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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Anyone who has been monitoring their Twitter accounts today will sense the growing anger at the Big Four banks, which have taken more than a day to decide how much of the RBA’s 25-basis-point cash rate cut to pass on to consumers.
Borrowers by now may have given up hope that the major banks will deliver real Christmas cheer.
More than 26 hours have passed since the RBA announced it would cut the cash rate to 4.25%. The last time the Big Four took this long was in April 2009, when the major banks took almost as long to announce their interest rate cuts after the RBA cut interest rates by 0.25%.
On that occasion, NAB was the one to “move” first – it decided to pass on none (that’s right, zilch) of the 25 basis points leading to the bank taking a huge media bashing.
Of course all the other banks then followed, and though they all passed on a meagre 10 basis points, that did not cop the same level of brand damage or public outrage as NAB was subjected to.
Today, as many commentators and analysts have pointed out, none of the banks wants to go first on making an announcement because a) they will set the benchmark that the others will only have to beat by a few basis points to avoid copping most of the flak and b) whoever moves first is likely to suffer the greatest brand damage, (provided the other banks beat their rate cut of course).
As I write, behind closed doors, the banks are carefully crafting the lines they are guaranteed to spin out about increased funding costs and European jitters that will accompany eventual announcements.
(None, though, are likely to try emulate Westpac’s disastrous attempt to explain it not passing on a full rate cut in December 2009 by putting together an animated video about banana smoothies and the cost of bananas.)
Even if borrowers must swallow the explanation that funding costs have gone up, it is also undoubtedly true that the major banks are looking to protect shareholder returns (and as Age columnist Michael West pointed out, protect executive pay bonuses).
And of course there is also the little matter of the vicious mortgage discounting war they have been engaged in over the past few months, which as JP Morgan banking analyst Scott Manning has pointed out recently, has reached a stage where the discounts are impacting on their bottom line – meaning the banks need to do something to increase their margins. Their delay in making an announcement is likely to only insight more bank bashing and angry tweeting.
However, the question is: will they vote with their feet and switch lenders as Treasurer Wayne Swan has now made much easier to do?
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lschlesinger-FZcF9M3vE6

Borrowers' anger grows as Big Four banks dither on passing on rate cut

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The Australian construction industry continued to decline in November but at a more moderated pace, according the latest report by the Australian Industry Group and the Housing Industry Association.
The performance of construction index increased 4.9 points to 39.6 in November, still short of the 50-point level that distinguishes contraction from growth.
The increase represents a reduction in the rate of decline of both house building and engineering construction but commercial construction and apartment building activity declined at a steeper rate.
"The construction sector remains very uneven with the residential and commercial construction sub-sectors considerably weaker relative to the resources-project linked engineering construction sub-sector,” says Australian Industry Group director of public policy Peter Burn.
“Commercial construction continues to contract and businesses completing projects related to the fiscal stimulus package are not finding sufficient private sector work to keep fully occupied.  While still far from satisfactory, the sector overall appears to be pulling back from the accelerating pace of decline reached in August and September," Burn says.
There were reports of an improvement in workflows from resource-based projects and a rise in customer enquiries in the house building sector linked to the positive influence of the recent interest rate reduction, the report found.
New orders again declined across the industry, although the rate of contraction was the slowest in six months. Consistent with this, falls in activity, supplier deliveries and employment all moderated, the report found.
Senior economist at Housing Industry Association Andrew Harvey used the report to call for further stimulus of the construction industry.
"[The report] again highlights the current fragile state of residential building with activity continuing to contract and looking a long way from an eventual return to growth,” Harvey says.
“There’s no hiding from the fact that house building activity has contracted for 18 straight months and apartment building activity has now contracted for 19 straight months.
“When you consider this long-lived decline in residential building activity alongside recent dismal building approvals it is clear that the federal government needs to urgently turn its attention to stimulating new home building in this country.”
 
