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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Outspoken economist and consistent housing bubble denier Rory Robertson says those who continue to rent in the hope that prices will crash are backing the wrong horse.
Responding to commentary from <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/residential/blowing-away-the-bubble-deniers/2011121652871" target="_blank">Deakin University academic Philip Soos that Australia</a> has a housing bubble, Robertson labelled him “a know-it-all preaching doom and gloom”.
Writing for academic blog The Conversation, Soos, a researcher at Deakin University's School of International and Political Studies, provides four key arguments that point to a housing crash in the near future.
Firstly, he provides numerous examples to show that not having non-recourse borrowing in Australia (as exists in some states in the US and other parts of the world) has little bearing on preventing a house price crash; secondly he says historically house prices in Australia have crashed eight out of the nine times after there have been housing bubbles; thirdly he says a housing shortage is not causing house prices to rise; and lastly says Australian banks have not been conservative lenders, which is why we have mortgage debt of $1.2 trillion.
Writing on Business Spectator, Robertson admits that the days of “easy capital gains” resulting from “the big structural downshift in inflation and nominal interest rates in the early 1990s and the big structural increase in credit availability as banks were deregulated” are over, but he denies that Australian households are excessively geared because “even now, only about one-third of households have a mortgage (one-third own outright and one-third rent)”.
“In any case, the fact that average home prices are unlikely to surge higher from here does not mean they are destined to collapse. With the one-off structural shift higher now complete, average home prices will tend to rise and subside in cycles over time,” Robertson says
“The most-likely scenario,” Robertson says, “is that real home prices will trend gradually higher over our lifetimes as real incomes rise, and two-thirds of our population continues to compete aggressively to live on the best-located bits of ground near the CBDs of our seven coastal capitals and Canberra.”
He says many of the “doomsters don't actually know very much about local housing and home lending markets, don't own their own home or – commonly – both”.
“Meanwhile, most everyday people choose to buy a home they can afford to fund with a mortgage; then show up to work and happily pay their mortgage for the next 25 to 30 years. Over time, they enjoy a secure home within which to raise kids, and later on have a buffer that protects them from poverty in old age,” he says.
“Ask the dopey bubblemen about how much of their old-age pensions will be left for living expenses (including tasty dog food?) once (expensive) rent is paid. If they had a clue, the know-it-alls would realise that the relative tightness of rental markets – capital-city rent increases have averaged 5.8% per annum over the past five years – is a hint they are barking up the wrong tree.”
“Good luck to those sitting ‘short’ and renting while waiting for home prices to collapse. Just make sure you don't hold your breath.”
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lschlesinger-FZcF9M3vE6

No such thing as an Australian housing bubble: Rory Robertson

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Mining markets are the golden key to economic growth in Australia right now, whereas industries such as tourism are taking a hit from the high Australian dollar. Knowing where to look in Australia for prime investment property takes a bit of due diligence, however there are plenty of fabulous opportunities for the taking, provided an investor knows what he or she is looking for. For example, rising wages are a key factor to search for when seeking a great investment area. This is due to the fact that rising wages are strongly tied to rising property values.

Certainly we're going to invest where rents are going to grow, where populations are going to grow, where unemployment is low, and where certainly wages are going to grow. We're also going to buy where supply and demand is not keeping up, and so these opportunities are in Australia and not necessarily in the rest of the world.

The mining boom we're experiencing now is, essentially, the biggest in our nation's history and it's really set about because we're now intrinsically linked to the Asian marketplaces. We're more aligned with these marketplaces, putting us in a fantastic position as there's really limited times that China and India will stop building over the next 20 years.

The result of our connection with Asia through the mining markets will be higher wages in Australia. The next 20 years of property to me seem pretty good. Of course it's not necessarily all rosy, and I'll show you some other speeds to the economy so you can get a better understanding of where not to invest. 

To show just how huge the impact the mining markets have had on the economy, consider a measure created by HSBC. Some 10 years ago or even 6 years ago, they were measuring 1 ton of iron ore and converting that into what we tend to buy. The example they chose was a flat screen TV.

One ton of iron ore, back six or seven years ago, when the Australian dollar was lower and commodity prices were lower, was essentially worth 2,200 flat screen TVs. As you will remember, back then a flat screen would set you back about $10,000. Today you can pick yourself up a flat screen TV for about $800 bucks. So today's measurement of 1 ton of iron ore is about 22,000 flat screen TVs. This is a result of a mixture of high commodity prices and the high Australian dollar.

