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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At last Friday's annual general meeting, ANZ chief executive Mike Smith told the ANZ shareholders he was optimistic about the Australian economy due to its proximity to fast-growing Asia.
In China, the economy grew at 9% over the year. And while many commentators talk about the risks to growth in China, I have been there regularly this year and I am confident about the ability of the Chinese government to manage inflationary pressures and managed the shift from export-led growth, to growth based on more internal demand.
By the way, isn't that exactly what you've been reading right here, in some of the recent articles?
You will find that most commentators are focused on the short-term issues in the north Atlantic and have tended to overlook the bigger picture.
During every generation, there is generally a structural change in global economic activity. And right now, you are simply witnessing a shift the world's economic centre of gravity.
The influence of the British Empire was surpassed by American economic dominance after the Second World War. And now that dominance seems to be shifting from the advanced Western economies as a whole  across to a growing group of emerging economies.
China's current growth rate of 9% per annum is closely followed by India, at around 7% per annum. But you cannot ignore other emerging economies like Brazil, Indonesia and Vietnam.
With a population of around 240 million, Indonesia has the world's fourth-largest population. And in terms of overall net worth, it surpassed Australia's economy about five years ago.
Bottom Line: You only need to look at the number (and size) of the purchases of commercial property made by Asian buyers over the past year or so to realise the Australian property market is seen by them as a safe haven.
The sheer volume of Asian funds poised for investment means those investors need to look outside their own countries — simply to balance their portfolios, and spread their risk.
Therefore in 2012, you will hopefully recognise this tidal wave of activity for what it is. And more importantly, realise the positive impact it will have upon commercial property values in Australia.
Now is the time to position yourself to be able to ride that wave, over the next five to six years.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Asian interest makes Australian commercial property a good investment

<html><body>
<table width="368" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="64">
Postcode
</td>
<td valign="bottom" nowrap width="127">
Suburb
</td>
<td valign="bottom" nowrap width="177">
Indicative gross rental yield for houses
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2382
</td>
<td valign="bottom" nowrap width="127">
BOGGABRI
</td>
<td valign="bottom" nowrap width="177">
10.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2880
</td>
<td valign="bottom" nowrap width="127">
BROKEN HILL
</td>
<td valign="bottom" nowrap width="177">
8.2%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2820
</td>
<td valign="bottom" nowrap width="127">
WELLINGTON
</td>
<td valign="bottom" nowrap width="177">
8.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2321
</td>
<td valign="bottom" nowrap width="127">
GILLIESTON HEIGHTS
</td>
<td valign="bottom" nowrap width="177">
8.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2660
</td>
<td valign="bottom" nowrap width="127">
CULCAIRN
</td>
<td valign="bottom" nowrap width="177">
7.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2306
</td>
<td valign="bottom" nowrap width="127">
WINDALE
</td>
<td valign="bottom" nowrap width="177">
7.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2653
</td>
<td valign="bottom" nowrap width="127">
TUMBARUMBA
</td>
<td valign="bottom" nowrap width="177">
7.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2283
</td>
<td valign="bottom" nowrap width="127">
CAREY BAY
</td>
<td valign="bottom" nowrap width="177">
7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2440
</td>
<td valign="bottom" nowrap width="127">
SOUTH KEMPSEY
</td>
<td valign="bottom" nowrap width="177">
6.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2835
</td>
<td valign="bottom" nowrap width="127">
COBAR
</td>
<td valign="bottom" nowrap width="177">
6.9%
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
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cknowlton-QnEa6ntUYP

The top 10 NSW suburbs with the highest rental yields for houses: RP Data

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<img src="/images/stories/empirestatehanukkahflicker.jpg">
The lights of New York's famous Empire State Building will be turned blue and white tonight to celebrate the first night of Hanukkah, thanks to the determination of a 9-year-old New Yorker and a tradition that began 14 years ago.
In 1996 Mallory Blair Greitzer, then 7, began to wonder why the Empire State Building, whose colours change regularly to celebrate major and minor holidays (red and green for Christmas, blue and red in honour of "Family Day, A Day to Eat Dinner with Your Children"), did not turn blue and white to celebrate Hanukkah. According to <a href="https://www.nytimes.com/1997/12/11/nyregion/empire-state-building-to-glow-for-hanukkah?src=pm" target="_blank">The New York Times</a>, Mallory approached the teachers at her Jewish school and asked about beginning a letter-writing campaign to have the Jewish festival of lights recognised by New York's most famous building. Her school turned her down.
Undaunted, Mallory wrote to the building's management herself, only to receive a form letter rejection. Her father wrote a similar letter, and received a similar response.
But Mallory was persistent. "I am one tough cookie,'' she told the Times.
She wrote directly to Leona Helmsley, whose Helmsley-Spear management company ran the building. The notorious "Queen of Mean" was convinced, and ordered the building to be lit up blue and white for two nights in December 1996.
The building's lights turned blue and white for the first night of Hanukkah in December 1997 - and Mallory herself flipped the switch.
As Hanukkah and Christmas coincide this year, between December 23 and 28 the building will be split, with the north and south sides red and green and the east and west sides blue and white.
 
