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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Expectations that the Gold Coast is heading for a massive oversupply  of apartments have been greatly overstated, according to Andrew Bell, CEO of Ray White’s Surfers Paradise Group, who believes the market is beginning to turn around.
“Over the past two years all forecasters and researchers predicted an oversupply of high-rise apartments, with one prediction of five years’ oversupply,” says Bell.
“These forecasts completely misread the market,” he says.
Coming on the back of an attack from <a href="https://www.propertyobserver.com.au/hotspots/kochie-s-right-stay-away-from-the-gold-and-sunshine-coasts-sqm-director-louis-christopher/2012020153218" target="_blank">Channel 7’s David Koch, who called the Gold Coast and Sunshine Coast “catastrophes”</a>, Bell says there has been no shortage of buyers at the start of 2012, with his office notching up 50 sales in Oracle, the luxury apartment development on Broad Beach, in the first six weeks of the year.
Bell also highlights research by the Midwood Group showing there were 73 apartment sales in the quarter to November 2011, the highest in 15 months, leaving only 552 apartments available for purchase – the lowest level of stock in nine years.
<img src="/images/stories/gcstock.jpg">
He says the issue is not current sales rate, “as that can change rapidly – and is”, but “dwindling stock supplies that take years and years to turnaround”.
According to Bell, Queensland unit development approvals are at levels last seen in the 1980s, with no super high-rise buildings under construction.
“All remaining stock for sale is in completed buildings – there is only one medium high-rise building under construction – Eclipse (a 56-apartment building on Broad Beach) due for completion in 2012,” he says.
“There is no official start date for construction of any new high rises, although plans have been approved for several developments.
“Any new building will be anywhere from three to five years until completion – longest void of construction in Gold Coast’s recent history,” he says.
According to Bell, there are many indicators the market is turning around, including declining unemployment (down from a peak of 8.1% to 6.4% in November 2011), the economic stimulus from winning hosting rights for the 2018 Commonwealth Games (Bell equates this to the impact of the mining boom on nearby towns), a 9.5% increase in daily visitors from Brisbane and a relaxation of student visa requirements that will boost the local education industry.
In addition, he says foreign investment, which has declined over the past five years, is on the rise.
He quotes recent Colliers research that shows that Chinese buyers accounted for nearly a third of foreign purchases of Queensland residential real estate during the 2010-11 financial year, with record amounts spent on Gold Coast property.
“Chinese were the strongest with 32%, followed by Japan, NZ, Russia, Singapore, Hong Kong and South Africa,” he says. 
Bell says Chinese investment in the Gold Coast is tipped to snowball after China-based Ridong Group secured a $1 billion triple-tower project at Surfers Paradise. 
Year-on-year figures to August 2011 released by the Midwood Group record 242 apartment sales on the Gold Coast compared with 236 over the previous 12 months.
For more on Asian investors in Australian property,<a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets"> download our free eBook.</a>
 
 
 
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lschlesinger-FZcF9M3vE6

Gold Coast property market turning around strongly as stock levels fall: Andrew Bell

