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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With less than four weeks left until Christmas, east coast holiday destinations are busily preparing for an influx of summer holidaymakers, with many areas experiencing close to 100% occupancy rates on vacation properties, according to the Raine &amp; Horne coastal offices.
In Yamba, on the NSW north coast, the height of the summer holiday rush is expected in the first week of 2012, says Denise Jillett, Principal of Raine &amp; Horne Yamba.
“We have 100% occupancy on our holiday homes between New Year’s Eve and the end of the first week in January, and only a 1% vacancy rate between Christmas Eve and New Year’s Eve,” Jillett says.
“Even the second week in January is very tight, and it is not until the second half of January that we have more availability.”
More than 50% of the area’s holidaymakers are coming from south-east Queensland, says Jillett, with many renting waterfront homes for up to $2,500 a week.
“Some of these properties can fit two families, which is a great way to share costs, but we also have cheaper holiday properties renting for around $950 a week.”
Jillett says Raine &amp; Horne Yamba is now seeking additional listings to cater for the high holiday demand, and suggests it can be a good way for home owners to pay for a holiday of their own.
“Yamba home owners who are open to the idea of letting out their home over Christmas can earn a few thousand dollars, which effectively means they can pay for their own holiday.”
Buyers who are looking at purchasing in the tightly held Yamba market can secure three-bedroom entry-level waterfront homes, including a boat mooring and jetty, for prices between $730,000 and $750,000, adds Jillett.
“We even have two-bedroom, two-bathroom units with ocean views for prices in the mid-$400,000s,” she notes.
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jchancellor-FAypfDUnLy

Yamba holiday homes fully rented as holidaymakers plan for summer breaks on NSW north coast

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Australian house prices are more vulnerable to a major correction than the US housing market was before its collapse following the GFC, according to The Economist magazine. 
The magazine says home prices in Australia (alongside Belgium, Canada, France, New Zealand, Britain, the Netherlands, Spain and Sweden) are overvalued by about 25% and could plummet if there is another global credit crunch as a result of a sovereign debt meltdown in Europe.
It says the housing markets of Australia, Belgium, Canada and France “look more overvalued than [the housing market] was in America at the peak of its bubble”. 
This assessment is based on two ratios: the first is the price-to-income ratio, a gauge of affordability; and the second is the price-to-rent ratio, which reflects the rents earned by property investors (or those saved by owner-occupiers). 
In the case of Australia, the magazine says the price-to-rent ratio is running at 53% above the long-run average while the price-to-income ratio is currently 38% above the long-run average. 
In comparison, the ratios for the depressed US housing market are down 8% and down 22% respectively. 
Economist house price indicators: 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="123">
 
</td>
<td valign="top" colspan="2" width="246">
House price changes
</td>
<td valign="top" colspan="2" width="247">
House prices under/overvalued against*:
</td>
</tr>
<tr>
<td valign="top" width="123">
 
</td>
<td valign="top" width="123">
% change last year
</td>
<td valign="top" width="123">
changes since 2007
</td>
<td valign="top" width="123">
Rents
</td>
<td valign="top" width="123">
Income#  
</td>
</tr>
<tr>
<td valign="top" width="123">
Australia
</td>
<td valign="top" width="123">
-2.2%
</td>
<td valign="top" width="123">
18.1%
</td>
<td valign="top" width="123">
53
</td>
<td valign="top" width="123">
38
</td>
</tr>
<tr>
<td valign="top" width="123">
New Zealand
</td>
<td valign="top" width="123">
0.1%
</td>
<td valign="top" width="123">
-4%
</td>
<td valign="top" width="123">
66
</td>
<td valign="top" width="123">
4
</td>
</tr>
<tr>
<td valign="top" width="123">
Britain
</td>
<td valign="top" width="123">
0.8%
</td>
<td valign="top" width="123">
-8.7%
</td>
<td valign="top" width="123">
28
</td>
<td valign="top" width="123">
20
</td>
</tr>
<tr>
<td valign="top" width="123">
US
</td>
<td valign="top" width="123">
5.9%
</td>
<td valign="top" width="123">
27.6%
</td>
<td valign="top" width="123">
-8
</td>
<td valign="top" width="123">
-22
</td>
</tr>
<tr>
<td valign="top" width="123">
Canada
</td>
<td valign="top" width="123">
6.2%
</td>
<td valign="top" width="123">
21.9%
</td>
<td valign="top" width="123">
71
</td>
<td valign="top" width="123">
29
</td>
</tr>
<tr>
<td valign="top" width="123">
Spain
</td>
<td valign="top" width="123">
-5.5%
</td>
<td valign="top" width="123">
-15.2%
</td>
<td valign="top" width="123">
32
</td>
<td valign="top" width="123">
30
</td>
</tr>
<tr>
<td valign="top" width="123">
Netherland
</td>
<td valign="top" width="123">
-2.8%
</td>
<td valign="top" width="123">
-5.7%
</td>
<td valign="top" width="123">
23
</td>
<td valign="top" width="123">
37
</td>
</tr>
<tr>
<td valign="top" width="123">
France
</td>
<td valign="top" width="123">
7.7%
</td>
<td valign="top" width="123">
5.8%
</td>
<td valign="top" width="123">
58
</td>
<td valign="top" width="123">
39
</td>
</tr>
<tr>
<td valign="top" width="123">
Sweden
</td>
<td valign="top" width="123">
1.1%
</td>
<td valign="top" width="123">
15.2%
</td>
<td valign="top" width="123">
40
</td>
<td valign="top" width="123">
23
</td>
</tr>
</tbody></table>
Source: The Economist
(*relative to long run average, #disposable income per person)
 
