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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<table border="1" cellspacing="0" cellpadding="0" width="322"><tbody>
<tr>
<td width="64" nowrap valign="bottom">
Postcode
</td>
<td width="116" nowrap valign="bottom">
Suburb
</td>
<td width="143" nowrap valign="bottom">
Average discount on vendor’s asking price for house sales
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2043
</td>
<td width="116" nowrap valign="bottom">
<a target="_blank" href="/news">ERSKINEVILLE</a>
</td>
<td width="143" nowrap valign="bottom">
20.4%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2108
</td>
<td width="116" nowrap valign="bottom">
<a target="_blank" href="/news">PALM BEACH</a>
</td>
<td width="143" nowrap valign="bottom">
18.6%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2090
</td>
<td width="116" nowrap valign="bottom">
<a target="_blank" href="/news">CREMORNE</a>
</td>
<td width="143" nowrap valign="bottom">
18%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2261
</td>
<td width="116" nowrap valign="bottom">
<a target="_blank" href="/news">BLUE BAY</a>
</td>
<td width="143" nowrap valign="bottom">
17.2%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2263
</td>
<td width="116" nowrap valign="bottom">
<a target="_blank" href="/news">NORAH HEAD</a>
</td>
<td width="143" nowrap valign="bottom">
16.9%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2065
</td>
<td width="116" nowrap valign="bottom">
<a target="_self" href="/news">WOLLSTONECRAFT</a>
</td>
<td width="143" nowrap valign="bottom">
15.9%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2251
</td>
<td width="116" nowrap valign="bottom">
<a target="_blank" href="/news">COPACABANA</a>
</td>
<td width="143" nowrap valign="bottom">
15.8%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2257
</td>
<td width="116" nowrap valign="bottom">
<a target="_blank" href="/news">BOOKER BAY</a>
</td>
<td width="143" nowrap valign="bottom">
15.7%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2256
</td>
<td width="116" nowrap valign="bottom">
<a target="_blank" href="/news">PHEGANS BAY</a>
</td>
<td width="143" nowrap valign="bottom">
15.6%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2250
</td>
<td width="116" nowrap valign="bottom">
<a target="_blank" href="/news">POINT FREDERICK</a>
</td>
<td width="143" nowrap valign="bottom">
15.4%
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
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cknowlton-QnEa6ntUYP

Top 10 Sydney suburbs with the highest average discount for house prices: RP Data

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It’s just about over – the year of the great Australian house price debate.
If there were a prize for the number of diverse viewpoints on the future of our housing market, 2011 would claim it.
The Super-Pessimists, like Steven King ….oops, Keen, and Harry Dent, predicted prices would plummet 40 to 50%.
The Economist proclaimed the market 56% over-valued, while Money Morning prophesied a nightmare “100-year slump”.
And as if that weren’t enough to put a serious dent in confidence, the Pessimists, like the OECD and Goldman Sachs, did further damage with reports of house prices up to 35% over-valued.
Groups like Morgan Stanley and Rismark – we’ll call them the Stagnationists – indicated we will all be treading water.  They anticipate longer-term flat prices.
SQM Research forecasts little change at all.
But the range of opinions didn’t stop there.
Optimists, like Investment Property Central, focused on the stability of property but ignored any effects from the GFC.
And the Super-Optimists, like QBE/ BIS Shrapnel, forecast faster economic growth and gains of anywhere from 16 to 20% in some of our capitals over the next three years.   We wish!
So, what do we think?
Well, like the Stagnationists, we anticipate very little movement – at least for the immediate future.
In a nutshell, we expect a period of fairly flat growth for the next several years, on the eve of modest improvement.
Prices should rise, but they will be subdued, and they should increase on the back of rents.
One hurdle – our recent drop in population growth – has caused underlying demand for housing to drop by a third across Australia since 2009.  Queensland and Victoria have experienced even greater falls.
Thus 2011-12 will be a slow year for new housing starts – just 135,000 are expected to be built over the next 12 months, a drop of 15% over the previous year.
Assuming stable interest rates for the next six to 12 months, this level of new supply would comfortably cater for the expected increase of about 325,000 in the Australian population next year.
Our forward estimates are for, on average, between 150,000 and 160,000 new housing starts each year over much of the next decade.
A fall in interest rates would have a positive impact on new housing starts, but without a rise in population growth, there is really little need to build more dwellings.
Queensland’s outlook, however, is beginning to look a little sunnier.
The state’s growth is on the rise, boosted by coal output and major resource development.
And the number of full-time jobs is increasing which, ultimately, will translate to higher levels of migration, stronger housing demand and eventually price (and rental) growth.
But patience is crucial.
To recap, we look to some improvement in nominal terms, but in real terms, expect a period of flat growth.
Improvement should follow, within a small positive band of 2% to 4% per year over the next several years.
Wishing you good health, good cheer, and growing confidence throughout the new year.
 Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
 
