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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Successful negotiations of a fresh lease agreement would allow Dexus to achieve its target of leasing more than 80% of its 1 Bligh Street, Sydney office building by June 2012, the property group has revealed in interim results.
Dexus says 1 Bligh Street is currently 68% leased by area, with law firm Clayton Utz and the Commonwealth Government the major tenants.
Dexus says it is currently in exclusive negotiations for a further four floors of the <a target="_blank" href="https://www.propertyobserver.com.au/office/sydney-s-1-bligh-street-valued-at-%24629-million/2011101051875">six-green-star premium office building</a>, which would take occupancy in the building to 82%.
In November it was reported that business information provider <a target="_blank" href="https://www.propertyobserver.com.au/office/bloomberg-considering-move-to-sydney-s-1-bligh-street/2011112452537">Bloomberg was considering</a> moving into the flagship office tower.
The property group announced net profit attributable to stapled security holders after tax of $145.7 million for the six months ended December 31, 2011
Dexus chief executive Victor Hoog Antink says the results are in line with guidance and underpinned by like-for-like net operating income growth of 2.4%.
“Our focus on leasing has seen us already secure more than 99% of 2012 financial year rental revenue,” he says.
Dexus secured lease renewals over 19,572 square metres in the half-year period, 91% of which were leases expiring in future periods. During the period 6,712 square metres of new leases were signed.
In October, <a href="https://www.propertyobserver.com.au/office/dexus-will-take-four-years-to-lease-1-bligh-street-merrill-lynch-analyst/2011101951988" target="_blank">Merrill Lynch analyst Simon Garing forecast</a> it would take at least four years to fully lease 1 Bligh Street.
The building at 1 Bligh Street has won numerous architectural, design and sustainability awards since being completed earlier this year.
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Dexus yet to meet leasing target at 1 Bligh Street 

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Westfield Sydney on Pitt Street Mall in the Sydney CBD achieved the highest specialty sales productivity in Westfield’s global portfolio, according to the group’s 2011 annual results.
The flagship store achieved speciality annual sales of more than $16,000 per square metre, with the next best performer being the Chermside Mall in Brisbane, which achieved speciality sales of $13,700 per square metre. The Chermside Mall is also Westfield’s biggest mall with 146,000 square metres of space.
Westfield Sydney, which has 257 stores and a gross lettable area of 78,000 square metres, is valued at just under $1 billion (up $944 million from $942 million) in the annual report while the adjacent Sydney Central Plaza, also on Pitt Street, is valued at $299 million, up from $287 million.
Westfield Bondi Junction in Sydney’s eastern suburbs, which achieved retail sales of $973 million or $12,400 per square metre, remains the most valuable in the Australian portfolio valued at $1.05 billion
Bondi Junction rents sit at about $1,200 per square metre.
The annual report does not provide annual sales figures for Westfield Sydney but co-CEO Steven Lowy says David Jones in Westfield Sydney and Myer in Sydney Central Plaza achieved sales of $1.1 billion for the year.
He describes the store as an “immediate success” that was “changing the face of retailing in the Sydney CBD with its combination of global and local high street retailers and high-quality dining”.
Lowy says rents at Westfield Sydney averaged $1,500 per square metre, the highest for a project of this scale and higher than in Westfield London and <a href="https://www.propertyobserver.com.au/retail/one-million-weekly-london-shoppers-buoy-westfield/2011110852254" target="_blank">Westfield Stratford </a>– its newest stores in the UK.
As a standalone store Sydney Central Plaza achieved annual sales of $357 million, with speciality annual sales of $16,000 per square metre.
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Westfield Sydney ‘changing the face of retailing’, but Bondi Junction the most valuable: Steven Lowy

