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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Why should you invest interstate?
I often get asked this question, and it’s a great question. Some people say that you should only buy within the area you live in because you are familiar with the prices and you can drive past to inspect the property and if required you are handy to make your own repairs.
While all those reasons have merit the answer goes far beyond this.
There are several really important reasons why you should invest in properties interstate, and it’s more about good investment principles than about convenience. Here are a few:
1.            Ride the property wave. The property cycle moves differently in different states. When one state is at the top of the property cycle other states could be at the bottom.
2.            Property clock: The property market moves through a cycle and when things are booming in Victoria they may not be booming in NSW. When they are slow in Perth they might be booming in South Australia. Currently Melbourne is oversupplied, Sydney is “steady as she goes”, Queensland is at the bottom of the cycle but the Gold Coast is anticipated to stay at the bottom for many years to come, while Brisbane is showing signs of life. Perth is steady as she goes, and so on. As you can see, each state is at a different part of the cycle, so it’s important you time the purchase at the bottom of the cycle.
Buying in your own suburb or state might not be the proper thing to do if you are at the top of the cycle. 
3.            Land tax: Each state has different land tax rules. Each state allows a certain land tax threshold before land tax is payable. Once you have “used up” your land tax threshold in the one state by having several properties held in that state, further properties in that state will attract higher rates of land tax. If you than buy in another state than the land tax threshold starts again. Hence another reason to buy in other states is because of the land tax you are prepared to pay.
If you carefully manage the timing of your new purchases you could buy both at the bottom of the cycle and minimise your land tax by buying in the right state at the right time.
For example, while the property cycle suggests Brisbane is at the bottom of the cycle and may be the best place to buy your next investment property, if you already have several properties in the state of Queensland and have breached the land tax threshold in Queensland. Further properties bought in Queensland (irrespective whether they are in Brisbane of Townsville or Gold Coast) would mean you would be paying excessive land tax. In this instance you should consider investing in another state that is at or close to the bottom of the cycle and one where you have not used up the land tax threshold as yet.
In the above example you may consider buying in Darwin if you have no properties there as you have the full Northern Territory land tax threshold to take advantage of.
Hence careful management of your property investment strategy could mean you pay no land tax at all even while holding over a dozen or so properties. Wouldn’t that be good? 
4.            Diversification: Just as it’s important to diversify your share portfolio it’s also important to diversify your property portfolio. Diversification means that when some properties are slowing down in some states you should have properties in other states that are growing.
This will also help manage your bankers stress levels because while some properties they hold as security are going down in value the other ones they are holding may have gone up. Risk management is about ensuring your bankers do not force you to refinance when the market values are down or you are forced to sell the properties when the market is down.
While there are emotional reasons for investing in the state or suburb you feel most comfortable in, investing is much more scientific than using one’s “feelings”. It’s always best to use professionals to assist in property selection because they have the research material to determine where you should be investing. Timing is so important because the market could change within months. Get a property accountant to assist you with buying it in the right structure to minimise tax and give you the flexibility should your circumstances change in the future.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan and Naylor</a> accountants and a leading property tax specialist. He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
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Why you should invest interstate

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Many specific terms are used when analysing and commenting on the property market. 
Having an understanding of these terms is important for anyone who is looking to enter the property market as a tenant, owner–occupier or investor. 
One frequently used term is "median". 
The median value is the middle price in a series of sales, where half of the sales are of lower value and half are of higher value. For example, if 15 sales are recorded in a suburb and arranged in order from lowest to highest value, the eighth sale price is the median price. 
Median prices are used rather than average prices because median prices are unaffected by a few unusually high or low prices, making them a more accurate indicator of true market activity. 
Along with the Victorian government, the REIV uses medians when discussing and reporting property prices. 
Of course, medians do not describe the value of every home in a suburb; rather, they serve to show how prices may have generally changed. In that way, they are a guide only. The sale price for each home will still depend on the home, the vendor’s preferred price and the level of competition between buyers.
