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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<city>Sydney</city> and <city><place>Canberra</place></city> are the only two capital cities to deliver noteworthy returns to investors over the year to November 2011, according to latest RP Data-Rismark Hedonic Home Value Index.
<country-region><place>Australia</place></country-region>’s biggest city has been kindest to investors, delivering a total return (house price increases and rental increases) over the past 12 months to November of 4.3%.
<city><place>Canberra</place></city> was the only other capital city to deliver a noteworthy return for investors of 3.5%. <city><place>Darwin</place></city> returned investors 1.7%.
<city>Brisbane</city> fared the worst, delivering a total return of -2.4% over the past 12 months, while <city><place>Melbourne</place></city> investors lost 1.9%.
Including gross rents, the total return realised by investors in capital city property remained positive in 2011 at 1.2%.
Sydney house prices remained unchanged in November and were on hold over the past 12 months, rising just 0.5%,while Canberra house prices increased by 0.4% in November, a striking result in the context of a 0.1% increase for the month across all capital city markets.
Overall, <country-region><place>Australia</place></country-region>’s regional property markets outperformed capital cities in November with values rising by 0.3% on a seasonally adjusted basis over the month, according to the latest RP Data-Rismark Hedonic Home Value Index.
Capital city house prices remained stagnant, rising by 0.1% over the month to continue a trend of <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/regional-centres-outperforming-capital-cities-cba/2011061650514">non-capital city markets outperforming their big-city rivals over the past year.</a>
Over the past 12 months leading up to the December holiday period, the regional housing market, which accounts for about 40% of all homes by number, has declined by 2.5% while capital city house prices have fallen by 3.5% led by Brisbane (down 7% year on year) Melbourne (down 5.6%) and Adelaide (down 5%).
<img src="/images/stories/rpdatajan3.gif">
Over the three months to November, <city>Darwin</city> and <city><place>Canberra</place></city> were the best-performing capital cities with values up 0.3% over the three months to November while Melbourne and Brisbane were the weakest with values down 1.7% over three months to November 2011.
<city>Darwin</city> delivered the highest rental yields with gross rental yield of 5.5% for houses and 6% for units while <city><place>Melbourne</place></city> had the lowest gross rental yields of 3.7% for houses and 4.3% for units.
 
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lschlesinger-FZcF9M3vE6

Sydney and Canberra best for investors in 2011: RP Data-Rismark

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It appears that the November rate cut has already worked its magic in the housing market, leading to the first lift in dwelling prices in almost a year. Before the rate cuts in November and December, supply and demand in the housing market was reasonably balanced, translating to a softening of home prices. But the rate cuts will serve to lift demand for homes and drive property prices higher over 2012. CommSec expects Australian property prices to grow around 5% in 2012, but as always there will be major deviations from city to city and across regional areas. Certainly <a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-and-canberra-best-for-investors-in-2011-rp-data-rismark/2012010252951">a small 0.1% lift in home prices </a>is nothing to get excited about at present. But the small increase does signify that home prices are flattening or close to flattening. If you had been thinking about purchasing an investment property, now is the time to get your homework and paperwork in order. The job market is healthy, housing markets are considered to be undersupplied and rates have been cut twice in the space of two months. Certainly other asset markets don’t offer the same attraction as residential property. But as always it is a case of researching your prospects, as conditions differ significantly across the country.
One major consideration for investors is whether to purchase a house or unit. Certainly apartments have been in demand as generation Y exercise their preferences for city living rather than suburban life. The gap between Australian house and apartment prices is now the smallest in over five years. Could apartments eventually become more expensive than homes? It seems hard to believe, but the gap in prices continues to close. Aussies still aren’t keen on taking on debt – a factor that will bring the Reserve Bank a step closer to cutting rates in February. The Reserve Bank monitors home prices, lending, the Aussie dollar and the level of interest rates when considering rate changes. Home prices are still flat, the Aussie dollar remains firm, lending growth is weak and variable mortgage rates are still slightly above 15-year averages. CommSec expects the Reserve Bank to cut rates by another 25 basis points or quarter of a percent in February.
What do the figures show? 
House prices The RP Data-Rismark Hedonic Australian Home Value index of capital city home prices rose by 0.1% in November in seasonally adjusted terms to be 3.5% lower than a year ago.  Home prices in regional markets (40% of homes by number) rose by 0.3% in seasonally adjusted terms in November to stand 2.5% lower over the year. Dwelling prices were strongest in Perth (up 0.5% in seasonally adjusted terms) followed by Canberra (up 0.4%) and Melbourne (up 0.2%). Dwelling prices were unchanged in Sydney but fell in Darwin (-0.9%), Brisbane (-0.7%), and Adelaide (-0.3%). Hobart prices fell by 0.4% in October (November data not yet available). Home prices are lower than a year ago across all capital cities. Prices fell most in Brisbane (down 7%), followed by Melbourne (down 5.6%), Adelaide (down 5%), Perth (down 3.9%), Darwin (down 3.7%), Canberra (down 1.6%) and Sydney (down 0.5%). November home prices aren’t available yet for Hobart. In the year to October, home prices in Hobart were down by 3%. Total returns on capital city residential property rose by 1.2% in the 11 months to November and were up 0.8% on a year earlier. Across capital cities house prices were down 4.3% on a year earlier with unit prices down just 1.1%. The average Australian house price was $541,835 and the average unit price was $457,553. The $84,282 gap in prices was the smallest since April 2006.
Private sector credit
 Private sector credit (lending) rose by 0.3% in November after a 0.2% rise in October. Annual credit growth held steady at 3.5%. Housing credit grew by 0.5% in November after a 0.4% rise in October. Housing credit is up 5.7% on a year ago – the weakest annual growth in records going back 34 years. Owner-occupier housing credit rose by 0.5% in November to stand 6% higher than a year ago. And investor housing finance lifted 0.4% in November to be up 5% over the year. Personal credit rose by 0.1% in November. Personal credit was down 1.1% over the year – equalling the biggest decline in two years.
Business credit was flat in November after a similar outcome in October. Business credit is 0.9% higher than a year ago, marking only the third annualised increase in 29 months.  What is the importance of the economic data? The RP Data-Rismark Hedonic Australian Home Value Index is based on Australia’s biggest property database, covering more than 312,000 sales during 2011. Unlike the ABS Index, which excludes terraces, semi-detached homes and apartments, the RP Data-Rismark Hedonic Index includes all properties. The monthly RP Data-Rismark Hedonic Index compares month-to-month index results. Quarterly results are measured comparing end months rather than averaging each month in the quarter. For example, the first quarter of 2011 index results compared the end of March index with the end of December index. Private sector credit figures are released by the Reserve Bank on the last working day of the month. Credit is separated into three categories – housing, other personal and business. Private sector credit is effectively the amount of loans outstanding in the economy. If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive. What are the implications for interest rates and investors? Despite a modest lift in home prices the Reserve Bank is still expected to cut rates in February. But in the absence of another significant flare-up of the European debt crisis, we don’t expect the Reserve Bank to keep on cutting rates in 2012. Real estate agents and retailers alike will cheer the result on home prices. If home prices start to move higher it will serve to accelerate demand for homes as well as flow-on items like furniture, carpets and curtains. Higher home prices will provide confidence to those who own or are paying off their homes. And stronger confidence potentially means higher spending on discretionary items.
 