 
 
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michaelmatusik-49YzLvdmNv

The great house price debate - which side will be proven right in 2012?

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The Housing Industry Association has amended its forecasts for housing starts in the year ahead, saying it expects the current financial year to result in just 141,000 new starts, well below demand.

However, the prediction comes as housing finance and approvals figures have been improving over the last few months, with the latest interest rate cuts expected to spur some activity.
HIA economist Harley Dale told SmartCompany this morning the group is now forecasting a 10.4% decline in starts for 2012, "recognising clear downside risks for the forecast" given the situation in Europe.
"It's roughly the same forecast we've had the whole year, give or take a thousand starts or so, but there's been some upwards revisions on the previous financial year on the part of the ABS and we've made some modest amendments to our regional forecast."
"Our aggregate forecast is within that area of 141,000 starts for the current year."
There is some improvement expected in 2012-13, Dale says, when the organisations forecasts a 6% rise in starts to reach about 149,000.
But overall, Dale says that's coming from a low base and even then, housing starts will need much more activity in order to cater for demand.
"We're looking at an increase of around 6% for that year, and that's following two consecutive years of declines."
"But to put that into perspective, we're talking about forecasts that would put housing starts in the 140s. A 6% rise gets you just under 150,000, and the underlying demographic demand is running at about 175,000 dwellings per year."
The lack of housing starts has been a point of contention in the industry, especially as more construction providers collapse into insolvency as the industry suffers the worst number of insolvency appointments.
"It's better than further declines," Dale says. "But there's still a long way to go to get to the levels on par with the requirement for the growing population."
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany.</a>
 
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pmcstafford-pr9eMARWoN

HIA upgrades housing starts forecasts, but warns industry still has a long way to go

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Purchasing a property is one of the biggest financial commitments you’re likely to make in your lifetime.
Only certain properties should be bought without you seeing them first. I recommend that those looking for a new home to live in themselves should see the property in question before making an offer.
However, purchasing investment property can often be done without the buyer seeing the property at all. Successfully purchasing a property without viewing it beforehand is dependent on the level of trust you have in the buyer’s advocate you have engaged.
When presenting a property to a client, I provide them with a detailed report that includes historical growth patterns and market value for properties within that specific area. We also provide detail on land size, orientation and comparable sales evidence of similar properties.
When engaging someone to act on your behalf it’s important you’re confident that they’re acting in your best interests. It’s imperative that they have extensive knowledge and experience in the property industry. This ensures that they are well across property market in the area that you’re looking to invest in.
Three important factors to consider when selecting someone to purchase property on your behalf:
1. Experience
Certification and experience provide a base for grounding and trust. Look at a buyer’s agent’s history; has he or she had experience in the property industry? Working in a variety of roles in the property industry enables a multifaceted understanding of the property market. If your buyer’s advocate is also a licensed real estate agent, he or she will be familiar with selling techniques, growth patterns and auction clearance history. Industry experience is integral to an ability to build relationships.
2. Industry relationships
Pre-existing relationships with real estate agents enables buyers’ advocates to unearth properties that are yet to be advertised to the wider market and present them to their clients.
3. Set fee vs. percentage of the purchase price
Engaging professionals to act on your behalf will take the stress and complication out of purchasing property. When engaging a company, look at whether its fees are based on a percentage of the final purchase price or whether they’re set from the beginning. It’s important that you can be confident your advocate has your best interests at heart and won’t be making more money should he or she recommend a more expensive property.
Cameron Deal is senior buyer advocate at<a href="https://www.infolio.com.au/" target="_blank"> Infolio Property.</a><a href="https://www.infolio.com.au/" target="_blank"> </a>
For advice on buying your first investment property<a href="http://propertyobserver.com.au/ebooks/first-investment-property-a-beginner-s-guide" target="_blank">, download our free eBook.</a>
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cdeal-QdyJUR3QXp