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Shopping centre group Westfield Group has reported net profits of $1.53 billion on the back of strong speciality store sales, a record volume of leasing activity and growth in property income.
The 2011 result to December 31, 2011 was driven by net property income increasing 7% during the year to $2.06 billion, a 100% increase in the group’s property management income to $114 million and a 92% increase in project income.
Net profits were up 37% on 2010 profits of $1.12 billion. 
Property income in local currency terms was up 8% in Australian and New Zealand stores, up 1% in the United States and up 36% in the United Kingdom.
In Australia, comparable specialty retail sales for the 12 months were up 1.5% and up 1.9% in New Zealand, with the strongest performance in both Australia and New Zealand being in the December quarter – up 2% and 4.8% respectively on the September 2011 quarter.
Australian retail outlets account for nearly half of the 24,000 outlets in the group’s 118 outlets, according to the 2011 annual results.
Co-chief executive Steven Lowy says there was good demand for space, particurlarly in the December quarter, the strongest for the group in two years, with 3,000 leasing deals signed.
The Australian / New Zealand portfolio was more than 99.5% leased at December 31, 2011, with the United States portfolio at 93.1% and the United Kingdom at 99%.
Across all regions, Westfield shopping centres are 97.5% leased.
Lowy says there was “solid growth” in average rents by 3.5%.
In the United States, comparable specialty retail sales for the 12 months to December 2011 were up 7.1%, with sales in the December quarter up 9.8%.
At Westfield London, sales for the year were over £960 million, up 10.8% year on year.
“Particularly pleasing was the record volume of leasing activity during the year, with over 5,100 leases agreed covering over 960,000 square metres of retail space. This highlights the retailer demand for our high quality portfolio globally,” write co-CEOs Peter and Steven Lowy. 
Peter and Steven Lowy say the result was at the upper end of Westfield’s earnings forecast range after absorbing a 12% appreciation in the Australian dollar to the US dollar and an 8% appreciation to the UK pound over the year.
Currently, the group has $2.4 billion worth of projects under construction, with Westfield’s share being $1.3 billion. This includes <a href="https://www.propertyobserver.com.au/retail/westfield-stratford-city-what-the-million-saw/2011110852259" target="_blank">Stratford City</a>, in east London, which opened during the year and is <a href="https://www.propertyobserver.com.au/retail/one-million-weekly-london-shoppers-buoy-westfield/2011110852254" target="_blank">the largest urban shopping centre in Europe</a> and adjacent to the London 2012 Olympic venue.
The centre has had 13.6 million shopping visits in its first 14 weeks from opening to December 31, 2011.
During the year, Westfield commenced work on $760 million worth of new projects, including Fountain Gate in Australia and UTC in San Diego.
 
 
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Westfield profits up 37%, with solid rental growth

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Yes, there is some good news out there.  It isn’t making the headlines, but it is out there nevertheless.
Here are seven positive points to help you make it through your real estate day.
<ol>
<li>The vacancy rate is tight.  In most capitals and major regional markets it remains under 3% and is much lower in Brisbane, Sydney, Perth, Canberra and central Queensland.  Rents growth is starting to accelerate, and we know of numerous examples where more than 30 rental submissions are being received for vacant rental dwellings across Brisbane.</li>
<li>Sales have improved since mid-year, and those vendors who meet the market are selling – and now, often quickly.  It is still a buyer’s market – with the high supply of stock for resale – ensuring that you need to realistically price and market your property well in order to make a sale.  Investors are starting to take their properties off the market and are renting them out again, as they are attracting good rental yields.</li>
<li>Last year’s interest rate drop is having some impact – with the number of owner-occupier loans up 2% in December.  Housing investment loans rose 7.5% in December, after a 2.7% rise in November.  First-home buying activity is currently at a two-year high. Generic prices might be still falling, but there are signs that the housing sector is starting to turn the corner.  The latest housing finance data provides a degree of encouragement.  Home loans have now increased for nine consecutive months, and the investor market is doing the bulk of the heavy lifting.   We have been saying for some time that it is the investors who will get the housing market back on its feet.</li>
<li>Hamilton Harbour – one of the first major Queensland apartment projects to face settlement since the GFC – is settling well.  No, that isn’t strong enough – it is going great guns!  I nearly said gangbusters, but that might be taking it a bit too far. At the time of writing, 89% of the 435 apartments sold since early 2009 have settled, with an overall 95% success rate likely by the end of this month.  <a href="https://www.propertyobserver.com.au/queensland/brisbane-s-rash-of-new-developments-could-have-trouble-getting-financing/2011072050860" target="_blank">We originally wrote about Hamilton Harbour in July last year</a>, stating that it should be on the industry’s “must-watch” list; it was a litmus test for the Brisbane market – a beachhead, if you will.  Sadly, few seem to be watching, and the media are not writing about it. This is big news for Brisbane-town. Other, lesser projects (if you ask me), also appear to be settling well. The average price of a settled apartment in Hamilton Harbour is $526,000, with just over $200 million worth of property settled so far.  Over 220 apartments have been leased in both the towers since late November last year.  The average gross rental yield – based on evidence to date and being rented out for 50 weeks per annum – is 5.3% across the investment stock.  The one-bedroom and one-bedroom with study units are achieving the higher yields.</li>
<li>The Melbourne Institute-Westpac confidence survey shows that late last year, price pessimists in Brisbane dominated (-10%) versus this month’s positive result of 27% (percentage of those expecting a rise minus percentage expecting a fall) – a 180-degree turn in just three months.  The Good Time to Buy a Dwelling Index is up in Queensland and also in Western Australia.  Queensland’s pending state and local elections will hopefully lift confidence higher.</li>
<li>While <a href="https://www.propertyobserver.com.au/economy/be-careful-what-you-wish-for-on-interest-rates-michael-matusik/2011103152145" target="_blank">we don’t need to build as many new homes as we once did</a>, outside of Melbourne, Adelaide, Canberra, Cairns and the Gold Coast, the new housing markets aren’t oversupplied. There is a lot of nonsense written about supply – published often by young’uns who can count (well, sometimes just) but have little understanding about how the new housing market actually works.  At present, for example, there is a lot of commentary (and press) about a pending oversupply of new apartments across inner Brisbane.  Now, whilst there is lots of new mooted apartment development – approved in council – the fact remains that not enough new product is actually being built. Over the last five years for example, 13,000 new dwellings were required to accommodate the population growth, yet – based on the official statistics – just 8,017 new dwellings were approved.  Last year, just 1,902 new dwellings were approved, against an annual average demand for 2,650 new housing starts.  At present there is a serious short-fall.</li>
<li>To finish, everything cycles, including the property market. The Brisbane market, for mine, is at six o’clock on the property clock or at the bottom of its cycle.  Many investors try to pick the bottom of the market.</li>
</ol>
Yet, the direction in which property values travel is only partially dependent on the broader market conditions.  Recent studies show that about 40% of growth (or otherwise) can be explained by trends in the overall market.  The all-important 60% comes down to more individual factors such as location, the style of housing, its design and inclusions, and the income/demographics of the area.
However, a 40% swing in your favour shouldn’t be sneezed at, especially after what the Brisbane market has been through of late.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
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michaelmatusik-49YzLvdmNv

