudential measures to trim back property investment loans - but then, that's been said before through this cycle, so time will tell. </div>
<div> </div>
<div>On the other hand, home lending to owner-occupiers is now trendng up sharply, with the seasonally adjusted result showing a +6.1% leap in August, and the trend estimate bolting +18% higher over the year. </div>
<div> </div>
<div>Significantly, AMP announced today that it would chop a variable rate home loan package available to owner-occupiers to a highly competitive rate of just 3.99%.</div>
<div> </div>
<div>It seems likely that the major banks will be targeting this sector hard in the months ahead.<br><br>Total lending finance has also trended down a little from an April peak.</div>
<div> </div>
<div><a href="/images/2015/10/13/A1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/13/A1.jpg" alt=""></div>
<div> </div>
<div><span>Charted below is what at face value is happening to owner-occupier home loans at the state level, which is to say now apparently burning up in the most populous states.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/13/OwnerOccupiersRolling12m.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/13/OwnerOccupiersRolling12m.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>In obliquely related news, the latest credit card figures from the Reserve Bank showed that Aussies are clearing credit balances more comfortably than before, with balances down over the year and more of us opting to pay off balances by the due date.</div>
<br><strong><span style="text-decoration: underline;">Switcheroo</span></strong><br><div> </div>
<div>For the remainder of 2015, the housing market story will largely be a tale of whether banks and borrowers can find a way to shoehorn owner-occupier lending higher in order to offset any pending declines in investor loans.</div>
<div> </div>
<div>In August the answer was seemingly at an emphatic "yes" with investor loans essentially flat at $13.6 billion but owner-occupier commitments ripping more than <a href="https://petewargent.blogspot.co.uk/2015/10/housing-finance-shock" target="_blank">+6 per cent higher</a> to $20.8 billion. </div>
<div> </div>
<div>In this regard, the AMP decision to cut its variable rate to below 4 per cent effective from today appears to be a clear statement of intent.</div>
<div> </div>
<div>That said, the August figures may yet prove be <a href="https://petewargent.blogspot.co.uk/2015/10/housing-finance-shock" target="_blank">bogus</a> to some extent, and another month or two of data will shed more light. </div>
<div> </div>
<div>In the words of one eminent Chief Economist "we can conclude that the figures have suddenly become a lot murkier", while Westpac instead opted for a more canine theme in describing the latest data as "a dog's breakfast".</div>
<div> </div>
<div>Overall it seems that the macroprudential story has some way to run yet before the waters are de-murkified (or the dog's morning meal is digested). </div>
<br><span>I looked at this in more detail in relation to last week's Housing Finance release </span><a href="https://petewargent.blogspot.co.uk/2015/10/housing-finance-shock" target="_blank">here</a><span>.</span><br><br><div><strong><span style="text-decoration: underline;">Investor loans cooling...</span></strong></div>
<div> </div>
<div>Of course the flip side to the new-found strength in the homebuyer space is that property investment loans should now be cooling in response to APRA's calming macroprudential measures.</div>
<div> </div>
<div>On a rolling annual basis New South Wales originated investor loans climbed to a new high of $67.6 billion, but there have now been two consective months of declines in original terms from the May 2015 monthly peak of $6.6 billion.</div>
<div> </div>
<div>Although investment loans remained at a high level in Victoria and Queensland, there has been a general cooling of this sector across recent months.</div>
<div> </div>
<div><a href="/images/2015/10/13/LF1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/13/LF1.jpg" alt=""></div>
<div> </div>
<div>
<span>Since the investment loans data is not seasonally adjusted I also look at it on a 12mMA basis, and we can see that while the trend in Queensland has risen to its highest level since April 2008, the trend is now falling in Western Australia, South Australia and Tasmania.</span><br><br><span>In the Northern Territory the trend in investment loans seems to be dropping off a cliff so there is likely to be some fallout for Darwin.</span><br><br><span>More on all of these figures and trends to follow tomorrow.</span><br><br><span>The detailed monthly investor loans figures for New South Wales show loans tracking at $5.53 billion in August, down from the all-time record high of $6.62 billion in June.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/10/13/LF3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