 
 
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cjames-5S2v74qSNK

Home prices up! But Aussies refuse to borrow

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The hotly debated question of whether Australian house prices are too high and must inevitably come crashing down to earth has been answered by Deakin University’s Phillip Dare, who says there are 10 fundamental reasons why the property market is safe from a crash. 
Writing for <a target="_blank" href="https://theconversation.edu.au/">The Conversation academic blog</a>, Dare, lecturer in property and real estate at Deakin University’s school of management and marketing, says the question is “not whether Australia has a housing price bubble, but what fundamentals are in place that might sustain our housing prices”.
Dare notes in particular the most extreme predictions of a 60% crash in property prices by <a target="_blank" href="https://www.propertyobserver.com.au/residential/us-economist-predicts-australian-housing-crash/2011081551170">US academic Harry Dent </a>labelling it a “gross exaggeration”.
According to Dare, the 10 reasons why the Australian property market is not destined to crash are:
1. We’re big and isolated
“Australia is a big country, without shared borders with neighbouring economic powerhouses – or economic basket cases that might impact our population bases or locational living choices.”
2. Australians stay put and in major urban areas
Whereas in Europe, workers can cross borders easily to seek work in other capital cities, reducing the demand for property in urban areas in their home countries, “[Australia’s] population flows remain largely static… We basically follow jobs, usually Victoria to Queensland and back in the other direction. We are similar in area to continental Europe and the United States, but with a population barely 10% of those geopolitical entities. The majority of Australians live within the major urban hubs of each state, with most living along the eastern seaboard.”
3. Our economy is strong is relative to the those of US and Europe
“Contrary to the economic woes being experienced by Europe and even the US, our economy is chugging along nicely, keeping us out of recession with a tight fiscal regime, low public debt and a central bank with a flexible monetary policy that concentrates on taming inflation and achieving low rates of unemployment. So it could be argued that compared to markets such as the UK, US and Ireland where prices have been in free-fall, Australian property prices may well look as if being overpriced simply because they have not receded in such precipitous levels,” says Dare.
4. Our banking system is strong and well regulated
“[Price] falls are inextricably linked to the catastrophic failures in the North Atlantic and European banking systems, while Australia has a robust banking system with strong prudential regulation. Thanks to this, we have not been burdened with a US-style sub-prime property disaster which figured so prominently in the 2008 global financial crisis,” Dare says.
5. A tax system that favours investors and owner-occupiers
According to Dare, among favourable tax rules in place for property investors are negative gearing concessions that allow interest payments to be written off against personal income and a 50% reduction in capital gains tax on property kept for at least one year. For owner-occupiers, profit earned on the sale of their principal place of residence are not taxed while the abolition of death duties decades ago means that “significant amounts of [property] value are transferred inter-generationally without attracting any tax”.
6. We are not building enough houses
Dare says stock levels are falling – though the likes of <a href="https://www.propertyobserver.com.au/residential/michael-matusik-dismisses-housing-undersupply-findings-as-spin/2011122152932">Michael Matusik would disagree</a>. “Not enough new housing stock is being built to sate demand (such as new household formations and immigration),” Dare says. In addition, due to land banking, there has been a controlled release of development land. “Major builders and developers have bought large tracts of development land and [are] holding for controlled release.”
7. Election strategies support house prices
Dare says political parties have supporting housing values as part of their election strategies with policy promises such as the first-home owner scheme. “Propping up house prices was strategically used by previous governments for electoral purposes.”
8. Easier for investors buy real estate
According to Dare, changes in foreign investment rules have sustained prices in some areas. In 2008 the Foreign Investment Review Board dropped its requirement that only 50% of new dwellings could be sold to foreign persons in an off-the-plan transaction. 
9. Continual spruiking of property 
“[There] is regular spruiking in the daily newspapers of get-rich fast with property seminars/schemes,” says Dare. 
10. It’s easier to borrow money 
Dare notes the weakening of loan-to-valuation ratios from 80% to 95% and 100%. “Banking deregulation has seen housing finance freed from the shackles and once onerous (and at times ridiculous) lending guidelines,” he says.
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Ten fundamental reasons why prices won’t crash in 2013: Academics