When looking at a median price, be aware of the number of sales on which it is based. The lower the number of sales the more variable the figure will be. This is why the REIV notes with an asterix those suburbs where the median is based on fewer than 30 sales. This provides the public with an additional tool with which to understand the data.
Enzo Raimondo is CEO of the <a target="_blank" href="https://www.reiv.com.au/">Real Estate Institute of Victoria</a>.
 
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enzoraimond-7fvRFHPR52

How to determine the median house price

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Buying your first home is a huge  leap.  And it’s one made more difficult by the fact that property prices are high, no matter where you look. Most first-home buyers always have a tough time, though. They usually have to look in areas outside their preferred location or buy a property that’s smaller or more rundown than they prefer. The important thing is to get your foot on the first rung of the property ladder — even if you have to lower your expectations a bit. But don’t buy before you’re ready — financially and psychologically. Here are some tips to help you take heart.
1. Buy when you’re ready to buy
When you’re looking for a property, everyone you know is an expert about when is the best time to buy.  They  tell you the market is going up fast,  so you need to buy  now, not  in six months’ time;  or that the  market’s going to crash, so you ought to wait another year  to catch the  bargains when  interest rates go up.
Ignore them!  Yes, all of them. The right time to buy a property is when you’re ready to buy.
You know you’re ready to buy when:
<ul>
<li>You find yourself dreaming about renovating your own home.</li>
<li>You find yourself incessantly looking at the property section of the local newspaper or browsing the real estate listings on the internet.</li>
<li>You start putting every last penny into the bank, rather than spending it on new clothes, going out or other treats.</li>
</ul>
Given the huge financial commitment involved in buying a property, you need to be psychologically ready for that step. Assuming you’re  going to hang  on to the  property for a while and you find a property that suits at a price you can  afford,  who cares what  the  wider  market is doing?
2. Think outside the square
If you can’t  find anything you can afford  in the  suburb or area of your  choice, you may need to think  laterally or scale down your  expectations just  to get your  foot on the  first  rung of the  property ladder. Traditionally, first-home buyers tend to look beyond their first choice to find a home they can afford.
To find somewhere more affordable, investigate suburbs just beyond those of your first preference. These nearby suburbs may have similar qualities to those you have your heart set on — they’re just a bit further out than you may like. They can also offer other unexpected benefits, such as bigger properties and bigger yards and a neighbourhood more conducive to raising a family in the longer run.
Don’t forget, you’re not alone. The  middle suburbs and  many country towns are  filling up with  people just  like you who  are priced out  of suburbs closer to the  city and  who  eventually put their own stamp on the “new” area.
Another alternative to your  first  choice is to buy  a property still within  your  chosen area but  that needs a lot of work  — or one  that originally may not  have  been a residence at all. First-home buyers are a creative-thinking lot and are able to convert old warehouses, factories or shops into interesting new homes.
3. Look at your first purchase as a springboard
As property owners, Australians tend not to buy just the one property and stay in it for the rest of their lives.  If the first property you buy isn’t the property you can imagine living in forever, think of it as just your first step onto the property ladder. In four or five years, you can sell it on to someone who is in the same position you’re in today. Between when  you buy and  that time,  your  equity in the  property builds up — from the repayments you make  on the  loan  and  hopefully from  the increase in the  value  of the  property itself  — and  you can  use that financial gain to buy  a property that better suits your  needs.
4. Borrow no more than you afford
Temptation can come knocking, especially in a hot market when prices are rising quickly. Before you know it, you want to go beyond your budget to buy the home of your dreams. And lenders are  only too  happy to lend  you as much as they  think your  income can  bear, even  if you don’t  have  enough money, after  making  the  required mortgage repayments each month, to step outside your  new front  door for the  next  few years.
You need to cover more than the cost of the actual property. You have to foot the bill for a number of transaction costs and costs associated with getting a loan and getting legal advice. These costs can really send you over the financial edge if you don’t budget for them.
