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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It’s been quite some time between reports. But perhaps a clue of the strategy within the upcoming third National Housing Supply Council report came when its long-time chairman Dr Owen Donald told a housing conference to look to smaller blocks to help resolve home affordability supply issues.
Donald told the Darwin audience that there was a need to increase the diversity of dwelling types – a richer mix of medium- and high-density housing, including detached housing on smaller lots.
"Let people divide their 800-square-metre lots in half," he suggested.
The council was established in 2008 as an independent body to provide forecasts, analysis and advice on land supply and construction activity to meet housing demand and improve affordability over a 20-year forecast period.
It was set up by the Rudd government as a yearly report card of housing supply.
Its last report was in April 2010, when the National Housing Supply Council issued its second state of supply report.
The delay in its third report, due any day now, stems partly from the fact that in May the federal government added new members to the council. The council now includes Sue Holliday, Professor Graeme Hugo, Nigel Satterley, Dr Judy Yates and Saul Eslake, people from academia and the finance, economics, building, planning and urban development sectors.
"We need to see that [smaller lots] happening so housing affordability for young people is not impossible," Donald said.
The territory suffered a housing shortfall of 10,000 last year – and the situation is getting worse.
Donald noted that Darwin’s small size and reputation as a boom-bust town made developers wary of investing in residential developments.
The last report by the National Housing Supply Council estimated a national shortfall of 178,400 properties, a gap projected to grow to 308,000 within five years and 640,600 by 2028.
Reducing land sizes are a sensible start to the complex issues involved, and <a target="_blank" href="https://www.propertyobserver.com.au/residential/houses-leap-in-size-in-top-end/2011082151237">the trend towards small is on the rise perhaps everywhere other than the top end.</a>
The substantive issue remains the cost of infrastructure in development charges resulting in higher prices for buyers.
The first state of supply report was released in March 2009 highlighting the considerable gap that exists between housing supply and demand. 
Current economic conditions and headlines are certainly having an effect, with the tightening of credit for the housing industry meaning stalled projects while developers get pre-sales to meet stricter pre-sale requirements being imposed by banks.
Other issues noted by the initial report were planning, zoning, subdivision and development approval processes that are often lengthy, and are a major continuing constraint on supply. To overcome these issues, a co-ordinated approach by federal, state and local government is required.
And as one developer suggested to me last weekend, dropping the GST on new housing could make a world of difference.
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jchancellor-FAypfDUnLy

Smaller blocks could be one key to affordability

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A couple who bought an off-the-plan Gold Coast apartment have been able to set aside a $1,595,000 Bella Vue, Emerald Lakes purchase contract as a result of misrepresentations made by the developer’s sales representative regarding unrestricted views.
Nifsan, the developer, had lodged an application to develop the area in front of the Bella Vue apartment building with an 11-storey block that would have impeded the lake views at the time the representations were made to the buyers, Marcus Buskey and Raakel Tuominen.
<img src="/images/stories/emeraldlakes1.jpg">
The buyers had seen a newspaper advertisement offering “exclusive penthouse apartments with views from Surfers Paradise to Burleigh” within the French Quarter at Emerald Lakes.
The buyers claim they were induced to enter into the contract by a misrepresentation about the views from the eighth floor and were entitled to terminate the $1,595,000 contract entered into between the plaintiff and the defendants in February 2008.
Notice of termination was given and the buyers requested the return of the initial deposit of $1,000 and the balance deposit of $78,750.
However Nifsan commenced proceedings against the buyers for specific performance.
The buyers sought a declaration pursuant to then s87 of the Trade Practices Act 1974 (now s237, 238 of the Australian Consumer Law) that the contract was void or was set aside.
The court found that the representations were misleading, triggering then s51A of the Act (the equivalent provision is now found at s4 of the Australian Consumer Law).
Section 51A provided that representations as to future matters would be deemed to be misleading if there were no reasonable grounds for making the representation.
<img src="/images/stories/emeraldlakes2.jpg">
Salesman Guy Joris says he was not aware of a substantial application that his employer,  Nifsan, had made in October 2007 to Gold Coast City Council that sought approval increasing building heights in the waterfront precinct from five storeys as shown on approved plans to a height of up to 12 storeys. Joris’s evidence – and  Nifsan  accepts his evidence as correct in this regard – was that   Nifsan had a policy not to tell its sales staff of such matters.
But Judge Peter Applegarth did note the sales manager, Joris's superior, knew of the important application, as did its management team.
The judge noted it was improbable that Joris would not tell the buyers what he knew about the height of buildings proposed to be built and their effect on views from the apartment in Bella Vue that the buyers proposed to acquire.
The court ultimately found in favour of the buyers determining that the buyers did suffer damage as a result of the developer’s misrepresentations regarding the view.
The buyers also successfully argued that they would suffer loss if compelled to complete the contract as a result of the large differences between the then current market value of the apartment and the agreed price. In August 2010  Nifsan prepared a valuation report that gave a value of $1,000,020. The buying couple’s expert evidence was the apartment had a current market value of $820,000.
Nifsan chief executive Sean Wardrop has said the company reserves its right to appeal the court decision.
Nifsan is a privately owned property developer operating in southeast Queensland owned by the Japanese billionaire Toshiaki Ogasawara.
Since 1991 Nifsan has won some 30 state and national awards for their property developments from industry groups including the Urban Development Institute of Australia, the Housing Industry Association and the Queensland Master Builders Association.
<img src="/images/stories/emeraldlakes3.jpg">
Its European-inspired village – with buildings including Le Parisien, Maison and the nine-level Bella Vue, sit on a 201-hectare Carrara site that includes a golf course and a lake.
 