Never before in the history of Australia has our arbitrage or what we own been worth so much compared to what we have to buy, and it's such a unique opportunity and a very prosperous opportunity that Australia needs to take advantage of.

The Australian dollar is higher at the moment, and that's obviously not necessarily great for people exporting, but essentially imports are cheaper.  The Australian dollar has been higher than what it is right now, but it's never been this high since it's inaugural flight back in the ’80s. 

I don't necessarily see that this will change very soon. It's not all a bed of roses, there's certainly some data coming out which does show a two speed economy. 

If we were like New Zealand, that doesn't really have that much mining activity, and we relied on say dairy and meat, we would soon be very similar to those economic countries that don't fuel the engine for the great powers of India and China, and as you can see in the chart below, the line essentially dips and we would no doubt be in a far more recessive environment if it wasn't for the opportunity of the mining markets.
<img src="/images/stories/nonmining.gif">
<shapetype coordsize="21600,21600" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f"><stroke joinstyle="miter"><formulas><f eqn="if lineDrawn pixelLineWidth 0"><f eqn="sum @0 1 0"><f eqn="sum 0 0 @1"><f eqn="prod @2 1 2"><f eqn="prod @3 21600 pixelWidth"><f eqn="prod @3 21600 pixelHeight"><f eqn="sum @0 0 1"><f eqn="prod @6 1 2"><f eqn="prod @7 21600 pixelWidth"><f eqn="sum @8 21600 0"><f eqn="prod @7 21600 pixelHeight"><f eqn="sum @10 21600 0"></f></f></f></f></f></f></f></f></f></f></f></f></formulas><path gradientshapeok="t"><lock aspectratio="t"></lock></path></stroke></shapetype><shape filled="t"><imagedata src="cid:image010.jpg@01CCB99C.3EF5E1C0"><wrap side="largest"></wrap></imagedata></shape>So the mining markets have made a bit of a resurgence, and they're always typically very small areas where the mines are located and so they create great little pockets of buying opportunities. 

Of course some of the capital cities that link to these mining markets also create great pockets of opportunity. Places like Perth and places like Brisbane are fast becoming the global offices for the mining market sector.

So we're going to see the re-emergence of these marketplaces. Brisbane is certainly going to be the first cab off the rank. We've got some great economic data which has just come out to support the fact that Brisbane is really at the bottom of the market, but recovery is so close now, that buying in that particular marketplace is going to be a very strategic investment. 

We saw during the GFC that the Victorian market and the New South Wales markets do very well, yet the mining markets suffered – Queensland and Western Australia – all those particular marketplaces suffered. 

As interest rates were reduced, the masses bought real estate just after the GFC, in fact we're at a 5% variable interest rate and that'll add a lot of people, where there's millions of people in Sydney and Melbourne to jump into the markets and fuel great growth, but in the less populated states it didn't have that impact, but we're going to see that impact into the future.

The business sentiment is weaker, but the reserve bank has stepped in and they've restored a bit of parity back into the markets by reducing their interest rates and the banks have passed that on which is great.

Over the next 12 months, they're predicting more reductions around the interest rate sector, which could be great for creating a bit of urgency when it comes to buying.
 
<hr class="system-pagebreak">
 
Tourism

There are certainly some issues when it comes to buying in certain marketplaces, and these marketplaces I don't particularly want to buy real estate in at the moment, and they tend to be areas where the sole industry in Australia is tourism. 

Because of the high Australian dollar, we are actually losing more tourists than what we're gaining,  and this is a phenomenon that hasn't occurred since the early 80s. In fact we used to get 120,000 visitors to our shores every month - of course these visitors would bring money from their country and spend it on consumables in our country. Today, we're not getting that 120,000 and in fact because of the high Australian dollar, 120,000 more Australians are actually not holidaying at home, but going abroad to spend their money.

The problem though for areas that are reliant solely on tourists, is that there isn't any pressure on wages, and without pressure on wages there tends to be limited opportunities for properties to grow, and we're seeing that in some places, which solely rely upon tourism, that they defy the employment trend and have employment figures closer to 10%. 

When there's higher unemployment, and an industry that typically has lower wages, which travel and tourism do, compared to say the mining sector, there isn't the ability for a market to push on.

Until there's going to be a turnaround in the amount of tourists that stay on shore and the amount of tourists that visit our country, those particular industries will remain very weak indeed, and that will be reflected in those particular housing prices.