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<div><span><img src="/images/2015/10/13/LF3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Looking at total lending for housing in New South Wales, the total housing market finance for August surpassed $13 billion for the third time, however it could not quite match the record levels seen in June.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/13/LF2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/10/13/LF2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div class="separator"> </div>
<div class="separator">The most important release of the week will be the Labour Force data for September on Thursday morning. </div>
<div class="separator">
<br>Expecting to see a flat result for the month, both for total employment and the unemployment rate.</div>
<div class="separator"> </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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The housing market switcheroo: Pete Wargent

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<em>CoreLogic-RP Data</em> already appears set to report further dwelling price growth in October for Sydney, with prices once again up at a sprightly pace and moving another +$5,300 higher. </div>
<div> </div>
<div>There has been plenty of spirited debate in the media about what comes next for house prices in Australia.</div>
<div> </div>
<div>Macquarie has suggested that a housing market correction of -7.5 per cent could take place - beginning some time in 2016 before ending in 2017 - while Stockland's Mark Steinert disagrees and sees prices continuing to rise by +3% to +5% through next year.</div>
<div> </div>
<div>This pretty much tells you everything you need to know about short term property market predictions: one analyst thinks prices will rise, another thinks they'll fall!<br><br><strong><span style="text-decoration: underline;">Central Bank</span></strong><br><br>What about the role of the Reserve Bank and monetary policy settings?<br><br>Here's what central bank expert Sophia Rodrigues thinks:</div>
<div> </div>
<div><a href="/images/2015/10/14/Screen%20Shot%202015-10-14%20at%2010.14.53%20AM.png" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/14/Screen%20Shot%202015-10-14%20at%2010.14.53%20AM.png" alt="" width="651" height="452"></div>
<div>
<div>
<strong><span style="text-decoration: underline;">Long term focus</span></strong><br><br>Property owners would do well to retain a long term outlook rather than waste too much energy on short term dwelling price predictions, which are invariably a hit and miss affair at the best of times.</div>
<div> </div>
<div>As for the bubble/crash/correction calls which have continued over the past 15 years or so, Sydney median house prices now need to suffer an enormous correction - a gargantuan fall of $300,000 - even just to get back to where they were a couple of years ago in June 2013, let alone to actually correct from there. </div>
<div> </div>
<div><a href="/images/2015/10/14/RP%20DATA.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/10/14/RP%20DATA.jpg" alt=""></div>
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<div>
<div>
<strong><span style="text-decoration: underline;">Market variances</span></strong><br><br>One thing that can be said with some certainty is that there will be significant variances across the Sydney property market.</div>
<div> </div>
<div>Outer suburban auction markets in Sydney have already turned in favour of buyers with clearance rates tanking fast in the west, south west, and north west sub-regions.<br><br>More stringent deposit requirements appear to be biting hard in the outer.<br><br>On the other hand clearance rates have remained relatively elevated for now in the eastern suburbs, the inner west, lower north shore, northern beaches, and the city &amp; inner south.<br><br>
</div>
<div>Higher density markets will also almost certainly fare less happily than the metropolitan averages due to a looming stock overhang.</div>
<div> </div>
<div><a href="/images/2015/10/14/NSW.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/14/NSW.jpg" alt=""></div>
<div> </div>
<div>
<span>In terms of other market drivers, Sydney presently has a vacancy rate of around 1.7% but with plenty of supply now in the pipeline, while the unemployment rate for Greater Sydney is only 5.1%.</span><br><br><span>Implied yields on cash rate futures contracts are pricing a 100% chance of an interest rate cut to just 1.75% by April 2016.</span><br><br><span>This morning's Building Activity data release will shed more light on dwelling commencements and completions around the states.</span><br><br><span>Expect to see both commencements and completions respectively at close to their highest ever levels.</span>
</div>