<html><body>
<table style="width: 436px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="64" valign="top">
				Rank 2011
			</td>
			<td width="45" valign="top">
				Rank 2012
			</td>
			<td width="69" valign="top">
				Location
			</td>
			<td width="96" valign="top">
				Occupancy Cost (€/sq.m/year)
			</td>
			<td width="100" valign="top">
				Occupancy Cost US $/sq.ft/year
			</td>
			<td width="62" valign="top">
				Rental growth/decline (%)
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				1
			</td>
			<td width="45" valign="bottom">
				1
			</td>
			<td width="69" valign="bottom">
				Hong Kong
			</td>
			<td width="96" nowrap valign="bottom">
				2026
			</td>
			<td width="100" nowrap valign="bottom">
				244
			</td>
			<td width="62" valign="top">
				1
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				2
			</td>
			<td width="45" valign="bottom">
				2
			</td>
			<td width="69" valign="bottom">
				London (West End)
			</td>
			<td width="96" nowrap valign="bottom">
				1978
			</td>
			<td width="100" nowrap valign="bottom">
				239
			</td>
			<td width="62" valign="top">
				8
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				3
			</td>
			<td width="45" valign="bottom">
				3
			</td>
			<td width="69" valign="bottom">
				Tokyo
			</td>
			<td width="96" nowrap valign="bottom">
				1635
			</td>
			<td width="100" nowrap valign="bottom">
				197
			</td>
			<td width="62" valign="top">
				7
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				7
			</td>
			<td width="45" valign="bottom">
				4
			</td>
			<td width="69" valign="bottom">
				Moscow
			</td>
			<td width="96" nowrap valign="bottom">
				1223
			</td>
			<td width="100" nowrap valign="bottom">
				148
			</td>
			<td width="62" valign="top">
				41
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				n/a
			</td>
			<td width="45" valign="bottom">
				5
			</td>
			<td width="69" valign="bottom">
				Beijing
			</td>
			<td width="96" nowrap valign="bottom">
				1082
			</td>
			<td width="100" nowrap valign="bottom">
				130
			</td>
			<td width="62" valign="top">
				75
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				5
			</td>
			<td width="45" valign="bottom">
				6
			</td>
			<td width="69" valign="bottom">
				New York (Midtown)
			</td>
			<td width="96" nowrap valign="bottom">
				992
			</td>
			<td width="100" nowrap valign="bottom">
				120
			</td>
			<td width="62" valign="top">
				4
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				6
			</td>
			<td width="45" valign="bottom">
				7
			</td>
			<td width="69" valign="bottom">
				Sydney
			</td>
			<td width="96" nowrap valign="bottom">
				987
			</td>
			<td width="100" nowrap valign="bottom">
				119
			</td>
			<td width="62" valign="top">
				6
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				4
			</td>
			<td width="45" valign="bottom">
				8
			</td>
			<td width="69" valign="bottom">
				Rio de Janeiro
			</td>
			<td width="96" nowrap valign="bottom">
				904
			</td>
			<td width="100" nowrap valign="bottom">
				109
			</td>
			<td width="62" valign="top">
				-8
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				9
			</td>
			<td width="45" valign="bottom">
				9
			</td>
			<td width="69" valign="bottom">
				Paris
			</td>
			<td width="96" nowrap valign="bottom">
				875
			</td>
			<td width="100" nowrap valign="bottom">
				106
			</td>
			<td width="62" valign="top">
				5
			</td>
		</tr>
<tr>
<td width="64" nowrap valign="bottom">
				10
			</td>
			<td width="45" valign="bottom">
				10
			</td>
			<td width="69" valign="bottom">
				Zurich
			</td>
			<td width="96" nowrap valign="bottom">
				809
			</td>
			<td width="100" nowrap valign="bottom">
				98
			</td>
			<td width="62" valign="top">
				-3
			</td>
		</tr>
</tbody></table>
 Source: Cushman &amp; Wakefield 2011
David Woolford, Cushman &amp; Wakefield managing director, Australia, emphasised that although Sydney fell by one place in the rankings, it is clearly a world-class city.
“A comparison of occupancy costs between Sydney, New York and London shows the strength of the property market in Sydney. It is important to understand however that this is an average occupancy cost calculation across the numerous city submarkets, each of which has the capacity to vary significantly depending on building grade and location,” Woolford says.
“These variations can be quite dramatic, so it’s important to understand these submarkets before any location decisions are made.”
 
Technical notes: For comparison purposes, since rents are often quoted on a different measurement basis in different markets, occupancy costs in the chart above are inclusive of office rents that have been standardized by adjusting the rent to a net internal area basis. In addition, total occupancy costs take into account service charges and local taxes to allow direct comparisons between countries.
 