Owning a home also involves expenses you may not have had to carry while you were renting. You’re now the  one  who  has  to pay  the  council and  water rates, for that new hot  water system and  to keep  the  house looking  good  over  the  years. Stretch the repayments too far over the limit, and owning a new home isn’t going to be much fun at all.
5. Another property is always around the corner
When you miss out on a property that tugs at your heart, you may feel like you’re never going to find a property you can both love and afford.  Keep going.  Fortunately, new properties keep coming on to the  market each week,  and  eventually you’re  going to find the  one  that fits your  criteria and  your  budget.
You may need to make a compromise on your criteria here or there, but don’t settle for something you’re not going to be happy living in for at least a couple of years. Chopping and changing properties more often than that is too expensive to contemplate.
Have faith  that with  consistent searching and  effort the  right property eventually comes along  and  is available at a price that you’re  able  and  willing to pay.
6. Don’t pay too much for a property
Each property has a fair value.  Don’t be too desperate to find a home. You don’t want to pay more for a property than it is really worth — in terms of its location and in terms of the property itself.  First, paying too much can mean you have less to spend on improving your property. Second, you’re  going to have  less equity in the  property, and  your  loan-to-value ratio may go over  the  80%  level — meaning you have  to pay  mortgage insurance, which  adds several thousand to your  purchase price.
Do your research on how much properties in a particular area are worth, and make sure you get a building inspection report so you’re aware of any problems with a property and how much it costs to repair them.
 7. Keep your emotions in check when looking at a home
Deciding you want to buy a home can be a bit like falling in love — sometimes your emotions can overwhelm your reason. You can fall for a property that looks gorgeous on the outside but may not be suitable to your needs. That cute white picket fence and those gorgeously painted ceiling  roses may conceal a host of structural problems that could cost a fortune to fix up.
Retaining a business-like reserve when  you’re  looking  at one  of the  biggest purchases you’re  ever  going to make  pays  you back handsomely. Take along  a hard-headed friend you can  trust
to point out  negatives when  you look at properties. And if you really fall in love, get a thorough building inspection done before you make  any serious offers.  You should at least know about a property’s faults  before you commit to it.
8. Be sceptical of selling agents
With rare exceptions, remember that the  real estate agent isn’t your  friend — even  if the  agent pretends to be. It’s not  that agents are  against you; the  agent’s just  working  for the  sellers of the  homes the  agency represents. The  agent’s primary interest — and,  in fact,  a legal obligation exists — is to sell those properties for the  highest prices possible. So when  agents take you aside to tell you about the  special prices they  can  get for you, be aware that they  probably say that to everyone.
That’s  not  to say that an agent can’t  help  you find the  home you’re  looking  for. When  you get to know the  agents in the  area, they’re more than happy to inform  you about properties that fit your  bill. Agents  can  help  you to forge  a win-win situation that helps both their clients and  you.  Just  don’t  expect any special favours just  for you.
9. Renovating can wait
Most  first -home owners don’t  have  much spare money to think about anything but  the  most basic renovations after  they  buy a home. But rushing into  the  renovations may not  be the  best approach. You need to give yourself some time  to live in a property to see  how  you can  improve it to better suit  you and your  family. 
By living in the  home for some time,  you get a sense of how  your family uses the  property and  you can  identify:
<ul>
<li>How much time  you need to save  some money to put towards your  renovation.</li>
<li>How much you can  afford  to spend on your  renovations.</li>
<li>How the  inside interacts with  outdoors.</li>
<li>How the  sun  moves through the  home.</li>
<li>What  are  the  bad  features you just  have  to remove.</li>
<li>What  are  the  good  features you want  to enhance.</li>
<li>Which  rooms work  and  which  don’t.</li>
</ul>
10. The mortgage does go down — eventually
When  you buy  your  first  property, your  mortgage can  feel like a huge  weight  around your  neck.  You’re committing to an enormous amount of money, it’s true. And for the  first  couple of years, you may have  to deny  yourself many  of the  treats you’re used to — eating out,  buying CDs, travelling overseas — just  to scrape together those monthly repayments.