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Would-be Emerald Lakes Gold Coast buyers win court case over loss of views

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The Reserve Bank is unlikely to reduce interest rates again in December, according to ANZ.
Based on minutes from the RBA’s November 1 meeting, during which the board cut rates by 0.25%, ANZ’s Ivan Colhoun says there is no sign the RBA would cut rates again soon.
“There is little in the text or the construct of the RBA's arguments to suggest that the RBA will cut interest rates again as early as December,” Colhoun says.
He says he can foresee only five situations where the RBA might ease rates, including a collapse of global growth from a possible global credit event.
Other events that might encourage the RBA to cut rates would a reduction in the forecast of inflation rates, a cut in forecasts for Australian economic growth independently from global economic developments, substantial cuts by the government in its forthcoming mid-year economic and fiscal outlook, or if the RBA decided that the downside risks to growth continued to increase and was a little less restrictive in terms of its policy settings.
“Our conclusion is that the RBA will likely ease policy a little more but still probably not as quickly as market pricing, abstracting from a significant financial collapse emerging in Europe,” he says.
“The risks to this view still seem tilted to the downside at the present time, but are emerging more slowly than during the GFC.”
 
 
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awalsh-7Ub9EypybQ

December rate cut unlikely: ANZ

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Investment demand is expected to remain strong for Sydney’s prime-grade industrial assets that have solid lease convents as investors look for risk-free assets, according to Colliers.
As a result prime-grade industrial yields (currently between 7.75% and 8.75%) are expected continue to tighten over 2012 as a limited supply of such assets remains in place.
Over the past six months prime-grade yields have tightened by as much as 25 basis points, estimates Colliers in its industrial outlook report for the Sydney market for the second half of 2011.
The report notes a number of large high-quality asset transactions occurring in Sydney’s southwest market (Liverpool, Fairfield, Auburn, Campbelltown, Bankstown, Parramatta) over the past six months, bucking the trend of the other Sydney markets and providing evidence that prime-grade yields in the region have begun to tighten by as much as 25 basis points.
One of the most successful developments in this market has been Mirvac’s Hoxton Distribution Park, one of Australia’s largest industrial developments consisting of two state-of-the-art logistics facilities.
Aviva Investors Australian Logistics Property Trust acquired 50% of Hoxton Distribution Park for $97.4 million, the largest industrial transaction this year, equating to a yield of 7.5%.
The industrial park is 100% pre-leased to Woolworths, with Building 1 comprising a 88,914-square-metre purpose-built facility for Big W and Building 2, at 43,317 square metres, to be the national distribution centre for Dick Smith Electrical.
Yields for secondary-grade assets will continue to remain at current levels of between 8.5% and 11% until the risk appetite of buyers returns, Colliers says.
According to Colliers, yields softenened by as much as 50 basis points over the past six months.
Land values continue to remain stable on the back of subdued demand, with the majority of transactions occurring in the sub one-hectare market. 
“These sales were mainly purchases by owner-occupiers who could not find a suitable existing property to acquire or lease and have turned to developing a purpose built asset,” says Colliers. 
A positive development for the market this year has been the record number of industrial construction starts in June 2011, which reached $156 million during the month. 
The short-term forecast shows a rise of 22% in the value of industrial construction over the next three months while the longer-term forecast suggests a rise of 44% in the total value of starts over the next 12 months.
 Overall the outlook for Sydney is one of stability over the coming six to 12 months with the two major drivers the high Australian dollar and the lack of quality stock in the market for sale or lease.
“New development and supply is expected to be subdued, over the next 12 months, as lending and finance remains tight ensuring that only a handful of new developments enter the market during 2012,” Colliers says.
 