 
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cknowlton-QnEa6ntUYP

Sydney slips to seventh on list of world’s most expensive office locations 2012

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Commercial property investors should be looking to acquire CBD office assets, which will soon deliver “extraordinary returns” because of a shortage of available space and not enough new stock in the pipeline, according to BIS Shrapnel chief economist Frank Gelber.
Gelber describes the current depressed state of the market as the “lull” before the storm.
He is says it is investors’ jobs to “take advantage of this current quiet patch before the undersupply becomes chronic, when markets are mispriced”, allowing them to buy office stock that will provide “extraordinary returns three to five year from now”.
Gelber bases this forecast on expectations that employment will pick up “solidly” this year on the back of strong minerals investment driving demand for new office space.
Currently though, he says corporate Australia is so risk-averse that it is looking to minimise expenditure at the cost of future growth potential and “delaying leasing commitments”.
“I am not nervous. This is the quiet part of the cycle, marking time, when there is still enough space to satisfy demand. But the writing is on the wall.
“I am not worried about demand – I am worried about supply. The real point is that we are not building enough to satisfy even moderate demand,” he writes in The Australian.
Click to enlarge
<a href="/images/stories/pcafeb9.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/pcafeb9thumb.gif"></a>
According to Gelber, large swathes of the economy that are not exposed to the effects of the high Australian dollar, such as housing, are still feeling the effects of the GFC but these will recover “as we run into capacity constraints and again start to invest”.
“That time,” he says, “is not far away”.
In line with the two-speed nature of the economy and the skewed impact of the resources boom, Gelber says the recovery will not be uniform.
“Western Australia was the first cab of the rank with only a slight pause in investment following the GFC. Queensland flatlined for two years after the GFC as investment fell between one round of projects and the next.
“But now an extraordinary surge of investment is committed underpinning future growth so that Queensland will be a strong market in a year’s time and booming in two.”
Gelber also expects a pick-up in South Australia on the back of the Olympic Dam project, and the Northern Territory and NSW will benefit from the next round of mineral projects.
“The Australian economy is not facing the problems of Europe and the US. We didn’t have a financial crisis. Our banks are strong and there is little excess capacity in the system.
“Sure, consumers and businesses are cautious, but there is little likelihood of a major downturn. Indeed I expect solid growth,” Gelber says.
 
 
 
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CBD offices to deliver 'extraordinary returns' in three to five years: BIS Shrapnel's Frank Gelber

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Australia has one of the strongest banking systems in the world because our banks didn’t play the silly overseas banking games of lending to people, organisations or governments who were unable to repay loans. But we have a weakness – our so-called ‘funding gap’ – and it's time to bring that weakness into the open, given that ANZ is this week deciding whether to lift mortgage interest rates.
Australian banks’ funding gap is the money they need to raise from the expensive overseas inter-banking market. It’s expensive because global banks no longer trust each other, as no one knows the extent of bank exposure to high-risk securities. 
To determine the size of the Australian funding gap I needed help, and not everyone will agree with the method of calculating the difference between bank loans and deposits (excluding wholesale deposits). But the methodology shows that we have a massive $625 billion funding gap.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/gottfeb9.gif"><img src="/images/stories/gottfeb9thumb.gif"></a>
In times gone by this funding gap could be filled overseas at interest rates that were lower than Australian rates. Now the overseas borrowing costs have risen sharply and are slightly above the local term deposits rates. It is the rising cost of filling the funding gap that is causing the banks to think about lifting mortgage rates despite the Reserve Bank’s latest steady interest rate stance.
At the moment, all the focus is on overseas borrowing maturities because when the old low-cost loans mature they must be replaced by higher-cost loans. And there have been periods where the overseas markets are not open, which requires banks to hold liquidity to see them through.
The graph above shows that Westpac has the largest funding gap, followed by the Commonwealth Bank, partly reflecting the major drive both banks undertook to increase housing market share some years ago. Both slightly improved their position in the last six months.
ANZ and NAB have a lower exposure but both edged up the size of their funding gap in the last six months – particularly ANZ. But both banks are smaller than CBA and Westpac.
The sharp rise in ANZ exposure underlines the importance to ANZ of having mortgage rates that reflect costs.
As I have written many times before, the Commonwealth government can borrow that $625 billion far less expensively than the banks can. If the federal government borrowed the money and loaned it to the banks, Canberra would make a healthy profit but would inevitably have greater influence over bank operations and levels of profit.
Alternatively, the banks could become much more aggressive at raising local term deposits. But to do that requires higher interest rates and major promotions. Currently, along with the falling official interest rates, term deposit rates are falling. The banks are offering in the vicinity of only 5% for one-year money. A few months ago it was over 6%.
On the other hand they are aggressive in bidding for four and six-month money and are offering between 5.7% and 5.8%. The banks are clearly punting on lower interest rates. But if they want to tackle the funding gap on a permanent basis they will have to lift their rates, because at around 5% superannuation money will start to drift away from banks to infrastructure, bank shares and other high-yielding securities.
This article originally appeared on<a href="https://www.businessspectator.com.au/" target="_blank"> Business Spectator</a>. 
 