 
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Construction industry decline slowing: AIG

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Economic and housing predictions for 2012: Craig James

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The mortgage market appears to be on the mend, with investors and first-home buyers leading the charge, according to RBA’ s December chart pack.
<img src="/images/stories/rbadec71.gif">
An “unofficial” increase in mortgage demand was noted by <a target="_blank" href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=AFG+property+observer&amp;source=web&amp;cd=1&amp;ved=0CB8QFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fmortgages%2Fafg-mortgage-approvals-at-33-month-high-as-investors-return-to-the-market&amp;ei=oLneTuOLM4W0iQftxqC_BQ&amp;usg=AFQjCNHqGZoAoB0RZMSkO1IySPU5uZH1zA&amp;sig2=ZDBvFZY5L0q3qMPxVXaC6A">mortgage broker AFG in its November sales numbers</a>, which spiked by 18% led by investors and first home buyers.
The growing demand for home loans comes as house prices continue to fall across all markets, though Sydney prices are flattening out as this chart shows:
<img src="/images/stories/rbadec72.gif">
Alongside cheaper house prices and a growing demand for mortgages, there has also been a slight drop in the amount of money people are saving:
<img src="/images/stories/rbadec73.gif">
The poor outlook for the residential construction sector – particurlarly for detached houses – can be seen in this chart:
<img src="/images/stories/rbadec74.gif">
 
 
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RBA charts: Investors and first-home buyers returning to the market

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The appeal of 7-Eleven service stations has not diminished, with a Mount Druitt store in NSW selling for $4.04 million as part of a Burgess Rawson commercial property portfolio auction in Sydney yesterday.
The sale to a Victorian buyer was negotiated soon after the auction with the sale prices reflecting a yield of 7.8% on income of $316,000.
This is in the upper range of yields achieved for 7-Eleven service stations for 2011.
About <a href="https://www.propertyobserver.com.au/retail/sales-of-7-elevens-during-2011-secure-investors-yields-of-between-4.6-and-8.5/2011112752554">$90 million worth of refurbished 7-Eleven service stations across NSW and Victoria have changed hands this year, with yields ranging from 4.6% to 8.5%.</a>
The 2,500-square-metre Mount Druitt store, located at 2 Luxford Road, was sold by a private investor and is not part of the portfolio being sold in batches by 7-Eleven and acquired from Mobil in May 2010.
It sold with a new 15-year lease that commences in January 2012 with two renewal options of five years each. It is leased to 7-Eleven with fixed 4% annual rent increases.
Charles Gonzalez from Burgess Rawson, which marketed and auctioned the 7-Eleven, says there was strong interest in the property at what was a well- attended auction.
Other properties to sell under the hammer include three retail shops in Cabramatta in Sydney’s west.
The property was bought by one of the tenants for $1.53 million, with Gonzales noting that this was $200,000 above the reserve.
With annual income of $161,000 this reflects a yield of 10.6%.
The property is leased to a pharmacy, doctor’s surgery and mini-supermarket.
 
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High yields for 7-Elevens continue to attract investors

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Melbourne’s retail sector is struggling through its toughest period since the 1960s, according to the December Herron Todd White property market report, with retail landlords letting outside the main retail strips the most affected.
According to October ABS statistics, the national annual growth rate in retail sales is 2.8%, equating to the worst growth since 1962.  Retail sales rose 0.6% in Victoria on a seasonally adjusted basis in October, having registered no growth in September, increases of just 0.3% and 0.5% in August and July and decreases of 0.3% and 1% in June and May.
Under these tough trading conditions,  HTW reports that the Victorian Small Business Commissioner has witnessed a “substantial increase in rental dispute resolution enquiries in 2011” as an increasing number of tenants found it difficult to meet their lease obligations.
“It appears that retailers who are positioned outside the main retail strips with limited exposure are most affected when there is a downturn in retail trade levels,” says HTW.
The report warns that should consumer spending continue to weaken rents might fall, which could lead to a softening in capital values into 2012.
Among the retail strips outside Melbourne CBD hardest hit has been Bridge Road, Richmond, where the vacancy rate has risen to 10.6% by mid-2011.
“[Bridge Road] has been traditionally been known for its discount stores and now has to compete with the likes of the Direct Factory Outlets and other large-scale suburban shopping centres,” says HTW.
According to the report, the exception has been well-placed retailers located in within prominent strips within Melbourne.
“Swanston Street in the Melbourne CBD, Glenferrie Road, Hawthorn and Chapel Street, South Yarra are good examples of resilient retail destinations in 2011.”
“Despite the tough retail environment, real estate agents have reported strong transactional activity, and Melbourne’s appetite for retail property is expected to remain strong in the short term,” HTW says.
“Prime Melbourne retail is very much still in high demand whilst secondary retail is perhaps harder to lease/sell.”
Large retail sales for 2011 include a two-level, freehold retail building at 269 Swanston Street, which sold in March 2011 for $6.5 million, reflecting an investment yield of 3.12% and a 20-square-metre lot on Swanston Street that sold for $2.11 million, reflected a rate per square metre of $105,500.
Outside of the CBD, leasing activity has picked up on Chapel Street, with Mexican food retailer Salsa’s taking up space in the Jam Factory. The deal was negotiated by Max Cookes and Zelman Ainsworth from CBRE retail services.
According to Cookes, the major rejuvenation of the centre has been a key attraction for Salsa’s.
Salsa joins major international and national retailers that have secured a presence within the centre including fashion heavyweight Topshop, which secured a 1,600-square-metre space within the Jam Factory for its Australian launch and is due to open this week.
Other retailers to join the centre include Lindt, Groove Train, Steve Madden, Target Urban and Nandos.
One of the previous anchor tenants of the Jam Factory was Borders Books, whose vacated space has been taken up by Topshop.
In its report, HTW said the collapse of Borders, fellow book chain Angus and Robertson and fashion chain Colorado in 2011 might have been the result of the inability of tenants to maintain current rental levels when faced with diminishing turnover.
Photo by Anna Armstrong
 
