Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

What does it really mean for a building to be 'green'?

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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Houses in East Carnarvon spent an average of just 15 days on the market before being sold. This is less than half as long as the next quickest suburb in WA, Lynwood at 36 days. However, there were only 13 sales in East Carnarvon last year. 
<table width="303" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="141">
Suburb
</td>
<td valign="top" width="162">
No. of days on market
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">East Carnarvon</a>
</td>
<td valign="top" width="162">
15
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">Lynwood</a>
</td>
<td valign="top" width="162">
36
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">Tuart Hill</a>
</td>
<td valign="top" width="162">
39
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">Craigie</a>
</td>
<td valign="top" width="162">
42
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">Heathridge</a>
</td>
<td valign="top" width="162">
45
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">Beckenham</a>
</td>
<td valign="top" width="162">
47
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">Kingsley</a>
</td>
<td valign="top" width="162">
47
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">Coolbellup</a>
</td>
<td valign="top" width="162">
49
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">Leederville</a>
</td>
<td valign="top" width="162">
49
</td>
</tr>
<tr>
<td valign="top" width="141">
<a target="_blank" href="/news">Coolgardie</a>
</td>
<td valign="top" width="162">
50
</td>
</tr>
</tbody></table>
Source: RP Data
Property Observer readers can secure free tickets for the Perth Home Buyer and Property Investor Show by<a target="_blank" href="https://www.homebuyershow.com.au/special-offers/propertyobserver-ticket-offer/"> clicking here</a>.
 
 
 
 
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East Carnarvon heads the top 10 fastest-selling localities in Western Australia: RP Data

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AMP Capital Investors is in the process of growing its commercial lending arm following the withdrawal of major lenders and offshore lenders from this arena.
The investment manager has an investment mandate of $190 million from AXA Life following the merger of AXA and AMP in 2010, but it is looking to expand the cash pool to $400 million by bringing other superannuation funds on board.
AMP’s entry into commercial lending follows a growing trend of other non-bank lenders offering commercial loans.
Major lenders have pulled back from commercial finance due to the stricter liquidity requirements under new global Basel II banking rules.
Linda Cunningham, chief manager of commercial lending at AMP Capital, has told the Australian Financial Review that any lending done by the fund will be of a conservative nature, with a strong focus on the “quality of the property”.
AMP will lend at loan-to-value ratios of around 54% with interest rates of 2.5% to 3% – slightly higher than the rates of the big four banks.
The fund will consider lending across all commercial sectors except for residential and land development but will not write any loans that mature past March 2018, when the fund reaches its investment horizon.
To date the fund has provided mortgages at an average size of $10 million, but has the capacity to extend loans of up to $35 million on a single property.
 
 
 