 
 
 
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rgottliebsen-VjLFh9nsD4

Government can borrow and lend to banks to keep interest rates down: Robert Gottliebsen

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While the total return for the A-REIT sector was -1.6% in the 2011 calendar year, it outperformed the broader Australian equity market, which recorded a -11% return. A-REITs are now regaining some of the defensive characteristics they traditionally exhibit. 
Renewed optimism is occurring. It is driven by repaired and relatively healthy balance sheets. Sector gearing now averages approximately 28%, down from 37% in 2006. As current debt facilities expire over the course of this year, resetting these facilities at the lower interest rates will reduce interest payments. This will improve net earnings, just the same as any household budget with a mortgage. 
A-REITs trade at a near 10% discount to their net tangible assets (NTA). Some A-REIT managers such as Stockland and GPT are undertaking share buy-back schemes in order to boost their NTA. These buy-backs are being funded by targeted property asset sales at or above NTA. The net proceeds are then used to buy back their own discounted shares. 
Mergers and acquisitions is a theme that will feature this year. Charter Hall Office Trust will start the corporate activity, with a unit holder vote expected to ratify the privatisation of the trust in March. <country-region>Singapore</country-region>’s GIC and <country-region><place>Canada</place></country-region>’s Public Sector Pension Investment Fund are the investors. Another potential candidate for corporate activity is the newly revitalised Centro Retail Australia Trust, which is offering a prospective 6.8% yield on a portfolio of domestic retail assets held under a new structure which is trading at a 23% discount to NTA. 
The persistent discount between market prices and NTA is encouraging this corporate activity. This supported by the opportunities available to acquire institutional grade real estate at a discount. An additional benefit is the stamp duty saving over acquiring the assets outright. 
Reduced interest rates, prevailing discounts to NTA and repaired balance sheets provide solid prospects for A-REITs in 2012.
Mark Wist is senior asset consultant at <a target="_blank" title="Atchison Consultants" href="https://www.atchison.com.au/">Atchison Consultants</a>.
For more forecasts for what 2012 has in store for our property markets, <a href="http://propertyobserver.com.au/ebooks/free-ebook-property-forecasts-for-2012" target="_blank">download our free eBook</a>.
 