<div><span> </span></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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October housing prices: Pete Wargent

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<div>
<span style="line-height: 1.3em;">In the past week the ABS released its </span><span style="line-height: 1.3em;">Construction Activity</span><span style="line-height: 1.3em;"> figures for the June 2015 quarter, which pull together data on building and engineering construction.</span>
</div>
<div> </div>
<div>As you can see below total construction surprised in jumping back up by a seasonally adjusted +1.8% in Q2 to sit above $50 billion in chain volume measures terms.</div>
<div> </div>
<div>The rebound was driven by a surge in engineering construction (see the blue shaded area in the graphic below), which rose by +5.7% in the quarter, although with fewer large projects in the pipeline this sector will soon enough resume its inevitable decline over the next couple of years. </div>
<div> </div>
<div>Given the sheer size of the engineering construction sector at $26.7 billion of work done in the June quarter, the downturn is will continue to act as a material drag on economic growth for quite some time.</div>
<div> </div>
<div>The red shaded area below shows that residential building work declined in the June quarter by -2.9% to $14.7 billion, despite still being up by +7.6% over the year. </div>
<div> </div>
<div>Non-residential building, denoted by the yellow shaded area below, has not really contributed a great deal to growth, having actually declined by -1.2% over the past year. </div>
<div> </div>
<div><a href="/images/2015/10/19/CONS1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/19/CONS1.jpg" alt=""></div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">Apartment approvals to decline</span></strong></div>
<div> </div>
<div>While there is still a high volume of residential building approvals in the pipeline - which is expected to see housing starts remain strong across the next financial year - it appears that the peak in construction activity may be in for the cycle.</div>
<div> </div>
<div>Although defaults relating to apartment pre-sales have been low to date and indicators of household financial stress benign, developers will be increasingly reticent to lend against high density projects in certain inner city areas, particularly in Melbourne and Brisbane.</div>
<div> </div>
<div>If you take a walk around Fortitude Valley/Newstead (see my photos <a href="https://petewargent.blogspot.co.uk/2015/08/cranewatch-newstead" target="_blank">here</a> for an idea of what I'm referring to), or West End/South Brisbane (see my photos <a href="https://petewargent.blogspot.co.uk/2015/02/brisbane-apartments-part-deux" target="_blank">here</a> for more of the same) it is not hard to see why, with building approvals as a percentage of existing dwelling stock already tracking at an elevated level.<br><br>Brisbane CBD faces similar challenges as I looked at with some photos <a href="https://petewargent.blogspot.com.au/2015/01/brisbane-apartments" target="_blank">here</a>, as does Melbourne in certain inner city locations.</div>
<div> </div>
<div>The is a glut of apartment building coming online in these areas which will see vacancy rates rise and rents fall, and it follows there is no requirement for further apartment approvals.</div>
<div> </div>
<div>Indeed, we already know that DA lodgements in Brisbane began to fall quite sharply earlier in the year. </div>
<div> </div>
<div>This is one of the risks identified by the <a href="https://www.rba.gov.au/publications/fsr/2015/oct/html/contents" target="_blank">Reserve Bank</a> of a property cycle which is driven largely by investors - speculative demand can lead to a sharp supply response. </div>
<div> </div>
<div>In this case it comes in the guise of rapid increase in construction activity in the apartment sector, and in turn a future supply overhang.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Implications</span></strong></div>
<div> </div>
<div>While work in the pipeline should keep residential building activity humming along at a historically high level - and a boom in major renovations work could even see total residential activity rise a little from here - there appears to be little hope that the sector can contribute a great deal more to economic growth than it already has.</div>
<div> </div>
<div>Since engineering construction is also set to decline over the next couple of years, it is perhaps little wonder that future markets are beginning to look for further interest rate cuts (plural) towards a cash rate of just 1.50%. </div>
<div> </div>
<div>While forecasters are expecting the economy to grow at a moderate pace in Q3, on the evidence of the above numbers there could potentially be some downside risk, particularly if resources construction resumes its contraction. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Residential construction peak: Pete Wargent