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When veteran Noosa real estate agent Peter Butt looks at the modest Sandpiper residential and retail block on the beachfront in <street><address>Hastings Street</address></street>, he becomes nostalgic about earlier days at the <state><place>Queensland</place></state> resort. 
Butt, co-principal of Richardson &amp; Wrench Noosa, first came to Noosa on holiday 33 years ago, staying in a cheap one-bedroom flat at the Sandpiper. He never returned home to the eastern suburbs of <city><place>Sydney</place></city>. 
“I looked at the emerald green sea for the first time and saw waves breaking at the point – I used to be a mad surfer – and said to myself, ‘My God, I’ve found the Garden of Eden’.” 
Butt didn’t stay in the cheapest accommodation in <street><address>Hastings Street</address></street>. That distinction belonged to the camping area and caravan park, known as The Woods. “You could stay in The Woods for $50 a week then,” he says. 
From a location viewpoint, The Woods was the best place to stay in town. It had a double waterfront with the ocean on one side and the river on the other. And you could dine out on a Betty’s Burger for a $1. 
Fast forward to the present. 
Even a street protest – surely a one-off for Noosa – failed to stop the bulldozing of The Woods in the ‘70s. And the old Sandpiper is about to be demolished.
<img src="/images/stories/sandpiper2.jpg"> 
From 2013, a <a href="https://www.rwnoosa.com.au/28609/">new Sandpiper</a> (pictured above) will occupy the prized site, comprising three luxury full-floor apartments and a boutique facing the street. Richardson &amp; Wrench <a href="https://www.propertyobserver.com.au/queensland/sale-of-%2414-million-apartments-as-tide-turns-for-better-in-noosa/2011072650927">sold the two lower units off the plan to one buyer in July</a> for $14 million. And the penthouse is for sale at $9.5 million – by far the most expensive property on its books.
 <img src="/images/stories/noosa2.jpg">
And this year, $50 will buy little more than a decent meal in <street><address>Hastings Street</address></street> but not even put a dent in your accommodation bill. The most expensive rent being collected by Richardson &amp; Wrench this Christmas is $19,500 a week for a<a href="https://www.rwnoosaholidays.com.au/noosa_accommodation_view.asp?holidayID=474" target="_blank"> four-bedroom beachfront house </a>(pictured above) in Belmore Terrace, Sunshine Beach. It’s an $8 milion to $10-million property.
Butt says that although each of the 260 holiday rentals on his books is let between December 23 and January 17, rents have been discounted this year. “And there are still some great deals either side of the Christmas period.” 
There goes the neighbourhood
When David Edwards, licensee of LJ Hooker Palm Beach, began to sell real estate in Palm Beach 25 years ago, he remembers a “thriving community where people lived full time. Along the commercial stretch of <street><address>Barrenjoey Road</address></street>, there was a butcher, barber, chemist and petrol station. 
“Now you have real estate agents, coffee shops and restaurants,” Edwards says with some regret. And the population has become much more transient. 
Despite the stratospheric rents paid for high-end <city><place>Palm Beach</place></city> properties, Edwards says that on the non-water side of <street><address>Barrenjoey Road</address></street> facing Pittwater, it is still possible to rent a place for $1,500 to $1,800 over Christmas. “But on the other side of the road, you can spend $13,000, $15,000 and $18,000 a week.” And for houses facing the ocean, the dollars just escalate.
 {yoogallery src=[images/stories/september16kalula]}
Kalua on <street><address>Ocean Road (pictured above) </address></street> holds the record for the top Christmas rent for <city><place>Palm Beach</place></city>, renting in past years for $38,000 to $45,000 a week to the likes of Nicole Kidman, James Murdoch and John Cleese. The plantation-style house, owned by businessman Ian Joye, is currently on LJ Hooker’s website for $40,000 a week. However, Edwards says the Joye family is actually staying there over Christmas, and he believes some rental may be involved over this period. 
For Christmas 2011, life is a little tougher in rental paradise. “Our top rental this year is $25,000,” says Edwards. “There are probably about 20 properties in the $25,000-plus category and we have secured rentals on less than a handful.” 
Average rents a week for <city><place>Palm Beach</place></city> this year are $6,000 to $7,000 – down from $8,000 to $9,000. It seems that both owners and tenants are being more careful with their money. 
“In previous years, the bookings were two weeks or longer,” says Edwards. “This year, one week seems to be the more favoured tenancy. 
“The owners are being more frugal, not travelling overseas as much and are using their residences at <city><place>Palm Beach</place></city>.” 
And at the top end, owners tend not to cut rents to meet the market. “These are wealthy clients who don’t need to lease,” Edwards emphasises. “Some say, ‘If I am not going to get a good rate, we’ll leave it empty or use it ourselves’.” 
Upmarket fibro
When letting agent and landlord Christine Lewis bought her fibro beach house 10 years ago, she set about to recreate the settings of her childhood holidays – albeit in a more upmarket way. 
Lewis, proprietor of <a href="https://www.lovemelovemydog.com.au/" target="_blank">www.lovemelovemydog.com.au</a> – a booking agency for pet-friendly beach houses and owner of a beachfront rental property – used to spend every Christmas from the mid-50s at her grandparents’ fibro cottage at Surfers Paradise. 
“My grandfather would pick me up from the station in his Ford Prefect [a model that hasn’t been made for 50 years].” Her grandparents have long died and their little house has been demolished “take make way for a flash development”. 
Although Lewis’s website lists 2,500 pet-friend properties throughout Australia, the heart of her business is unquestionably Culburra on the NSW south coast. Culburra properties on her books rent from $209 to $1,000 a night. And this Christmas, the most expensive house is renting for $7,000 a week.
<img src="/images/stories/lovedog.jpg">
Her own property, <a href="https://www.lovemelovemydog.com.au/rent/nsw/south-coast/culburra-beach/on-the-beach/">On the Beach</a>, is rented over Christmas for $4,500 a week. Not bad for a fibro house, even though it’s right on the beach, cost more than $1 million and has about everything that opens and closes – for dogs and humans. 
“It’s probably politically incorrect,” Lewis says. “But I am one of those 1950s babies who isn’t scared of fibro or bindis.” 
It seems that Culburra doesn’t attract the celebrities of the fame of Nicole Kidman or John Cleese. However a regular tenant is Dr Katrina Warren, the TV vet from Harry’s Practice. And in pet-friendly circles, that’s true celebrity. 
*Author’s note
Michael Laurence is a long-time observer of Australia’s beach culture, particularly at <city><place>Palm Beach</place></city>. He learned to ride a surfboard at Kiddies’ Corner on the northern end of the beach – across the road from the pricey  Kalua, stored his surfboard next door under Willeroon – the long demolished 1920s Ocean Road house then owned by the Forsyth family (owners of Dymocks bookshops), and once interviewed Billy Connolly as the comedian came in from the surf.  
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Agents look back on summers past with nostalgia for cheap beachfront property