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lschlesinger-FZcF9M3vE6

AMP looking to fund more commercial property investments

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At the start of this week I said that the RBA’s board meeting would be a non-event, with it likely to hold rates steady in spite of suggestions that “many” board members believe policy should be more accommodative.
I argued that the most valuable information on the future direction of rates would be drawn from the GDP and unemployment data. And so it has transpired.
Had GDP printed strong – at or above consensus expectations – and Thursday’s labour market report followed on from January with a second healthy increase in total employment (together with a flat or lower unemployment rate), we’d be sitting here today thinking that rates were on hold for the foreseeable future.
Only two events could then drive cuts: a surprisingly low first-quarter inflation number that would give the RBA room to reduce rates without jeopardising its inflation target; and/or the major banks independently jacking up  lending rates again to the point where the RBA felt compelled to negate this with another downward shift in its own cash rate.
The major banks have some interesting game theory facing them. It is absolutely indisputable that bank funding costs have plummeted since their extreme December/January spike on the back of the (at the time) burgeoning European crisis. Combine this with the circa 10-basis-point “top-up” the banks unilaterally added to lending rates after the RBA’s February meeting, and one is left to conclude that the banks’ net interest margins should be looking much healthier today.
Yet in the current low credit growth environment the banks can only drive their shareholder returns on equity and profitability through margin expansion and/or cost cutting (i.e., assuming that top-line revenue growth tracks national incomes). And there is little doubt that the banks have done a wonderful job convincing many commentators that they should be able to continue punching out 18% to 19% returns on equity. All power to them for doing so.
I suspect that references made by major bank CEOs to lots of little lending rate changes in the future is really code for incremental steps to further expand margins, which the big four can do given they have both lower funding costs and much better access to funding supply than their competitors.
The claim that it is a “free lunch” for the RBA to offset these changes by simply cutting the cash rate is spurious. The cash rate is currently at 4.25%, and it can only be reduced to 0% under normal circumstances. Accordingly, every time the RBA cuts the cash rate but the banks do not pass this cut fully on to their borrowers, the RBA (and borrowers) are effectively foregoing latent interest rate ammunition, or economic insurance, in order to preserve bank profitability. That is, there is a direct trade-off here between monetary policy flexibility and bank margins.
Now, the banks quite rightly argue that if they cannot profitably lend, then there will be no credit creation period, and we are all screwed. The challenge, then, is to find the right balance between bank returns, the ability of the RBA to manage monetary policy, and, ultimately, borrowing rates.
This brings me back to this week’s GDP and unemployment data. There is no question that the anaemic fourth quarter GDP print, which was well below the RBA and the market’s expectations, and the soggy employment numbers, with the jobless rate edging up, have created more uncertainty about rates and increased the probability of a future cut. The financial markets currently believe that there is a good chance the RBA will reduce rates once by the time its May meeting is concluded.
I would nevertheless venture that the RBA has a pretty sceptical view of the GDP data given the quite extraordinary historical revisions to it. For example, the March quarter was originally reported to be down 1.2%, but has now revised way up to just -0.3%. If the fourth quarter revises as much as the first, any insights based on it are likely to be rendered useless.
If you fuse that scepticism with the fact that: (1) the jobless rate is bobbing around 5.2%, which is close to its “full employment” level; (2) the RBA has already injected a couple of rate cuts (or thereabouts) into the system, which have yet to have their full effect; (3) the worst-case scenarios for the global economy are, unsurprisingly, not going to come close to being realised; and, finally, (4) the presence of more positive “leading-indicator” data on the state of the labour market, such as job vacancies, job advertisements and various business surveys, one exercises the option to wait until the March quarter inflation results are published. This means leaving rates unchanged until the May meeting.
Again, two curve balls here are: (1) what the banks do with their own lending rates, and whether they simply decide to throw caution to the wind and engage in further margin expansion; and (2) what happens to the Aussie dollar. At the time of writing, it is currently sitting at 106.46 US cents, which is up over one cent from yesterday’s lows near 105 US cents flat. The recent appreciation has been fuelled by market hopes that the Greek debt-swap deal will proceed more smoothly than had been anticipated by the bears.
It is not inconceivable that the Aussie surges back towards 110 US cents, and, if it does, the RBA sounds increasingly like it may wish to throw some sand in the wheels of the exchange rate either via direct intervention (i.e., selling), which it has not done since 2008, or by cutting rates, and thus reducing the differential in rates of return between Australian and US yields. The truth is that many sovereign states are manipulating their currencies, and these beggar-thy-neighbour policies could well force the RBA’s hand.
In summary, we are living in a highly uncertain and complex world where the probabilities of different paths can change materially every day. Years ago I argued this would be the case as the Australian economy became more closely tied to its Chinese, Indian and other Asian trading partners. I will repeat now what I said then: your best bet is to try to position yourself to capitalise on this volatility.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 
 
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A rate cut is back on the table: Christopher Joye