 
 
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Return to the '60s for Melbourne retail market: HTW

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<table width="255" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="69">
postcode
</td>
<td valign="bottom" nowrap width="89">
suburb
</td>
<td valign="bottom" nowrap width="97">
Median unit price
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2912
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">GUNGAHLIN</a>
</td>
<td valign="bottom" nowrap width="97">
$325,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2913
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">FRANKLIN</a>
</td>
<td valign="bottom" nowrap width="97">
$325,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2606
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">LYONS</a>
</td>
<td valign="bottom" nowrap width="97">
$326,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2606
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">CHIFLEY</a>
</td>
<td valign="bottom" nowrap width="97">
$342,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2615
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">HOLT</a>
</td>
<td valign="bottom" nowrap width="97">
$355,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2605
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">CURTIN</a>
</td>
<td valign="bottom" nowrap width="97">
$358,885
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2607
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">FARRER</a>
</td>
<td valign="bottom" nowrap width="97">
$360,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2905
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">THEODORE</a>
</td>
<td valign="bottom" nowrap width="97">
$365,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2615
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">DUNLOP</a>
</td>
<td valign="bottom" nowrap width="97">
$366,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2615
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">LATHAM</a>
</td>
<td valign="bottom" nowrap width="97">
$370,000
</td>
</tr>
</tbody></table>
Source: RP Data
 
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The top 10 suburbs in the ACT with the cheapest unit prices: RP Data

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Yesterday, following the RBA announcing it would cut rates by 0.25% to 4.25%, Twitter was flooded with tweets awaiting news of the major banks announcing their rate cuts.
The Commonwealth Bank responded with the following message:
“We are currently reviewing our interest rates in light of the RBA decision.”
Today, borrowers are being told to brace themselves for the banks not passing on the full rate cut.
This message has been flagged for some time, most notably by former Commonwealth Bank boss Ralph Norris, as he stepped down from his position last month.
Norris says the notion of the banks “automatically following the RBA” is outdated as the cost of funds lent to consumers is driven up by the troubles on global credit markets.
Norris told The Australian Financial Review at the time there was no guarantee the banks would pass on the next RBA interest rate cut.
“Nobody can give unqualified guarantees in anything in life… At this time I would have to say it will be what the situation is at the time the RBA makes its cut,” he said at the time.
In the wake of the global financial crisis, which froze international credit markets, the major banks did not pass on full RBA interest rate cuts and also increased interest rates independently of the central bank.
Speaking at the AICC property lunch in Sydney last week, outgoing Dexus boss Victor Hoog Antink hinted at a similar approach by lenders when he said there would be “potential margin creep for the banks as they deal with capital issues emerging from Europe”.
NAB was the only lender not to pass on the full 25-basis-point cut in November to its borrowers, passing on 20 basis points with its head of personal banking, Lisa Gray, saying at the time that “volatile overseas markets and impending global banking security requirements had pushed up the costs of providing funds for lending”.
The threat of banks not passing on full rate cuts was also acknowledged by AMP Capital chief economist Shane Oliver in his regular insights piece.
“Australian banks have been warning their funding costs have been increasing. If this intensifies, then there is a risk that banks may actually increase their lending rates – both business rates and mortgage rates – independently of the RBA,” Oliver said.
In his September note on the outlook for the banking sector (before the crisis in Europe reached its current level), JP Morgan analyst Scott Manning said the discounting of mortgage products by the major banks was reaching a point of being loss making for banks to originate new mortgages.
<a target="_blank" href="/news">Bank of Queensland</a> and <a target="_blank" href="/news">ME Bank </a>have already announced they will pass on the rate cut in full.
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Borrowers wait anxiously to learn if banks will pass on rate cut