“If both of these measures are well above their long-term average, which we have calculated since 1975 for most countries, this could signal that property is overvalued,” The Economist says. 
The magazine also notes that Australia, Britain, Canada, the Netherlands, New Zealand, Spain and Sweden “all have even higher household-debt burdens in relation to income than America did at the peak of its bubble”. 
“Overvalued prices and large debts leave households vulnerable to a rise in unemployment or higher mortgage rates. A credit crunch or recession could cause house prices to tumble in many more countries,” it says.
The views expressed about Australia in the respected publication are at odds with predictions by economists such as <a href="https://www.propertyobserver.com.au/residential/housing-recovery-to-begin-in-first-quarter-of-2012-but-headlines-wont-tell-us-until-later-christopher-joye/2011112352512" target="_blank">Rismark’s Christopher Joye, who expects a recovery in housing prices in the first quarter of 2012</a>.
ANZ Bank property analyst David Cannington also disagrees, telling The Age the ratios used by The Economist don’t give the full picture.
''We think there's more to the stability of the housing sector than is suggested in The Economist's analysis,'' he says.
But not all Australian economists think the housing market is safe.
“The potential in Europe is that the debt crisis worsens and the housing market is tightened. And that's not good news,” <a href="https://www.propertyobserver.com.au/residential/property-experts-rate-spring-selling-season-as-disappointing-warn-europe-debt-crisis-could-harm-recovery/2011112852564" target="_blank">says APM economist Andrew Wilson</a>.
The Economist acknowledges that some economists reject its measure of overvaluation, “arguing that lower interest rates justify higher prices because buyers can take out bigger mortgages”. 
“There is some truth in this, but interest rates will not always be so low. The recent jump in bond yields in some euro-area countries has raised mortgage rates for new borrowers,” it says. 
The forecast for Australia is made as part of the Economist’s latest update to its global house-price indicators, which shows that prices are now falling in eight of the 16 countries in the table, compared with five in late 2010. 
House prices are falling in Australia (-2.2%), Spain (-5.5%), Netherlands (-2.8%), Denmark (-1.3%), Ireland (-15.1%), US (-5.9%) and Japan (-3.3%). 
Despite US houses prices looking “cheap” by comparison to other first world markets and having reached “a floor, The Economist says there is no guarantee of an imminent bounce. 
“In Britain and Sweden in the mid-1990s, prices undershot fair value by around 35%. Prices in Britain did not really start to rise for almost four years after they bottomed,” it says. 
Furthermore, an expected four million foreclosed homes could come onto America’s market may also keep house prices depressed. 
It was recently estimated that it could take <a href="https://www.propertyobserver.com.au/overseas/it-will-take-more-than-50-years-to-sell-all-of-new-york-s-foreclosed-homes/2011111352327" target="_blank">more than 50 years to sell all the foreclosed and delinquent homes in the states of New York and New Jersey</a> at the current rate of foreclosure sales.
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lschlesinger-FZcF9M3vE6

Australian housing market more at risk than pre-GFC America: The Economist

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The final weekend of the spring property selling season has come and gone, and experts are underwhelmed as sales remained broadly in the line with the trend set in the first half of the year despite a slew of new listings hitting the market.