 
 
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New York's Empire State Building turns blue and white for Hanukkah

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Eight suburbs on NSW Central Coast, a popular retirement and lifestyle location for ex-Sydneysiders, registered price falls of more than 5% over most of 2011, with mortgagee sales rising notably, according to property valuer Herron Todd White’s December report.
According to Fitch's latest mortgage delinquency report, the Central Coast suburb of<a href="https://www.propertyobserver.com.au/residential/mortgage-arrears-decline-in-september-quarter-but-nsw-dominate-list-of-struggling-suburbs-fitch-report/2011122052898"> Budgewoi is Australia's worst performing post code with a delinquency rate of 3.5% </a>
The biggest price falls occurred in Ourimbah, at the entrance to the Central Coast on the Pacific Highway, where houses depreciated by 16% over the year to November 2011, falling to a median of $343,000.
Sales prices ranged between $268,000 and $560,000.
Properties in the semi-rural lifestyle location of Matcham declined by 12% to a median price of $960,000, with Herron Todd White describing this result as “somewhat surprising” and suggesting that “trading slowed during 2011, with a resulting shift in affordability levels”. 
Matcham is part of the City of Gosford, where overall sales numbers declined from 2,601 in 2010 to just 2,059 in 2011 and median dwelling prices falling 3% over the past 12 months. 
Other markets to register declines of more than 5% included the popular coastal suburb of Terrigal, where unit prices declined by 7.5% to $495,000, with houses declining by a more modest 1% to $559,000. 
Highlighting the patchy nature of the market, houses in Killcare, about 16 kilometres south of Terrigal declined by 9.35% (to $775,000) while houses overlooking the beach in Killcare Heights (just down the street) increased by 7% to $590,000. 
The only other suburb to register an increase in values was Woy Woy on Brisbane Water, where unit and villa prices appreciated by 7% to $319,000.
<img src="/images/stories/htwdec19.gif">
Source: Herron Todd White
The report notes that “mortgagee sales have once again been all too common on the Central Coast”. 
“Advertisements of these mortgagee sales include ‘must sell, under instructions to sell,’ etc, which are regularly seen on the coast. 
“The Central Coast region has been ‘red flagged’ by the lenders for some time now for closer monitoring. This year, we have seen a steady flow in valuations being provided to mortgagees finding it necessary to carry out a forced sale. 
“Bearing in mind that we are just one of a number of valuation firms present on the Central Coast, our in-house records indicate that 44 individual instructions for mortgagee-in-possession valuations from various lenders have been received to November. 
“The number of these forced sales would indicate that the Central Coast real estate market, particularly in the ‘mortgage belt’ areas, is vulnerable as owners struggle with mortgage payments and living costs.”
The report highlights that dwelling and unit sales in the sub-$400,000 category, including vacant land sales, accounted for about 50% of the overall number of property sales on the Central Coast, “confirming reports from real estate agents that first-home buyers and investors are sustaining the market”.
“The residential unit market lived up to our expectations as the most volatile of the various market segments. Values were erratic as this market struggles to gain stability after the oversupply situation we have been experiencing over the past several years. Good buying was regularly seen in this segment,” the report says.
Overall, sales volumes declined by approximately 20% across all sectors and price bands compared to last year and are close overall to figures achieved five years ago in 2006. 
The segments that have shown the least activity during 2011 included dwelling sales of between $1million and $ 2million and vacant land sales, especially in the Wyong municipality, along with dwelling sales over the $3 million mark in Gosford. 
The surprise for the year was a 31% increase in sale volumes of dwellings in the $1 million to $2 million price band in Gosford.
<img src="/images/stories/htwdec192.gif"> 
Source: Herron Todd White
HTW attributes the slowdown in sales to the “erratic supply of funds being made available through the major lenders, with exposure and risk models undergoing “a regime of adjustment”.
“The result, it appears is that owners in this segment seem to have largely opted to delay the sale of their properties until the market improves, rather than take a hit. 
“It could be said that another two or three business reporting periods without controversy and boards left intact may stimulate this segment once again.”
Photograph by Kate Dreyer
 