 
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lschlesinger-FZcF9M3vE6

Investor demand to remain strong for Sydney industrial property

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As Australia’s incessant undersupply of homes continues to drive up property prices, more renters and buyers are looking to studio apartments for a more affordable entry into the property market.
Sometimes barely bigger than your average hotel room, studios often get a bad rap as a risky investment because their size limits their market appeal. Or so the argument goes. But as Australia shifts towards high-density living, will studios become a more viable option?
<img src="/images/stories/studio2.jpg">
Louis Christopher, managing director of property forecasting company SQM Research, says the long-term trend towards smaller apartments will increase the appeal of studios. “We’ll see more of this type of stock in the long term. The trend is towards smaller and smaller accommodation in capital cities around Australia,” he says.
“The trend is going to be with us for some time. There are quite a few studio apartments being built in Melbourne, followed by Brisbane.”
Property developers such as Frasers Property Australia have already tapped into the compact living trend and are offering a range of options, including studios, in new developments.
“Several factors are coming together to drive the trend toward smaller properties, and it’s clear this trend is continuing,” says Adam Sparkes, group sales manager at Frasers. “Firstly, smaller properties are more affordable, providing an entry point for first-home buyers and property investors.
“For investors, the rental return is often higher than for a larger property. Finally, demographic trends are toward more single-person households, and single residents are leading the charge toward inner-urban life, with the shopping, dining, transport, culture and easy access to everything that goes with it.”
<img src="/images/stories/studio3.jpg">
At Frasers’ Park Lane development on the old Carlton United Breweries site in Sydney’s Chippendale (pictured), one-tenth of the apartments on offer are studios. Marketed as “one-bedroom suites”, the apartments are open-plan spaces with designated sleeping and living zones. Prices range from $530,000 to $575,000. In Perth, at Frasers’ Queens Riverside development 8% of available apartments are studios, priced from $340,000 to $410,000.
Sparkes says despite resistance from the banks, studios appeal to many different buyers.
“A really diverse group of people are attracted to smaller apartments,” he says. “First-home buyers love them because they’re relatively affordable and yet beautifully new. Retirees buy them for a city crash pad. International businesspeople buy them as a Sydney base, far more personal than a hotel room. Investors include them in their portfolio because of high yields and the high demand for these properties.”
Six of the 31 apartments at Oliver Electric Co development in Sydney’s Alexandria are studios, and three of them sold on their first weekend on the market.
“From an investor’s perspective, studios are affordable but the rental yields are often higher than one- or two-bedroom apartments,” says Andrew Donnelly, CEO of Whiterock Capital Partners, which is marketing the development.
“The only issue is bank funding. Banks still require a higher loan-to-value ratio than they do for bigger properties so investors and buyers are required to save upwards of 30% for the deposit. But as studios are more affordable, this may not be a problem.”
An ANZ spokeswoman says the bank offers a maximum loan-to-value ratio of 60% for small residential apartments under 40 square metres.
“Lending for property is assessed on a case-by-case basis and is dependent on a number of factors, including how the loan will be serviced, the level of equity the customer has, the value of the asset for which the loan is used, as well as the resale value of the property,” she adds.
Banks have traditionally been reluctant to grant home loans for studios because it’s harder to secure mortgage lender’s insurance on properties smaller than 50 square metres. Lender's mortgage insurance covers the lender for any shortfall that may occur if a mortgage holder default on the loan and the property is sold at a loss. As the traditional thinking goes, studio apartments appeal to a limited market – families are ruled out, for example – so insurers and banks factor in the risk that it may be harder to sell studios in a quick sale.
Real estate agents, however, say studios in desirable city locations sell fast. Luke McDonnell, an agent with Richardson &amp; Wrench Elizabeth Bay in Sydney, has sold five studios in the past four months. “They are always quite easy to sell. Studios have always been popular in this area,” he says.
“They are a good first entry point into the market and vacancy rates are very low.”
Not surprisingly, today’s studios are in a different league from those built at the start of last century. While older studios hover around 20 square metres, the internal living space of studios in new developments is often twice that size. At Queen’s Riverside in Perth, studio apartments boast 41 square metres of internal space and a balcony measuring nine square metres. Studios in the Oliver Electric Co development offer the same dimensions.
Sparkes describes Frasers Property’s studios as “luxurious homes, intelligently designed within a smaller footprint”.
Maximising light and storage are key considerations for developers. At Oliver Electric, studios are 4.2 metres wide. “That’s wider than some terraces in Paddington, Sydney,” Donnelly says. “Today’s studios are much more liveable, so they are more attractive to owner-occupiers not just investors.”
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cknowlton-QnEa6ntUYP