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There was more than a frisson of excitement when British chef – and global television celebrity – Rick Stein announced in 2009 that he would be opening a seafood restaurant in Mollymook.
Local real estate agents and savvy investors in the laid-back coastal settlement were well aware of the celebrity chef’s track record in the UK where he’d transformed a Cornish fishing village into a magnet for wealthy Brits looking for that idyllic holiday home.
His colonisation of Padstow is so complete that locals have renamed the village “Padstein”, but the success of the Seafood Restaurant and his other ventures also boosted real estate prices. Every well-heeled Londoner wanted a cottage in Padstow.
Although he arrived on the NSW south coast with similar fanfare, promising to revive Mollymook’s gastronomic fortunes, opinion is divided about whether the urbane English chef has done anything to pep up the appetite for residential property on the coast.
Carmel Timmins from Bella Coast Property says that Stein’s arrival may have improved bookings at Bannisters, the boutique hotel with which the restaurant is associated, but has done nothing to bolster real estate prices in Mollymook.
“It would be great for Rick Stein to have worked his little magic down here and see the price of property go through the roof but it hasn’t happened,” she says.
“Everybody had impression that Rick Stein was going to change the world. They thought ‘Oh, Rick Stein is here so I’m going to get big money for my property’. But a good feed isn’t necessarily going to entice someone to spend a $1 million on a holiday house.”
Other agents strongly disagree, arguing that the “Stein effect” has turned Mollymook into an international gourmet destination. They say the fact that Stein and his Australian wife, Sarah, have bought a number of properties in Mollymook has definitely attracted other wealthy buyers, often from overseas.
Ben Pryde from Raine &amp; Horne Ulladulla says it is now a common sight to see people arriving from Sydney by private helicopter – something that would inconceivable a few years ago.
“A lot of wealthier people have been coming here since Rick Stein became involved,” he says. “Their helicopters fly into Milton and there’s a courtesy car waiting to pick them up. They’re either here just for the day or staying overnight at Bannisters and then flying back next day. That happens regularly.”
Pryde says that the launch of Bannisters with Stein’s much-publicised involvement has certainly given Mollymook an international profile, but that the impact on local real estate prices has, for a number of obvious reasons, been far less spectacular than Padstow in the 1980s and 1990s.
“I think it will take a longer than it did in the UK. I know prices skyrocketed over there [in Padstow]. It will take place but in Mollymook we’re still battling the state of the economy at the moment and people are a little more cautious,” he says.
“But the market is still bubbling along down here. There’s so much doom and gloom in Sydney, but we’re not experiencing that to the same degree. We’re getting quite a lot of sales away.”
Kevin Cooper from Ray White Surfside Properties is another Stein supporter, saying that the presence of the celebrity chef has helped bolster the sale of property in the $1 million-plus range by attracting a new wave of international clients.
The agency recently sold a house on Beach Road, Mollymook for just over $1 million. The buyers, from Singapore, were actually staying at Rick Stein’s house while they looked at property in the area – the couple is now looking for second investment property to buy.
“I believe that Rick Stein owning that restaurant has assisted me in selling that particular property,” he says. “Mollymook is a funny place. You’ve only got to get a couple of people of well known stature purchasing on the beach and that sets a bench mark.”
But Cooper concedes that people buying a more modest property in Mollymook or nearby Milton are probably unaffected by the presence of such a foodie celebrity in their midst.
“Let’s face it, the majority of people can’t afford to eat there,” he said. “But I do believe that Rick Stein being here has an impact on the higher end and it certainly hasn’t hurt the area. I certainly think that there’ll be some positives in the future when market trends start to change.”
No amount of stardust can camouflage the fact that real estate prices along the south coast have taken a pasting over the past two years. The median price for a house in Mollymook is now $410,000. Demand for property continues to be weak – severely impacting the re-sale value of glamourous, waterfront properties.
Overall, agents blame the impact of increased land tax and the continuing uncertainty about the state government’s coastal management plan for Shoalhaven for depressing property prices on the south coast, rather than worries about the global economy.
Ben Pryde says that land tax has particularly impacted on retirees and people who have inherited family-owned property in and around Mollymook. This has been compounded by uncertainly about the impact of the coastal management plan.
“For a lot of people entering retirement age the land tax suddenly became too much to bear, so they had to sell,” he says. “As far as the coastal management plan, there was a big fear campaign in the media which didn’t help.”
The coastal management plan seeks to protect coastal communities from storm and flood damage associated with global warming and an associated increase in ocean levels – predicted to be as much as 40 centimetres by 2050.
Many people are naturally concerned that the new regulations will prevent them from redeveloping attractive waterfront sites, but a spokesman for Shoalhaven City Council says these fears are largely unfounded.
“In the main these new design regulations can easily be incorporated into a DA,” he says. “As it stands only a handful of properties will not be eligible for redevelopment.”
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cknowlton-QnEa6ntUYP

Mollymook keeps its fingers crossed for a taste of the 'Rick Stein effect' on property prices

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<table width="360" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="69">
Postcode
</td>
<td valign="bottom" nowrap width="140">
Suburb
</td>
<td valign="bottom" nowrap width="151">
Average discount on vendor’s asking price for house sales
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3114
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">PARK ORCHARDS</a>
</td>
<td valign="bottom" nowrap width="151">
17.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3142
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">TOORAK</a>
</td>
<td valign="bottom" nowrap width="151">
13.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3168
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">CLAYTON</a>
</td>
<td valign="bottom" nowrap width="151">
12.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3148
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">CHADSTONE</a>
</td>
<td valign="bottom" nowrap width="151">
12%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3019
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">BRAYBROOK</a>
</td>
<td valign="bottom" nowrap width="151">
11.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3090
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">PLENTY</a>
</td>
<td valign="bottom" nowrap width="151">
11.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3130
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">BLACKBURN</a>
</td>
<td valign="bottom" nowrap width="151">
11.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3179
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">SCORESBY</a>
</td>
<td valign="bottom" nowrap width="151">
11.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3189
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">MOORABBIN</a>
</td>
<td valign="bottom" nowrap width="151">
11%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3188
</td>
<td valign="bottom" nowrap width="140">
<a target="_blank" href="/news">HAMPTON</a>
</td>
<td valign="bottom" nowrap width="151">
11%
</td>
</tr>
</tbody></table>
Source: RP Data
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Top 10 Melbourne suburbs with the highest average discount for house prices: RP Data

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Building a house is possibly now almost a luxury in Perth whereas before the global financial crisis it was considered a necessity, according to Nathan King, a property valuation director at LMW Hegney.
In the three years before the GFC Perth was producing twice as many houses and green-title lots as strata-titled properties.
“Yet today the numbers within each category are now similar,” King notes.
“Perhaps the GFC and the affordability issues were the catalyst to greater market acceptance of strata-titled property.
“Maybe building a house today is a luxury whereas pre-GFC it was considered a necessity,” he suggests.
“Whatever the reason, I found it interesting, especially when we look at whether this is part of a new trend or is simply reflective of just the stage of the normal property cycle we are in currently.”
King says affordability is the buzzword and strata-titled properties not only tend to cater for the ageing baby boomers but can be among the most affordable housing options available.
“We also welcome some of the more creative and high-specification strata dwellings/cottage lots located in our suburbs to break up the homogenous suburbs.”
He suggests given WA’s urban sprawl and changing demographic, well-located strata properties had become the new aspirational properties to own for a larger segment of the market, reducing commuting times and providing in many circumstances a lifestyle on the doorstep.
“Investors tend to view, particularly strata-titled apartments, as higher income and lower capital growth investments.
“When we tie the trend of ageing population, affordable first homes, and investors wanting to make a profit, all together, there is some common ground.
“These downsize properties in a good location just need to be cheaper than the predominant family homes within the location in order to be desirable as people free up capital as well as time.
“This increasing demand will drive values, giving them a reason to increase if supply is limited.
“For an investor who can recognise these two pressure points in certain areas, they can take advantage of what is considered a trend rather than a cyclical phenomenon.
“It’s always worth being aware of market trends and even better if you can benefit from them,” King concludes.
 