 
 
 
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lschlesinger-FZcF9M3vE6

NSW Central Coast market struggling: Herron Todd White

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The next phase of Sydney retail development activity is expected to centre around the bases of office towers, according to Savills’ latest assessment of the CBD market.
This follows the completion of the Westfield Sydney (38,000 square metres of leasing space) and Mid City (9,000 square metres) developments on Pitt Street Mall.
Currently retail and leisure activities occupy 7% of the total floor space in the CBD, according to most recent Sydney City Council surveys.
New retail developments will come on line in several stages over the medium to long term, mainly in the major developments of Barangaroo, Central Park on Broadway and City One, a redevelopment proposal for Wynward Station.
<img src="/images/stories/savillsdec19.gif">
Significant retail activity is expected south of Pitt Street Mall, with a number of new office and retail developments mooted or under construction. 
“One thing is sure: Sydney CBD is undergoing somewhat of a retail renaissance, with new retail being encouraged in laneways, George Street mooted to be pedestrianised (similar to Times Square in New York), and a new dedicated Retail Advisory Panel established to focus on future retailing business in the Sydney CBD,” the report says.
The potential reconfiguration of George Street to support light rail will also have a major effect on George Street retailers following the Sydney City Council announcement that it would set aside $180 million for the proposed light rail and pedestrianisation of the street.
“If this development goes ahead, it will reinforce George Street as the main transport corridor for pedestrians in the city and benefit business in the long run,” the report says.
Other developments likely to encourage CBD retailing include:
<ul>
<li>Sydney City Council is also working with smaller retailers, providing grants to encourage development of laneways and small business to provide a greater depth of retail experience in the Sydney CBD and its villages. </li>
</ul>
<ul>
<li> A Retail Advisory Panel has been established to identify and create opportunities for CBD retailers?. </li>
</ul>
<ul>
<li>Following the success of “fast fashion” with Zara launching on Pitt Street Mall, Savills says there is anecdotal evidence that “several other global juggernauts are sizing up Australia, with Sydney CBD destined to be a nominated flagship location in each instance”.</li>
</ul>
 
 
<ul></ul>
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Sydney office towers to become shopping destinations: Savills

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Banks have no excuse in not passing on full RBA rate cuts, argues University of Canberra social researcher Josh Fear, who says the government should legislate to prevent “gouging”.
Fear says borrowers should expect banks to use a lot of complicated “jargon” to justify not passing on interest rate cuts in full. Earlier this month, AN<a href="https://www.propertyobserver.com.au/economy/no-banana-smoothies-but-anz-to-explain-its-new-rates-policy/2011121652869">Z said it would no longer make interest rate decision following RBA monetary policy announcement</a>, the first bank to break with the timing of the central bank.
Writing for academic opinion site <a href="https://theconversation.edu.au/" target="_blank">The Conversation</a>, Fear reminded borrowers of “Westpac’s facile banana smoothie video” where it tried unsuccessfully to explain how the increase cost of wholesale funding (bananas) was pushing up the price of mortgages (banana smoothies) after the bank raised mortgage rates by 45 basis points in December 2009 following an RBA increase of just 25 basis points.
“When interest rates are going down, the world is suddenly a much more complicated place where simple explanations do not apply. Watch out for all sorts of jargon as banks try to obscure the real reason they do not pass on rate cuts in full,” he says.
According to Fear, the only way to stop banks using “cash rate movements as an excuse to gouge customers” would be for the government to step in and “stipulate that the interest rate margin is to remain constant over the life of the loan.
“[Banks] would need to make future expectations about interest rates clear at the outset – which would deliver greater competition in the mortgage market, which everyone (perhaps apart from the big four) agrees is a good thing.”
But Kevin Davis, research director for the Australian Centre for Financial Studies and professor of finance at the University of Melbourne disagrees, arguing that banks’ cost of funding isn’t directly related the level of the Reserve Bank’s cash rate because they get a fairly large proportion of their funding from international wholesale capital markets.
“They borrow for terms such as three years, which involves locking in a credit spread above risk-free rates. The interest rates they pay depends on what the market is willing to provide that funding at,” he says.
“At the moment European capital markets seem to have frozen, so to raise funding from those markets is going to involve quite a significant credit spread.”
 