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The disused Pasadena motel at the end of Church Point featuring views over southern Pittwater has been listed for auction on March 28.
Standing opposite Ku-ring-gai National Park at 1858 Church Point, the Peter Stutchbury-designed Pasadena sits on land measuring 632 square metres and was once a thriving motel and function centre popular for weddings and social functions.
The motel has been one of Sydney’s sought-after wedding venues, with wedding parties disembarking via boat or seaplane for their nuptials.
Its prime waterfront position overlooking southern Pittwater offers views towards Scotland Island and Lovett Bay to the north, Bilgola to the east and Bayview to the south east.
The Pasadena is situated within Sydney’s northern beaches, approximately 32 kilometres north of Sydney CBD and four kilometres north west of Mona Vale, overlooking southern Pittwater. 
The hotel is being marketed Matthew Meynell and Henry Burke from Colliers International in conjunction with Jack Elsegood from Domain Residential on behalf of receivers Grant Thornton and is being sold as “vacant possession ready for development”.
Meynell says there has been interest from restaurateurs, developers and conference organiser and expects offers “north of $2 million”. He says it has a number of development applications on it.
According to the Manly Daily, the property’s owners, the Romeo family, attempted to sell the waterfront property in 2010, after years of trying unsuccessfully to redevelop the site.
Burke says the Pasadena has long been the talk of community discussions by Church Point and Scotland Island locals. 
“The residents have long wanted a building of social significance that enriches the local area and fits well with the Pittwater Council’s plan of management for the future development of Church Point,” he says. 
“We are already fielding interest from developers looking to build a landmark waterside property and business operators looking to establish a restaurant or function centre within a highly sought-after waterside location on Sydney’s Pittwater.” 
“The Church Point area is one of the most beautiful areas on the northern beaches and will benefit greatly from a revamped building showcasing the natural beauty of the area,” he says.
It has a previously approved 2005 development application to demolish the existing building and build a “shop top housing development comprised of basement car parking, restaurant, three shops and three residential units”.
The hotel last sold in $3.6 million in 1989 at a time when demand for such properties was booming.
The land is zoned 3 (C) Neighbourhood Business ‘C’ under the Pittwater Local Environment Plan, (LEP) with the council estimating that a new LEP will be drafted within 12 to 18 months. 
The ground floor consists of a disused function area with a commercial kitchen and bar and three retail shops facing Pittwater Road, which are currently vacant. They were previously occupied by the artist-run Gone Fishing Gallery, a real estate agency and storage for the local bottle shop. 
The second level consists of 12 single motel rooms with ensuites. The top floor consists of a laundry room, water heating systems and open-plan roof with a small enclosed sitting room.
 
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Pasadena on Pittwater listed for mortgagee auction

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“I’m not going to invest in property in 2012! It’s going to be a year full of crises. 
“Just look what’s looming in Europe. The China bubble could burst. And the US could have a double-dip recession.” 
These were the words of two of our friends, Gill and John, as they discussed their plans for this year with me. 
I couldn’t really disagree with some of their predictions about the world economy, but I did disagree with their conclusions. 
Interestingly we had a similar chat at the beginning of last year and the year before. It’s interesting how the conversation seems to turn to property when we get together. And every year they find excuses not to invest. 
They own their own home, have paid off their mortgage long ago and while they understand the need to invest to secure their financial future, they are waiting for a stress-free year – a year without crisis – to get into the property market. 
I explained to them that I don’t think we’ve ever had a year without a crisis. Even if the year starts out looking OK, a terrible crisis happens every year. 
As they’ve owned their home for 20 years I recounted some of the crises that happened in that time – things that came out of the blue and changed market sentiment: 
2011 - Floods in Queensland and Victoria, earthquake in Japan, Middle East uprisings that spread around the world, economic woes in Europe
2010 – A federal election that left us with a virtually hung parliament, European debt crisis
2009 – Global economy nearly collapses
2008 – GFC shard market collapse, company bailouts and the Bernie Madoff scandal
2007 – Mortgage crisis in US – the beginning of the financial crisis
2004 – A tsunami hits south-east Asia (it’s the first time I recollect hearing that word)
2003 – Iraq war, SARS panic, interest rates peak halting our booming property markets
2001 – 9/11 terrorist attack, Afghanistan war, economic downturn in Australia
2000 – Dot.com bubble pops and the share market crashes
1999 -Y2K scare, many people put major decisions on hold
1997 – Asian financial meltdown
1993 - World Trade Center bombing
1991 – The recession we had to have and a major Australian property downturn
1990 - Persian Gulf War, rising interest rates hurt property investors 
I left out lots of events, but think I made my point to Gill and John – you can go back as far in history as you like and there won’t be a crisis-free year. Sure some years are worse than others, but there is always bad news, and much of it is unexpected. 
Where investors get into trouble is seeing these as once-in-a-generation events that will alter the course of history, when in reality they are just the normal path of history. 
I asked my friends what they paid for their home when they bought it 20 years ago: $300,000. 
I then asked what it was worth today, considering properties in Glen Iris, an affluent inner Melbourne suburb, had dropped around 10% in value: $1.4 million. 
I reminded them of all the events that had occurred over those last 20 years and all the reasons they used not to get involved in property and then asked the most telling question of all: 
“If you knew then what you know now, would you have done anything differently when you bought your house 20 years ago?” Their answer: “We would have bought more real estate.” 
I then asked if 10 years ago you would have known what property values would be today, would they have bought an investment property. Sheepishly they had to answer yes. 
So what is different today? 
Sure, 2012 will be a year of crisis and there are things lurking around the corner waiting for us. Things we don’t even know about. 
There are two ways to handle this: 
1. Sell up your assets, have a large cash buffer, hug your loved ones and wait for the sky to fall. 
2. Prepare for the worst but expect the best. 
Do you want to know what I’m doing in 2012?
Last year I sold three properties that no longer suited my investment strategy, and I’m actively using these funds in the property market this year. I’ll explain exactly what I sold and what I’m buying at our upcoming <a href="https://www.propertyupdate.com.au/2012-events/national-property-and-economic-market-update/">National Property and Economic Update</a> one-day trainings around Australia over the next few weeks. 
In fact they start in Brisbane tomorrow, March 10, so if you haven’t reserved your place yet, please click here now, find out all the details and join me plus property analyst Michael Matusik, finance strategist Rolf Schaefer and tax expert Ken Raiss.
 