After a few years of owning  your  own home, financially positive things begin  to happen:
<ul>
<li>You pay  down  the  principal of the  loan  and  the interest repayments start decreasing as well — almost infinitesimally at first  but,  after  a few years, the  interest amounts become noticeably smaller.</li>
<li>As long as you stay  employed, your  wages  are  probably going to keep  increasing. That  means that the  interest payments become smaller in another way — as a proportion of your  income.</li>
<li>If you buy  well, the  value  of your  home may also  go up, so that the  amount you owe to the  lender also  becomes smaller (as  a proportion of your  home’s value). At the  same time,  your  equity in your  home becomes greater — without you doing  anything much at all. </li>
</ul>
Of course, if you decide to borrow against the  increased equity in your  home, you’re  heading for a bigger  loan  and  being  back where you started — but  at least you know you’ve  got a growth asset on your  hands that you can  sell if your  financial situation changes for the  worst.
<img src="/images/stories/buyingdummies.jpg" style="float: left; margin: 5px;">Karin Derkley is a the former deputy editor of Personal Investor magazine, and continues to write for The Age and AFR Smart Investor. She has also lived through the pleasures and pitfalls of purchasing and renovating her own home. She is the author of <a href="https://www.dummies.com/store/product/Buying-Property-For-Dummies-2nd-Australian-Edition.productCd-0730375560,navId-322442" target="_blank">Buying Property for Dummies</a>, published by <a href="https://au.wiley.com/WileyCDA/" target="_blank">Wiley</a>. The <a href="https://www.dummies.com/Section/index" target="_blank">Dummies brand</a> is celebrating its 21st anniversary in Australia in March. This is an excerpt from Buying Property for Dummies.
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kerkley-uF6NdMiThS

Ten things to remember as you dive into home ownership

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Mainland buyers constituted some 13% of sales in Tasmania during the December quarter, according to the Real Estate Institute of Tasmania (REIT) property report.
Tasmania’s median price was $305,000 and Hobart’s median price sat at $365,000 during the period.
The annual price change for the island and its capital city were both down about 4.6%.
During the quarter there were 442 sales with properties typically sitting on market for 55 days, compared with 43 in the December 2010 quarter.
The REIT report splits the suburbs of Hobart into three areas – inner, middle and outer.
Hobart inner had a median price of $471,310, Hobart middle had a median price of $320,000, and Hobart outer had a median price of $345,000.
Launceston’s median was $280,000, an increase for the quarter of 3.7% and annual change of 1.8%.
Top 10 Most Expensive Tasmanian Suburbs/Towns for the December Quarter 1. East Launceston, Launceston ($690,000, 5 sales) 2. Tranmere, Hobart Middle ($665,000, 5 sales) 3. Sandy Bay, Hobart Inner ($642,500, 44 sales) 4. Acton Park, Hobart Middle ($630,000, 7 sales) 5. Mount Nelson, Hobart Inner ($600,000, 5 sales) 6. Battery Point, Hobart Inner ($582,500, 6 sales) 7. Taroona, Hobart Inner ($530,000), 7 sales) 8. Seven Mile Beach, Hobart Middle ($515,000, 5 sales) 9. West Hobart, Hobart Inner ($470,000, 19 sales) 10. Dynnyrne, Hobart Inner ($460,000, 5 sales)
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Mainland buyers account for 13% of Tasmanian sales: REIT

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Perth sales up 10% on last week: REIWA

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The key regional industrial NSW markets of the Illawarra and Newcastle are set for a tough year in 2012, according to the latest Herron Todd White property market report.
Local Herron Todd White agents say steel producer <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/bluescope-steel-closure-will-severely-hurt-illawarra-market-michael-yardney/2011082551290">BlueScope’s decision to close its No. 6 blast Furnace in Port Kembla in August last year</a> (and axe 800 local jobs) will continue to impact on demand for industrial space in the Illawarra.