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Banks have no justification for withholding rate cuts: Academic

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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.
 
Retailers are no longer bluffing when making threats about shutting down stores to escape unrealistic rents, one industry expert has warned, after department store giant Myer announced it would shut down one of its two ACT stores.
The announcement also comes just a few weeks after Myer chief executive Bernie Brookes said the business was having trouble negotiating over retail rents.
The department store confirmed last week that it would not renew its lease at the Tuggeranong store, saying it has continued to review the merits of its existing store portfolio. It also noted that the store represented less than 1% of total group sales and that customers are opting to visit alternative Myer stores.
However, David Gordon, partner in charge of the national retail advisory practice at WHK Group, says there may be other factors at play – namely, that retailers aren't bluffing anymore.
"Every retail lease negotiation has an element of bluffing there, but retailers don't have much room to move right now. When they say a spade is a spade, they actually mean it right now."
Brookes made comments several weeks ago suggesting the company was having trouble dealing with a landlord, and that it was able to win a discount on rents by suggesting the company could close its store.
While it isn't clear whether that particular argument had any effect on the latest decision to close this store, Gordon nevertheless says it's emblematic of a shift in how retailers are approaching these negotiations.
"Retailers just don't have the flexibility to play this type of game anymore, because the top line is coming down. They don't have the ability to mess around and accept an outcome that will hurt their profit."
"They're not bluffing when they say if they take these outcomes proposed by the landlord they'll lose money."
Gordon says larger retailers' preparedness to shut stores may continue over the next year as consumer confidence remains soft and rents stay high.
"It's clear that Myer just isn't getting the correct sales-to-rents ratio. There are just too many costs involved here for the store to turn a profit."
"It's quite difficult, especially at this time of year, to reduce service staff or cut costs. There will be times during the year when you can do that but certainly not now."
However, Gordon says there's not a lot that can be done when it comes to cutting rents.
"Everyone understands that rents are too expensive, but there's not much that can be done. Landlords have obligations to their banks and their covenants would require overall rent per square metre of a certain price."
"There are alternatives, but ultimately it comes down to negotiation and as we see here retailers are willing to just up and leave."
Myer also said it would be opening up a store in the ACT, although it won't be opened until sometime during the 2014 financial year.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
Photograph by Paul Downey
 
 
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pmcstafford-pr9eMARWoN

Myer store closure shows retailers playing hardball in rent negotiations

<html><body>
<table width="351" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="69">
Postcode
</td>
<td valign="bottom" nowrap width="130">
Suburb
</td>
<td valign="bottom" nowrap width="151">
Median weekly asking rent for units
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4000
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">BRISBANE CITY</a>
</td>
<td valign="bottom" nowrap width="151">
$600
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4006
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">NEWSTEAD</a>
</td>
<td valign="bottom" nowrap width="151">
$500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4101
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">SOUTH BRISBANE</a>
</td>
<td valign="bottom" nowrap width="151">
$490
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4101
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">WEST END</a>
</td>
<td valign="bottom" nowrap width="151">
$485
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4102
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">WOOLLOONGABBA</a>
</td>
<td valign="bottom" nowrap width="151">
$455
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4006
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">FORTITUDE VALLEY</a>
</td>
<td valign="bottom" nowrap width="151">
$450
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4000
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">SPRING HILL</a>
</td>
<td valign="bottom" nowrap width="151">
$445
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4059
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">KELVIN GROVE</a>
</td>
<td valign="bottom" nowrap width="151">
$420
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4101
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">HIGHGATE HILL</a>
</td>
<td valign="bottom" nowrap width="151">
$420
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
4169
</td>
<td valign="bottom" nowrap width="130">
<a target="_blank" href="/news">KANGAROO POINT</a>
</td>
<td valign="bottom" nowrap width="151">
$410
</td>
</tr>
</tbody></table>
Source: RP Data
 
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Top 10 most expensive inner-Brisbane suburbs for unit rentals: RP Data