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markwist-Vaq6S8Xoby

Solid prospects for A-REITs in 2012

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Mortgage holders have received interest rate relief from lenders but businesses lending rates have not dipped at all, the latest RBA chart pack has revealed.
Business lending rates have not dipped following the November and December 2011 rate cuts:
<img src="/images/stories/rbafeb81.gif">
Mortgage holders have received interest rate relief from lenders but businesses lending rates have not dipped at all, the latest RBA chart pack has revealed.
<img src="/images/stories/rbafeb82.gif">
The chart pack also shows how the three-year fixed lending rate has fallen over the past year both for housing and small businesses in line with the benchmark 90-day Bank Bill Swap Reference Rate.
<img src="/images/stories/rbafeb83.gif">
This chart showing state output shows the impact the mining boom is having on the Western Australian economy and its growing share of the national output:
<img src="/images/stories/rbafeb84.gif">
 
 
 
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Lenders passing on rate cuts to borrowers but not businesses: RBA charts

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Keynesian purists are all clutching their foreheads, but actually it's pretty fabulous that Australia's politicians are competing with each other to promise budget surpluses: it's so much better than the appalling tax cut and spending competition of last decade led by JW Howard. 
Politicians can really only be trusted with emergency fiscal policy, such as when they flooded the world, and Australia, with blind government spending in late 2008. Otherwise borrow only in recession please, and at other times make outgoings less than incomings.
Central banks are running the global economy now, not finance ministers and bureaucrats. Elected governments are either tapped out or, in the case of Australia, splendidly sidelined by the potent political symbolism of surplus budgeting.
The European Central Bank and the US Federal Reserve are both using the rather novel strategy of printing money for financial speculators to play with to try and avoid another collapse and recession. Quantitative easing in the US and the ECB's LTRO strategy involve flooding the system with cheap money knowing that it won't be lent but gambled on carry trades and asset punts.
The result, as we begin 2012, is rising asset markets. In the US it's shares and property, in Europe all-important sovereign bonds, specifically in Italy and Spain. This morning's contraction in German industrial production, however, as well as the continuing weakness in US employment (highlighted by Fed chairman <a href="https://www.bloomberg.com/news/2012-02-07/bernanke-says-8-3-unemployment-understates-weakness-in-u-s-labor-market" target="_blank">Ben Bernanke this morning</a>) suggests that the transmission of this plan to the real economy is muffled.
The problem for the Australian central bank is that the speculators thus financed are keen on Australian assets, and why not? It's a AAA country paying 4% on 10-year bonds and a dividend yield of 8% on Telstra shares that is underpinned by government cash.
Australia is a carry trade paradise and to prove it the dollar is at, or close to, $US1.08, moving higher.
So does the RBA cut rates to bring down the currency, as some suggest? No, that won't work. The capital inflow is not investing in cash.
Far better, according to the RBA, to just watch the inflation rate, watch unemployment, try to ignore warnings about hardship and layoffs in the real world, and read up with what's happening in Europe.
On that basis there was a solid case for leaving rates on hold yesterday because, in theory and looking only at the stats, the economy is in equilibrium (moderate inflation, moderate to low unemployment) and Europe is looking a bit better thanks to the ECB's employment of the "good bacteria" of carry trade speculators keep the sovereign bond market afloat.
But as we have suggested previously in these columns, unemployment on the Australian east coast, and perhaps in the national statistics, is heading higher because retailers, manufacturers and banks are all cutting costs, because penalty rates are capping employment in hospitality and the currency is cutting tourism and exports.
In addition there seems a fair chance the banks will break cover and raise mortgage rates over the next month, starting with ANZ on Friday, which won't be great for the property market.
But at least Australia's RBA still has "sea-room", to quote Wayne Swan, to use normal monetary policy to impose a pay cut on the nation's bank depositors, thus lowering at least some of the banks' funding costs.
Other central banks can't do that since rates are at or close to zero. All they can do is print money for speculators to play with and hope that one day actual businesses will want to start borrowing to invest.
This article originally appeared on<a href="https://www.businessspectator.com.au/" target="_blank"> Business Spectator</a>.
 