“While the closure will not have a direct impact on the level of supply, with the facilities likely to remain in BlueScope’s hands, the impact upon the support business will no doubt see a reduction in demand for industrial space within the Illawarra,” the report says.
“With letting-up periods already a concern, any further reduction in demand may result in rental downgrades over the coming 12 months.
“Coupled with the shutdown of the Port Kembla furnace, investors remain uncertain about the overall outlook for the broader economy and the direction of the Illawarra commercial market.”
According to Herron Todd White, commercial investors who require yields greater than 9% have been priced out of the market by owner-occupiers, “who are willing to pay a premium to secure long-term stability”.
And with commercial lending rates forecast to rise, Herron Todd White does not expect an increase in investor activity during 2012.
“However, it’s not all bad news for the Illawarra; quality properties and properties with strong lease covenants, while scarcely traded, remain in demand and will continue to secure higher capital values over 2012”.
North of Sydney, Herron Todd White reports that 2012 has brought uncertainty for the Newcastle and Hunter industrial property markets.
“Having one eye firmly fixed on well publicised global economic troubles, investors are well aware of the continued reliance on the coal trade in Newcastle to prop up the local industrial market,” says Herron Todd White.
However, plans by Nathan Tinkler’s Hunter Ports to create a new rail link to its $2.5 billion coal and remove about 90% of coal trains from residential areas is expected to resolve some of the oversupply issues in and around Newcastle.
Hunter Ports is currently acquiring industrial land adjacent to the Hunter River for the new railway corridor.
“The oversupply has seen land values fall consistently since 2008. However, in 2012 we expect to see this fall in value flatten out, as land is slowly taken up, with no major releases in the pipeline,” says Herron Todd White.
“The slow rate of take-up has been exacerbated by commercial lenders’ inability to lend speculatively on property without pre-commitments in place.
“The general weakening of industrial property values in Newcastle is illustrated by the sale of a fully tenanted complex in the established industrial locality of Cardiff.
“The property has recently exchanged for $4.3 million. The same property previously sold in April 2007 for $5.2 million, indicating a fall in value of 17% and a yield softening of 2.93% since the previous sale.”
Not all areas are performing poorly.
Herron Todd White reports that Beresfield and Thornton continue to remain the most solid areas locally due to the New England Highway and their location midway between Newcastle and Maitland.
“These areas are situated at the intersection of the F3 freeway to Sydney and the New England Highway which provides access to the greater Hunter Valley including mines in Muswellbrook and Singleton.
“Beresfield remains the number one position for distribution companies in the area due to the ease of access to the above mentioned highways.”
 
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Challenging year ahead for Illawarra and Newcastle industrial markets, but some bright spots: HTW

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New research indicates Brisbane property investors are the strongest buyers in their own backyard.
As investment activity returns to the city, PRDnationwide has found some 86% of recent property investors are Queenslanders.
The company's research director, Aaron Maskrey, says most of the property investors in the city came from inner-city suburbs, and they often chose to invest in the same suburbs.
At 7% New South Wales accounted for the second highest level of investors in the Brisbane market.
Only 1% of investor sales were to foreign property investors.
The majority of the investor spend occurred within the inner-city suburbs, with the CBD registering the most at $94.5 million.
This was followed by Newstead and New Farm, achieving $85.9 million and $42.3 million respectively.
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The top three suburbs to receive the most investor spend remained the same from the previous year.
Investment inside the Brisbane CBD decreased by 17% from the previous year, while New Farm experienced a significant decline of 49%.
Newstead however, increased by 18% in total investment spend.
The PRD study found total investor sales in Brisbane had decreased from the previous year from 5,036, to 3,865, equating to a decrease of 23%.
However, it notes the final number of settled investor sales is yet to be determined for the six-month October 2011 period as a portion of sales have yet to settle.
It suggested many acquisitions from off-the-plan apartment developments will likely settle over the next three to 12 months, reducing the decreased sales percentage figure provided.
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Although housing stock is higher priced than unit stock and typically provides a lower gross yield, when closely analysed it is determined that approximately 50% of investors have purchased units, and the other half bought houses.