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jchancellor-FAypfDUnLy

Buying a house becoming a luxury in Perth post-GFC

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Long-term strategic planning has always been one of my passions. To me, thinking ahead, being observant, asking questions and working out where the world is going, whether it be economically or socially, are basic, vital skills.
Take Dubai for instance. I first went there in the early 1990s and driving around at night, the first observation I made and the first question I asked myself was: “Why are only 20% of the lights on in all the residential buildings?” Talking to people who lived there, I soon discovered most residential properties were empty because they had been bought as second homes by wealthy people who lived in other parts of the Arab world in case of problems in their own countries, as a hedge against revolution, or as a place to keep a mistress. I left without wanting to invest in Dubai.
I have always believed that no one should ever invest in anything unless the fundamentals are right. If the people who pay the rent or borrow the money to purchase a property cannot afford to keep up repayments, then a property investment fails. After a global financial crisis, the concept of keeping vacant real estate as an inventory item, as the sheiks of Dubai did or as the Chinese and Russians tried to do, is doomed to end in tears.
In the mid-2000s, a decade after my first visit there, Dubai was obviously becoming really powerful as an international growth centre; a destination with a low tax rate that was attractive to wealthy Westerners, Russians, Indians and Middle Easterners alike. If you came from a country that was politically unstable, Dubai was potentially a future safe place to call home, and there were plenty of wealthy people from Iraq, Iran, Pakistan, Sri Lanka, Georgia – the list goes on and on – keen to purchase real estate there. Dubai was seen as a safe haven within the Middle East and appeared to be safe from terrorists. It had a world-class airline and had become a major global strategic and business hub. But as I watched Dubai grow and grow, I realised within a few years it was all a giant bubble that one day, sooner or later, was going to burst. And the reason it was always going to burst was because when you analysed what was going on, the situation in the early 2000s was no different from the early 1990s; the majority of residential properties were unoccupied. Whole projects were being purchased by absentee foreign owners, then locked up and left vacant. The outlandish boom in real estate prices could not possibly last as there was nowhere near enough demand either locally, or eventually internationally, to keep it going.
The model widely used in Dubai to create value was a pyramid scheme. The owners of a piece of land, who invariably had government connections, would design the largest, flashiest apartment building they could and sell a percentage of the units off the plan at a perceived below-market price to associates, who were effectively sub-underwriters. Everyone was told the second release of sales once the building was finished would be at a higher price, to create the panicky sense of “I must buy now”. The first round of purchasers would then sell out some of their stock at a higher price than they had paid, but below the next release price, and so it went on. Foreigners would end up owning some of the apartments but the rich local families held most of the stock as inventory at inflated prices. But real estate should never be held vacant as inventory, because vacant property depreciates and costs money to hold, particularly when you borrow against it to buy shares that ultimately collapse, as many of the wealthy in Dubai found out in the GFC. Ultimately the Dubai boom, like so many others, was predicated on nothing more than hot air; people just talking the market up and up and up. All the apartments and houses were getting dearer and dearer, but there were no tenants to give investors an economic return. The result was that in the last purchasing wave, just before the GFC hit, Dubai was turned into a virtual investment ghost town, the only people who could still afford to buy there being a shrinking pool of Russian and Middle Eastern billionaires.
Realising 10 years ago that Dubai would eventually collapse, I continually warned my more eager colleagues not to invest there. But a lot of people who should know better – not least because they are responsible for investing other people’s money – simply do not understand basic market fundamentals. They just read analysts’ reports or, even worse, newspapers, and believe the hype. They simply believe what they are told. When it came to investing in Dubai’s thousands of new apartments, they never checked who was living in or renting them. It is a bit of economics, but mainly it is a lot of common sense. Succeeding in business ultimately comes down to asking oneself one simple question: “Why is this so?” — because everything works on fundamentals of supply, demand and access to debt. You can distort the fundamentals for 10 or 20 years but ultimately, everything works on fundamentals.
Continued page 2
<hr class="system-pagebreak">
 
I have seen many real estate bubbles in my 30-year real estate career. Excluding the current disasters in Ireland and Spain, the worrying overbuilding in China and the USA’s sub-prime debt-driven disaster, the two classic collapses are Japan in the 1990s and Dubai post the GFC.
Japan’s collapse is staggering. I can recall in my many trips to Japan in the late 1980s, while being continually reminded of the Japanese superiority in all aspects of life, including real estate, that the value of real estate in Tokyo alone was worth more than all the real estate in the USA. This is most certainly not the case today, even in the post-GFC quagmire US real estate finds itself in. The Japanese market had bubbled to such extent that purchasers would eagerly take 100-year mortgages, to be paid off over three generations, to buy a basic property. Sustainable? The Japanese thought they were just smarter than the rest of the world because they were worth more; a classic case of hubris, or pride coming before a fall.
One of the golden rules of life is: “There is no correlation between wealth and being smart. If you are wealthy and you think that is because you are just smarter than everyone else, look out.” For the Japanese, it seemed as though values would never stop rising, as they had done ever since that country’s reconstruction by the US after the end of World War II. Debt was cheap, and values always went up. The Japanese had a similar philosophy to a few of my well-known associates at Macquarie who, pre-GFC, and with debt so cheap, made famous the phrase: “Let’s gear the bejesus out of it”.
The Japanese bubble burst in the late 1980s with tremendous consequences. Real estate values fell 60%, and 20 years later are still down 60%. There is no longer a belief in Japan that everything goes up in value; rather a fear values will fall even further. The Japanese collapse coincided with an ageing population, a demographic trend that initially boosted consumer confidence as spending peaked. Few foresaw the economic stagnation that an aged population would eventually bring.
The Japanese fear of permitting immigration has created many economic problems, although it has at least helped the many elderly citizens of that country who need jobs and continue to have to work well into their old age to pay off mortgages on houses worth less than the debt on them.
I can recall in the 1970s that the Asian language Australians were all being advised to learn was not Chinese or Korean but Japanese. Japan, we were all told, would be the dominant force in our region during our working lives.
Learning Chinese was not on anyone’s radar at that time. In fact, learning to speak Chinese was about as popular an option for most Australians as becoming a banker.
My first desire to use a walking stick occurred in Japan. One evening I was drinking with a few Japanese friends, quaffing sake in rather large quantities. When I woke the next morning, I had great difficulty in moving my legs as freely as the day before. As the alcohol left my body, the loss of mobility did not. I struggled along unaided for a few days until I returned home and purchased my first walking stick. At first I did not use it every day, but always took it with me on my frequent travels.
I found travelling with a disability in Japan a mixture of goodwill and bad design. The people were wonderful, always wanting to help, and the transport system worked very well, but the infrastructure and building design failed miserably. Supposedly disabled-access hotel rooms with a step or two were not uncommon. In my early visits to Japan with Macquarie associates, travelling without a translator, we would often sit in meetings that were scheduled to be in English. My fellow travelling companion at the time, Gus Kuiters, noted after a series of meetings how rude the Japanese were as they would talk for 10 minutes or so amongst themselves in Japanese as if we were not in the room before finally returning to the conversation in English. We talked about this to a Canadian associate who spoke French. He told us that when he and some other French-speaking Canadians travelled to Japan, the same thing happened. So, as the Japanese spoke amongst themselves in Japanese, they would speak French amongst themselves. He said this would enrage the Japanese, who would demand to know what was being said.
These trips were long and tedious, knocking on the doors of companies investing in or thinking of investing in Australia. On a subsequent trip with Gus, we encountered the same rudeness. So I said to Gus: “Let’s speak another language”, to which the obvious response was: “We don’t know another language.” To which I replied (with retrospective apologies to Aboriginal brothers and sisters): “Yes we do, we know Aboriginal”. So we decided that the next time we were confronted with this treatment, we would speak ‘Aboriginal’. The conversation went something like this.
I would say: “Cabramatta Wagga Wagga Coolangatta Kakadu”, to which Gus would reply: “Jabiru Gunnedah Gundagai”. We had compiled a list of about 100 Australian towns and places with Aboriginal names. These names, strung together, sound very fluent. We had a lot of fun with this. The Japanese would stop talking and start listening, and as usual begin writing down every word that was said — or tried to in this case. Then they would ask what language we were speaking and we would say Aboriginal. I had visions of some poor Japanese analyst being given the job of researching ‘Aboriginal language’ after this meeting. We really did come from the land Down Under.
The Japanese and Koreans made more bad international real estate business decisions than I have seen anywhere else in my career. The size of their losses in Australia in the early 1990s was unbelievable, developing complex projects in obscure locations and with overcapitalisation on an absurd scale. All justified by so-called ‘long term vision’: a vision to spread their capital around the world and build icons that would not provide a meaningful return on capital for 20 years. At first I thought these were just stupid business decisions. I was perplexed as to why, after financing building projects that in retrospect were worth 10% of their original cost, the ‘80 still walking Japanese banks would appoint the same consultants who presided over this mess in the first place to work them out of the problem. The pieces of this puzzle were only to fall into place when assets began changing hands.
We had financed an Australian company that had purchased one of many distressed Japanese-built assets in Queensland. The head of this company told me that when they took possession of the property, they had found boxes and boxes of documents relating to its construction, among which were many interesting invoices. He drew my attention to the pavers we were standing on; good-quality Queensland pavers worth about $10 a metre at the time. He told me they found an invoice for six times this amount on a letterhead of an agent based in another state, supposedly to import these tiles from Europe. I asked more questions and found more and more examples of this sort of thing. They were not stupid, just corrupt.
I discussed this with a senior executive of one of the Japanese real estate financing banks who had realised there was no future in working in the real estate area for a Japanese bank for the next 20 years and had decided to venture out on his own. He told me very frankly that levels of corruption in project financing were so widespread that we would all have to wait at least two decades, until the senior management of that era retired, before there could be any reform.
Two decades on, real estate in Japan is still bleak and would be even bleaker if real values were reflected in company balance sheets. But in this case, as in any country where more people die each year than are born or immigrate, there are many other pressing issues. Simply, as cities shrink, values fall.
Bill Moss is a former executive director of Macquarie Bank. He has written a book about his life with muscular dystrophy called<a href="https://www.stillwalking.com.au/" target="_blank"> </a><a href="https://www.stillwalking.com.au/" target="_blank">Still Walking</a>, of which this is an excerpt. All proceeds from sales of the book go to the <a href="https://www.fshdglobal.org/" target="_blank">FSHD Global Research Foundation</a> and <a href="https://www.fightingchance.org.au/" target="_blank">Fighting Chance</a>. 
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How to spot a housing bubble: Bill Moss