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So David Bassanese from the AFR reminded me that he called the RBA's rate cut yesterday. I don't think anyone else in media land really picked it. The market was fully pricing it – had been since the last meeting. Stephen Koukoulas (aka "Koukie") was there three or four months ago – but he was also confident about the RBA cutting 25 basis points in October and 50 basis points in November, at various times. 
Bill Evans at Westpac, Brian Redican at Macquarie, and Tim Toohey at Goldman have been brilliant at anticipating this sharp turn-around in the RBA's monetary policy stance. One question is whether they picked it for the right reasons. If you were dovish because of the domestic economy, you were right for the wrong reasons. If you were dovish because of low inflation, well, I don't know what to say. We've had two high core inflation numbers in quarter one and quarter two (after multiple revisions) and one low result in quarter three (first estimate). Nobody is much good at forecasting inflation one to two quarters ahead. Almost all economists struggle to predict core inflation the day before the release. But if you were punting on low inflation as a driver of the RBA's 180-degree turn, you surely deserve some credit. 
If, on the other hand, you were motivated by the offshore environment, and Europe and the US, in particular, well, hats off to you. Bill Evans and probably Toohey fall into this category. Koukie I suspect too. Matty Johnson at UBS is another who fingered it early, and who was quick to call a European recession. He was confident about a December cut many weeks ago. 
Bassanese's rationale derived from the "insurance" (or "put option") school of thought. That argument was an obvious one, but I was not convinced the RBA would necessarily acquiesce. I was 50:50 right up to the decision. Anyone claiming December was certain has probably got the last few months wrong. A good counterfactual is HSBC's Paul Bloxham. Blocker spent 11 years working under Stevens, Richards and Lowe in the RBA's economic analysis department. He only left there a year or so ago. Unfortunately, Paul has missed November and December. He's now switched his position and is calling a spate of cuts. 
One of the smartest and most successful rate participants I know characterised it as a coin toss a day or two ago. There was a lot of money to be made going short interest rate futures if you had conviction about the RBA keeping its finger off the trigger. Right up to 2.30pm I was trying to clear a position in my head. I could not – I had this uneasy feeling, a little like I did right before the August decision to pause. One clear thought did come into my mind: “Whatever the RBA does today we will learn more about the way board members think. And that really is the key take-away.” 
You hear a lot of baloney from media commentators and economists who talk to the RBA and tell you – even to this day – that the RBA completely controls its own board and is at one with all its decisions. Anyone who says that is trotting out the house line. Of course the RBA wants everyone to think its relationship with the board is always harmonious, and decision-making is always unanimous. But anyone who has sat on corporate boards knows that is not how they work. 
We know that some RBA board members wanted interest rates lower in the first half of 2011, and we know, again as a matter of absolute fact, that some were calling for higher rates. We obviously got neither. 
What we saw yesterday, and what we have seen in 2011, is a classic committee-based decision-making framework. I know from years of personal experience that as soon as you run a decision-making process through a committee larger than two or three people, especially within a risk-averse or bureaucratic organisation, you get lowest-common-denominator solutions. You get “easy” decisions that are straightforward to justify. 
Super funds are a classic example: do what everybody else is doing. If everyone is over-invested in equities and underweight cash and fixed-income, do the same. Pick up the pieces after the event only when everyone else is doing the same. You can never be criticised if you are one man concealed by a crowd. 
That's what we've witnessed this year. The RBA's board comprises nine relatively ordinary individuals. We have learnt that they find it, unsurprisingly, very hard to make tough decisions. Everyone who has worked with the RBA will tell you that raising rates is hard work. We saw that in the first seven months of 2011. There were at least three months when a bolder, braver and more independent decision-making framework could have hiked. Would that have been a mistake? Of course not. If you hiked once earlier in the year (e.g., in May or June when a tightening was on the table) you would be claiming credit for the low inflation print in quarter three. You would have had much more justification for easing policy in November given the disturbing developments offshore and the supposedly altered inflation outlook. 
Instead, we found the RBA could not muster the fortitude to hike. The board dithered through the first seven decisions of the year, as you would expect any nine person committee chock-a-block full of strong personalities to do. They consistently sent highly inconsistent signals to the market. 
We know that because the economists covering the RBA were saying point-blank that they were confused by its conflicting statements. The first two Statements on Monetary Policy were incredibly hawkish while the Board Statements seemed more dovish. Is that really a surprise when one is prepared by the staff and the other by a committee? Sorry guys, they are not all joined-at-the-hip. 
 