We want to find the industries with the higher wages, and the mining companies are essentially paying the higher wages, and so it's going to be quite interesting when we look at the profits at the moment, compared to that of say 1995, which really is only 16 years ago. 

The profits that the mining companies are making now, are twice that of what they were making 16 years ago, which is fantastic - it allows them to share that dividend with the people who work for them, and of course it opens the debate of should there be a mining tax or not, because the mining companies are doing very well.

Obviously then, without the mining companies, the economy wouldn't be doing so well. 

Another thing about mining companies is they don't borrow money off banks – they are essentially cashed up to the hilt, so whenever they make a decision or make money, they're not making it from a point of leverage, they're actually making it from a pure cash position.

This fact always makes them very appetizing as say a blue-chip stock. If we can follow those blue chip stocks, and link the blue-chip companies who are building, or creating mines, then it makes a lot of sense to buy real estate in some of those areas.

Australia has historically low unemployment, one can understand the Reserve Bank worrying us about reducing rates, and 2011 has been a year which they've had to weigh up essentially a thriving economy – a two-speed economy, linkage to the Asian marketplaces and of course the USA and the European debt crisis. 

So when there's low unemployment – around 5% unemployment – inflation increases…you can understand why the Reserve Bank really was on tenterhooks for some time. In fact we didn't really see any great fluctuations for something like 11 consecutive months, so eventually rates have been reduced, not because of our own country's inability to grow, but because we are safeguarding it from the forces of what is going to happen in Europe. 

Europe is essentially a bit of a basket case at the moment, and we are able to stimulate our market forces because we keep our interest rates quite high compared to the rest of the world. So you've just got to ask yourself, when trouble comes along and we're at a 7% interest rate, the RBA says okay, let's drop that to 6% .

By dropping it to 6% and if the banks follow suit, there's a load of relief into the marketplace, and so we've got, I guess an economy right now that if it were 7 gears to it, and we are at a 7% interest rate, we could essentially drop the gear back 7 times, which is far more sound than say our North Atlantic counterparts who really can't adjust their interest rates very much – especially if they had to drop them much more, there wouldn't be an ability for the banks to get a return on their money. 



Funding Issues

The toughest thing that is occurring in the property market, and in other industries, is bank funding problems. In general, it's a potential risk; however it's been fairly benign. We've all had a poor valuation happen, or a bank knock us back because our documents aren't right, and we've seen limited load-up lending, lower LVRs – we've seen all that. 

Essentially we can deal with it – it takes a little bit more care, it takes a little bit more psychology to understand that there are bigger forces at play than essentially we may believe, and as we go through, and lending is tight, it's the only thing we have to deal with to buy real estate. I don't mind the fact that lending's tight, however, because I would prefer that to the lending habits that have seen European and American economies fall in such a poor state. 

It's tough to lend or borrow money, but that's how it should be – people shouldn't just be given money without the ability to pay money back and unfortunately we've seen that overseas.

Interest rates are going down, and that is a good thing. 2012 will see interest rate cuts. As we've seen just earlier this month the RBA cut rates again by .25%, in order to help a fledging retail sector of the economy – provide a bit of a stimulus over the Christmas period, rather than wait till after Christmas.

As the next two years unfold, I don't see that there's going to be any changes. I believe that we're going to have challenges. Every time we buy a property there's going to be potentially a valuation challenge, all that has to happen is you need to resubmit and you need to find a bank that allows you to resubmit and do it again, and so forth. It's just the way it is, I can't help it, and the market is dictating that.
Sam Saggers is CEO of<a href="https://www.positiverealestate.com.au/ME2/Sites/Default.asp?SiteID=697F1E57F8A54C7F9582C3C49417EEC4" target="_blank"> Positive Real Estate.</a>
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ssaggers-cYw3HLcXnJ

Opportunities for property investors in a two-speed market

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<img src="/images/stories/richardslights.jpg">
Canberran David Richards, his wife, Janean, and their three children are getting into Christmas in a big way - perhaps even a world record-beating way. Richards spend hundreds of hours installing 29,630 metres of LED strings and an 18-metre high light-controlled tree, according to the Canberra Times. 
He has sent the <a target="_blank" href="https://www.youtube.com/watch?v=CcMhz9rtcPQ">video of his light extravaganza </a>to London for consideration for the Guinness world record for the most Christmas lights on a residential home. The current record sits at 250,000 lights. The Richards' family home is covered in 331,038 lights. 
''It's not just Christmas lights - it goes in colours and waves up and down the driveway, it changes colour and the tree spins,'' Richards told the <a href="https://www.canberratimes.com.au/news/local/news/general/dads-christmas-dazzle/2382342.aspx" target="_blank">Canberra Times.</a> 
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cknowlton-QnEa6ntUYP