When buying an investment property unseen, trusting your buyer's agent is essential

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The addition of new retail space in the Perth CBD has created a sought-after market for “secondary” retail properties, according to the December market report by Herron Todd White. 
Herron Todd White commercial valuers anticipate about 15,500 square metres in new commercial stock will be constructed in in the Perth CBD in 2012 following on from about 24,000 square metres added during 2008 and 2009. 
Demand for new stock remains strong, with the Perth CBD retail market benefiting from tight vacancies in both offices and inner-city residential. Retail vacancy rates hover below 5.5%, with the overall escalating stock levels matched by growing demand. 
“To some extent the significant addition of new space has resulted in this market becoming a two-tier market, with the older developments increasingly being perceived as a ‘secondary’ property market,” the report says. 
“Property sales in this segment of the market, which are predominantly made up of strata-titled unit properties, generally have no shortage of willing buyers looking to purchase either leased or vacant properties. 
“Transactions in this sub-market have been quite limited, although this is due to the lack of supply as these properties are generally very tightly held.” 
Despite the demand for these assets, buyers remain price-sensitive and according to Herron Todd White “are not keen on setting new price benchmarks”. 
Outside of the Perth CBD, investors in bulky good stores in Perth should expect higher rental returns in 2012, while regional supermarkets will remain sought after by institutional investors, according to the report. 
The report notes that over recent years, with shopping centres have increased in size while the introduction of bulky goods developments “agglomerating a number of larger retailers”, which has intensified competition significantly. 
“The tenants of bulky goods properties tend to comprise large national retail companies. Despite most bulky good retailers having endured difficult market conditions over the course of the year, rental rates have generally remained steady,” says HTW. 
“This appears to be due to a limited supply and limited construction, and so it is likely that rental rates will rise over 2012.” 
“Assets in this category are also tightly held, as they provide relatively high returns with little risk of default.” 
Notable bulky good properties sales this year include a 2,200-square-metre Cannington store at 1429-1433 Albany Highway, which sold for $6.65 million at a passing yield of 7.4%. Tenants include EB Games, Avanti Plus and The Outdoor Furniture Specialists, with a weighted average lease expiry of 3.85 years. 
Regional supermarkets remain the competitive retail sector, “with owners continually under pressure to refurbish, extend and maintain to ensure a desired tenancy mix”. 
“This asset group is limited to institutional investors who have the expertise in managing these assets. There have been no significant sales this calendar year, aside from capital raisings via the establishment of retail trusts,” HTW says.
Sales included the Thornlie Square Shopping Centre, which sold for $21 million, at a passing yield of 11%. The shopping centre, which has a gross lettable area of 14,583 square metres, was refurbished in 2010 at a cost of $2.5 million. The property was purchased by a private investor following a lengthy 12-month marketing campaign.
The report suggests investors steer clear of older-style strip shops and showroom developments, which are becoming increasingly obsolete.
“As expected this lower end of the market has had a challenging year. We have noted over the year that these properties require lengthy selling periods and competitive pricing. Buyers in this market tend to possess limited capital and a limited potential in acquiring the necessary finance.”
 Photograph by eGuide Travel
 
 
 
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lschlesinger-FZcF9M3vE6

Perth retail property market strong: Herron Todd White

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For as long as people have been securing their financial futures, a debate has raged as to what type of investment offers the best long-term returns. 
Well, a recent study by ANZ Research entitled Asset returns: past, present and future has provided some clear answers – <a href="https://www.propertyobserver.com.au/residential/owner-occupied-housing-top-performing-asset-over-24-years-but-not-in-the-next-decade-anz/2011100651835" target="_blank">residential property has outperformed all other asset classes over the past 24 years</a>. 
The detailed study compared a range of assets going back to 1987, and different levels of leverages and returns were then risk-adjusted in order to paint an objective picture.
ANZ compared the after-tax and after-cost returns of owner-occupied housing, investor housing, commercial property, equities (the ASX 200), government bonds and term deposits. 
The best-performing asset
The key finding was that the highest performing investment over the past 24 years was owner-occupied residential property. 
The report showed that even when costs and taxes were factored in, owner-occupied housing generated the highest average annual total return of 12% per annum. In second place was investment housing, which delivered an average annual return of 9.6% over the last 24 years. 
Over the same period the share market averaged 8.9% for a higher level of risk due to its higher volatility, with commercial property, bank term deposits and government bonds providing lesser returns. 
The following chart from ANZ shows the compound annual growth rate of the various asset classes over last 24 years.
<img src="/images/stories/yardneydec21.gif">
What about costs?
A common criticism of simple return models is that housing attracts a number of costs that other assets do not. Things like maintenance costs, stamp duty and agents commissions (on sale and rent). 
In this study the ANZ have accounted for these costs as realistically as possible. ANZ also included tax with a marginal income tax rate of 45% being assumed, as well as capital gains tax and stamp duty. 
The results
 