Stylish studios finding new buyers, new marketing and a new name

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I’m going to start with a bold statement – Our property markets are guaranteed to recover – and by the time you finish reading this article you will understand why.
But before I explain, I’d like to comment on the debate about Australia's population growth and our nation’s capacity to house the growing number of new residents arriving on our shores. Some say we should limit immigration, while others are saying we need more skilled workers to boost our economy.
Although immigration has slowed in recent times, the projections for our future population have many concerned about where all of these people will live and how our already strained infrastructure and environment will cope.
The fact is Australia's population will get bigger under every realistic scenario, according to a report by the Centre for Independent Studies, and no matter what politicians do, population growth is going to happen. This is a certainty.
Another certainty is that our population ageing. While ageing has been conspicuously left out of the population debate, in many ways it will provide a greater challenge for policymakers than population growth.
In a moment I’ll discuss the implications of this for you and me as property investors, but it’s worth stepping back and taking our local conundrum and multiplying it by several billion.
On a global scale, our issues appear pretty insignificant, considering that 220 children are born into the world every minute. Last week we passed a population milestone with the birth of the world’s seven billionth citizen.
And if there weren't already enough concerns about the capacity for the world and its environment to prosper under the weight of all these people, it is expected that by the year 2050, the world population will be closer to the 10 billion mark.
What are the implications of this massive population growth?
I know many are asking how our planet can sustain more human life, with talk of impending shortages of food and natural resources.
I don’t have any answers, in fact I don’t really understand all the implications, but I do know that over the years I have heard many global scares that didn’t eventuate, including:
<ol>
<li>
The communists are coming to get us – in the 1960s</li>
<li>
Global cooling – Yes, when I was a teenager I remember we were told the world going to end up freezing, not overheating.</li>
<li>
The world will end because a nuclear war is eminent – in the 1960s and ’70s.</li>
<li>
Global famine – We just weren’t going to be able to produce enough food for our growing population.</li>
<li>
We’ll run out of petrol and fossil fuels – This was a popular theory in the ‘80s and brought on a range of more fuel-efficient vehicles.</li>
<li>
Global warming – But I’ve heard more convincing arguments against this than I have heard for it</li>
<li>And of course I couldn’t leave out property prices are too high and can’t keep going up, because properties are unaffordable. I heard this in the 1970s. And again in the early ‘80s when we had a recession and in the late ‘80s before our property markets flatlined for a few years. I heard this again in the ‘90s as well as after property markets topped out in 2003. And of course we heard this in 2008 during the GFC, and we’re hearing it again now.</li>
</ol>
Over the years I've heard lots of scary predications that sounded correct, but didn't come to pass.
What about our ageing population?
Recently Harry Dent has caused a stir making another scary prediction.
He suggested that our ageing population and their lack of spending was going to cause the next depression.
The fallout of a baby boom gone wrong has been witnessed in Japan, where the number of retirees escalated beyond the number of working-age citizens and had a notable impact on their local economy.
This has caused some demographers to suggest that Australia is facing its own demographic tsunami as more of our baby boomers hit retirement age.
To me the conclusion is inescapable: we are going to have to populate or perish.
Look at the facts. Today 43% of our workforce is made up of baby boomers (people born between 1945 and 1964).
This means the first wave of the tsunami has hit, as the first baby boomers are now turning 65. Over the next 15 years, Australia’s 5.3 million boomers are going to reach retirement age, and as they leave the workforce they will stop paying tax, many will go on the pension and most will use our public health care system.
You see, most baby boomers don’t have enough savings or superannuation to see them through retirement.  This means many will have to keep working longer than they had anticipated but eventually, when they do retire, they will place a massive burden on our financial system.
The governments will have to find the money for their pensions and health costs while at the same time making up for their lost taxation revenue by either:
<ul>
<li>Increasing taxes for those in the workforce, which would be political suicide; or</li>
<li>Increasing the size of the tax-paying workforce by importing younger workers.</li>