Canberrans aim for Christmas light world record

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The affordability of housing for Victorian owner-occupiers has barely changed in the past year, according to the most recent REIA Deposit Power Housing Affordability Report.
The report shows that, in Victoria, the proportion of family income needed to meet average loan repayments in the September quarter last year was 35.7% compared with 35.6% in the September quarter this year.
There is no doubt that housing has become less affordable over the last few years; Victorians have generally required more than a third of an average income to pay the average loan for the last seven years (with the exception of the year of the GFC).
Between 1999 and 2004, Victorians generally required a quarter of an average income to pay the average loan.
The significant reduction in affordability was a direct result of the state’s rate of population growth doubling between 2005 and 2010 not being matched by an increase in housing construction. This suggests that the solution to affordability concerns is primarily through ensuring adequate housing supply.
When compared with the other states, Victoria is the second least affordable; only in NSW is a greater proportion of income needed at 37.1%.
Renters, however, are in a better position when compared with other states. In Victoria they required 22.7% (same as a year ago) of an average family income to meet the average rent. This was more affordable than in New South Wales, Queensland, South Australia, Tasmania and the Northern Territory.
Enzo Raimondo is the CEO of the<a href="https://www.reiv.com.au/" title="REIV" target="_blank"> Real Estate Institute of Victori</a><a target="_blank" title="REIV" href="https://www.reiv.com.au">a.</a>
 
 
 
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enzoraimond-7fvRFHPR52

Owning Victorian housing has become less affordable over past few years

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Regional hotel operators must find ways of enticing Chinese visitors to coast and country resorts or risk another decade of struggle, according to the RBA’s December quarter bulletin.




The RBA forecasts that growth in Chinese visitors alone is expected to contribute about one-third of the growth in Australia’s tourism export earnings until 2020. 



Between 2001 and 2011, Chinese visitor numbers have grown by 13.4% annually, contributing 16.4% to annual revenue while Indian arrivals have increased by 12.3% annually, contributing 7.7% to tourism revenue. In comparison, visitors numbers from the US and UK have not grown over the last decade.
<img src="/images/stories/tourismchart.gif">
According to the Tourism Forecasting Committee, the share of spending by international visitors in total tourism expenditure in Australia is forecast to continue to rise over the next decade, driven principally by strong arrivals from Asia.
“This poses a challenge for the tourism industry in leisure and regional areas, which have at least to date had limited exposure to the growing segments of the inbound tourism market compared with Australia’s capital cities,” says the RBA.
According to the central bank, overseas visitors prefer to stay in capital cities (and capital city hotels) due “the importance of capital cities as major international gateways to Australia”. 
“Capital cities have benefited from a rising share of overseas visitor expenditure as spending by international visitors in regional areas has declined somewhat in recent years in real terms.” 
“This trend is consistent with the strong growth in Chinese visitors – who demonstrate a strong propensity for travel to capital cities – and the decline in Japanese tourists that has had a more pronounced effect on overall tourism demand in some regional destinations.
“For instance, in 2010-11, Sydney and Melbourne were the most popular destinations for Chinese visitors (as measured by visitor nights), whereas Japanese visitors have demonstrated a relatively stronger preference for travel to Queensland’s beach destinations, notably the Gold Coast and Tropical North Queensland (TNQ),” says the RBA. 
According to the <a href="https://www.propertyobserver.com.au/leisure/queensland-tourism-industry-needs-government-help-midwood/2011100551817" target="_blank">August Midwood Report</a>, Queensland regional and leisure areas heavily dependent on overseas tourists suffered big drops in revenue when comparing the March quarter of 2011 with the March quarter of 2010.
Accommodation takings for Whitsunday Island resorts were down 16% compared with the same time last year, while takings on Great Barrier Reef islands and adjacent mainland areas (including the likes of Port Douglas) were down 21% over this time frame.
 
<img src="/images/stories/tourismgraph.gif">
 
 
 
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More pain for regional hotels as Chinese tourists prefer city over country: RBA

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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.
 