A gearing level of 50% was assumed for all assets, except for term deposits and government bonds, and returns were measured based on the return on equity. 
This is one of the most detailed comparative analyses I’ve read. However, I believe the results for property would have been even better if a higher gearing ratio had been assumed. If you think about it, most property investors have a higher loan to value ratio than 50%. 
And of course, the increased returns to property owners who renovate or improve their properties was not accounted for in this analysis. 
Looking ahead
 
You know what they say – past returns are no guarantee of future returns. 
In fact, ANZ believes that equities will have the highest returns over the next decade as the growth in value of residential properties tracks the growth in wages. 
We’ll just have to wait and see.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
 
 
 
 
 
 
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myardney-DFoGhGbSJX

Property the best-performing asset, but will it continue?

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ANZ and the Commonwealth Bank expect the Reserve Bank to cut the cash rate to 4% on  February 7 following analysis of the minutes of December Monetary Policy Committee meeting released today.
ANZ economists Ivan Colhoun and Craig Michaels say the minutes indicate that the RBA board cut the cash rate in December on the basis of heightened global risks emanating from Europe after again considering “whether further evidence of Australia's unfolding mining investment boom was cause to leave rates on hold”.
“On balance, given the heightened global risks, coupled with inflation expected to be consistent with the target over the next two years, the board felt that it had scope to reduce the cash rate modestly,” Colhoun and Michaels say.
“The board minutes suggest that the RBA is continuing to ease policy with some caution given Australia's solid mining investment medium-term pipeline, which is in stark contrast to market pricing of aggressive rate cuts. While the board notes the large downside risks stemming from Europe, it will be the evolution of these risks that will be the key for the February decision.
“Importantly, the availability of credit is (so far) much greater than during the GFC, and unless we witness a seizing in credit markets, aggressive policy action by the RBA is very unlikely.”
To gauge future RBA policy, Colhoun and Michaels will be closely watching developments in Europe, the direction of Chinese growth, Asian trade figures and 2011 fourth-quarter inflation data out on January 25.
CBA economist Michael Workman says both the November and December rate cuts were spurred on by the worsening situation in Europe outweighing generally favourable local conditions, most notably “a major investment boom … tied to the reasonably strong Asian growth outlook”.
“In contrast to the strong domestic investment outlook, the uncertainty over the way events may pan out in the EU present a problem for the RBA board when deciding interest rate levels,” Workman says.
“We expect another RBA rate cut in February. We see the same reasons arising that justified the last two cuts. Conditions in the EU are likely to worsen in terms of the growth outlook.
“The ongoing bad news may further weaken already fragile (non?resources) business and consumer confidence measures here, which will play into lower spending, investment and jobs outcomes. The local financial markets remain very bearish on the local economy. They see a cash rate of 3% in mid-2012.”
“Every board meeting in 2012 is, in our view, ‘live’ if the financial markets continue to dismiss the ability of the EU to satisfactorily resolve its debt problems,” Workman says.
 