Most believe any improvement will not be seen until February or March, but also warn the European debt crisis could prolong the current trend if credit remains tight and banks roll back on home lending.
"That is the big danger for us," says SQM Research managing director Louis Christopher. "The threat to the housing market is that banks may severely ration their home lending."
Clearance rates in both Melbourne and Sydney remained around 50% over the past weekend, despite the number of listings increasing by several hundred.
APM economist Andrew Wilson says the result is indicative of the past season, with home buyers mostly waiting until they could get the best deal possible.
"Melbourne has certainly bumbled along the bottom of the market, and there's no real sign of a pick up there. We've been slightly more optimistic about Sydney, but we've had such a mixed news period that it's been extremely hard."
Wilson says the fear of another recession and the ongoing debt crisis in Europe has kept buyers away, and that fear will continue into the next year.
"We're starting to look like we'll get some headwinds next year, but financial markets are looking at another restriction of credit, and that will be a big change if that occurs."
"The potential in Europe is that the debt crisis worsens and the housing market is tightened. And that's not good news. The upcoming budget outlook has talk surrounding it of reduced tax receipts for the government, and that's more negative news."
While Wilson says while the season certainly hasn't been bad, the lack of sales in proportion to the higher number of listings is disappointing.
"It's still a pretty good picture, and we've had a reasonable, yet subdued, spring. It's just the national financial situation at the moment which has put us on watch."
According to the Real Estate Institute of Victoria, Melbourne recorded a clearance rate of 53%, with a total of 899 auctions. Chief executive Enzo Raimondo said the result shows how "evenly balanced" the market is.
Sydney recorded a 54.9% result, with Adelaide recording 16.7%.
Christopher says despite the macroeconomic situation, the market is ready for a recovery in 2012.
"We've had a rate cut, we'll see if that helps. That movement could certainly stimulate the market next year."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/property/20111128-property-experts-rate-spring-selling-season-as-disappointing-warn-europe-debt-crisis-could-harm-recovery">SmartCompany</a>.
 
 
 
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cknowlton-QnEa6ntUYP

Property experts rate spring selling season as disappointing, warn Europe debt crisis could harm recovery

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Marilynne Paspaley's much-anticipated $70 million luxury Pinctada resort development on WA’s Rottnest Island won’t be proceeding.
The former actress and Pearling family scion has abandoned plans for a resort on the island because of too many “constraints”.
She says outdated bureaucratic processes killed off her vision for the resort.
In June WA Tourism Minister Kim Hames told a parliamentary estimates hearing that Pinctada’s inability to raise finance for the project had thrown it into “limbo”. Paspaley denied this, claiming the time frames imposed were not realistic.
Last year the WA government named Pinctada as preferred developer and its plan would provide the island its first new accommodation since the 1980s.
Paspaley is among the few developers to successfully build hotels in WA in the past 20 years, including Pinctada Cable Beach in Broome, for which she became a registered builder. She also holds The Kimberley Grande and McAlpine House in Broome.
However, the rigid processes in place through the Rottnest Island Act proved too much for the developer, who claims that her plans would not have been commercially viable.
She says she has spent millions of dollars trying to minimise the obstacles associated with her plan for a 120-room resort and spas overlooking Longreach Bay on a site that is the island’s degraded former rainwater catchment.
This is the second attempt to find a developer for the site. In 2009 a consortium led by Broadwater Hotels and Resorts collapsed after two years of negotiations.
The search to find a suitable developer will continue and Karma Resort’s founder John Spence, who is also a Commissioner for WA Tourism, is likely to cast another bid for the pleasure to develop the property.
 