The majority of investors who bought a free-standing home did so in the suburb of Forest Lake over the six-month period ending October 2011, registering 55 house sales.
This was followed by Wynnum (34), Coorparoo (33) and Bracken Ridge (32). When observing the previous year, Inala recorded the most house sales at 62, followed by Forest Lake (61) and Wynnum (48).
When observing the top 20 house suburbs, an overriding trend of affordability appears.
The majority of the top 20 suburbs are located in the middle to outer Brisbane, allowing for investors to capitalise on more affordable house prices, which in turn may lead to greater yields.
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Queenslanders snap up Brisbane investments - with an even split between unit and house purchases

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Luci Ellis, head of the financial stability department at the RBA, says home mortgage markets with prudent lending standards do not generally pose risks to financial stability. 
Speaking at the Australian Mortgage Conference 2012 in Sydney today, she told delegates it was not unusual for housing prices to fall, especially if they had been booming previously, or if the economy has turned down. 
“But for that to translate into a big upswing in mortgage defaults, the economy generally has to have weakened first,” she said. 
While Ellis says there is no reason why Australia should follow the same path as the United States, where the collapse in housing prices was accompanied by a rise in mortgage defaults, she says Australian mortgage lenders need to refrain from easing lending standards the way they did in the United States. 
“And so far, you have been refraining. It is a key difference between the two countries, and it motivates the title of my talk today: [Prudent Mortgage Lending Standards Help Ensure Financial Stability],” she says. 
In her talk Ellis sought to clear the misconception that all of lending in the US is non-recourse explaining that the “law in in most US states allows lenders to sue for any remaining shortfall from the proceeds of sale of foreclosed homes”. 
“Instead of imagining a ‘ruthless defaulter’ who walks away from their financial obligations, we need to focus more on capacity to pay and how it can decline. 
“The reality is that things can happen to people that make it difficult to repay their loans – their relationships break down, or they lose their jobs, or a member of the family becomes too ill to work or even dies. 
“We economists and credit risk modellers speak euphemistically of idiosyncratic shocks, but this is what we mean. Financial stability policymakers cannot legislate away these individual setbacks, but we can be alert to circumstances that could make them more common or more damaging,” she said. 
Ellis says policy makers and lenders “need to be alert to falling housing prices, but we also need to keep them in perspective”. 
“There still needs to be an underlying problem with the borrower’s ability to repay before they default. 
Ellis says the RBA does not think it is sensible to “rely on simple rules like a ratio of loan amount to income”, acknowledging that “many Australian lenders sensibly take borrowers’ other obligations and expenses into account when determining how much debt can be serviced, and thus how much they will lend”. 
“Both lenders and policymakers need to think about more than just the explicit loan terms. 
“We must consider the variability of those terms, and of the circumstances of the borrower,” she says. 
“For example, does the borrower have an unusually volatile income or employment history? And have both the borrower and lender allowed enough of a margin to cope with interest rate changes? 
“We must also consider who has the option to vary those loan terms. Australian borrowers’ tendency to repay ahead of schedule is a good example of this. And we must consider whether and how the lender can verify that the information they base their decisions on is true.”
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RBA warns prudent mortgage lending vital in housing downturn

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The Fortune of War hotel – marketed as the oldest continuously licensed pub in Australia – has been listed for sale after nearly 25 years in the same hands.
<img src="/images/stories/fortuneofwar5.jpg">
The Fortune of War, which dates back to 1828, is part of a recently renovated hotel complex positioned opposite Circular Quay in Sydney. The actual George Street hotel is a three-storey facebrick building with stucco detailing built in 1922. The first recorded licensee of the public house was John Boreham who was the seller of wines, malt and liquor. In March 1976 Tooth &amp; Co relinquished its head lease to the Sydney Cove Redevelopment Authority, and the lease has been with publican Robert Keyes since 1987.
Given its location in Sydney’s Rocks district it has prided itself on the reputation of being the first and last port of call for generations of Australian and visiting soldiers.