 
 
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ANZ and Commonwealth Bank tip February rate cut

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The deteriorating situation in Europe and concerns about the state of both the local housing market and China’s housing market spurred the Reserve Bank Monetary Committee to cut interest rates by 25 basis points to 4.25% on December 6, according to minutes from the meeting released today.
“After a positive reaction to the EU summit in late October, financial market sentiment deteriorated through most of November, reflecting the difficulty European policymakers were having in dealing with the debt crisis, as well as political instability in several euro-area countries,” the minutes read.
The board also notes that strains in “European interbank markets also intensified” in November while “wholesale debt markets globally appeared to be closed to many financial institutions”.
The last comment acknowledges <a href="https://www.propertyobserver.com.au/economy/unhappily-perhaps-banks-pass-on-full-rate-cuts/2011121152772" target="_blank">the higher funding cost concerns expressed by Australian banks in recent AGMs</a> and <a href="https://www.propertyobserver.com.au/economy/no-banana-smoothies-but-anz-to-explain-its-new-rates-policy/2011121652869" target="_blank">the decision by ANZ to decouple its interest rate decisions from future RBA announcements.</a>
The RBA remains concerned about the state of residential housing, noting that “residential approvals had continued to decline, with the large fall estimated to have occurred in October in contrast to the recent upward trend in grants to first-home buyers”. “Approvals in Victoria had fallen significantly in recent months after the sharp run-up through 2010, while housing indicators for New South Wales were showing some signs of a pick-up.
“In recent liaison, some contacts, including in the property industry, had reported signs of a tightening of credit conditions, and overall growth in business credit outstanding remained weak,” the minutes read.
Further on the RBA notes that conditions in the housing market remain “subdued”.
“Housing prices were estimated to have fallen in October and were down by around 4% over the year. Members noted that prices had fallen by more in higher-priced suburbs. Housing credit was increasing at an annualised rate of 5% to 6%, as it had for much of the past year.”
On the global housing front, the RBA board notes that “conditions in the Chinese housing market were noticeably weaker than over the past couple of years, reflecting the effect of controls on buyers and tight credit supply for developers”.
“Members noted that this slowing was in line with the authorities’ intentions. The slowing in private housing construction was being offset by growth in construction of social housing, but production of crude steel had fallen somewhat in recent months.”
In coming to its decision to cut the cash rate in December, the RBA weighed up “further evidence that a major investment boom was in progress and the overall economy was expanding at a pace broadly in line with trend” against “developments in Europe [that] continued to pose downside risks to the global economy and, consequently, also to Australia”.
“These risks had, if anything, increased though the timing and magnitude of any effects that might flow from them remained very difficult to predict,” the RBA decided. 
“In these circumstances, and given the expectation that inflation would be consistent with the target over the next couple of years (abstracting from the effect of the carbon pricing scheme), members felt that there was scope for a modest reduction in the cash rate at this meeting.”
 
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Europe fears and housing worries among reasons for December rate cut: RBA minutes