Seven positive signs for Australia’s property markets

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Income from a property investment is generated through the receipt of growing rent secured by a lease contract. The variability of income is low. Earnings in Australian real estate investment trusts from additional sources, including property development and funds management, dilute this stability. 
Property income exposure within an A-REIT portfolio can be enhanced by selecting those A-REITs that reflect these characteristics of property. Up until the onset of the GFC, the use of gearing increased reflecting the relatively low cost and ready availability of debt. This exacerbated the steep rise and subsequent decline in market capitalisation of A-REITs. 
In the four years leading up to December 2007, average A-REIT price performance of 9.1%  per annum reflected using increased leverage, acquiring overseas properties and higher valuations on fund management businesses. In the four years to December 2011, the average price fell by 22.5% per annum. By contrast, the average annual income return for the four years to December 2007 was 6.6% per annum compared with 7.1% per annum for the subsequent four years to December 2011. 
Not only was there a stark contrast in performance, volatility increased significantly as market prices and sentiment deteriorated. The magnifying impact of excessive gearing was evident in performance between the two periods. Volatility of return increased from 11.6% per year in the four years to December 2007 to 33.1% per year in the four years to December 2011. Annual volatility of income returns decreased from 3.5% per year to 2.6% per year between the same two periods. 
The income generated by property is relatively stable. The introduction of alternative sources of income including development profit, transaction and fund management fees shifted the characteristics of an A-REIT investment away from property fundamentals and increase volatility of returns. By focusing on contracted rental income, the business risks and associated volatility of return of the investment can be reduced. Imprudent gearing will magnify volatility of earnings and returns.
Mark Wist is senior asset consultant at <a target="_blank" title="Atchison Consultants" href="https://www.atchison.com.au/">Atchison Consultants</a>.
 
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Income in A-REITs is the essential attribute of property investment

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The combined property-finance-business sector was the only industry to record an improvement in both profitability and confidence over January, according to the NAB monthly business survey.

On the back of a small overall rise in both business conditions (up two points) and business confidence (up one point) in January, profitability rose “marginally” in the finance-property-business sector as well as in the recreation and personal services industry.

The proportion of businesses not requiring finance increased from 64% to 67% in January, the highest figure since the survey was first asked.
<img src="/images/stories/nabfeb15.gif">
Source: NAB
Confidence also strengthened in the property-finance-business sector, with the industry index rising four points to +3 on this measure.

In line with <a href="https://www.propertyobserver.com.au/residential/queensland-building-approvals-up-25%24-but-national-approvals-fall-abs/2012020253231" target="_blank">historically weak building approvals</a> and a challenging economic environment, sentiment in the construction sector deteriorated over January.

NAB recorded a nine-point drop in construction industry confidence (alongside a similar fall in the wholesale sector), while there was a heavy 30-point fall in construction sector profitability.