</ul>
If we import young skilled adults to fill the increasingly wide gap in skilled labour we are experiencing, these immigrants will work for some years and, given their skills, will earn high incomes and pay more tax.
What does the government say about all this?
In its 2010 Intergenerational Report, our Treasury, on seemingly conservative assumptions of net overseas immigration of 180,000 each year in the future, concluded that we would, in fact, have 35.9 million residents living in Australia by 2050.
BIS Shrapnel addressed the question of the shorter-term impact of these figures and concluded that Australia’s population will likely increase by 25% to around 28.3 million people by 2026.
Based on this analysis there will be 5.7 million new Australians within 15 years. About 55% of these will be immigrants and the balance due to net births.
BIS Shrapnel projects that this translates to about 2.3 million new “households”, with on average 2.5 people per household, by 2026.
What does this mean for Australia?
There is no doubt that our population growth will bring with it significant, social, infrastructure and environmental impacts.
Interestingly Professor Roger Short from Melbourne University, who at 80 has lived through a tripling of the world's population, recently explained that: ''We are the most affluent and the most effluent people on earth”.
Currently more than half of the global population lives in urban environments, with the number expected to rise to 75% by the year 2050. Developing nations are set to become home to more than half of the world's 50 largest cities.
In Australia at present, 87% of us live in urban areas. With an obviously emerging trend towards smaller dwellings and inner-city lifestyles, more of us are going to be concentrated around our major capital cities.
What will this do to property prices?
While many factors affect a country’s property prices in the short term, in the long term they are driven by two main factors:
<ol>
<li>Population growth; and </li>
<li>The wealth of the nation.</li>
</ol>
As I’ve already explained strong population growth is a given and as a matter of fact so is our increasing wealth.
I don’t think that anyone would argue that as a nation Australia will become wealthier over the next 15 years.
Australia is well positioned to benefit from the growth of Asia, which represents 50% of the world’s population. We have vast resources that will be required by our growing neighbours, and we’re at the beginning of the mother of all resources booms.
Sure some companies and their shareholders will become richer, but so will the average Australian. On many accounts the average Australian is richer already than people living in most other countries, however some people living in Australia just don’t see that and complain and protest.
After all, the latest figures from the ABS show that about 2.7 million households own their homes outright, with an average value of $541,000. And about the same number have mortgages on houses worth an average of $521,000 with mortgages of $188,000.
In conclusion:
The fact remains that as long as people keep having children and residents from other countries seek to settle on our shores, Australia will not be immune to the population pandemic that's sweeping the world.
Rather than fight it, we need to embrace it in a positive and sustainable way.
We must also recognise the opportunity this will give us to boost our declining workforce and in turn, our country’s economic wellbeing through revenue raised from income taxes, as well as new Australians buying goods and services. And yes, that includes property.
While property prices are in a bit of a slump at present, that’s just part of the property cycle. As the cycle moves on, and it always does, the combination of population growth and increasing wealth will underpin the strong growth of capital city property values – as they have done for decades.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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myardney-DFoGhGbSJX

Why our property markets are guaranteed to recover

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The recent pick-up in net arrivals in Victoria should boost population growth and drive rental vacancies lower from mid-2012, according to ANZ’s recent housing snapshot. 
“With ongoing pressure from yield-seeking investors to increase rents and moderate house price falls making housing purchase affordability easier, housing finance to the first home buyer segment should begin to gain momentum. This will be fuelled by the added stimulus of first home buyer stamp duty concessions that have been rolled out from 1 July 2011,” the report says. 
The report notes that Victoria’s housing market has performed well compared with other states and territories. 
“With annual population growth moderating from 102,000 in March 2010 to 82,000 in March 2011 and the recent strength of Victoria’s construction cycle only recently beginning to wane, underlying tightness in Victoria’s housing market is expected to continue to ease through 2011-12,” it says.
 