<img src="/images/stories/fortuneofwar2.jpg">
“With over 100k per week in revenue, it will be hotly pursued,” Jolliffe advised Property Observer.
Of course the claim of Sydney's oldest pub is also claimed by the more upmarket Lord Nelson. In May this year Fairfax writer Mark Chipperfield wrote the nearby Lord Nelson has the words "Sydney's Oldest Hotel" painted on its exterior in bold letters. Chipperfield noted on face value, the Lord Nelson's claim on the title of oldest pub seems unassailable: built in 1836 using sandstone blocks quarried from Observatory Hill, the pub has held its liquor licence continuously since May 1841. But there are some flaws in the claim including the building being initially built as a private residence for William Wells, a local merchant and publican, and only transformed into a hotel in 1841.
<img src="/images/stories/fortuneofwar3.jpg">
The latest offering comes with The Fortune of War Hotel, The Russell Hotel (which offers accommodation, pictured below) and The Russell Wine Bar (pictured above) at the Rocks. Its Ray White Hotels listing agent Andrew Jolliffe told The Shout that the hotel market dynamics changed in October last year after the gap between buyer and seller closed earlier in the year.
<img src="/images/stories/fortuneofwar4.jpg">
“We could see the value bounce in quality assets was far more likely than less likely," he said.
Jolliffe <a target="_blank" href="https://www.raywhite.net/?p=4697">joined the Ray White Hotels Australia group</a> following its expansion from Brisbane into Sydney.
Over the past 20 years, Jolliffe’s senior executive roles included general manager of the Palace Leisure Group, managing director of the Grant Samuel Private Equity Pub Fund and chief executive of ASX -isted hotel company National Leisure and Gaming Limited.
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Sydney’s Fortune of War, Australia’s oldest pub, listed after 25 years 

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Change seems to be the meme of the day. I guess by next week we could have a Gillard government, a new Rudd government, or, more improbably, an Abbott-led Liberal government. 
I think change is one of the hardest things for humans to internalise. We tend to be wired to taking all that we see around us as given and assuming that this slice of time will remain static. History teaches us that one of the few constants is, however, change. 
With this inspiration, I will try and address three questions about “change” today. 
First, has the change in interest rate expectations, and the banks’ controversial decision to raise rates, altered the outlook for Australian housing? 
Second, would it be hard to permanently change the competitive complexion of Australia’s banking system, which is subject to so much heated debate? 
And, lastly, should changes in market lending rates be tied to the RBA’s monthly meetings? 
To the detail. 
By the end of last year we had grounds for optimism about the direction of Australia’s housing market. During November and December, home values in Australia’s capital cities actually edged higher, on average, in seasonally adjusted terms. 
This was a noteworthy break from the 2011 trend of modest house price depreciation in concert with robustly rising household incomes. That is, striking improvements in affordability. 
The apparent turn in Australian housing conditions coincided with two very important interest rate reductions by Australia’s central bank, which, at the time, were fully passed onto borrowers by private sector lenders. This helped push average variable mortgage rates to levels that were clearly below their long-term averages. Fixed-rate loans are even more accommodative again. 
The final dynamic of consequence was the dramatic improvement in consumer expectations about their future finances, which I have discussed many times here before. 
Households went from budgeting for several rate hikes to banking on rate cuts. Indeed, the financial markets were forecasting a total of six RBA rate cuts by the middle of this year. I was of the view that while this was incredibly unlikely, it would almost certainly spark very sprightly house price growth if it did come to pass. 
Sitting in February 2012, things have changed. As we know, the banks have boosted mortgage rates back up by about 10 basis points. The RBA shocked most observers by not cutting rates in February. And consumers and the financial markets now no longer expect a huge amount of additional interest rate relief. 
These are the new facts we have to work with. While a central case cannot be quite as bullish as it was following the fully passed-through December cuts, it remains arguably characterised by one of stability. 