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APRA’s hard-line stance on enforcing new global banking rules could result in higher interest rates and a credit squeeze, former Commonwealth Bank CEO Ralph Norris has warned.
The warning from Norris follows a week of annual general meetings where the banks complained of high funding costs and political pressure to lower interest rates and just two weeks after the ANZ said it would adjust its mortgage rates independently of the RBA.
It also follows reports – <a href="https://www.propertyobserver.com.au/economy/anz-denies-carrying-out-apra-stress-tests/2011121652870">denied by ANZ, with other major banks declining to comment</a> – that APRA is requiring all the major banks to “stress test” how they would cope should a European financial collapse reach Australia.
Norris’s chief concern is the prescriptive approach APRA is taking to the implementation of Basel III banking reforms, announced in Switzerland in December 2010.
The reforms require (among other things) that banks hold higher reserves of cash as well as have sufficient high-quality liquid assets “to survive a significant liquidity stress scenario for a minimum period of 30 calendar days”.
Norris says regulators in Europe and the US are taking a softer approach to implementing the regulations, whereas Australia is at risk of scoring “an own goal” by moving too far ahead of what the rest of the world is doing.
“Of course there are benefits in having a strong and stable financial sector, as was demonstrated during the financial crisis, but Australia’s stable banking sector withstood the GFC because it is already well capitalised and well regulated. Raising the bar again may lead to a marginal increase in stability but, it must be asked, at what cost?” Norris writes in The Australian Financial Review.
“It is difficult to be precise about stability benefits at the margin versus cost, but it is clear that higher or increased capital levels did not necessarily correlate with increased stability and resilience during the crisis. It is also true that financial crises can originate outside the financial system, and increased stability within the system may not avert such crises,” he says.
“The cost of getting it wrong, because of flawed assumptions or models, could be very great, and would have a direct impact on the price and availability of credit for Australian customers,” Norris says.
According to Norris better capitalised banks are not necessarily more resilient in times of crisis. 
APRA intends to issue the final version of its prudential standard covering capital adequacy requirements in mid-2012.
Following this, qualitative and reporting requirements as well as changes to minimum liquidity holdings requirements will be implemented in late 2012 or early 2013.
The liquidity coverage ratio– which requires banks to hold enough liquid assets to survive a 30-day period of acute stress – will be implemented on January 1, 2015, while net stable funding ratio requirements – the proportion of long-term assets that are funded by long-term, stable funding  - will be implemented on January 1, 2018. Both are in line with an internationally agreed timetable.
 
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Tough APRA regulation could push up interest rates: Ralph Norris

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Commercial property investors may be encouraged to put more of their money into Australia’s top-end hotel brands in 2012, following a Roy Morgan survey that found nine out of 10 customers who stay in a luxury hotel walk out satisfied.
The top-rated hotel brands continue to be the Sheraton and Crowne Plaza, which both achieved a 91% customer satisfaction rating for the 12 months to October 2011, according to the Roy Morgan Research Hotel Customer Satisfaction Survey.
Both hotels improved their customer satisfaction rating from 84% and 87% respectively for the previous 12-month period.
Third position at 89% is shared by five hotels — Westin, Intercontinental, Hilton, Mantra and Marriott.
The greatest improvement in satisfaction was recorded for Golden Chain; at 88% it is up nine percentage points compared to the previous year.
Jane Ianniello, international director of tourism, travel and leisure at Roy Morgan Research, says customer satisfaction for most premium hotels has increased over the past 12 months. “By contrast, satisfaction for most mid-range and basic hotels and motels has remained steady and sometimes declined.”
This year offshore investors have snapped up a number of Australian CBD hotel offerings.
In August including Singapore-based  private investment firm Nadathur Fareast bought buying Tourast Corporations’ Constellation Hotels business, which includes management of over 60 hotels in Australia and New Zealand.
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US-based LaSalle Investment Management snapped up the 380-room Novotel Melbourne on Collins Street in the CBD for $204 million in early May just a week after US hospitality property group Host Hotels &amp; Resorts spent about $137 million for a 75% stake in the 396-room Hilton Melbourne South Wharf Hotel.
In February, Singapore investor Michael Kum added the one-year-old 275-room Travelodge in Melbourne’s Docklands to his hotel portfolio in February for a reported $54 million, and in January the prestigious 10-year-old 296-room Hilton Melbourne Airport Hotel was sold to Pan Pacific Hotels Group for $108.9 million. It was last sold in 2004 for $40 million.
NAB’s September quarter commercial property survey rated hotels as the top performing sector, despite its All Hotels Property Index (a measure of investor and market participant confidence in the sector) easing to +23 in September from+27 in the June quarter.
“Our own research indicates that CBD hotels are still out-performing non-CBD hotels, with stronger conditions in this market supported by a strong corporate and conference market and solid demand from Asian leisure travellers. 
“In contrast, conditions in the non-CBD hotels sector remain tougher because of the impact on domestic tourism from the high Australian dollar and relatively weak consumer confidence,” says NAB.
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