<img src="/images/stories/anzmelbourne.gif">
Source: ANZ
 
 
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Population growth to help Melbourne housing market from mid-2012: ANZ

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Based on current rates of sale, as well as total number of homes being advertised for sale, RP Data results shows that there is 7.4 months of effective housing supply available. Across all capital cities, the effective supply of properties is currently recorded at 5.8 months. As a comparison, 12 months ago there was 4.5 months supply across all capital cities, while nationally the rate was 5.6 months.
Similarly, an estimate of sales volumes shows they are currently much the same as they were 12 months ago. This result highlights that supply levels are now being driven higher due to the amount of stock available for sale more so than a significant decline in sales activity.
Of all the capital cities, Canberra currently holds the record for the city with the lowest current housing supply at 3.6 months while at the other end of the scale, Brisbane has the greatest effective supply recorded at 8.8 months. The state-by-state results mirror the capital city results with the Australian Capital Territory having the least months of supply and Queensland having the greatest.
Across each capital city and state except for Perth and Western Australia, the months of supply figure is currently higher than it was at the same time last year. This is indicative of deteriorating selling conditions.
This is particularly true when you consider that on an annual basis property values have fallen by -3.4% over the year to September 2011, compared to 8.6% annual growth in home values at the same time in 2010.
The fact that Perth and Western Australia's effective supply levels are now lower than they were at this time last year suggests that the market may be starting to recover after underperforming for much of the past five years.
In all capital cities apart from Melbourne and Adelaide, the current monthly supply figure is below the peak which suggests that in other states and capital cities, effective supply levels may have peaked.
Melbourne recorded strong capital gains over recent years. RP Data research analysts expect that the effective housing supply will increase further in the coming months in the city as market conditions continue to slow following an exceptional rate of value growth. In all other capital cities except for Canberra, the current months of supply is more than one month lower than the peak.
Since the beginning of 2007, the effective supply level across the capital city markets averaged 3.9 months, reaching a high point of 6.5 months in January of this year. The months of supply figure reached a low point at just 2.3 months during March 2007.
Across the nation, effective supply levels have been recorded at a higher average of 4.9 months and peaked at 8.4 months in January of this year. Nationally, the months of supply figure was recorded as low as 2.5 months in March 2007.
These results suggest that current effective supply levels are well above average across the combined capital cities and at a national level.
A spike in recent listings data acquired by RP Data suggests that available stock is at near-to record levels and is being driven by mounting levels of re-listings. This result is indicative of slower market conditions and longer than normal selling periods.
RP Data found that new listings are currently -18.6% lower now than they were at the same time last year, whereas total listings are 26.4% higher. Although nationally the effective supply is recorded at 7.4 months, across various capital cities the results are quite different. The differentiation across markets highlights that the national results are not necessarily reflective of individual capital city markets.
With the latest reduction in interest rates, we will be closely monitoring the impact this has on market conditions. To this end, I would expect to see some improvement in sales activity. However, in stating this, I don't expect the anticipated improvement in transaction activity will be accompanied by growth in property values.
My reasoning behind this is because while housing credit growth remains flat, consumers show low levels of optimism when it comes to property purchases and retail trade continues to be slow, at a macro level the property market is likely to be subdued until we see a significant reduction in the number of homes available for sale.
<h3>How supply is measured</h3>
There are two ways to measure supply in the residential market place: "core supply" which is the difference between base level demand (ie. population growth) and base level supply (ie. new dwelling construction) and "effective supply" which measures the amount of properties that are available for sale in the market place. Effective supply can be expressed as the number of months it would take to sell.
Cameron Kusher is senior research analyst at RP Data.
This article originally appeared on <a href="https://www.smartcompany.com.au/property/20111114-stock-on-market-at-close-to-peak-levels" target="_blank">SmartCompany.</a>
 
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Stock on property market at close to peak levels