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andreadixon-oif3j7eKne

Marilynne Paspaley abandons plans for Rottnest Island resort Pinctada 

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Home ownership is the cornerstone of the great Australian dream, as it can provide financial and emotional security for households and typically represents their largest lifetime investment.
Housing investment also plays a vital role within the economy, as it can influence the pace of general economic growth, while providing an important fiscal and monetary policy nexus between governments and households.
The residential building market comprises the construction of new single-unit (detached) housing (principally built by firms in the industry), new multi-unit apartments and townhouses, and alterations and additions to existing dwellings (i.e. home improvements). The value of total work done on residential buildings was about $49.3 billion in 2011-12, which represents flat growth over the past five years (0% per annum), while the value of work done on new single-unit housing construction has contracted by an average 1.5% per annum to currently total $26.8 billion (down 1.5% on the previous year). The number of single-unit housing commencements totals about 97,000 in 2011-12, down by 13.5% on the recent cyclical peak at 112,141 units in 2009-10.
The industry generates about 75% of its annual revenue from building work on new single-unit housing, about 7.5% from the construction of apartments and townhouses, 15% from alterations, additions and repairs to existing dwellings (i.e. home improvements) and the balance from speculative property sales (about 2.5%).
Total House Construction industry revenue is about $30.3 billion in 2011-12, down 2.3% from the previous year and representing a decline by 1.5% per annum over the past five years (matching the trends in total investment). Industry value added currently totals $8.33 billion, or 0.7% of Australia's GDP.
Housing investment trends were subdued during the mid- to late 2000s by the combined influence of weaker general economic conditions, deteriorating affordability and the tightening lending arrangements associated with the global financial crisis and the collapse of the US subprime mortgage market. The underlying demand for new housing has been supported by accelerated net population growth, which has exceeded 400,000 people annually over recent years.
House building activity in southern Queensland and northern Victoria was interrupted by the devastating floods of January 2011. The initial impact of the floods resulted in delayed work on current construction projects caused by flood damage to partly constructed housing and materials, and the diversion of skilled tradespeople to work in the severely affected areas where they could help homeowners.
Early in the next five years, the reconstruction work following the floods, coupled with strong underlying demand for new housing, will support further cyclical expansion in the industry's performance ahead of a minor correction in the longer term. The industry is forecast to maintain cyclical revenue growth averaging 3.5% per annum over the five years through 2016-17 to reach a record $36 billion, matching the pace of GDP growth (3.4% per annum).
Total direct employment by this industry is about 90,000 people in 2011-12, although the industry has a heavy reliance on a subcontracted labour force. The total industry workforce currently numbers about 300,000 to 350,000 full-time equivalent people. Wage costs absorb about 15% of annual industry revenue, while payments to subcontractors and employment agencies and for professional and technical services absorb about 35% of industry revenue.
The industry comprises about 35,000 establishments and is characterised by its many small to medium-size contractors, which operate in relatively narrow regional markets. The four largest contractors generate less than 10% of annual industry revenue and construct about 10% of annual commencements. Australia's leading homebuilders include BGC (Australia), Mirvac Group, Dale Alcock Homes, Henley Arch, AV Jennings, Metricon Homes and Devine Limited, each accounting for about 1.0% to 2.5% of the annual industry revenue and housing starts.
Industry outlook
Pent-up demand for new housing stemming from the recent surge in Australia's population, coupled with solid general economic performance, will underpin record housing construction activity over the next few years. However, a minor cyclical correction in demand conditions is expected late in the period as housing affordability deteriorates and some of the current demand is satisfied.
Divergent trends will appear in the housing market over the next five years. Investment is currently constrained by the price of entry into the housing market, by high levels of household debt and steadily rising mortgage interest rates. In addition, the lending practices of mortgage initiators tightened in the aftermath of the subprime market fallout in the United States and the global financial crisis. On the other hand, Australia weathered the global economic storm better than most countries. Households continue to have a capacity to take on debt, household savings are climbing and there has been an unprecedented surge of population, which puts upward pressure on housing demand. IBISWorld forecasts renewed cyclical growth in new housing construction with record levels of housing starts and investment.
Housing Construction industry revenue is forecast to average growth of 3.5% per annum over the five years through 2016-17, matching the investment trend in the single-unit housing market, and the projected pace of Australia's GDP growth (3.4% per annum). Annual industry revenue is forecast to average $35.5 billion per annum over the five years through 2016-17, or 10.6% above the average of $32.1 billion per annum for the previous five years through 2011-12. The number of single-unit housing commencements will climb by an average 2.5% per annum over the next five years.
Australia has high pent-up underlying demand for accommodation, particularly among first home buyers, stemming mainly from the unprecedented growth in the resident population over recent years (natural and immigration), which has fuelled rental yields and property values and lifted the underlying demand for new housing construction. The effect of escalating land values and material prices will cause housing demand to swing towards the construction of multi-unit apartments and townhouses, particularly for first home buyers and empty nesters who seek the lifestyles of inner-urban locations.
Investment by first home buyers in single-unit housing will be concentrated in new housing subdivisions in the outer fringes of metropolitan areas, and all the state governments have moved to open up land for residential development.
Reconstruction after the floods
The industry will continue to derive additional impetus from the reconstruction of housing in southern Queensland and northern Victoria in the aftermath of the 2011 floods. The total value of housing construction, repairs and renovations will be $4.0 and $5.0 billion, which includes about $2.2 billion for the reconstruction of single-unit houses (spread over the three and half years to 2015) and about $1.4 billion on renovations and repairs undertaken by this industry.
The reconstruction experience of New Orleans in the United States, following Hurricane Katrina in 2005, suggests delays in new construction activity will stem from a combination of disputed insurance payouts, bureaucratic red tape (e.g. building approvals on flood zone and relief payments), bottlenecks due to shortages in materials and skilled labour, and changed zoning and building codes in response to floods.
Tradespeople will be attracted to the flood-affected regions by higher contract rates, which will have a knock-on effect for the rest of the country. In the near term, the more remote regions of northern Victoria and central Queensland will face escalating construction costs and delays due to materials shortages.
Profit performance
The industry's profit performance is forecast to continue to strengthen considerably over the next five years, and is likely to be strongest for the larger-scale builders that combine construction with land development activities (particularly lifestyle community developments) and those servicing the reconstruction effort.
Industry gross operating surplus is forecast to climb by an average 6.0% per annum over the five years through 2016-17, increasing to about a 15% share of industry revenue, up from 12.5% currently. The improved profitability is expected to support growth in industry value added averaging 4.0% per annum over the next five years, and industry wage costs are projected to grow by 2.5% per annum, reflecting the growth in direct employment (1.5% per annum) and higher real wage rates, as demand conditions tighten in the skilled labour market (particularly in Western Australia and Queensland).
Housing investment rebounds
The pent-up underlying demand for owned and rental accommodation, fuelled by population growth exceeding 400,000 per annum since the late 2000s, and the stabilisation of mortgage interest rates, points to the substantial upswing in total housing investment over the next few years. Improved general economic conditions should support housing investment trends and GDP is projected to climb by 3.5% to 4.0% per annum over the next three years to 2014-15, generating similar growth in household income.
Although housing affordability conditions remain generally unfavourable, with particularly high serviced land values, the First Home Owner Grant still applies (distributed by state and territory governments) and most states also provide generous subsidies for newly constructed dwellings, regional housing incentives and stamp duty relief.
The value of new single-unit housing construction will climb by 7.0% to 8.0% per annum over the two years to 2013-14, maintaining solid growth of 3.0% to 4.0% per annum over the next two years to total a record $33.5 billion by 2015-16. The number of single-unit housing starts will climb commensurately with accelerated growth in the short term, eventually reaching a cyclical peak at 115,250 dwelling units in 2015-16, or about 19% above its current cyclical trough (and about 3.0% above the previous cyclical peak in 2009-10).
The upswing of investment will cause industry revenue to surge by 7.3% per annum over the next two years, before moderating through the mid-term, reaching a record $37.5 billion by 2015-16 (23.8% above its current level). This performance will fuel robust growth in operating profit and will lift direct employment by 8,500 people over four years (about 2.0% per annum) to peak at 97,000 people in 36,250 establishments. The total industry workforce, including subcontracted labour, will climb to about 400,000 people.
Demand moderates
The industry's prospects are expected to moderate in the longer term as investment into single-unit housing falls 5.2% to settle at $31.8 billion in 2016-17. This turning point corresponds with the typical four- to five-year cycle in housing demand. It also partly reflects the expected tightening of investment finances following several years of strong economic expansion, and the stock of existing homes approaching the underlying requirement. The upward pressure on mortgage interest rates is expected to gather momentum in the mid-term, as government looks to fund the recent deficit increases (increasing the demand for cash), which will push up bond rates on international markets.
Industry revenue is forecast to contract by 4.0% to $36 billion in 2016-17, as the level of new single-unit housing starts falls by over 5,000 to 110,000 dwelling units. The industry will continue to derive solid demand from the home improvements market and the aligned multi-unit apartment market.
Key success factors
<ul>
<li>
Development of a symbiotic relationship with another industry: Close linkages with financial institutions enable adequate funding of activity.</li>
<li>
Membership of an industry organisation: To be eligible for insurance, operators must have membership with the Housing Industry Association or the Master Builders Association.</li>
<li>
Access to highly skilled workforce: It is essential that industry participants have access to a pool of skilled subcontractors or skilled employees, as this industry is prone to cyclical shortfalls in skilled labour.</li>
<li>
Having contacts within key markets: Businesses must have significant promotion of different types of houses at various display centres.</li>
<li>
Ability to expand and curtail operations rapidly in line with market demand: The ability to read the building cycles and to position operations according to likely outcomes is important.</li>
<li>
Access to the necessary amount of land and type of property: The larger-scale players in this market typically develop and promote residential subdivisions, and thereby profit from both construction and property development activities.</li>
</ul>
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
Photograph by Tim Gould
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Building solid foundations: Insights into the housing industry