Some people and some companies prosper during a downturn 
Remember that countries, companies and individual investors can prosper in the face of constant crises. During those last 20 years the value of properties in Australia went up by billions of dollars irrespective of who owned them. 
Companies like Apple, Google and Facebook started in teenagers’ bedrooms and became global juggernauts despite years of crises. 
So what’s the lesson? 
The lesson from all of this is:
<ol start="1">
<li>Don’t panic and make emotional decisions</li>
<li>Learn from history</li>
<li>Review your current property portfolio</li>
<li>Refinance if you can to top up your financial buffers</li>
<li>Take appropriate action – whatever this may be for you: 
<ul>
<li> Maybe you should sell an underperforming property rather than hoping it will increase in value, recognising that the gap between your property and better performing assets will only widen</li>
<li>Perhaps you should buying more properties </li>
</ul>
</li>
</ol>
Of course in the short term our property markets will be driven by market sentiment and microeconomic factors. 
But in the long term the value of well located properties will rise propelled by the twin factors that have always driven long-term property prices – population growth and the wealth of the nation. Both will increase substantially. 
I believe the wise King Solomon had an inscription in his ring to keep him humble during good times and give him hope during bad times – This too shall pass. 
Yes, 2012 will be a year of confusion and concern. 
But this is a perfect time for sophisticated property investors, as the ultra-successful always use downturns to create wealth, knowing that average Australians sit in fear waiting for the recovery.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
 
 
 
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If you wait for a perfect year to invest in property, you will never start

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The most recent data about the cost of rental accommodation has revealed a substantial decline in the provision of affordable rental accommodation throughout Victoria.
This has occurred at the same time as we are experiencing the most substantial shortage of rental accommodation in the last few decades. The shortage of housing put pressure on rents, with an outcome of far fewer affordable rental homes.
The data, sourced from the Victorian government’s Office of Housing, tells the story.
In the decade between the September quarters of 2001 and 2011 there was a 55% reduction in the number of affordable rental homes in Melbourne and a 19% reduction in regional areas. A decade ago Melbourne had about 14,000 affordable rental homes – now it is about 8,700.
This translates to greater competition for the few affordable rental homes that are available, and tenants having to pay rents that they cannot afford or being forced to live in areas far from employment.
The location of affordable rental homes has also changed. The highest availability for affordable rental homes is in regional Victoria, and what few affordable rental homes were available in Melbourne’s middle suburbs have disappeared.
A decade ago 50% of rental homes in the City of Knox were affordable, and now only 6% are. During the same time there was a drop from 47% to 3.5 per cent in the City of Maroondah and from 28.5% to 1.7% in the City of Moreland.
To address this problem the state government needs to increase direct investment in affordable and low-cost public housing, remove the opportunist taxes on investors and reducing the cost of development by improving the planning process.
Enzo Raimondo is CEO of the <a href="https://www.reiv.com.au/" target="_blank">Real Estate Institute of Victoria</a>.
 
 
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Government should step in as number of affordable rental properties dwindles