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Two sagas – Centro and Charter Hall Office REIT - grabbed the headlines in Australia’s listed property trust sector in 2011, during a year marked by consolidation, risk aversion and reduced volatility.
Thirty out of 40 A-REITs recorded a positive total return for the 2010-11 financial year, with the volatility of the S&amp;P/ASX 200 Property Index lower than the All Ordinaries at June 30, 2011, according to research by accountants BDO. The total return (capital and dividends) for the Property Index for the 12 months to June 30, 2011 was 5.8%, compared with an equivalent return for the S&amp;P/ASX 200 All Ordinaries Index of 9.3% with BDO describing 2011 as a year of “modest recover” with the sector having some ground to make up on other equity indices since the GFC. There was an average 0.6% increase in property values across the sector and while A-REITs continue to trade at significant discounts to their net tangible assets of 23%, this has decreased from a discount of 37% in 2010 and 55% in 2009.
According to Sebastian Stevens, national leader of BDO Corporate Finance, the overall A-REIT sector is in a much stronger position than at any time in the last four years.
“The hard work done in 2009 and 2010 to get balance sheets in order has clearly paid off for the major players, with their look-through gearing levels significantly reducing from around 40% in June 2008 to approximately 30% currently,” Stevens says.
“2011 also saw the continuation of divestment strategies for offshore assets in favour of less risky Australian-based assets. Larger REITs are now well positioned to withstand any near-term pressures that may be experienced by the property sector.”
Arguably the most notable story of the year was the tricky but ultimately successful restructure of shopping centre owner Centro Group, its sister trust Centro Retail Trust, and the group's unlisted funds and syndicates, into a single listed retail trust, Centro Retail Australia.
Trading in the new A-REIT kicked off on December 5 with the share price closing at $1.74, valuing the company at $2.3 billion, up from a listing price of $1.70. The share price has since fallen back to just below its listing price following news that the US hedge funds that own 70% of the trust plan to sell their stakes within 18 months to three years. 
Before the listing, Centro fought hard to win approval from creditors, shareholders and former auditor PricewaterhouseCoopers, which argued all the way to the NSW Supreme Court that the restructure should not proceed. 
The new entity comprises 99 shopping centres, with Woolworths and K-Mart the biggest tenants.
The second biggest A-REIT story of the year – and one that has not yet run its course – is the future ownership and direction of the Charter Hall Office REIT.
At the end of July a <a href="https://www.propertyobserver.com.au/news/proxy-votes-in-charter-hall-office-reit-battle-line-up-to-reject-takeover-proposal/2011072750930" target="_blank">bid by a trio of US hedge funds</a> to instigate a management takeover of the trust and ultimately liquidate its Australian assets was soundly defeated, with Mark Wist, senior asset consultant at Atchison Consultants, describing the vote as a “barometer for sentiment in the A-REIT space” indicating little appetite for change.
Little appetite for change perhaps, but there has been investor appetite aplenty since the failed takeover. with a Macquarie Group-led consortium making a $2.39 per share offer for the business on August 29.
On October 5 the consortium upped its offer to $2.43 a share and two months later sweetened the deal with a $2.49 per share offer.
Charter Hall Office REIT management is backing the proposal, with a shareholder meeting pencilled in for March 2012 to decide whether to accept it or not.
The consortium is made up of the Government of Singapore Investment Corporation, Canada’s Public Sector Pension Investment Board as well as the trust’s head stock Charter Hall, indicating the appeal of Australian commercial property assets to offshore sovereign funds.
In its 2011 A-REIT Survey, accountants BDO ranked the Charter Hall Office REIT its top performer of the year managing a total unit-holder return of 43% the highest return of any of the S&amp;P/ASX 200 Property Index members. 
“Consistent with the strong performance exhibited by the office subsector through the year, the A-REIT delivered increased earnings, higher distributions, lower debt and strong portfolio management metrics,” noted BDO. 
“Units in CQO also demonstrated a high level of liquidity, with CQO being one of the most actively traded REITs on the ASX during the 2011 financial year.” 
Among the key achievements noted by BDO include Charter Hall Office REIT increasing in statutory earnings to $69.2 million, up from a loss of $91 million in 2010 financial year, reducing look-through gearing from 45% to 43% and repaying, refinancing or removed all debt due to mature prior to the 2014 financial year. 
The diversified GPT group ranked second with the Investa Office Fund third. 
S&amp;P/ASX 200 Property Accumulation Index share price performance over 2011
 