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Westpac believes the Reserve Bank of Australia board meeting minutes reveal that there is “ample scope to cut rates further”, with the timing determined by financial developments in Europe.
Westpac chief economist Bill Evans says the RBA’s commentary “clearly leaves the door open for further rate cuts”.
Westpac has been expecting a further 75-basis-point cut in this cycle, with its forecast that the next move would be February, rather than December.
Evans suggests one of Westpac’s reasons for expecting a delay to the next move had been around the RBA’s concern to confirm the sharp slowdown in underlying inflation.
Evans says given the huge emphasis that the RBA has placed on downside risks to the global economy as justifying the cut in November, December’s decision will hinge on global developments.
“We remain comfortable with our original view but can easily see circumstances which would bring the decision to cut rates by 0.25% forward from February to December,” Evans says.
“As the financial developments in Europe evolve over the next few weeks this picture will become quite clear,” Evans suggests.
  
 
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RBA minutes leave door open for future rate cuts: Westpac

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The latest RBA board minutes indicate members’ view that the housing market is remaining subdued.
The minutes note growth in housing credit continued to run a little below growth in disposable income.
The Reserve Bank of Australia gives no direct sense on the future path for interest rates in the minutes for its November board meeting, although some commentators suggest diminishing odds of a December rate cut.
The RBA chose to cut the cash rate by 25 basis points to 4.5 per cent at its November board meeting, citing easing inflationary pressures and volatility on global financial markets for its decision.
The board notes preliminary estimates suggesting another small decline in nationwide house prices in September, to be about 3% to 4% lower over the year.
It says financial conditions have already been easing somewhat, with a range of lending rates edging down over the past couple of months.
“The household saving rate was forecast to remain around its current level and growth in public demand was expected to be subdued,” the minutes show.
It notes with overall credit growth remaining low, financial conditions on balance appear to remain somewhat tighter than normal, which was one of the factors that swayed board members to cut interest rates in November.
Although there had been a noticeable pick-up in building approvals in August owing to a large rise in the apartments category, the RBA deemed it was a volatile statistic from month to month.
The board members considered the significance of the inflation data that suggested that after a pick-up in underlying inflation in the first half of the year, there had been a moderation more recently, “notwithstanding ongoing large increases in utilities charges”.
CPI inflation remained above 3% on a year-ended basis, but is expected to decline significantly over the next few quarters, as prices fall for some key food products that had been affected by adverse weather earlier in the year.
The RBA notes economic activity suggests that the pace of growth in demand and output outside the resources and related sectors is a little lower than had been expected earlier in the year.
The revised staff forecasts pointed to the likelihood of overall GDP growth being close to trend over the next one to two years, and inflation being consistent with the 2% to 3% target.
The minutes note RBA staff had undertaken a review of the forecasts for domestic growth, which had been revised lower reflecting the weaker global outlook, the decline in confidence and asset prices since August, and a downward revision to the outlook for coal production.
“Over the forecast period, domestic demand was expected to grow at an annual rate of around 4%, with growth in imports substantially faster than this, owing to both the high exchange rate and the mining sector's relatively greater use of imported capital goods,” the minutes say.
“Overall GDP growth was expected to be around 3% to 3½% cent in 2012 and a little stronger in 2013.
“Correspondingly, the unemployment rate was expected to increase a little, before drifting lower again.”
The RBA notes the outlook for the resources sector remains very strong, with mining investment expected to increase to around 7% of GDP by 2013-14.
“In contrast, growth in the non-mining economy was expected to be below trend.
“The sovereign debt problems in the euro area posed the most significant risk to the growth outlook.”
The bank’s inflation forecasts have also been lowered, reflecting both the lower starting point and the modest downward revision to the forecast for output growth.
“Based on the current set of assumptions, inflation in underlying terms (excluding the effect of the carbon price) was expected to be around 2½% in 2012, and to pick up a little in 2013, but still be consistent with the inflation target.
“This general outlook for inflation was conditional on aggregate wages growth remaining at around its current pace and a pick-up in productivity growth.
“The year-ended rate of CPI inflation was expected to fall below underlying inflation in early 2012, as banana prices fell to more normal levels.
“It was then expected to increase to around 3¼% following the introduction of the price on carbon in mid-2012, before again declining,” the minutes say.
 
 
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