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<p><span>We’re now seeing home sales trend below </span><span>$400,000 which is making it much harder for price-sensitive buyers to purchase into capital city markets.</span></p>
<p><span>37.4% of all home sales nationally were at less than $400,000 compared to 52.0% between $400,000 and $1 million and 10.6% over $1 million over the 12 months to June 2015. </span></p>
<p><span>Sales below $400,000 were at a record low over the past year and sales above $1 million were at a record high.</span></p>
<p><a href="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.35.28%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.35.28%20AM.png" alt=""></span></p>
<p> </p>
<p><span>Across capital cities, 25.1% of home sales were under $400,000, 60.1% were between $400,000 and $1 million and 14.8% were in excess of $1 million. </span></p>
<p><span>Twenty </span><span>years ago 95.2% of all capital city houses and 96.7% of units sold for less than $400,000. Meanwhile, only 0.4% of all houses and 0.3% of all units sold transacted for more than $1 million.</span></p>
<p><a href="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.37.04%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.37.04%20AM.png" alt=""></span></p>
<p><span> </span></p>
<p> </p>
<p><span>Ten years ago, the proportion of sales under $400,000 had fallen </span><span>sharply relative to 10 years earlier. At this time, 66.2% of houses and 73.8% of units had sold over the year for less than $400,000. In comparison, 4.0% of houses and 2.3% of units across the capital cities sold for more than $1 million. </span></p>
<p><span>Five years ago, around one third of all capital city house sales </span><span>(34.1%) and 46.4% of units sold for less than $400,000. At the same time, 10.1% of capital city houses and 3.8% of units sold for </span><span>more than $1 million</span><span>.</span></p>
<p><a href="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.38.05%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/27/Screen%20Shot%202015-08-27%20at%2011.38.05%20AM.png" alt=""></span></p>
<p> </p>
<p><span>Looking at the activity over the past year: </span></p>
<p><span>Canberra (7.4%) and Sydney (7.8%) recorded the lowest proportion of house sales under $400,000. </span></p>
<p><span>Hobart (61.2%) was the only city to have more than half of all house sales below $400,000. </span></p>
<p><span>Currently, the unit market offers more opportunity to purchase below $400,000 however, each of Sydney (16.3%), Melbourne (35.9%), Perth (38.5%), Darwin (29.7%) and Canberra (43.3%) recorded a majority of unit sales above this price point. </span></p>
<p><span>CoreLogic RP Data reported a record high proportion of houses and units sold for more than $1 million over the past 12 months. In Sydney, more than a third of all houses (36.8%) sold for more than $1 million. Melbourne had the second highest proportion of sales over $1 million (17.7%). </span></p>
<p><span>Although Melbourne had a record high proportion of houses sold over $1 million it was less than half the proportion of sales in excess of $1 million recorded in Sydney. </span></p>
<p><span>For units, Sydney had the highest proportion of sales over $1 million (11.6%) and was the only capital city in which more than 10% of unit sales were in excess of $1 million. In fact, Sydney had a higher proportion of unit sales over $1 million than each of Brisbane, Adelaide, Hobart, Darwin and Canberra had for houses. </span></p>
<p><span>Although we anticipate that the rate of capital growth will slow </span><span>over the coming year we still expect values to generally rise. As a result we would expect a further decline in the proportion of homes </span><span>selling below $400,000</span><span>. </span></p>
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<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></p>
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Home sales trend below $400,000: Cameron Kusher

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<p>The combined capital city weighted average clearance rate fell to 72.9% last week, down from 74.6% the previous week, while auction volumes rose from 2,118 to 2,248. Over the current week, CoreLogic RP Data is tracking 2,639 scheduled auctions, which will bring the total auctions for winter 2015 to over 26,500 which is the highest level on record.</p>
<p>This week, between <strong>Melbourne</strong> and <strong>Sydney</strong>, Australia’s two largest auction markets, there are more than 2,200 auctions scheduled, with Melbourne expecting 1,190 auctions over the week and 1,086 in Sydney. Both cities saw clearance rates fall last week with Melbourne’s final auction clearance rate down to 74.3 per cent from 76.5% the previous week. Meanwhile, Sydney’s clearance rate of 76.2% was almost identical to the result recorded one year ago (76.1%).</p>
