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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Melbourne house prices are forecast to grow by between 0% and 3% in 2012, according to Australian Property Monitors. 
“Melbourne’s housing market will struggle for growth in 2012 as it continues to adjust to the affordability barriers created by the strong price rises of 2009 to 2010,” says APM senior economist Andrew Wilson. 
“The Victorian economy is set to continue to waver early in 2012 as the construction sector struggles to find replacement work following the abatement of the new apartment boom of 2010 and 2011. 
“An oversupply of apartment stock looms, which will keep a lid on rental growth and subsequent investor activity in what is already the most tenant-friendly capital city rental market."
<img src="/images/stories/melbourneapm.gif">
 
 
 
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Melbourne October quarter median house and unit price round-up

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Hobart house prices are forecast to grow by between 0% and 3% in 2012, according to Australian Property Monitors. 
“Hobart’s housing market has retreated in 2011 with median house prices down by just over -3 % for the year,” says APM senior economist Andrew Wilson. 
“Although this is a reasonable performance compared to some of the other capitals, a revival in buyer activity in 2012 is heavily dependent on a lift in the local economy. “With no direct exposure to the resource sector, the Tasmanian economy is set to continue to meander in 2012. As a consequence buyer confidence will remain subdued and house price growth will be flat for most of 2012."
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Hobart October quarter median house and unit price round-up

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Darwin house prices are forecast to grow by between 5% and 10% in 2012, according to Australian Property Monitors. 
“Darwin has recorded a typically erratic pattern of median house price growth in 2011 with October quarter median house prices decreasing markedly by -3.5% and down -3.9% over the year ending October,” says APM senior economist Andrew Wilson.
“Darwin also has good prospects of sustained house price growth through 2012 as it resumes its volatile pattern of housing market activity. 
“Significant exposure to the resource sector, seasonal employment patterns and a severe shortage of accommodation will drive increased home buyer activity levels. It would not surprise to see Darwin record double-digit house price growth by the end of 2012."
<img src="/images/stories/darwinapm.gif">
 
 
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Darwin October quarter median house and unit price round-up

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Canberra house prices are forecast to grow by between 3% and 5% in 2012, according to Australian Property Monitors. 
“The Canberra housing market has proved particularly resilient in 2011 with median house prices down by just -1.7% over the year to October - a nation-leading performance,” says APM senior economist Andrew Wilson.
“Canberra is set to record increases in home buyer activity as economic growth fuels increased public service activity in the national capital. A chronic undersupply of housing will drive prices growth through 2012 and expect this to be around 5% by year’s end."
<img src="/images/stories/canberraapm.gif">
 
 
 
 
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Canberra October quarter median house and unit price round-up

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Brisbane house prices are forecast to grow by between 5% and 10% in 2012, according to Australian Property Monitors.
 
“The Brisbane housing market is set to revive in 2012 off the back of the Queensland resources boom that will gather strength through the year – weather conditions notwithstanding," ,” says APM senior economist Andrew Wilson.
“Dwelling shortages, population increases, rising incomes and the improvement in confidence as a consequence of the reconstruction program should contribute to a recovery in buyer activity. Brisbane has the clear potential of double digit growth in median house prices over 2012."
<img src="/images/stories/brisbaneapm.gif">
 
 
 
 
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Brisbane October quarter median house and unit price round-up

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Adelaide house prices are forecast to grow by between 0% and 3% in 2012, according to Australian Property Monitors.
“The Adelaide housing market has floundered this year with median house prices down by over 5% over the year. A significant contributing factor to this outcome has been the continued underperformance of the South Australian economy and its impact generally on buyer confidence," says APM senior economist Andrew Wilson.
“The Adelaide housing market will struggle to revive in 2012 although with South Australia’s direct exposure to the resources sector expect flat to marginal house price increases."
<img src="/images/stories/adelaide1apm.gif">
<img src="/images/stories/adelaide2apm.gif">
 
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Adelaide October quarter median house and unit price round-up