 
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="205" valign="top">
Company (ASX code)
</td>
<td width="205" valign="top">
Closing share price:  Jan 4 2011
</td>
<td width="205" valign="top">
Closing share price:  December 22 2011
</td>
</tr>
<tr>
<td width="205" valign="top">
Stockland Trust Group (SGP) 
</td>
<td width="205" valign="top">
$3.54
</td>
<td width="205" valign="top">
$3.23
</td>
</tr>
<tr>
<td width="205" valign="top">
GPT Group (GPT) 
</td>
<td width="205" valign="top">
$2.94
</td>
<td width="205" valign="top">
$3.09
</td>
</tr>
<tr>
<td width="205" valign="top">
Mirvac Group (MGR) 
</td>
<td width="205" valign="top">
$1.22
</td>
<td width="205" valign="top">
$1.21
</td>
</tr>
<tr>
<td width="205" valign="top">
Dexus Property Group (DXS) 
</td>
<td width="205" valign="top">
$0.77
</td>
<td width="205" valign="top">
$0.845
</td>
</tr>
<tr>
<td width="205" valign="top">
Australand Property Group (ALZ) 
</td>
<td width="205" valign="top">
$2.89
</td>
<td width="205" valign="top">
$2.59
</td>
</tr>
<tr>
<td width="205" valign="top">
Charter Hall Group (CHC) 
</td>
<td width="205" valign="top">
$2.46
</td>
<td width="205" valign="top">
$2.13
</td>
</tr>
<tr>
<td width="205" valign="top">
Abacus Property Group (ABP) 
</td>
<td width="205" valign="top">
$2.27
</td>
<td width="205" valign="top">
$1.945
</td>
</tr>
<tr>
<td width="205" valign="top">
Westfield Group (WDC) 
</td>
<td width="205" valign="top">
$9.53
</td>
<td width="205" valign="top">
$7.99
</td>
</tr>
<tr>
<td width="205" valign="top">
CFS Retail Property Trust (CFX) 
</td>
<td width="205" valign="top">
$1.78
</td>
<td width="205" valign="top">
$1.735
</td>
</tr>
<tr>
<td width="205" valign="top">
Charter Hall Retail (CQR) 
</td>
<td width="205" valign="top">
$2.93
</td>
<td width="205" valign="top">
$3.22
</td>
</tr>
<tr>
<td width="205" valign="top">
Bunnings Warehouse Property Trust (BWP)
</td>
<td width="205" valign="top">
$1.74
</td>
<td width="205" valign="top">
$1.74
</td>
</tr>
<tr>
<td width="205" valign="top">
Commonwealth Property Office Fund (CPA)
</td>
<td width="205" valign="top">
$0.83
</td>
<td width="205" valign="top">
$0.955
</td>
</tr>
<tr>
<td width="205" valign="top">
ING Office Trust (IOF)
</td>
<td width="205" valign="top">
$0.55
</td>
<td width="205" valign="top">
$0.61
</td>
</tr>
<tr>
<td width="205" valign="top">
Charter Hall Office (CQO)
</td>
<td width="205" valign="top">
$2.86
</td>
<td width="205" valign="top">
$3.50
</td>
</tr>
<tr>
<td width="205" valign="top">
Goodman Group GMG)
</td>
<td width="205" valign="top">
$0.65
</td>
<td width="205" valign="top">
$0.585
</td>
</tr>
</tbody></table>
 
In his analysis of the sector, Stevens says managers at the larger funds have been able to turn their attention to executing against their core strategies and portfolio management. 
"While the larger A-REITs have substantially de-risked their balance sheets, smaller A-REITs continue to possess weaker balance sheets and trade at a much greater discount to NTA.
"This represents the emergence of a two-tier industry.
“Not surprisingly, transaction activity picked up during the year with larger players and offshore pension funds acquiring a number of smaller trusts, and this can be expected to continue," he says.
"The larger funds have built strong foundations for the future both in terms of growth platforms and the ability to withstand any future shocks while the smaller funds are still struggling with heavily geared balance sheets and are finding access to both equity and debt difficult," Stevens says.
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Year in review: Centro and Charter Hall dominate year of consolidation for A-REITS