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akohler-TyLfJGrMb8

There's a fair chance the banks will raise mortgage rates, starting with ANZ on Friday: Kohler

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Probably the biggest property myth of 2011 was the claim that Australia was in a “property bubble” that was about to burst. 
It was only a few years ago when “doomsday economist” Steve Keen predicted Australian house prices would plummet. Awkwardly for him, average house prices went up 40% rather than down. 
Interestingly, he now predicts that house prices will fall around 10% this year. I must admit I can see property values falling further in some areas, but I don’t see a property crash happening. 
Watch out for the economic tsunami 
Let’s not forget Harry Dent, another purveyor of doom, who came to our shores last year warning that an economic tsunami was about to hit. Starting in Europe, Dent predicted the downturn would spread to the US, China and eventually Australia, causing property values to drop to levels not seen since the late 1990s. 
He was right about the economic troubles facing most of the world, but I don’t think he understands the fundamentals of the Australian property markets. 
I’m not suggesting we are immune to the overseas problems, clearly we are not, but I can’t see a property crash occurring here. 
What about affordability? 
Throughout the year there were cries that housing is unaffordable and “something” had to be done. 
The year finished off with<a target="_blank" href="https://www.propertyobserver.com.au/residential/australian-housing-market-more-at-risk-than-pre-gfc-america-the-economist/2011112852565"> The Economist magazine warning that Australian house prices could plunge</a> by as much as 25% on the back of a global credit crunch caused by the European meltdown. This is not as bad as last year when the pundits suggested our property markets were overvalued by 61%, based on the ratio of house prices to rents.
 
This year started off with the latest <a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-and-melbourne-in-the-top-five-least-affordable-cities-in-the-world-demographia/2012012353110">Demographia International Housing Affordability Survey</a> reporting that “Australia exhibited the worst housing affordability of any national market outside Hong Kong".
So is our property market really so overpriced and is there a bubble waiting to burst? 
Let’s start by looking at the latest figures from RP Data. They suggest Australian property values fell by 3.6% nationally for 2011, with Brisbane and Melbourne experiencing a 6.8% and 6.1% market value decline respectively.
 