The construction industry found itself on the wrong side of most measures in the survey, including forward orders and capital expenditure.

Construction is also the second most under-used industry in the economy alongside retail, operating at 79.8%, ahead of manufacturing (76.1%). Capacity utilisation is highest in mining (87.1%), according to the survey.

 Summing up the January index, NAB said there were “heavy falls in conditions in wholesale, transport and utilities, and construction, broadly offset by improvements in mining, manufacturing and recreation &amp; personal services”.

On a state-by-state basis, business conditions deteriorated sharply in SA and Tasmania, but strengthened modestly in Victoria and Queensland.





 
 
 
 
 
 
 
 
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Property sector profitability and confidence improves, but construction falls further: NAB

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If our economists are armed with all the research available in today’s information age, why can’t they agree on where are our property markets are heading? 
In fact a better question would be, why do so many get it wrong? 
The simple answer is that market movements are far from an exact science. 
It’s more than just fundamentals that move markets. 
The fundamentals – like population growth, supply and demand, employment levels, interest rates, affordability and inflationary pressures – are easy to monitor. 
However, one overriding factor that the experts have difficulty quantifying is investor sentiment. 
In a recent report, AMP chief economist Dr Shane Oliver explains that people often suffer lapses of logic when investing and many of their investment decisions are driven by emotion. 
For example, we tend to extrapolate the present into the future. When things are booming we think the good times will never end, and when the market mood is glum, we have difficulty seeing the light at the end of the tunnel. 
Think about it – when the media reports falling property prices or an impending housing crash, many investors become scared and sit on the sidelines, believing the end of property is nigh and things will never improve, when in reality much of the risk has been removed from the market. 
Conversely, when property markets are booming and stories of investors seemingly making large gains overnight abound, people want to jump on the bandwagon and cash in – often at a time when the market is near its peak.
 
Other emotional traps include becoming overconfident, wishful thinking and ignoring information that conflicts with your current views. In other words many investors create their own “reality”. 
Can you see how this type of activity, influenced by investor psychology, drives booms and busts? How the dominant investor mentality of the time helps drive the property cycle? 
Simply, when investors put on the brakes, housing values tend to stagnate or fall due to lack of demand. And when they jump back into the market, demand rises and up go prices. 
Obviously one or two misguided investors won’t be able to influence property prices, but investor sentiment is contagious. 
People tend to want to do what others are doing – they follow the crowd because going against popular opinion is seen as risky. What if you make a mistake? What if the others are right and you are wrong? 
Oliver says this “collective behaviour” is magnified by several things, including; 
<ul>
<li>
Mass communication enabling the behaviour to become infectious. Now more than ever we are bombarded with messages from the media influencing how we think and feel about things. When we hear that real estate is doomed, all but a handful of sophisticated investors get scared out of the game. And when the media tells us housing markets are booming everyone wants a piece of the action.</li>
<li>
Pressure to conform If your friends or family are doing it, it must be right. Right? Human nature makes us reluctant to do the opposite of what our peers are doing. </li>
<li>
A major precipitating event can give rise to a general belief that motivates investor behaviour. The global financial crisis scared waves of investors out of the markets. On the other hand, the resource boom enticed thousands of investors into west coast housing markets to cash in. </li>
<li>
A general belief that grows and spreads When the belief that property values can only go up spreads through an uneducated new generation of investors they enter the market pushing prices up even further, perpetuating the belief and helping make it a reality. Similarly when the crowd believes the market is going to crash, they steer clear, this gets reported in the media and the negative sentiment feeds on itself. </li>
</ul>
Oliver observes that these “lapses in logic” by individual investors and the magnification of such lapses by crowd psychology feeds property cycles and goes a long way in explaining why we see boom and slumps at different points in time. 
When investor sentiment is positive, the crowd jumps in feet first, pushes up demand and places upward pressure on prices – causing boom conditions. Conversely, when sentiment is negative, the crowd backs off and frequently sells out of the game due to concerns that they’re about to lose everything – causing market slumps. 
What can an investor learn from this? 
<ol start="1">
<li>Our property markets are not only driven by fundamentals, but also by the often irrational and erratic behaviour of an unstable crowd of other investors.</li>
<li>Booms never last forever, neither do busts. Don’t be surprised when they come around, and don’t overreact. According to Oliver, this will help you avoid being sucked into booms and spat out during busts.</li>
<li>Treat your property investments like a business and stick to a proven strategy to take the emotions out of your investment decisions.</li>
<li>Recognise that property is a long-term play and set up financial buffers to help you ride the property cycles. </li>
</ol>
Invest counter cyclically.
Warren Buffet once said: “We attempt to be fearful when others are greedy and to be greedy only when others are fearful.” 
This is also the investment strategy of many successful property investors. 
I’ve always been an advocate of counter-cyclical investing. I’m often sceptical of conventional wisdom – not because the crowd is always wrong, but because the crowd is always late. 
Sure, it takes some courage to do the opposite of what everyone else is doing, but the results of your contrary behaviour will ultimately speak for themselves.
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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Why economists’ property predictions are so often wrong 