For over half a decade in Australia, a fierce debate has occurred over whether a bubble exists in the housing market. The vast majority of experts, institutions and the public believe that the idea of a bubble is nonsense. On the other side of the coin, a handful of individuals have contested this notion, pointing out the flaws in the bubble deniers’ line of thinking.
We will look over some of the common arguments made by the bubble deniers, to see how they stack up with the facts.
Recourse lending
One of the major arguments made by experts and industry is that a housing bubble cannot exist because mortgages are recourse in Australia, rather than non-recourse. This means that borrowers are liable for the full amount of the mortgage, whereas non-recourse means that borrowers have no legal liability to pay back the mortgage if they default.
This is often compared to the United States, which is alleged to have non-recourse loans. This line of thinking asserts that borrowers took upon irresponsible amounts of mortgage debt to speculate on housing, knowing that if they defaulted down the track, they would not be liable to pay back the full amount.
This has led to the popular term called ‘jingle mail’, referring to the notion of a defaulted borrower mailing back the keys to their lender, and walking away from the property. This typically occurs when the borrower is in a position of negative equity, that is, the property is now worth less than the loan. The lender thus makes a loss on their accounts, to the value of the difference between the loan and the current market value of the property.
As the argument goes, non-recourse lending in the US was a major factor in the run-up in housing prices, whereas Australia has recourse mortgages, and thus does not have irresponsible amounts of mortgage debt.
There is one small problem with this view: it is total nonsense.
A study by two Federal Reserve economists debunks the notion that the US has non-recourse loans. Out of the 50 states, 11 are non-recourse. All of the remaining 39 states are recourse. On top of this, in some of the non-recourse states, the first mortgage may be non-recourse, but all proceeding mortgages are recourse. Also, it often depends on the legalities and judges’ decisions as to whether a borrower is required to pay back the full value of the loan in a non-recourse state.
Worse yet, some of the states that experienced the largest housing bubbles have recourse loans, for instance, Florida and Nevada, whereas California and Oregon, similarly affected, have non-recourse loans. Overall, there is no real difference between states that have recourse and non-recourse loans, apart from recourse borrowers who tend, on average, to hold onto their properties longer before defaulting.
Ireland experienced a colossal run-up in prices over the last decade, resulting in a crash and subsequent debt deflation that has ruined the economy. What is not said is that Ireland has recourse mortgages, governed by strict rules, and non-payment may even result in imprisonment. Clearly, recourse mortgages did not prevent a bubble from forming in the housing market.
The idea that recourse mortgages enforce responsible and conservative behaviour cannot be upheld. A cursory search through Google on this topic provides information that debunks this notion (like the above study). Yet, this has not stopped the leading ‘experts’ within the RBA, Treasury, the banking and real estate industry, and academia from repeating this falsified argument again and again over the years.
Housing prices always go up
Another popular myth that abounds is that housing prices always go up and never crash. If a bubble denier reluctantly admits that past downturns did occur, it certainly won’t occur this time around.
Australia’s recorded housing price history, going back 131 years to 1880, easily debunks this myth. The nine major increases in prices have been met by eight resulting downturns, with the only exception during a small three-year period from 1961-1964, where prices leveled off. The table below, from my Prosper Australia report, shows this.
<img src="/images/stories/soosnew1.gif">
We are supposed to believe that the largest increase in housing prices in Australian history will not result in the same fate as eight of the nine have.
The housing shortage
This is probably the most popular argument used by the bubble deniers. The story is that as Australia is suffering from a chronic deficit of properties to shelter a growing population, so demand is greater than supply, leading to rising housing prices.
The problem with this argument is it can’t explain why prices started to rise in 1996 and skyrocketed from 2001 onwards. Annual population growth between 1996 and 2005 registered at approximately 1 per cent, taking off between 1.5% and 2% from 2006 onwards. (Fundamental supply and demand issues explain rent prices, not housing prices, which is why rents have increased from 2006 onwards).
2007 was the first time since 1950 that the population increased faster than the number of dwellings. If the housing shortage argument was correct, housing prices should’ve started to rise from around 2006-2007 onwards, not 1996. The historical data shows that there is no correlation, let alone causation, between population growth, dwelling supply and housing prices.
According to the 2006 ABS census data, there were 830,376 unoccupied dwellings during the time the survey was taken, out of a total of 8,426,559, or 10% of the dwelling stock. Unfortunately, no indication is given to the status of the vacant properties (derelict, holiday house, undergoing sale, renovations, speculative vacancy).
The Melbourne-based organisation Prosper Australia performed an innovative study of vacant properties using water usage figures. Applying a conservative methodology, it was found that almost 45,000 properties were lying vacant in the areas under study, and extrapolated across Melbourne, 61,000 properties were lying vacant for more than six months. This gives credibility to the idea that speculators are withholding properties from the market to capture capital gains rather than rental income.
Australia’s peak housing body, the National Housing Supply Council, had to include the homeless, caravan park residents, those sleeping rough and couch surfers into their figures in order to arrive at an undersupply of dwellings.
This is reminiscent of every other country affected by a housing bubble whose experts and authorities claimed that rising housing prices were caused by a housing shortage.
Australian banks have lent conservatively
This is one of the more ludicrous defences made by the bubble deniers. Our mortgage debt stands at $1.2 trillion, or 90% of GDP. If personal debt is included as well, as some analyses do, it totals 100% of GDP. A report by the Bank of International Settlements shows that a ratio above 85% becomes damaging to the economy.
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That Australia has such a high ratio is unsurprising considering the major banks have lent up to 97 per cent of the value of the property (called the loan to value ratio or LVR) and some non-banking lenders have lent out a staggering 125 per cent. The housing debt to disposable income ratio has reached 160 per cent.
Comparatively, Australia has a greater mortgage debt to GDP ratio than the US. Australians have taken upon an enormous debt load to speculate on housing prices. Why bother to work?
Australia is not unique in having a disbelief in the idea of a housing bubble. By definition, a bubble requires that complicity of the majority of people and institutions to believe that there is no bubble. Otherwise, individual rational action would be promptly taken, which would result in bursting the bubble in the early stages or preventing the formation of one altogether.
The only difference between Australia and other countries affected by housing bubbles is that bubble deniers are as plentiful as kangaroos down under.
This article originally appeared on<a href="https://www.businessspectator.com.au/bs.nsf/Article/housing-bubble-Australia-property-prices-real-esta-pd20111214-PJ3R6?OpenDocument&amp;src=sph&amp;src=rot" target="_blank"> Business Spectator</a> and <a href="https://theconversation.edu.au/" target="_blank">The Conversation</a>.
 