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
A recent real estate survey conducted by Yahoo!, concerning the aspirations of home ownership among U.S adults found 81% of those surveyed still regarded home ownership as part of the “American dream”. There’s nothing particularly surprising about this – except of course when you consider the record numbers of foreclosures and tumbling values <place><country-region>America</country-region></place> is still experiencing.  However what’s more surprising is how priorities differ from the average Australian buyer.  When asked what their “dream” home would consist of, among the choices including “water views” , “beachfront or near beach” “building a custom home”, or “living in an urban neighbourhood” , top of the list, outshining everything else, came “green or energy efficient” –  and comments such as “Small, environmentally friendly, very energy efficient” were voiced from those surveyed.
If the same survey were conducted here, I have little doubt energy efficiency would be a tad further down the list of dream priorities. This isn’t to say that consumers don’t see the importance of insuring against rising bills, however out of the hundreds of purchasers I assist throughout the year – particularly those looking for their “dream 20-year-plus” property – I’m never asked to search for an energy-efficient home.  Energy efficiency is a third or fourth thought, with location and size (bigger, not smaller) usually featuring top of list.
While vendors may like to mentally add the cost of fitting solar panels or a large outside water tank onto their perceived estimate of value when selling, purchasers and more pointedly valuers don’t generally take such additions into consideration when assessing price.  For the purchaser, they are improvements that can budgeted for at some future point and not an outlay they’re necessarily prepared to pay with an upfront premium. Therefore in<place><country-region>Australia</country-region></place>, improving a home’s energy rating may be a wise choice from a lifestyle perspective; however it’s not an outlay that’s likely to profit the vendor from an investment perspective – at least not yet.
In other countries the trend towards energy efficiency is far more pronounced. I recently met a new immigrant from the <place><country-region>Netherlands</country-region></place>.  The family are currently renting in one of the middle-ring suburbs of Melbourne and took the time to explain how an energy-efficient, “carbon-neutral” property was top of their search priority list.  In fact so forthright were these specific requirements they emphasised the property must (in comparison with Australian homes) be compact and small in size.  They didn’t see the need for a large home – in their minds it simply didn’t make economic sense.  It took me right back to my days in the UK where, due to a higher population and limited availability of land, living in a small upstairs/downstairs terrace was the accepted norm and larger single level homes were seen as rather superfluous and typically reserved for older couples. The family in question soon came to realise that they weren’t going to easily find their dream property and renovating or rebuilding was probably going to be their only option.
Australians are known for their love of large houses and we arguably have the largest in the world.  It’s been discussed more than once how the lust for large McMansion-style properties is not diminishing. It’s never more evident than in the outer suburban growth corridors, where according to market leader Oliver Hume’s latest <a href="https://www.oliverhume.com.au/assets/website-purchaser-profile-and-sentiment-survey-jun3.pdf" target="_blank">survey of purchaser sentiment</a> the preference is still for homes with a floor size of 279 square metres – even though they do concede that due to affordability, buyers often end up settling for 50 square metres less than they initially desire.
One of the main reasons purchasers buy in the outer-suburban areas is simply because they can’t afford family-sized properties close to the city.  They’re prepared to give up the luxury of a quick commute to work to secure their version of the “Aussie dream”.  However in doing so, they’re also likely to find themselves paying a premium not only because of tactics such as limited land releases and hefty development overlays – but also due to strict building regulations imposed on builders to ensure the property meets the new six-star energy rating now adhered to in most states. It’s not a choice; it’s a requirement, and one that isn’t necessarily going to provide a saving on the average electricity bill considering the initial outlay.  More importantly, it puts the price of new suburban property needlessly out of reach of those prepared to move into the newer – still developing – suburbs.
Since the efficiency code was first introduced in January 2003, the initial requirement of a four-star rating has now increased to a six-star rating in most regions of Australia. The rating covers such items as “performance of the building fabric, external glazing and shading, sealing of the building, effects of air movement, performance of the building’s domestic services” and so forth. Of course, while this all sounds like a positive move, none of it comes without cost.
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Last year, the <a href="https://www.thecie.com.au/">The Centre for International Economics</a> prepared a detailed report for the <a href="https://www.masterbuilders.com.au/">Master Builders Australia</a> highlighting how increasing the star rating and the associated cost thereof doesn’t necessarily achieve the desired measure of economic efficiency that would widely be perceived.  In fact, the marginal benefits of squeezing into to ever stricter star rating requirements are outweighed considerably by the upfront cost of the build.  And while this is disputed by various voices coming from the “green” side of the political arena, the report produced is compelling reading.
It argues the costs of moving from a five- to six-star property is $40 per square metre, five to seven stars $70 per square metre, and five to eight stars $190 square metres.  In fact, back in 2008 when the increased implementation of a six-star rating was under discussion in Victoria, Master Builders Australia was reported stating costs could add anywhere between<a href="https://www.theage.com.au/business/sixstar-energy-rating-adds-10000-to-cost-of-new-house-mba-20081120-6cv8">$10,000 to $14,000 </a>to the build of a new home.  Furthermore, before a building permit can be issued, an accredited assessor is required to perform an energy rating assessment, which falls somewhere between $1,000to  $4,000 depending on the size and design of the property – and I can vouch from experience the resulting reports differ depending on the individual used (and have therefore been highly controversial).
Not only this, but we now have the added concern of the carbon tax looming.  Estimating the increase in various prices prior to implementation is unreliable, however HIA have posed that it’s likely to put at least $6,000 on an average house-and-land package. Add all the figures together and the concept of buying in the outer suburban corridors for the sake of a larger more affordable home suddenly starts to look a little less affordable and desirable and provides very little benefit to the consumer considering the extra outlay.
All these new policies come wrapped in great noble gestures and presented for “our benefit” – or more grandly, for “the greater good of mankind”.  But the reality is an expensive one and rather than making the cost of living and acquiring shelter more affordable, the dream of home ownership – even in outer-suburban areas where land and prices should be considerably lower – is slowly slipping away for an increasing number of Australians for reasons that just do not make economic sense.
No home owner is against implementing sensible energy-saving measures. We all recognise the expense of living is increasing and many have been motivated to take advantage of solar power, double glazing, roof insulation, and other such improvements to reduce the cost to themselves (and the environment) when it makes sense to the back pocket to do so.  In other words we don’t have to be forced to reduce our carbon footprint especially when it reduces the bills.  However, forcing up the price of new homes, without clear evidence that it will not only benefit the environment but also reduce the power bills in relation to the initial outlay is both unfair and unreasonable – especially when it’s in everyone’s interest to encourage the move “outwards” and not “upwards” if we’re to ease the unsustainable levels of inflation witnessed in the inner and middle-ring suburbs during boom cycles of the property clock.
Furthermore, as outlined in many reports such as the <a href="https://www.demographia.com/dhi-ix2005q3.pdf">Annual Demographia International Housing Affordability Survey</a>, which advocates the importance of spreading outwards if we’re to reduce the cost of housing, “greenhouse gas emissions of those living in high-density areas are greater than for those living in low-density areas” and “per person, apartment living uses more overall energy”.
 This isn’t surprising – in new apartment blocks (which incidentally also have to adhere to the six-star energy requirements) lights are left burning perpetually in the common areas, electricity usage is increased to power lifts and additional security features, not to mention the price of heating the pool, sauna, and 24-hour gym used as added “enticements” for would-be residents.  It makes scant sense from an environmental perspective and in addition, once purchasers find out how extortionate the owners’ corporation fees are to power these features, it generally places first-home buyers out of the equation all together. (In fact, look into the major buyer demographic purchasing the surplus of high-rise property spruiked to ease housing affordability in the inner and middle-ring suburban areas surrounding our major capitals, and you’ll find investors take the lion’s share, with second homebuyers coming a close second). At every stage of the planning cycle, first-home buyers seem to fall through the cracks – and unless we encourage an increase in the accumulation of affordable new residential buildings in the newer growth suburbs, it’s not going to improve.
Maybe one day the average Aussie buyer will also have energy efficiency at the top of her list when it comes to choosing her dream home – however until it’s proven to save home owners in their back pocket and not pilled disproportionably onto the initial cost of a new suburban property for the sake of “looking green”, it’s not going to ease the housing pain for the average Aussie purchaser – and instead of focusing on such measures – top of the “dream” list for home buyers will simply be a roof and four walls, preferably in an area that provides an easy commute to work.
Catherine Cashmore is senior buyer advocate for <a target="_blank" href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a>. With extensive experience in all matters regarding real estate, Elite Buyer Advocates purchases and negotiates more than $100 million worth of property each year for its clients.
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