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There is an enormous amount of time wasted debating whether Australian house prices are over- or under-valued. The vast bulk of everything that is written on this subject is, unfortunately, both factually flawed and misleading. 
Today I want to objectively eviscerate the long-standing myth that the Australian housing market is in the throes of an unsustainable bubble using two very simple charts, which you are unlikely to have seen before. 
By referencing this analysis alone one can conclude that current Australian house prices are comfortably explained by fundamental economic factors. That is, there is no evidence that domestic housing costs have overshot basic measures of fair value. We will also see that the average Australian family’s disposable income after meeting all housing costs is actually higher than it has been at any time since our analysis begins in 1985. 
The first question we address is most powerful in its simplicity. Specifically, we want to work out how much of the growth in Australian house prices since 1985 can be explained by changes in disposable household incomes and mortgage rates. 
Regular readers will recall that both the RBA and I have regularly argued that the increase in household debt-to-income ratios, which started during the early 1990s, and the coincident rise in Australia’s dwelling price-to-disposable income ratio, can be partly attributed to the circa 40% reduction in average mortgage rates between the 1980 and 1995, on the one hand, and 1995 and today, on the other. These two periods book-end the introduction of the RBA’s “inflation-targeting” regime, which helped lock-in consumer price growth of 2% to 3% per annum, and thus much lower nominal interest rates. More formally, mortgage rates averaged 12.6% between 1980 and 1995. Since that time, mortgage rates have averaged a little less than 7.5%. 
In our first chart below Rismark’s research group has put this hypothesis to the test. In particular, we take the median Australian dwelling price in June 1985 and “index” this by only two variables: (1) changes in incomes; and (2) changes in borrowing capacity enabled by variations in mortgage rates over time (assuming that the household’s loan-to-value ratio and mortgage repayments-to-disposable income ratio stay constant in 1985 terms). 
The final income- and interest rate-adjusted 1985 median dwelling price is denoted by the blue line in the chart below. The red line represents actual median prices. 
To get the best possible measure of the change in household earnings, we use the ABS’s disposable household income series, which is reported as part of the National Accounts. We have not used the gross increase in disposable household income, since this is artificially inflated by population growth. To control for the latter, we divide disposable household incomes by the number of households each quarter. This gives us disposable income on a per household basis, which expands at a lower rate than the headline disposable income series. 
If we simply index the 1985 median dwelling price by this measure of incomes, we can account for 60.1% of the total increase in Australian housing costs over the last 26 years.
Click to enlarge
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As discussed, the second variable we use to adjust the 1985 median dwelling price is the change in household borrowing capacity over time. To properly quantify this, we keep the amount of money households spend on their mortgage repayments constant. That is, we fix the 1985 mortgage repayments-to-disposable income ratio and apply this fixed ratio to the entire 1985 to 2011 time-series. 
We do not, therefore, allow households to spend any more of their earnings on meeting housing costs over time. We also assume a constant mortgage loan-to-property value ratio. Accordingly, the only variable that influences the household’s borrowing capacity is fluctuations in mortgage rates over time, which we source from the RBA. 
Adding changes in borrowing capacity to the blue line in our chart above, we can explain a further 31.9% of the increase in Australian housing costs since 1985. 
Collectively, incomes and interest rates account for 92% of the increase in median Australian dwelling prices over the period 1985 to 2011. 
Note that since the average size of Australian homes has tended to rise, it is likely that there are some “compositional biases” affecting our median measure of housing costs (i.e., the red line in the chart above). That is, it is conceivable that incomes and mortgage rates actually account for an even higher share of the time-series change in dwelling prices than our analysis suggests. 
Our second chart takes a novel look at the question of housing affordability. This analysis actually borrows from an approach first developed by Dr Tony Richards at the RBA. Specifically, it asks the question: how much real disposable do households have left over after buying the representative home and servicing all their mortgage costs? 
In order to compare the welfare of different households over time, we take the disposable income measure used in the first chart above every quarter and assume the household buys the median-priced dwelling as recorded in that same quarter. Given a fixed loan-to-value ratio, we then work out the principal and interest repayments owing on the household’s mortgage, which it meets out of its income. After adjusting for inflation we have a quarterly estimate of real disposable income per household netting out all housing costs (i.e., after buying a home and servicing the mortgage). This is represented by the blue line in the chart below.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/december202.gif"><img src="/images/stories/december202thumb.gif"></a>
It turns out that in 2011 Australian households actually have more income left over after purchasing the dwelling of their dreams and meeting their principal and interest repayments than any of their predecessors since our analysis begins in June 1985. This was exactly the same result that Richards found when he first published his work in early 2008. On the basis of this benchmark, housing affordability in Australia has never been better.
In closing today’s column, I want to provide an update to our closely followed dwelling price-to-income ratio. We have recalculated this data to reflect the ABS’s September National Accounts. The key conclusion is, as we have predicted for some time, that Australia’s dwelling price-to-income ratio continues to slowly decline to around four times, which also accords with what the RBA finds.
While one can quibble about exactly what the ABS includes in its measure of disposable incomes, we are more concerned about changes in the ratio over time (rather than the specific levels). And when focussing on how the ratio has moved, we can clearly see that there is no evidence that Australian housing costs have grown more rapidly than disposable household incomes over the last seven to eight years. In fact, when we use a much more precise measure of housing costs — namely, our hedonic indices – we find that per capita incomes in Australia have actually outpaced national dwelling prices by about 15% since the end of 2003.
Click to enlarge
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In a recent report, the ratings agency Moody’s downgraded its outlook for Australia’s mortgage insurance sector almost exclusively on the basis of concerns about Australia’s housing market. On the one hand, Moody’s argued that, “elevated house prices and mortgage debt levels are arguably at unsustainable levels and remain a key vulnerability for the LMI industry.” Yet in the same report they concede that “our view is that the data on the sustainability of Australian housing prices remain ambiguous.” While these two statements are difficult to reconcile, we hope that the evidence presented above will help clarify Moody’s views.
 Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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The final word on Australian house prices: Christopher Joye

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Arrears in the Australian property market have improved over the year, with delinquencies falling to 1.42% in the September quarter, down from 1.77% in March, according to the latest research from Fitch Ratings.