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Australian house prices could decline by more than 5% in 2012 if China's economy experiences a soft landing with GDP growth at about 8%, according to Standard &amp; Poor’s.
But in the event of the less-likely scenario, under which China's economy slows to 5% GDP growth, Australia could be sent into recession.
China's hard landing likely flow-on effect of higher unemployment could trigger a sharp decline in Australian house prices of 20% or more, according to S&amp;P who rate the prospect of a hard landing happening at 10%. The other scenario - a medium landing - would trigger a 10% price fall, it envisaged with the prospect of a medium landing happening given at 25% chance.
S&amp;P analysts Craig Parker and Vera Chaplin see a soft landing as the most likely scenario.
The report noted the insatiable demand for commodities from China and other Asian trading partners has kept Australia in good stead relative to most other Western economies during the current global economic slowdown.
While China's growth slowed to 9.2% in 2011 from 10.4% in 2010 due to a weaker global economy and efforts by the Chinese government to control inflation, Standard &amp; Poor's expects China to experience a soft landing in 2012, with forecast GDP growth of 8%.
“Based on this scenario, we expect the Australian economy to continue its moderate growth path and that the performance of the Australian housing market will soften further but not experience a sharp decline given the sound economic outlook,” Parker and Chaplin say.
“In this scenario, we expect the impact on both mortgage defaults and loss-given default to be muted and remain at relatively low levels as we expect the unemployment rate to increase marginally and property price decline to continue its recent softness.”
The report indicated that although Australian residential property prices have softened with Australian capital city dwellings losing about 4.8% of their value in 2011, a supply shortage and demand-side factors (such as falling mortgage interest rates, government assistance to first-home owners, strong labour market conditions and population growth) have prevented a more precipitous decline in asset prices.
But any increase in the unemployment rate and weaker or negative growth in household disposable income are likely to be the key drivers of mortgage default in the coming years.
“Sharp increases in unemployment will be likely if Australia experiences a significant economic slowdown,” the report says.
“Rising unemployment has been a strong precursor to mortgage defaults as evidenced in the early 1990s recession.”
It notes mortgage default rates can be masked in a strong economic environment with vibrant property prices, as borrowers have more options to refinance or adjust their financial position by downsizing their debt exposures.
The report noted that the credit quality of most Australian residential mortgage-backed securities (RMBS) was likely to remain stable, despite renewed uncertainty over the global economic outlook and growth prospects for China.
“However, subordinated RMBS could be vulnerable – with possible downward-rating biases – if China were to experience a harder landing, thereby adversely affecting Australia's mining sector and the overall economy.”
While Standard &amp; Poor's Ratings Services expects the performance of the housing market and housing loans to weaken, the credit enhancement available to Australian senior RMBS is likely to withstand a worsening of portfolio credit quality.
Australian subordinated RMBS would be sensitive to the effect of a downturn on the financial strength of Australian lenders mortgage insurance providers.
 
 
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jchancellor-FAypfDUnLy

Australian property price catastrophe if China’s growth stalls: S&P

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In recent months, senior Reserve Bank officials, including the governor Glenn Stevens, have gone out of their way to say that the central bank remains in control of monetary policy despite the increasingly independent setting of rates by the major banks. Today deputy governor Philip Lowe took that argument a significant step further.
There has been a sense of increasing frustration within the RBA at claims that it has lost control of monetary policy to the major banks as a consequence of their decision to make rate movements above and below the movements in official rates and, in ANZ’s case, to flag that its interest rate committee would meet monthly and review its rates independently of the RBA’s decisions. 
At a hearing of the economics committee last month Stevens said the bank had made it "repeatedly clear that the shifting relationship between the cash rate and other interest rates in the economy is a factor that the board takes into consideration in setting the cash rate and that will, of course, remain the case".
"Recent developments (the majors’ decision to raise their home loans despite the cash rate being left unchanged last month) do not in our view materially affect the capacity of monetary policy to achieve its goals."
At that same hearing, assistant governor Guy Debelle articulated the reason for much of the confusion about the relationship between the cash rate and bank interest rates.
He said bank spreads – the rates they pay for their funding relative to benchmark rates, including the cash rate – have gone up. "That is unambiguously the case," he said.
There was, however, some confusion between ’levels’ – the absolute level of rates – and spreads. The levels had in some cases come down, he said, but they just hadn’t fallen as much as the cash rate has fallen.
So, absolute rates – including mortgage rates – have fallen but not as much as the cash rate because the margins, or spreads, over the benchmark rates that the banks have been charged by investors for their own borrowings, including the cash rate, have widened.
Today Lowe, answering questions after giving a speech to the Australian Industry Group in Sydney, said banks’ decisions on rates weren’t a major concern for the RBA.
"The key question for us is, if the banks move independently of the Reserve Bank, whether than undermines the transmission mechanism of monetary policy," he said.
"I think the answer to that is that it does not. It certainly throws sand in the wheels of the transmission mechanism but there are other things that throw sand in the wheels as well."
He said the bank was confident that changes in monetary policy remained a very important influence over lending rates within the economy and that in setting monetary policy the bank took into account what was going on with lending rates.
To reinforce that point, which other senior RBA officials have been making, he said something that ought to give Treasurer Wayne Swan and other strident bank critics paused for very serious thought.
"The current cash rate is at least 100 basis points lower than it would be if this widening in the (bank) margins had not taken place."
In other words, if the banks had simply done as the Treasurer insists they should have and moved rates strictly in line with the RBA’s cash rate the official rate would be 5.25%, or more, rather than its current setting of 4.25%.
What that says very clearly is that, while the RBA might have to try to second-guess the banks’ responses to movements in the cash rates, and there might be occasions where it over-estimates those responses, it is very comfortable that it can factor their likely rate movements into its own decision-making and therefore ensure that it gets the monetary policy settings – and the lending rates – it is targeting.
That process might have been slightly easier when the banks simply passed on the movements in the cash rate but it is obvious from the RBA officials’ commentary that the bank both accepts and understands the funding cost pressures the banks have been experiencing and incorporates into its own rate decisions to ensure that it retains the most decisive influence over the absolute level of interest rates borrowers are being charged.
The way monetary policy is being implemented might have been tinkered with but it is obvious the RBA believes that its pragmatic approach to the position of the banks post-crisis has ensured it remains as effective as it has ever been.
Whether it were achieved by the banks not fully passing on reductions in official rates, or by the RBA not reducing official rates by as much as it has, today’s mortgage and other borrowing rates would therefore be more or less the same, or perhaps even a little higher. It is, of course, a more effective political strategy to accuse the big banks of profiteering rather than criticise the RBA for setting rates it believes are most appropriate for the economy.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator</a>.
 