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The 2011 pessimism in most housing markets across the country will be replaced by return to growth in 2012, according to Australian Property Monitors, with Brisbane, Perth and Darwin tipped as the likely best performers.
Its October quarter national median house price was off by 1.6% – and down 4.2% over the year.
But going out on a limb against the prevailing more of the same sentiment, APM senior economist Dr Andrew Wilson forecasts next year will provide brighter, but mixed outcomes for housing markets.
Some capital cities are set to revive strongly while others will remain flat, he says.
Much of his forecast is based on the mining boom assisting the continued prospect of strong economic growth in Australia.
“Australia’s economic fundamentals are strong, and are well positioned to weather any downturn in international markets.
"This, coupled with renewed buyer confidence, will be the key to driving prices growth in the new year,” Wilson says.
“Nationally, median house prices should recover to rise by 3 to 5 per cent through 2012,” he forecasts.
Darwin, Perth and Brisbane have the best prospects for price growth, while Sydney and Canberra are also expected to achieve reasonable growth in the year, he says.
Capital City Forecast growth – Median House Prices 2012
National 3% to 5%
Sydney 3% to 5%
Melbourne 0% to 3%
Brisbane 5% to 10%
Adelaide 0% to 3%
Perth 5% to 10%
Hobart 0% to 3%
Darwin 5% to 10%
Canberra 3% to 5%
“Demand for housing will intensify in 2012, particularly in Sydney, Canberra and Perth, which will see housing markets re-energised albeit at different levels,” Wilson says.
<img src="/images/stories/apmdec151.gif">
Source: APM
APM says Brisbane has been the worst performer of all capital city markets in 2011, with median house prices down nearly 7% over the year ending October, with a lingering significant contributing factor being the devastating floods in January.
"The Brisbane housing market is set to revive in 2012 off the back of the Queensland resources boom that will gather strength through the year – weather conditions notwithstanding. Dwelling shortages, population increases, rising incomes and the improvement in confidence as a consequence of the reconstruction program should contribute to a recovery in buyer activity.
"Brisbane has the clear potential of double digit growth in median house prices over 2012,” Wilson says.
He reports low buyer confidence had caused Perth’s median house price to fall by nearly 6% in the year to October 2011, which is almost 10% below the peaks recorded four years ago. "With recessed house prices together with low levels of new construction and a flood of workers seeking the wages bonanza delivered by nearly $100 billion in mining activity, Perth houses prices have the clear potential to rise by a double-digit percentage in 2012," he says.
The third big rise is forecast for Darwin, which has recorded a typically erratic pattern of median house price growth in 2011 with October quarter median house prices decreasing markedly by 3.5% and down 3.9% over the year ending October.
"Darwin also has good prospects of sustained house price growth through 2012 as it resumes its volatile pattern of housing market activity,” Wilson says.
"Significant exposure to the resource sector, seasonal employment patterns and a severe shortage of accommodation will drive increased home buyer activity levels.”
"It would not surprise to see Darwin record double-digit house price growth by the end of 2012," he suggests.
Of the two major capitals, Wilson believes Sydney will be the stronger.
He says Sydney has predictably performed best of the capitals in 2011 with median house prices relatively stable – not surprising considering its underlying lack of housing and associated costly rental market.
"Sydney provides a solid prospect for median house price growth of up to 5% in 2012.
"This growth will come mainly through the lower and middle band suburbs as buyers seek to maximise choices in a market characterised by chronic shortages of accommodation and Australia’s tightest capital city rental market."
He expects the prestige market will remain quiet in Sydney in 2012 although some modest but sustained growth in house prices may be recorded towards the end of the year from a low base.
"This will be contingent on the flow-on effect of the resources boom driving a significant recovery in the share market unleashing the wealth effect and the aspirational buyers that have been largely dormant in Sydney since 2008.
Melbourne’s housing market will struggle for growth in 2012 as it continues to adjust to the affordability barriers created by the strong price rises of 2009 to 2010, Wilson forecasts.
"A waning economic performance in 2011 exacerbated declining buyer activity through 2011.
"The Victorian economy is set to continue to waver early in 2012 as the construction sector struggles to find replacement work following the abatement of the new apartment boom of 2010 and 2011.
"An oversupply of apartment stock looms, which will keep a lid on rental growth and subsequent investor activity in what is already the most tenant-friendly capital city rental market.
"Similar to Sydney however, the flow-on effects of the resources boom and a revival in the stock market may activate the prestige market with reasonable prospects of prices growth from a low base.
“Overall Melbourne house prices should drift sideways over the year with some modest incremental growth a possibility by years-end."
The Adelaide housing market has floundered this year according to APM with median house prices down by more than 5% over the year.
"A significant contributing factor to this outcome has been the continued underperformance of the South Australian economy and its impact generally on buyer confidence,” Wilson says.
“The Adelaide housing market will struggle to revive in 2012 although with South Australia’s direct exposure to the resources sector expect flat to marginal house price increases.”
The report suggests Canberra is set to record increases in home buyer activity as economic growth fuels increased public service activity in the national capital.
A chronic undersupply of housing will drive prices growth through 2012, and APM expects this to be about 5% by year’s end.
The report notes the Canberra housing market proved particularly resilient in 2011, with median house prices down by just 1.7% over the year to October – a nation-leading performance.
For Hobart, Wilson suggests a revival in buyer activity in 2012 would be heavily dependent on a lift in the local economy.
"With no direct exposure to the resource sector, the Tasmanian economy is set to continue to meander.
"As a consequence buyer confidence will remain subdued and house price growth will be flat for most of 2012," he forecasts.
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Housing markets will recover in most capitals in 2012: APM