I am confident Aussie house prices will find a base at some point in the next one to two quarters. And, once they do, it is reasonable to think that the cost of housing will continue, as it has typically done in the past, to accrete broadly in line with purchasing power, and hence household incomes. 
Was there a time when the competitive contours of Australia’s housing financing market were very different to that which we are so accustomed to seeing today? 
It transpires that there was. I was recently wading through the ABS’s housing finance data when I decided to have a look at how the market share of different lenders varied through time. The chart below illustrates the results.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/feb23.gif"><img src="/images/stories/feb23thumb.gif"></a>
In 1975, building societies and non-bank lenders accounted for about half of all the new home loans written. This situation, facilitated by tighter regulations on banks, including interest rate caps, persisted until the early to mid-1980s. 
A combination of financial market deregulation, the removal of barriers to foreign bank competition, industry consolidation, and the transformation of some building societies into banks, resulted in a structural change in the bank versus non-bank market shares from 50:50 to circa 80:20 by the late 1980s. 
After an additional rise in the banks’ share of the competitive pie to around 90% of all new flows in the early 1990s, something began to change. 
In short, the advent of a cost-effective, and arguably safer form of “matched” funding, which involved the packaging up and sale of entire parcels of home loans to third-party portfolio investors that were prepared to buy them, spurred a decade and a half of new competition with the return of non-banks, like Aussie, Wizard and RAMS, and also, importantly, empowered smaller banks and building societies, such as Adelaide Bank and CUA. 
Once again we were greeted by change, with a new industry equilibrium. Building societies and non-banks consistently attracted about one-fifth of all customers, with the banks keeping the remainder. 
One problem with the new funding medium was that it had no government support since the regulatory infrastructure was not divined with securitisation in mind. Bankers like to claim that those lenders that relied on securitisation had “flawed business models”. 
In truth, funding yourself via an arm’s-length sale of your assets is intrinsically safer than funding with an asset-liability mismatch: that is, borrowing in the short-term from retail depositors and wholesale creditors, and committing that money to long-term loans. The latter approach constantly exposes banks to the risk of insolvency, which is why they inherently need so much taxpayer support (and a liquidity provider of last resort known as the central bank). 
During the GFC, the government’s reflexive response was to protect the core of the financial system and worry about smaller competitors later. That is, it focused on so-called “system stability”. And so taxpayers guaranteed bank deposits, bank liabilities, and the central bank lent to the banks like it never had before. 
With the effluxion of time minds turned to how the increasingly uneven playing field could be levelled. This compelled the government to support the liquidity of securitisers by having a subsidiary of the Treasury invest in AAA-rated portfolios of bundled home loans. By definition, this was safer than guaranteeing more lowly rated banks. 
Nevertheless, we have today an unprecedented concentration in major bank power, with building societies and non-banks now accounting for just 7.5% of the flows. There is naturally an almost unfathomable amount of capital that has a vested interest in preserving this state of affairs. It will not, therefore, be easy for policymakers to effect any change to it. I think somebody once called this “money-power”. 
The final question I posed was whether the banks are correct in arguing that they should be able to set their lending rates independently of the RBA’s monthly meetings. 
The RBA’s former head of domestic markets, John Broadbent, notes that, “funding costs are not entirely determined by the [RBA’s] cash rate, but the major determinant is either the present level of the cash rate or expected changes in the cash rate”. 
The other main driver of costs is the margin banks pay above the government bond rate for their funding. This spread reflects, among other things, the risk of a bank defaulting on its debts. Much of the time these credit spreads are relatively stable. Every couple of decades, however, a credit crisis comes along and the markets reprice bank risk. 
Yet the highest-frequency influence on funding costs is the RBA’s monthly board meeting, which sets the overnight cash rate. The RBA’s goal is to work out whether the banks’ lending rates are at the “right” levels to keep inflation within its target band. If they are not, the RBA adjusts its cash rate. 
Millions of Australians with variable-rate loans have been conditioned to this convention. While banks are right to highlight other influences on the price of money, they are wrong to create an artificial disconnect with monetary policy.
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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