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There is an in interesting, although fairly typical, conflict between economists' RBA rate forecasts in December and the predictions of the SFE's 30-Day Interbank Futures Contract, which is the purest cash rate proxy. In short, only 27% of economists believe the RBA will cut next week, according to Bloomberg data. In contrast, the financial markets are putting a 100% probability on a cash rate reduction to 4.25%, and have been doing so for weeks (see chart).
Click to enlarge
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As discussed here before, the RBA does not normally like surprising market “expectations” with a shock decision. While the RBA is understandably quite focused on financial market expectations, it also includes economist views in this camp and, of course, is acutely aware that the two frequently diverge. 
But what expectations are most important? It is hard to say. On the one hand, it cares most about the expectations of participants in the domestic economy. A key cohort are consumers who, I suspect, are not sure what the RBA will do (i.e., closer in spirit to economists). Yet financial markets are also significant insofar as they set the long-term price of money that prevails in the economy via the yield curve. There has been huge inversion of the Aussie yield curve, which has reduced domestic interest rates (e.g., on three-year fixed-rate loans) and therefore supplied additional financial accommodation over and above what the RBA was planning to bestow via its cash rate decisions. Check out the sub-6% home loan deals you can currently get. The bottom line: the RBA can rely on whatever it wants to rationalise a decision; e.g., economist expectations or financial market pricing. This time around, it probably does not mind the conflict between the two, especially if it intends on pausing: the financial markets are already providing the "insurance" many investment bankers are begging the RBA to supply while the current inertia in economist views means that the RBA does not feel that its arm is being twisted in one direction.
What will it actually do? Frankly, I don't know – and neither does the Reserve Bank. One will not have a more confident feel for the probabilities, which hinge almost exclusively on Europe, until we have full information on the day of the decision.
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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Economists' RBA December rate forecasts clash with financial markets