<p>The number of residential auctions scheduled across <strong>Adelaide</strong> (105), <strong>Brisbane</strong> (159) and <strong>Perth</strong> (40) this week is higher than last week, while <strong>Tasmania</strong> is expecting auction volumes to remain unchanged, with 9 auctions scheduled across the state.</p>
<p>In <strong>Canberra</strong>, CoreLogic RP Data is currently tracking 50 auctions, a fall from last week when 75 auctions were held, but higher than at the same time last year (37). For the fourth week in a row, Canberra’s clearance rate surpassed the 70% mark, with last week’s final clearance rate for the city recorded at 71.2%.</p>
<p>Richmond in Victoria has the highest volume of auctions scheduled for any one individual suburb this week, with 24 properties set to go under the hammer.  Following on from this, Reservoir, also in Victoria, has 21 auctions scheduled.</p>
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Highest winter total auction level on record: CoreLogic RP Data's Shana Miller

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<p><span style="line-height: 1.3em;">Getting a development project off the ground is one thing, but keeping the momentum right until the end is another. It's important to stay focussed as there is a lot of work to hand but it's also good to take some time to reflect on what you've achieved. </span></p>
<p>There are several major milestones that Property Bloom likes to celebrate along the way with our clients and I thought I'd share them with you:</p>
<p>1. finding a good site</p>
<p>This is definitely cause for celebration as a good development site can be hard to come by. We look for wide frontages, slight slope to street or to the rear IF there is a drainage easement and sewer located at the rear, good aspect and of course in a great location within a diverse economic area. It can be hard to tick all the boxes. </p>
<p>This week I was offered a site that was described as "outstanding". After reviewing the contract I found  the house that was located on the land, and more than likely needed to be moved, was heritage listed. The site had a 2m fall from front to rear and the sewer was located about a quarter of the way down the site, so to get the sewer from the rear up to the line an expensive pump system would need to be designed. There was no stormwater easement or drainage pits in the rear and finally, the piece de résistance, it was flood prone! No celebrations going on here.</p>
<p>2. finding good sales references to support your feasibility.</p>
<p>It is important to have good sales reference to guide you in estimating what the end values of the dwellings you are building may be. If there are good comparable sales then this will support your feasibility.  A strong feasibility is a good starting point. </p>
<p>3. receiving your Development Application consent - we always do a little jig around the office when we have that very important document - the Consent - in our hot little hands. This represents a big milestone as there is a lot of work behind you at this stage and you have now added extra value to the property/land with the issue of the Consent. </p>
<p>4. finalising your finance and receiving the bank's unconditional approval. This is no mean feat, particularly in today's environment. Getting your construction finance in place involves a mountain of paperwork and working closely with a good broker/banker.  A little fist pump is required when you open the authority to commence construction letter that your bank will send out as soon as your loan is settled and in place. </p>
<p>5. laying of the slab. There's an old Aussie saying... drink a  slab when you lay a slab. Slab being slang for a case of beer!  Well I don't recommend celebrating to that extent and of course there's no alcohol consumed on building sites. However, the feeling you get seeing a slab completed amazing because it means that you've passed through the sometimes challenging site preparation, piering and retaining works which are all areas where hidden costs can arise (like hitting rock!). You can now see your project taking shape physically. </p>
<p>6. Receiving the Occupation Certificate. With the issue of the Occupation Certificate your project is complete.  It's been passed by council or your private certifier and you can now tenant it, live in it or sell it. This is where you should stand back and savour that momentous occasion. </p>
<p>Taking time to acknowledge some of the major milestones of your property development will help you come out the other side with a smile on your face and anyway, who doesn't like a little celebration now and then? </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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