 
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Blowing away the bubble deniers

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ANZ has denied reports that it and other Australian banks have been ordered by APRA to test how they would cope if the European meltdown spread to Australia.
An article in the Australian Financial Review said banks had been given one week to model the impact of the unemployment rate climbing to 12%, house prices crashing 30% and commercial property values falling 40%.
A spokesperson for APRA said the regulator had not been commenting on the story but referred Property Observer to a number of earlier articles it has published on the subject.
In December 2010, APRA published a paper titled “Stress-testing for authorised deposit-taking institution,” where it called stress-testing “a valuable tool that has been used by financial and non-financial institutions for many years to manage their risks”.
“APRA uses stress-testing in its own supervisory activities across all the industries it regulates. At times, APRA coordinates these stress-tests with the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ),” the regulator said in the same paper.
Reports that banks are being asked to model how they would cope in such a crisis follow a speech made by deputy Reserve Bank governor Ric Battelino this week, where he warned that there were “various channels through which developments in Europe could affect Australia including financial linkages, trade linkages and confidence and wealth effects”.
It also follows a week of major bank AGMs where the subject of Europe was raised repeatedly.
At the Westpac AGM, chief executive Gail Kelly warned there was a possibility of credit rationing if conditions in Europe remained strained. Since the start of the year, European banks have been undergoing stress tests following the formation of the European Banking Authority.
Last week, the EBA called on European regulators to require banks to “strengthen their capital positions by building up an exceptional and temporary capital buffer against sovereign debt exposures”.
The AFR quotes bank sources as saying “there is no suggestion APRA is concerned about existing credit quality and assessment.
“Rather, the authority is seeking to understand the impact of a severe external shock."
 