The improvement comes as homeowners recover from the year's natural disasters in January, Fitch says, while interest rates cuts should provide more scope for improvement in the first half of 2012.
Fitch Australia head of Australian structured finance Natasha Vojvodic told SmartCompany this morning areas stretched by higher property prices have benefited from stable interest rates.
"There haven't been any interest rate rises, and they have really remained stable the entire year. This gives a lot of home owners the ability to adapt to mortgage repayments."
Regions which have performed badly in the past have continued to show disappointing results, Fitch said. Fairfield-Liverpool is still the worst area in the country, while the Sydney south-western suburbs, the Gold Coast and Western Australia's south-west region are all experiencing higher than average arrears.
However, overall arrears in these areas have decreased. In Fairfield-Liverpool, 30 day arrears fell from 2.99% to 2.63%, while in south-west Western Australia, they fell by 76 basis points to 2.17% – although Fitch says this is still above average.
Western Australia recorded the most improvement out of any state, with arrears falling from 1.99% to 1.5%.
"Regional employment has improved in Western Australia, which led to the rise. The mining sector has really expanded so it's been easier for borrowers there to adapt."
"The 30- to 60-day arrears have improved the most."
Queensland has remained the worst performing state, although arrears are down from 2% to 1.7%. Victoria saw arrears fall to 1.04%, with most of those concentrated in the north-western part of Melbourne.
Based on loan amounts, Nelson Bay is the worst performing postcode with a delinquency rate of 7.1%. Other suburbs including Budgewoi, Casuarina and Helensvale still remain in the list of the worst performers.
Vojvodic says arrears are expected to increase in the New Year, but mostly as a result of Christmas spending, saying lower interest rates should provide homeowners with some relief.
"The usual Christmas and holiday spending flows through the first quarter of the year, and so going forward we expect arrears to increase, which is typical this time of year."
"But during the first quarter the interest rate declines should offset some of that. As to the extent of that offset, it's unknown."
The 20 worst performing postcodes in Australia, by number:
1.	<a target="_blank" href="/news">Budgewoi</a>, NSW 2262 – 3.5% 2.	<a target="_blank" href="/news">Nelson Bay</a>, NSW 2315 – 3.1% 3.	<a target="_blank" href="/news">Kangaloon</a>, NSW 2576 – 3.0% 4.	<a target="_blank" href="/news">Surfers Paradise</a>, QLD 4217 – 29% 5.	<a target="_blank" href="/news">Cessnock</a>, NSW 2325 – 2.6% 6.	<a target="_blank" href="/news">Plumpton</a>, NSW 2761 – 2.6% 7.	<a target="_blank" href="/news">Kingston</a>, QLD, 4114 – 2.5% 8.	<a target="_blank" href="/news">Helensvale</a>, QLD 4212 – 2.5% 9.	<a target="_blank" href="/news">Crestmead</a>/<a target="_blank" href="/news">Marsden</a>, QLD 4132 – 2.4% 10.	<a target="_blank" href="/news">Eagle Vale</a>, NSW 2558 – 2.3% 11.	<a target="_blank" href="/news">Port Kennedy</a>, WA 6172 – 2.3% 12.	<a target="_blank" href="/news">Gorokan</a>, NSW 2263 -2.2% 13.	<a target="_blank" href="/news">Macquarie Fields</a>, NSW 2564 – 2.2% 14.	<a target="_blank" href="/news">Taree</a>, NSW 2430 – 2.2% 15.	<a target="_blank" href="/news">Hamlyn Terrace</a>, NSW 2259 – 2.2% 16.	<a target="_blank" href="/news">Green Valley</a>, NSW 2168 – 2.2% 17.	<a target="_blank" href="/news">Hoxton Park</a>, NSW 2171 – 2.1% 18.	<a target="_blank" href="/news">Karuah</a>/<a target="_blank" href="/news">Swan Bay</a>, NSW 2324 – 2.1% 19.	<a target="_blank" href="/news">Casuarina</a>, WA 6167 – 2.1% 20.	<a target="_blank" href="/news">Ipswich</a>, QLD 4305 – 2.1%
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany.</a>
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