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There is an important relationship between selling agents and buyers’ agents in the property industry, and this association is based on trust and integrity. At the end of the day we work together in the best interests of our respective clients and it is a win-win situation all round. 
As a former real estate sales agent I have to admit I often fell into the comfortable habit of “list, market and wait for the buyers to contact me”.  This was the equivalent to being a trapdoor spider waiting for its prey to show up and swallow it. But complacency is a fatal mistake unless you are an arachnid. 
As well, the other strategy in those days was to offer conjunctions to other agents and hope they would solve my problem for me. 
But nowadays there is a brilliant option that you should use for every property on your books, not just because it will benefit you but because it will benefit your client. And it costs you nothing! It is simply to work with a buyers’ agent. 
You can even include this tactic in your marketing pitch for listings and you will be pleasantly surprised to see that vendors welcome this strategy with open arms. After all, it doesn’t cost them anything and hugely increase the chances of finding a buyer. And it is a great option to flogging your extensive and out-of-date client database to prospects; no one ever bought that strategy. 
Real estate agents should recommend prospective buyers to buyer’s agents simply on a goodwill basis, and this is good practice for you. 
As an example, imagine that you have been dealing with a buyer who wants a specific type of property but you don’t have a suitable listing currently on your books. This is the perfect opportunity to demonstrate your desire to help them and initiate an on-going close personal relationship in the future. 
There are important benefits to you: 
<ul>
<li>You have done a favour to the buyer by demonstrating your desire to help them with no personal gain, and they will appreciate your selfless advice and integrity as an agent. Sooner or later they will come back to you. </li>
</ul>
<ul>
<li>The client may go cold on you and begin dealing with another agent (most likely a competitor). So it is better to use the opportunity to refer them to a trusted buyers’ agent who you know will look after their best interests. They will remember you for this. </li>
</ul>
<ul>
<li>The buyers’ agent will reciprocate the favour in future by personally recommending you as a real estate agent as you have now established a relationship based on trust and goodwill.</li>
</ul>
 
So talk to your favourite buyers’ agent about your listings and what you have coming up (don’t wait for them to contact you). Build up a close working relationship with them and grow your reputation by recommending buyers’ agents you know and trust. 
Everyone wins!
Tim Mansfield is founder and principal of Sydney-based buyers' agency <a href="https://www.primepropertybuyer.com/" target="_blank">Prime Property Buyer</a>.
 
 
 
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The reciprocal relationship between buyers' agents and selling agents