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A three-month online consultation aimed at rewriting 50-year-old NSW rules governing the ownership and management of apartments will kick off today, led by NSW Fair Trading Minister Anthony Roberts.
The consultation process will seek to draw input and feedback from strata professionals, apartment owners and the general public and is hosted by public policy think-tank Global Access Partners.
There are currently 70,000 strata schemes in NSW comprising more than 700,000 apartments, numbers that are set to grow, with unit developments forecast to constitute half of Sydney’s new housing by 2040.
Strata schemes apply to anyone who owns an apartment or unit where quarterly fees are paid towards the upkeep of the building and maintenance of common areas. Members of strata schemes must also pay money into “sinking funds” to cover future long-term expenses such as painting the building or replacement of guttering.
Schemes may also contain rules restricting renovations, stating where you can and cannot park your car and whether you can keep pets, but the current complex rules are difficult to enforce.
The launch of the online consultation follows an escalation in strata cases heard by the Consumer, Trader and Tenancy Tribunal, the body that handles residential property disputes.
The end result will be the simplification of the current set of complex regulations.
“An improved, modern and more flexible framework for strata and community schemes is essential,” says Roberts.  “Many people waste thousands of dollars in legal fees because the law is not simple and clear.”
“The original strata Act only had 29 sections. Not only have schemes become larger and more complex since then, but we now have five separate acts plus five associated regulations, with more than 1,000 provisions, regulating the development and management of strata and community schemes.
“The laws have become like a tired, rundown block of flats, with various amendments tacked on over the years to try to cover up the cracks.”
“The construction of new schemes, and service delivery to existing schemes, is a multibillion-dollar industry. Reforming the strata laws can play a vital role in improving the NSW economy,” he says.
The NSW Office of Fair Trading is seeking input on the following four questions:
Q1. What are the main areas of the existing strata and community scheme laws you would like to see changed?
Q2. Can you see any future issues that need to be addressed in the legislation?
Q3. How could the management of strata and community schemes be improved?
Q4. Are there any changes needed to the way disputes in strata and community schemes are resolved?<a target="_self" href="https://www.openforum.com.au/content/strata-laws-online-consultation-question-4"></a> 
The legislation was last amended in 2008, with changes including giving strata owners greater protection on proxy voting in owners’ corporation meetings.
Feedback on strata rules can be submitted <a href="https://www.openforum.com.au" target="_blank">here</a>.
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NSW begins consultation on overhauling complex strata rules

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Unless there is a large-scale European banking default, Australian property prices are likely to rise in 2012, says SQM Research managing director Louis Christopher.

Christopher says he is sticking with his “relatively bullish scenario regarding dwelling prices” provided there isn’t a credit squeeze in Australia brought on by Europe falling over.

“Europe is the key. The risk is clear and present. If Europe allows for large-scale banking defaults and a general credit squeeze, this will see our banks ration housing credit by requiring more conservative loan-to-value ratios. 

“Of course, if the squeeze is large enough, banks could come up with additional ways to reduce their balance sheets.”

In a worst-case scenario banks would call in loans “simply because the loan-to-value ratios have risen too high due to drops in property prices”. 

“No doubt [this would be] an event of the last resort with the bankers knowing full well that such a move could very well trigger very deep house price falls in this country, which would further destabilise their own balance sheets.” 

However, barring any such calamities Christopher expects the housing market to respond favourably to further rate cuts in 2012.

“From our regression modelling it appears that the market is very sensitive to interest rate changes. We have had this conviction concerning the markets from some time now. 

“Yes, even a quarter-point change can move the markets and this is because buyers and owners are highly leveraged. Now that we have had a half point change, which has been passed on in full, there is a greater chance, in our opinion, that dwelling prices will rise,” he says.

According to Christopher, mortgage approvals, which increased in October without any interest rate cut stimulus, need to rise by about 3,000 per month to reach the 37,500 achieved in November 2010.
<img src="/images/stories/christopherdec15.gif">
Source: SQM Research
“The red dot on the chart is the point where housing finance approvals need to get to in order to attain capital growth equating to inflation and naturally, meet our bullish scenario forecast for 2012. So clearly we are not there yet and we will need to reach the red dot by June next year in order for our bullish scenario to play out,” he says.


 
 
 
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Barring a European banking collapse, house prices set to rise in 2012: SQM

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As we look back on 2011, Property Observer is republishing some of our most noteworthy observations of the year. 
 