<hr class="system-pagebreak">
 
Even the media folks speaking directly to senior members of the bank, such as Terry McCrann in late July, and, this month, Alan Mitchell, were calling it wrong. After the November meeting Mitchell was telling us in column after column that only a major deepening of the crisis in Europe would force the RBA to cut in December. 
Mitchell and his Fairfax colleague, Peter Martin, confidently declared that November was a “once-off” adjustment of the cash rate back to neutral. Don't bank on any Christmas gifts from the hard-headed RBA. Don't expect the RBA to cut rates because of the mini-budget. 
Well, nothing has really changed in Europe. In fact, bond yields plummeted right before the decision yesterday with the Sarkozy-Merkel plan afoot. The domestic data flow was fine. There are some very early indications the highly interest rate sensitive housing market could be about to bounce back strongly with Australia's largest mortgage broker, AFG, reporting its single biggest month for new home loan applications in November since March 2009. The share of investors soared to record levels. 
What we got in November was an easy decision to cut. After the low third-quarter inflation, and the RBA's preceding signal of a “decision rule” that would reward a very low print, a cut was always likely. The only fly in the ointment was that the previous downward revision to quarter two data was revised right back up! The RBA's board ignored that and the first-quarter data, and decided to hang its hat on quarter three. 
Again, it was not “hard” to cut in the sense of it being a politically or socially difficult decision. Furthermore, the markets had priced it. Consumer confidence bounced back to above-average levels in November, and the RBA was showered in praise for providing those ailing sectors of the economy with much needed relief. 
Equally, it was not “hard” to cut in December. The market was fully pricing it. The politicians were calling for it. The RBA board has now given Wayne Swan and Julia Gillard a significant victory in being able to claim that the mini-budget, and weak public demand generally, have emboldened the RBA to loosen policy (assuming the banks actually play ball and pass on the cut). Making your political masters happy is easy. Every vested interest in the country was calling for "insurance" from the bank over the summer break in case things went awry. In the short term, it costs you nothing to cut rates. So a nine-person committee dominated by private sector business interests is going to have little hesitation in giving out free insurance – to their own constituencies. 
What I have learnt is that it's a mistake to listen to Phil Lowe, Glenn Stevens, or Ric Battellino, and think that their forecasts for the future, and their personal views on the distribution of risks, the dynamics impacting the local economy, and their sterilised vision of how central banking should in theory be undertaken, will prevail through a decision-making process involving a large committee of strong-willed, politically appointed business leaders and the Treasury Secretary. 
When Ian MacFarlane controlled the RBA board with an iron fist, and, in the words one of member, actively stifled debate and dissent, things might have been different. It was easy to be a benign dictator between 1996 and 2007. The economy was cruising along with unprecedented stability. Poor old Glenn Stevens was bequeathed a huge bout of high core inflation in 2007-08, followed by the GFC, higher unemployment, a massive surge in the currency that stretched the domestic economy every which way, and now a bona fide global sovereign debt crisis. 
The RBA board dynamics of today are dramatically different to those that existed in the pre-GFC period. It was easy to be a world-beating governor (and treasurer) when you had a 15-year period of global disinflation, high productivity, robust growth, monotonically declining unemployment and uninterrupted growth. Stevens' challenges have been vastly more complex. As have Wayne Swan's, frankly.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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Don't expect the unexpected from the RBA: Christopher Joye

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While yesterday’s Reserve Bank’s decision to cut interest rates will have come as a surprise for some, I have always said the next cash rate movement was always going to be down – it was just a question of when.
More important than the 25-basis-point reduction is the fact that rates have declined for two consecutive months now, confirming they are trending in a downward direction. This trend is paramount to buyer confidence and is another factor supporting what is already a buyers’ market.
While European economic woes continue to loom overhead, those with secure employment on the lookout for property will rarely experience an environment as attractive for buying as the current market.
Prices are stable, and vendors are necessarily being more realistic when it comes to price. The emergence of a downward interest rate trend will have further positive bearing on affordability.
Of course the official cash rate is one influence, and much will depend on whether the banks, which admittedly have seen their own costs of borrowing increase, pass on the rate cut to their customers.
In the context of global uncertainty, as the impacts of the European debt crisis filter through to the domestic market, this decision should be welcomed as a safeguarding measure.
Leanne Pilkington is general manager of<a target="_blank" title="Laing + Simmons" href="https://www.laingsimmons.com.au/"> Laing + Simmons</a>
 
 
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