 
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The RBA's pragmatic push-back: Stephen Bartholomeusz

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A poor-quality jobs number combined with the<a target="_blank" href="https://www.propertyobserver.com.au/economy/christopher-joyes-video-take-on-today-s-gdp-figures/2012030753726"> poor GDP print</a> increases the chance of a rate cut in April or May. The RBA may wait to see the inflation data, and it will also be influenced by what the banks do with lending rates.
Funding costs in recent months have declined appreciably, so it will be interesting to see if banks try to undertake any further margin expansion.


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Christopher Joye’s video take on today's unemployment figures

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Investor demand is strengthening for Melbourne property, according to Monique Sasson Wakelin, director of Wakelin Property Advisory, but she says there will be a great diversity in price performance across the city in 2012.
“In the Melbourne metro region demand will return for period and older-style houses in the inner north in an arch extending from Moonee Ponds to Preston,” Sasson Wakelin says in a <a href="https://wakelin.com.au/blog/view/id:35/title:Recording+of+2012+property+market+outlook+now+available" target="_blank">webinar looking at prospects for 2012</a>.
She also expects increasing demand for well-established apartments in low-rise complexes in Melbourne’s inner south east (suburbs include South Yarra, Toorak, Malvern and Armadale) and inner bayside regions (suburbs include Brighton, Black Rock, Cheltenham and Sandringham).
“These markets have proved resilient, and I expect them to continue to be so,” she says.
According to Sasson Wakelin apartments in these locations are the primary beneficiaries when first-home buyers and investors return to the market.
Also within these apartment markets, she expects demand to remain strong for two-bedroom apartments – a property class that aspirational home buyers choose when they cannot afford to buy a house or for existing home owners who are downsizing.
She says there will also be “excellent opportunities” for investors in one-bedroom apartments priced around $400,000.
“These are properties that fell between 5% and 10% last year due to the withdrawal of first-home buyers last year,” she says.
As to who is likely to buy investment properties in 2012, Wakelin Sasson says buyer interest is likely to be strong from the 50-plus age group, “many of whom are using the self-managed super funds to purchase property”
“These are investors who are transferring their wealth out of a volatile share market into residential property with a view that this is a more stable capital investment,” she says.
She points to an up-lift in recent auction activity, which suggests that the growth in buyer numbers is outstripping the growth in properties listed for sale.
“Melbourne housing is still a compelling long term investment prospect,” she says.
Overall, Wakelin Sasson expects demand to pick up on the back of tight rental vacancies, the relatively stable economy and low unemployment.
“We have a basically sound economy with improved housing affordability but a continued shortage of housing.
“Interest rates are more likely to remain stable than fall over 2012.
“The rate cuts of last year have stabilised the property market and may be sufficient to kick start the upward phase of the property market cycle,” she says.
 
 
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