Population aging in Australia is expected to accelerate.  At present, there are 5 million people over the age of 55 across Australia.  Within the next 40 years, that number is expected to exceed 11.5 million.  This represents a projected growth rate of 150,000 people per annum.
Within a generation, a third of Australians are going to be aged over 55 years old and close to a quarter will be aged over 65.
Assuming that all those aged over 55 years were to move into a new dwelling, there would be a need to create 90,000 new homes across the country each year for this older market segment.  However, most “55-plus” households cannot afford to move into more appropriate accommodation.  The high entry and rental costs of the current retirement products on the market prevent them from doing so.  Many will be forced to age in place.
As a result, the more practical requirement is currently for around 15,000 new retirement dwellings per year, three-quarters of which are needed across the eastern seaboard.  This market is quite undersupplied.  Our estimates suggest that new retirement housing construction has ranged from between 3,500 to 4,250 new starts each year over much of the last decade.
Some relevant statistics
About 80% of “55-plus” households own their home outright, with around 15% either renting or living with relatives.  Most have not moved in the last five or 10 years, while half have not moved in more than 20 years, as the number of times a person moves residence declines considerably with age.
When “55-plus” households do move, it is primarily for lifestyle reasons (35%); followed by affordability grounds (25%) and the want for a smaller and more hassle-free home (20%).  One in 10 moves to be closer to family or friends.
Many in this older market segment are very sensitive to price.  Their new abode must have a strong connection to the local setting.  This market also places a high value on living with others of similar background, age and interests.  This trend also seems to accelerate as one ages.
Whilst many own their principal place of residence, and have done so for some time, many Australians over the age of 55 years are cash-poor.  The latest official data shows that 55% of our older residents live on less than $500 per week and 35% live on less than $350 per week.  Sadly, one-quarter of Australian residents aged over 45 years have no personal income, with 45% largely relying on a government pension or allowance.  A further 25% rely on their investments, including superannuation.
Housing costs
The median house price across our Australian capital cities is now $540,000.  For attached dwellings it is $455,000.
However, older Australians generally own older properties, which in turn generally have lower median values.  In addition, many of the properties held by older Australians need repair, sometimes in a major way, are usually located in middle to outer-ring suburbs and have limited renovation appeal, especially to a younger buying audience.
In short, many properties held by older Australians could be difficult to sell and for a premium.
 
<hr class="system-pagebreak">
 
Australia is facing a demographic tsunami.
There are 5.3 million baby boomers (born between 1945 and 1964), and the oldest are now starting to retire.
This dominant market segment makes up 25% of the Australian population; represents 38% of the country’s households; 43% of the paid workforce and holds 49% of our housing assets (in dollar value), split 46% for owner-occupation and 57% for investment housing.  Yet they do have great equity in their properties – 93% for owner-resident stock and 86% for their investments and secondary homes.
Two out of three of their residential properties are held in a middle-ring suburb.
The baby boomer generation has always distorted the market – like a tennis ball through a garden hose – with some studies suggesting that this demographic set, by its very existence alone, generated about a third of the house price growth over the last 40 years.  Some are now predicting the opposite influence, with ageing boomers applying a drag on asset growth of between 20% and 40%, depending on location.
So, what will the boomers do with their residential assets when they start to retire or retread?
Well, five things are possible:
<ul>
<li>They will sell their investment properties.</li>
<li>They will sell their secondary homes.  But the market conditions are soft and are likely to remain so for some time, hence concepts like <a href="https://www.propertyobserver.com.au/residential/how-to-use-your-second-home-to-secure-a-dream-vacation-michael-matusik/2011120452664">3rd Home</a> will gain traction.</li>
<li>They will downsize, rebuy and pocket the difference.  But this might pose some problems as the right stock isn’t readily available.</li>
<li>They will age in place and maybe consider a reverse mortgage.</li>
<li>They will stay put, but retrofit their homes and rent out a proportion to family and/or tenants.</li>
</ul>
Whether or not ageing boomers will cause the market to implode is open for debate, but a couple of things are pretty certain:
<ul>
<li>There is likely to be slower price growth in the next decade than we have seen in the recent past.</li>
<li>There will be fewer housing starts and sales on a per capita basis.</li>
<li>There is going to be more pressure on gentrifying our middle-ring suburbs.  We need to think outside of the square here and start, for example, redeveloping our older shopping precincts into mixed-use centres including age-in-place retirement accommodation.</li>
</ul>
What would help baby boomers and other market segments move (and make housing more affordable) would be to have stamp duty paid by the vendor and not the purchaser.
It is useless banging on about the need to reduce taxation on property.  In a country where about half of the population relies either directly (i.e. employment) or indirectly on the government for its welfare – reminds me of Ayn Rand’s Atlas Shrugged – and we don’t want to increase overseas migration (yet) – we will need to raise taxes, and property is an easy target.
What we could do is change who pays such taxes and when.  Stamp duty paid by the vendor makes sense; so, too, does levying infrastructure charges and development application fees at the time end-buyers settle, rather than at the beginning of the new project.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
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