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Mosman heads top 100 list, with Kew, Paddington and Castle Hill climbing the ranks and Hope Island and Vaucluse tumbling 

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Despite growing demand from investors for distressed listed Australian commercial properties, supply is set to easily exceed demand during the first quarter of 2012, according to research by the Royal Institute of Chartered Surveyors.
The report shows levels of distressed commercial properties on the market increased from quarter three to quarter four, the RICS Global Distressed Property Monitor found.
Globally, demand for distressed commercial properties increased as more distressed commercial properties entered the market.
The levels of increasing demand are unprecedented, according to the report, with 80% of the countries surveyed reporting increased investor interest.
“Indeed, in most cases the pace of rising demand picked up at a faster pace than previously seen,” writes RICS economist Matthew Edmond
“The rise in the number of countries reporting rising investor appetite for distressed assets may be viewed as an indication that prices in the market place are getting closer to offering value.”
Scandinavia, UAE, Italy, France and Japan led the push for increasing demand from investors, and only three counties surveyed reported decreasing demand.
Countries at the centre of the eurozone debt crisis are expected to have the fastest rising levels of distressed commercial property entering the market, with the Republic of Ireland, Portugal, Spain and Italy topping the list.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/distressl.gif"><img src="/images/stories/distressthumb.gif"></a>
“Given the ongoing and intensifying problems in Europe, it is little surprise that respondents in many of these countries are more pessimistic,” writes Edmond.
“The continuing debt crisis in the area is clearly adversely affecting sentiment, as property professionals in France and Germany also anticipate further rises in distressed selling.”
Ireland and southern European nations also top the list of countries where supply outstrips demand.
An expected fall in supply was reported by seven counties, two more than in the previous quarter, but the majority of respondents in Europe still expect supply to exceed demand.
 
 
 
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Supply of distressed commercial properties to outstrip demand: Royal Institute of Chartered Surveyors

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RBA deputy governor Guy Debelle says an improving banking outlook in Europe might lead to lower funding costs for Australian banks but the current uncertainty will remain. 
Speaking today at the Bloomberg Seminar in Sydney, Debelle says there has been “a thawing in bank debt markets” in 2012. 
“With the beginning of the new year, the investment slate is clean and risk tolerance thus far is on the increase. This development has been bolstered by the avoidance of worst case outcomes … and by the European Central Bank’s action [in December to bolster liquidity],” he says.
However, he provided support to the decisions of the major banks to push up variable mortgage rates independently of the RBA by admitting that there had been a “sizeable step up” in the cost of debt issuance in 2011.
“Investors are demanding much higher compensation for bank credit risk now than they were in mid-2011. The repricing probably happened in the last quarter of 2011, but the general lack of issuance made it more difficult to observe.
“This global repricing of bank debt has clearly affected the Australian banks’ wholesale funding costs,” he says.
<img src="/images/stories/coveredbonds2.gif">
In his presentation, Debelle included a table that showed how bond market issuance costs had risen recently with covered bonds issued by the Australian banks “at markedly wider spreads than their unsecured issuance mid-year”.
The cost of issuing residential mortgage-backed securities, another form of offshore wholesale funding, also increased over the course of 2011.
<img src="/images/stories/debelle1.gif">
However, Debelle says there are some signs of encouragement with a “sizeable narrowing of spreads in the secondary market on the domestically issued covered bonds, to around 140 points over swap” over the past few days.
“This narrowing in bank credit spreads was confirmed by the unsecured issuance last week.”
Despite this encouragement, Debelle acknowledges that some corporations are able to raise funding more cheaply than the major banks because of their higher credit rating.
“For example, Coke, which is rated A-, was able to issue more than 100 basis points below the AAA rated domestic covered bond issues,” he says. 
In addition, he says the rise in wholesale funding costs has been “accentuated for funds raised offshore by a widening in the cost of swapping foreign exchange into Australian dollars”.
Overall he says the start of 2012 has been more positive than the end of the last year.
“Whether this happier state of affairs persists is difficult to tell. There have been outbreaks of optimism over the past couple of years which were dashed,” Debelle warns.
“I think the only thing which is certain, is that uncertainty is likely to persist for some time to come.”
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