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Commercial property investors have snapped up more than $90 million worth of refurbished 7-Eleven service stations across NSW and Victoria since the retail group began auctioning them off earlier this year.
The stores, which all come with 15-year leases and guaranteed tenant income, have been sold to investors with prices ranging from $1.6 million for a 1,900-square-metre service station in Bayswater East in Melbourne to up to $4.6 million for a 2,824-square-metre site in Turramurra.
Yields have ranging from 4.6% to as high 8.5%.
Currently, just one refurbished 7-Eleven remains up for sale, a <a href="https://www.realcommercial.com.au/property-retail-nsw-mount+druitt-5958106" target="_blank">2,500-square-metre site at Mount Druitt site in Sydney’s outer west</a>, which has annual income of $316,000 and is being marketed by Charles Gonzalez of Burgess Rawson.
However, investors with an eye for these colourful assets should not despair. Jones Lang LaSalle’s John Macree, who led the most recent campaign culminating in 10 sales of 7-Elevens at auction in NSW, says the property group is working with 7-Eleven to prepare further properties for sale in 2012.
To make sure you are getting a fair return on your investment in 2012, scroll down this list of yields achieved in 2011:
4.63%
The yield achieved for the 7-Eleven in Kensington in Sydney’s inner east. The site measures 1,429 square metres and is located at the corner of Anzac Parade and Todman Avenue. It sold for $2.4 million, with annual rent commencing at $150,000
4.96%
The yield achieved for the 7-Eleven in Woolooware in Sydney’s Southern suburbs. The site measures 2,530 square metres and is located at 192 -196 Kingsway. It has annual rent commencing at $170,000
5.74%
The yield achieved for the 7-Eleven in Turramurra on Sydney’s North Shore. The site measures 2,824 square metres and is located at 1408 Pacific Highway. It sold for $4.6 million and has annual rent commencing at $320,000.
5.91%
The yield achieved for the 7-Eleven in South Strathfield in Sydney’s western suburbs. The site measures 4,998 square metres and is located at 577 Liverpool Road. It sold for $2.63 million with annual rent commencing at $200,000
5.95%
 The yield achieved for the 7-Eleven in Lindfield on Sydney’s North Shore. The site measures 1,708 square metres and is located 238-240 Pacific Highway. It has annual rent commencing at $185,000. 
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5.95%
The yield achieved for the 7-Eleven in Ryde in Sydney’s outer west. The site measures 2,093 square metres and is located at 328 Blaxland Road. It has annual rent commencing at $180,000
6.02%
The yield achieved for the 7-Eleven in Hoppers Crossing in Melbourne’s outer south west. The site measures 5,575 square metres and is located at the corner of Old Geelong and Heaths roads. It sold for $3.49 million with annual rent commencing at $210,000
6.22%
The yield achieved for the 7-Eleven in Gymea in Sydney’s Southern suburbs. The site measures 1,233 square metres and is located at 110 Gymea Road and 353 President Avenue. It sold for $2.05 million and has annual rent commencing at $140,000.
6.51%
The yield achieved for the 7-Eleven in Brandon Park in Melbourne’s east. The site measures 2,720 square metres and is located at the corner of Springvale and Ferntree Gully roads. It sold for $2.92 million and has annual rent commencing at $190,000.
6.79%
The yield achieved for the 7-Eleven in Epping in Melbourne’s north. The site measures 5,204 square metres and is located at the corner of Dalton and Childs roads. It sold for $2.21 million and has annual rent commencing at $150,000.
6.88%
The yield achieved for the 7-Eleven in Granville in Sydney’s West. The site measures 1,499 square metres and is located at the corner of Parramatta Road and Harbord Street. It sold for $2.56 million and has annual rent commencing at $200,000.
6.91%
The yield achieved for the 7-Eleven in Artarmon, on Sydney’s North Shore. The site measures 1,548 square metres and is located at 477 Pacific Highway. It sold for $2.72 million and has annual rent commencing at $210,000.
6.98%
The strong yield achieved on the 1,463-square-metre <a href="https://www.propertyobserver.com.au/commercial/retail/two-sell-as-7-eleven-tempts-investors/2011062850639" target="_blank">Lilydale site on the corner of Maroondah Highway and Cave Hill Road</a> in Melbourne. The Lilydale site was one of two sold to a private investor before the end of June and one of the smallest properties sold to date. The service station brings in $130,000 in annual rent.
7.31%
The yield achieved for the 7-Eleven in Lansvale, on Sydney’s south west. The site measures 4,874 square metres and is located at 22-36 Hume Highway. It has annual rent commencing at $200,000.
7.34%
The yield achieved for the 7-Eleven in Edensor Park, in Sydney’s outer west. The site measures 7,451 square metres and is located at the corner of Cowpasture and Elizabeth roads. It sold for $3.35 million has annual rent commencing at $260,000.
7.42%
The yield achieved for the 7-Eleven in Yagoona in Bankstown in Sydney’s outer west. The site measures 1,267 square metres and is located at 519 Hume Highway. It sold for $3.35 million has annual rent commencing at $170,000.
7.48%
The yield achieved for the 7-Eleven in St Mary’s in Penrith in Sydney’s outer west. The site measures 4,328 square metres and is located at 2 Wilson Street. It sold for $3.35 million and has annual rent commencing at $220,000.
7.59%
The yield achieved for the 7-Eleven in Ingleburn in Sydney’s outer south west. The site measures 1,728 square metres and is located at 72 Cumberland Highway. It has annual rent commencing at $160,000.
7.73%
The yield achieved for the 7-Eleven in Emu Heights in Sydney’s outer south west. The site measures 3,328 square metres and is located at 126-128 Old Bathurst Road. It sold for $3.35 million and has annual rent commencing at $190,000.
7.93%
The yield achieved for the 7-Eleven in Tullamarine near the Melbourne Airport. The site measures 1,864 square metres and is located at corner of Mickleham and Melrose roads. It sold for $2.27 million and has annual rent commencing at $180,000.
7.98%
The yield achieved for the 7-Eleven in Blaxland in the Blue Mountains. The site measures 1,809 square metres and is located at 137 Great Western Highway. It sold for $2.25 million and has annual rent commencing at $190,000.
8.11%
The yield achieved for the 7-Eleven in Ringwood in the Melbourne’s east. The site measures 2,956 square metres and is located on the corner of Warrandyte and Loughnan roads. It sold for $2.65 million and has annual rent commencing at $190,000.
8.31%
The yield achieved for the 7-Eleven in Bayswater East in Melbourne’s East. The site measures 1,932 square metres and is located at the corner of Dorset Road and Mountain Highway. It sold for $1.685 million and has annual rent commencing at $140,000.
8.45%
The yields achieved following the sale of the <a href="https://www.propertyobserver.com.au/commercial/retail/two-sell-as-7-eleven-tempts-investors/2011062850639" target="_blank">2,738-square-metre Blackburn South site at 2 Canterbury Road before auction at the end of June</a>. The service station has annual rent commencing at $140,000.  
8.53% 
The yield achieved for the 7-Eleven in Lambton in Newcastle. The site measures 1,932 square metres and is located at the corner of Dorset Road and Mountain Highway. It sold for $2.13 million has annual rent commencing at $190,000.
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Sales of 7-Elevens during 2011 secure investors yields of between 4.6% and 8.5%