The most recent Australian Bureau of Statistics figures suggest capital city house prices fell 4.8% over the last year. 
The predictions of a property market crash just did not eventuate in our main capital cities. 
Of course, it did in some of our holiday locations, like the Gold Coast and the Sunshine Coast, but these were never really areas to invest in. 
I know some property pessimists would argue that the bubble is just getting bigger and bigger, which means Australia is heading for an even larger property crash. 
Is housing really unaffordable? 
I agree that to many, housing in Australia is expensive. But that’s what comes from having large dwellings in some of the best spots in the world to live. 
Let’s face it, house prices got ahead of themselves in some parts of Australia and have since corrected, especially in the more affluent areas and holiday locations. 
But that does not necessarily mean property is unaffordable or that it is going to crash. 
The most commonly used benchmark to determine whether housing is affordable is if it costs less than 30% of the household income. However, some households can afford to spend more than half of their income on mortgages or rents, while others struggled when housing ate up 30% or less of their gross earnings. 
Another way of measuring affordability 
A new <a href="https://www.ahuri.edu.au/themes/housing_affordability/">study</a> by the <a target="_blank" href="https://www.ahuri.edu.au/">Australian Housing and Urban Research Institute</a> strongly suggests that the traditional method of calculating housing affordability is outdated and should be considered in conjunction with other ways of weighing up whether people can afford their mortgage or rent. 
According to a paper from the United States Census Bureau, the rule that households can devote 30% of their income to accommodation costs before the household is said to be "burdened" evolved from the United States National Housing Act of 1937. 
Times have changed a lot since then; we now live very differently. 
There are a lot more DINKS (double income no kids), SINKS (single income no kids) MINGLES (middle-aged singles) and one-person households. 
Yet another way of looking at affordability 
Property commentator<a target="_blank" href="https://www.propertyobserver.com.au/residential/housing-affordability-in-australia-is-not-as-dire-as-you-think/2011121352823"> Michael Matusik suggests</a> that instead of the 30% rule, one should look at the income left over after debt servicing, as this approach paints a different picture to that obtained simply by calculating the proportion of income devoted to repayments. 
Rising incomes have allowed households to meet rising loan repayments while maintaining (and often increasing) living standards. 
Matusik believes that rising household incomes mean that the 30% traditional affordability benchmark is now outdated. 
In fact, given higher income levels now, households can devote as much as half of their income to debt servicing, while maintaining the same standard of living. 
The AHURI study I mentioned above found similar results. 
Now don’t get me wrong, I’m not saying that some people are not suffering from mortgage stress. What I am saying is that some households can easily afford 50 to 60% of their income going on rents or mortgages and still have plenty enough left over. 
What it boils down to is that potential first home buyers need to understand that buying your first property is not easy. It never was. 
It involves saving discipline, sacrifice and compromise and perhaps not purchasing your “dream home” straight away. 
Why I don't think the Australian property market will crash 
Currently a tug of war is affecting our property markets, with low interest rates pulling hard on one end of the rope and economic uncertainty joining forces with subdued prospects for economic, income and employment growth at the other. 
I expect the economic side of the equation to win out in the near-term, influenced in the first half of 2012 at least by continuing global financial turbulence. 
This will mean property values are likely to remain flat in most parts of Australia for the first half of the year. 
But our overall market is unlikely to collapse. For that to occur we would need to have high interest rates, massive unemployment, a recession or a failure of our banking system. 
I can’t see any of these events happening in the foreseeable future. 
In the meantime, we’ll see more US analysts surprised that Australian real estate hasn't collapsed as their market has. The problem is that these economists keep analysing Australian properties as if they were shares – it's like comparing apples with oranges. 
Remember in Australia, 70% of properties are bought by owner-occupiers. And one of the things that keeps pushing our property prices up is that, by and large, these property owners all want to live in the same areas. 
If you think about it, 70% of our population lives in one of eight capital cities and most of these people want to live in the inner and middle ring suburbs, near the city, near amenities and near their jobs. 
Secondly, Australia doesn't have suburbs full of empty houses awaiting mortgagee sales like the US. And despite our population growth falling lately, it is still growing at a rate faster than most developed nations. 
Sure, some Australians currently have issues with housing affordability and are putting off their home buying decisions. But people still need a roof over their heads. People are still getting married and people are still getting divorced, some are having babies and others have to move house for their jobs. 
If they can't afford to buy a house they rent one, hence vacancy rates are at unprecedented lows and pushing up rental prices. 
We are moving into the next stage of the property cycle 
And the next stage is the stabilisation phase of the cycle.
<img src="/images/stories/yardneygraph.jpg">
You see, the markets don’t move directly from the downturn phase to a property upturn. There is a period of time where buyers return and take up the slack before prices start rising. 
And I expect more buyers to return to the market this year when they realise prices won’t fall any further. 
By the way, the stabilisation phase is a great time for savvy investors to get set for the upturn stage of the cycle.
 
This year may be a good time to buy property – I have always found it a good time to buy when everybody tells you that property is a bad investment. 
Now is the time to get set for the future.
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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Australian housing price bubble is a myth: Michael Yardney

January Perth sales up on 2011 transactions: REIWA

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I was listening to the radio on my way home on Saturday evening and heard a presenter and a town planner talking about real estate in Melbourne. A caller had asked a question of the two regarding what the “plus” meant when an advertised property was quoted $490,000 plus. The caller was looking at a property in Mitcham, on about 750 square metres, and was thinking about buying it in order to subdivide and develop. 

The town planner talked about due diligence, which was all good and well. He gave advice similar to: Talk to the council to work out whether the area can be developed, and into what. Is it an area that will allow for high density, etc. All very good advice! He did eventually get around to talking about the “plus” as being up to or more than 20%, however he also said he didn’t put too much stock in what the agent said. It was really worth what others will pay. 

There are four main parts to buying property in Victoria: working out what your needs are, searching and identifying possible properties, assessing target properties accurately and finally successfully negotiating the sale. 

Today we will talk about assessment, which is really what the caller was asking the town planner to do without even seeing the property. There are many options when it comes to assessing a property for sale. 