 
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ANZ denies carrying out APRA “stress tests”

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ANZ chief executive Mike Smith says the bank is working on explaining its decision to “decouple” its interest rate decisions from monthly cash rate announcements made by the Reserve Bank.
This follows the bank’s announcement on December 8 (following its decision to pass on the December 6 rate in full) that in future pricing changes for retail and small business variable interest rates will be made on the second Friday of each month because ‘bank funding costs are now largely unrelated to movements in the Reserve Bank’s Official Cash Rate”.
Speaking at the bank’s AGM in Sydney today, Smith says it must explain its new policy “thoroughly”.
“We have got our boffins working on that. We must be transparent and clear about how we calculate this rate,” he says.
Smith says banks themselves are to blame for reinforcing the false public perception that there is a link between the RBA cash rate and bank variable mortgage rates.
“It will be a communication exercise.”
The bank though is unlikely to use Westpac’s “banana smoothie” analogies to explain its decision with Smith saying the best way to explain its new policy will be to ‘go back in time and the show disconnection between the cash rate and the variable mortgage rate.
“In the late 1980s the cash rate was higher than mortgage rate,”
In December 2009, Westpac put together a banana smoothie animated 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 following an RBA increase of 25 basis points.
 
 
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No banana smoothies, but ANZ to explain its new rates policy

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<table width="332" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="69">
Postcode
</td>
<td valign="bottom" nowrap width="113">
Suburb
</td>
<td valign="bottom" nowrap width="149">
Median house price
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3851
</td>
<td valign="bottom" nowrap width="113">
GOLDEN BEACH
</td>
<td valign="bottom" nowrap width="149">
$90,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3851
</td>
<td valign="bottom" nowrap width="113">
PARADISE BEACH
</td>
<td valign="bottom" nowrap width="149">
$129,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3825
</td>
<td valign="bottom" nowrap width="113">
YALLOURN NORTH
</td>
<td valign="bottom" nowrap width="149">
$135,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3860
</td>
<td valign="bottom" nowrap width="113">
COONGULLA
</td>
<td valign="bottom" nowrap width="149">
$160,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3840
</td>
<td valign="bottom" nowrap width="113">
MORWELL
</td>
<td valign="bottom" nowrap width="149">
$161,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3851
</td>
<td valign="bottom" nowrap width="113">
LOCH SPORT
</td>
<td valign="bottom" nowrap width="149">
$165,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3825
</td>
<td valign="bottom" nowrap width="113">
MOE
</td>
<td valign="bottom" nowrap width="149">
$170,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3842
</td>
<td valign="bottom" nowrap width="113">
CHURCHILL
</td>
<td valign="bottom" nowrap width="149">
$172,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3971
</td>
<td valign="bottom" nowrap width="113">
YARRAM
</td>
<td valign="bottom" nowrap width="149">
$175,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
3888
</td>
<td valign="bottom" nowrap width="113">
ORBOST
</td>
<td valign="bottom" nowrap width="149">
$177,500
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
 
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The 10 cheapest suburbs in Gippsland for houses: RP Data

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The Queensland hotel market is due to recover after recent poor performance, particularly in sites like the Gold Coast and Sunshine Coast, according to the latest report by CBRE.
Queensland’s hotel market should grow 5.2% from 2012 to 2016, outperforming any other state and the 3.3% national average, according to the report.
“Queensland is still in the midst of a difficult economic period which commenced with the GFC. This has continued to the present day due to ongoing problems in the construction and tourism industries as well as the damage caused by the floods and cyclones at the beginning of 2011,” the report finds.
“Further forwards, however, forecast growth rates are strong.
“Capital expenditure is the major contributor to this growth outlook, with many resource related projects providing strong prospects for the state. “
The report also cites the announcement of the 2018 Commonwealth Games in Queensland as a catalyst for growth.
Queensland has suffered a slump in room rates this year, which is not expected to recover until 2012.
“Floods and cyclones have impacted heavily, as did the recent grounding of the Qantas fleet. These one-off events came on top of a consistently high Aussie dollar, which has resulted in less international visitors and a propensity of Australians to take advantage of greater purchasing power and head overseas for their holidays,” says the report.
International tourist arrivals are forecast to increase 8.6% in 2012, then 7.8% in 2013 and 7.6% in 2014. Most international arrivals stayed level from 2001 except for Japan, which fell from more than 450,000 in 2004 to 200,000 in 2011.
The report finds most purchasers for major hotel assets in 2012 are likely to be private investors, foreign interests (especially Asian based) and operators seeking to grow the number of rooms/apartments under management.
“A litmus test for the accommodation market is likely to be the upcoming listing of the Commonwealth Property Fund Hotel portfolio with assets in Brisbane, Sydney and Melbourne,” says senior associate director of global research and consulting at CBRE Craig Godber.
“The listing will provide a good indication of both the true depth of the investment market as well as pricing.”
 
 
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