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The wildfires that ripped through the millionaire’s beachside sanctuary of Prevelly in WA’s Margaret River have turned dozens of houses to ash, including Michael Chaney’s historic Wallcliffe House.
Ten of millions of dollars in property have been wiped off the value of coastal communities of Gnarabup and Prevelly.
Scores of houses have been damaged during several days of fire, which was caused by a controlled burn-off that went horribly wrong.
The historic Wallcliffe House was among the official count of 31 houses destroyed.
On Thursday the shingles of the 1865-built house caught alight and fire tore through the stone buildings, including the recently added guest wing.
The house is owned by Perth millionaire and NAB chairman Michael Chaney and his wife, Rose. It cost $5 million in 2001. So committed to the house that Rose took the long-time gardener, the late Colin Thompson, to Europe to inspect and replicate the gardens of Spain’s Alhambra.
Wallcliffe House was a two-storey stone, shingle and corrugated iron homestead designed in the Victorian Georgian style built by the Bussell family. The five-hectare property also had long associations with the Terry and Hohnen families.
The luxury 10-cabin Isaac’s Ridge Cottages was also destroyed and some tourists lost their belongings and had to camp at the beach for safety.
Prestige wineries including Voyager Estate, Cape Mentelle and the Leeuwin Estate were all evacuated and being closely monitored.
Cashed-up holiday makers have been calling local estate agents concerned that their beachside Christmas rentals were under threat.
Premium properties in Prevelly leased for $5,000 a week during the festive season, when the area is heavily booked.
Local holiday leasing agent Jacqueline Keller says it is too early to even guess which houses have been destroyed or damaged.
“We only know what we are hearing on the radio, but our phones have been running hot. We are just glad there has been no loss of life,” she says.
In Prevelly and surrounding areas, which is a favourite haunt of Hugh Jackman, dozens of holiday investments properties are heavily leased for the week of Christmas.
About 15 houses in the afflicted area listed for sale with price tags of between $800,000 and $3 million. It is not yet known if any are still standing.
Premier Colin Barnett has declared the area a natural disaster zone and promised a full inquiry will take place into how the blaze happened.
The Premier said that those who lost their homes will receive an immediate compensation payment of $3,000 from the state government while those whose homes were damaged will get $1,000.
Photograph of Wallcliffe house in 1902 courtesy of Margaret River and Districts Historical Society Inc.
 
 
 
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Michael Chaney's historic Margaret River retreat burnt in WA bushfires

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Queensland accounted for more than half the distressed property sales across Australia in October and most of November, with development sites in regional areas topping the list of distressed assets across the state, according to research by valuer LandMark White.
Queensland represented 52.9% of all forced sales (mortgagee in possession or receiver sales) across Australia in October and up to November 22, followed by NSW (26.1%) and Victoria (7.8%).
Western Australia and South Australia accounted for 5% of distressed sales each.
LandMark White monitoring of investment sales from October 1 to November 22 as part of its Forced Sales Index found that 153 out of 489 listings were distressed sales, equating to just over 31%.
The percentage of distressed sales in November currently sits at around 36%.
The valuer attributes the increase in distressed sales to a prolonged period of limited growth and transactions, with owners and financiers holding onto their assets in anticipation of a market recovery that has not eventuated.
<img src="/images/stories/distress.jpg">
Within the sunshine state, development sites accounted for more than 60% of forced sales, with nearly two-thirds of these sales occurring in regional Queensland, most notably the far north of the state.
Reflecting the current depressed state of the Queensland housing market, 33 residential properties were listed as distressed the sales, the highest number across asset classes followed by retail and office properties.
By contrast in NSW industrial assets represented almost a third of distressed sales, followed by offices at around 20%. Residential distressed sales made up just over 10% of all distressed sales.
Commenting on the high proportion of distressed industrial property sales in NSW, LandMark White says it may have been the case that these properties were land banked for future development as the industrial market grew, but were hurt by rising holding costs and a reduction in demand.
The small number of residential distressed sales was a reflection of the growth in median house prices in Sydney from 2009 to 2011, the valuation firm says.
Across the country, residential assets accounted for the highest proportion of distressed sales (27.5%) followed by industrial (25.5%), retail (20%) and office assets (15%).
 
 
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