Many people will say to look at the papers or buy information online to get sales results. This is fine if all the sales in the area were auctions. In the state of Victoria, resellers of real estate information cannot identify the private listing past street and suburb. Numbers are not supplied. So, if you know that a property sold in Smith Street for $800,000 and another sold for $400,000 you still do not know what the difference is. 

You can do this if you are diligent. You must physically take note of every sale. If you are looking to buy in “Smith Street” then you need to look at every property that is on the market and when it sells and try to identify the property, then it becomes useful. You need to look at every paper, every website and all the online sellers of information. This will still only give you some idea, as historical sales over the last two years will be difficult to gauge without street numbers. But it can be done. It is extremely time-consuming and tedious. But if you have three to six months to build up a local database then it will be useful. 

The actual sales price is only the first step. You need to visit as many of these properties as possible. You need to segregate your data into properties that have valuable houses on them, properties that have recently renovated houses and properties that have houses with renovation options. 

You then need to look at individual land sizes. Is there a development option? Is there an option to rebuild a new home or renovate the existing home while subdividing the block? Is it a corner block that is easier to renovate? What you are trying to do is calculate whether a property was sold for “land value” or whether there was some additional value in the house. 

When there is some additional value in the house you need to look at how many bedrooms and bathrooms, car accommodation, quality of fixtures and fittings, particularly in the bathroom and kitchen. How big are the individual bedrooms, is there a flow to an open-floor plan, or is it a compartmentalised rabbit warren? 

You need to look at these questions with each individual style of property in mind. If we are looking at a Victorian home, we know that the bedrooms will be of good size, at least three metres by three metres. The ceiling heights will vary from three to four metres, and if there has been little renovation the bathroom will be at the back of the house and the kitchen in the middle because this is how they were added over time. 

A structurally renovated Victorian home should have the bedrooms at the front, followed by bathroom and hopefully ensuite, then the kitchen and an open-plan living zone leading directly on to the outdoor entertainment area. 

However, you would not expect a 1970s “estate-style” home to be set up this way. In fact, the main bedroom is usually near the front, with the others to the rear. A big house might have an L-shaped lounge/dining room with a large central kitchen. Unfortunately, these houses usually have limited rear access unless a further rumpus room has been added and then it would be good to see the outdoor entertainment area run off this. 

Finally, you need to put all this together to try and guesstimate what someone else is likely to pay. 

If you do not know what someone else is likely to pay then you will waste almost a month of your time and effort waiting for the auction, waste money getting pest and or building inspections done, waste money getting the contracts checked by a solicitor and then when auction day comes around and the auctioneer is calling for opening bids and you have a figure in mind, you won’t know whether your figure is in the right ballpark. 

You cannot use the agents estimate to work out what a property is worth. The “plus” does not mean 10% or 20%. When a range is quoted it does not mean the reserve is within these numbers. The selling agent does not need to, and actually cannot give you, any assistance that would be seen to be to the detriment of getting the highest possible sale price for his client – the vendor. Some agents will quote high and try to negotiate from this point; others quote low and will try to push up a potential purchaser. Your best negotiation tool is to have an accurate appraisal of what someone else is likely to pay: i.e., your competition. 

When it comes to purchasing a property there are actually three numbers we need to calculate or guesstimate. What is it worth to us? In other words how much are we happy to pay for this particular property. Secondly, what is it worth to someone else? In other words, what is likely to happen on auction day? And thirdly, and by far the most difficult, what does the vendor want! 

Once we have these numbers we can then begin to set up a buying strategy. We will talk about different buying strategies at another time. You can get an accurate assessment of a property from an experienced and licensed buyers’ advocate or a valuer. You need to engage them and pay them in order to guarantee they are working for you. 
Ian James is director of <a target="_blank" title="JPP" href="https://www.jpp.com.au">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy in Melbourne. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiate more than $100 million worth of property each year for clients.
 
 
 
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