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.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[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>

&nbsp;

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

<html><body>
The South Korean-backed Cockatoo Coal mining company has emerged as the $8 million buyer of a beef cattle farm virtually on the doorstep of Nicole Kidman’s peaceful Sutton Forest retreat, Bunya Hill.
It was <a href="https://www.propertyobserver.com.au/residential/title-tattle-whispers-that-coal-miners-boring-into-nicole-kidman-s-nsw-rural-neighbourhood/2011102052022" target="_blank">whispered last month in the Southern Highlands</a> that the coal mining consortium, claiming interest in pursuing farming, had bought the 425-hectare holding, Wongonbra, from unsuspecting vendors.
Kelly Lofberg, the coal company spokesperson, declined to return Property Observer’s phone calls and emails, but there’s now confirmation that it bought the land just a few kilometres from the rear of Bunya Hill through a shelf company, Aurelius Rural, to ensure the secrecy of its strategic purchase.
It gives Cockatoo an area from the Hume Highway through to the Illawarra Highway in which to carry out exploration and possibly install a mine head.
"It will directly affect their (Bunya Hill) property as coal-filled trucks would be passing all day long and maybe through the night on their way to Wollongong for export," local Greg Barnsley has suggested.
The coal company hasn’t yet decided where the underground mine will be located while it continues exploratory drilling, but has signalled it was not their intention to buy any further land in the immediate future, although it could not rule it out happening again.
The Korean steel-maker POSCO owns 70% of Aurelius Rural, with the remaining 30% owned by Cockatoo Coal, with the venture taking the name Hume Coal. 
The syndicate assumed the exploratory rights from Angelo Coal (Sutton Forrest) Pty Ltd, which had held the mostly formant lease since 1985.
Goulburn MP Pru Goward says she is “heartbroken” by the announcement, saying it would make opposing coal mining much harder.
The miner’s exploratory lease is due for renewal on November 23, with locals lobbying that Energy Minister Chris Hatcher not renew the lease.
<a href="https://www.propertyobserver.com.au/new-south-wales/coal-mine-anxiety-for-nicole-kidman-s-sutton-forest-property/2011062150555" target="_blank">Kidman is among the 424 land owners in the 115-square-kilometre exploration area who were recently advised 120 test exploration holes would be drilled to check on the size of the coal offerings.</a>
Many locals fear that the potential mining will not only destroy the peace of the area but also contaminate underground water reserves.
In 2008 Kidman and her country music star husband, Keith Urban, snapped up Bunya Hill, a 45-hectare cattle stud with a magnificent 1878 Georgian mansion, thinking they would be allowed at enjoy the home in peace.
Southern Highland Coal Action Group’s Peter Martin says he cannot understand why the coal company could not buy the property under the Hume Coal name rather than “running around the neighbourhood in secret using Aurelius”.
“Our technical guys have said the property is an ideal location for a mine head with to run the conveyers into the mine seam,” he told the local Fairfax paper, The Southern Highlands News.
“We think they will use its direct access to the Hume Highway to truck coal up to the rail loop over near the Boral’s cement plant.
“People don’t spend that much money to punch a couple of holes in the ground.
“They have to punch 120 holes in the whole area to proof up the resource, and they can’t do it from one location.”
The land was sold by Michael Ball and his business partner, Peter “Talkie” Newton, with Ball saying he never suspected they were selling to the South Korean steel giant.
Ball told the Illawarra Mercury he would not have sold had he known the buyer was Hume shelf company Aurelius Rural.
Locals fear with ownership of such a large parcel of land, it will be easier for Hume Coal to be able to develop its planned mine.
The company is hoping to prove up underground reserves of more than 100 million tonnes, and is currently undertaking drilling and seismic survey work in the nearby Belangalo State Forest
The holding company that bought the farm has directors who work at law firm Blake Dawson, one of them Ian Williams, who lists among his clients as POSCO.
<img src="/images/stories/kidmancoaldoc.gif">
</body></html>

jchancellor-FAypfDUnLy

Nicole Kidman now has Cockatoo Coal as her near neighbours after mining giant pays record price for Sutton Forest

<html><body>
Covered bonds are a fancy new funding instrument being promoted by the major banks – and notably only the majors – that were championed by Wayne Swan and Joe Hockey as a policy to enhance competition in the banking and finance sectors. As predicted by some, they seem to be benefiting the incumbents most. 
Covered bonds have one significant impact that arguably disadvantages all Australians with a bank account. In the past, when you put your money with the bank, you were the first person who was paid back if the bank went belly-up. And banks do go belly-up. In the 1890s, about 90% of all private Australian banks collapsed. More recently, we have seen hundreds of banks fail around the world, including in once-stable developed countries like the US and UK. Australia’s turn could come when a financial crisis eventually originates out of Asia, which it inevitably will. 
An investor in a covered bond gets a priority claim over the bank’s assets, which ranks ahead of your deposit. Specifically, the major banks will set aside individually up to $30 billion plus worth of their home loans in order to “secure” their covered bonds. That means if the bank falls over, the covered bond investors can take possession of the underlying home loans and sell them to repay what they were owed by the bank via the bond. 
Since covered bonds are being backed by residential home loans, investors are understandably turning their minds to the quality of these loans, and the integrity of Australia’s housing market more generally. Given our expertise in both these areas, we have been inundated by enquiries from institutions around the world. In fact, I am presenting to a group of global hedge funds on this subject at 12.30pm today. 
The majors have decided to “mark-to-market” the assets (or “collateral”) securing their covered bonds using house price indices. This makes a great deal of sense. If Australian house prices are falling (as they are currently), then the value of the assets underpinning a covered bond is also declining. (It is actually a little more complex than this, and perhaps best characterised as the asset having a “higher level of risk of loss” in view of the lower level of borrower equity sitting above the loan.) This creates immediate problems for investors, since the protection they have in a crisis is less than what they expected to be the case. 
Regularly revaluing the homes underlying a covered bond on a high-frequency – say monthly – basis is likely to be especially important to investors since: 
(1) house price indices are reported with a lag (up to four months in the case of the quarterly ABS index); and 
(2) in any fast-moving crisis that involves a bank failure, house prices are almost certainly likely to be falling too. You don’t want to have to wait four months to work out how much your collateral values have declined by (or by how much you risk exposures have risen)! 
I understand that most of the major banks have selected RP Data-Rismark’s monthly hedonic index as their valuation benchmark of choice for the purposes of covered bonds. 
This is not a surprise given that the Reserve Bank of Australia has made it clear that it relies on this index most heavily when assessing risks in Australia’s controversial housing market (see also <a href="https://rismark.com.au/indicies" target="_blank">here</a> for independent remarks from CommSec, Moody’s, Goldman Sachs, and Macquarie). Or, to borrow the words of Westpac’s chief economist, “RP Data-Rismark are the RBA’s “preferred data analysts' for house prices.” 
 
Another alternative would have been to use Australian Property Monitors’ (APM) “stratified median” index, which the RBA employs as a back-up to RP Data-Rismark.
A final, least desirable, option is the ABS’s stratified median house price index, which has been regularly discredited by market analysts and more subtly dismissed by the RBA. 
From a covered bond investor’s perspective, the choice of house price index is likely to have major consequences for (1) how accurately the covered bond assets are valued, (2) how frequently investors get revaluations, (3) the speed with which they can replace assets that are determined to be “impaired”, and, most importantly, (4) the pricing of the covered bond itself. 
If a home loan is in default, repaid, or if the value of the home securing the loan is less than the loan amount itself (i.e., the borrower has negative equity), covered bond investors usually require that the issuing bank replaces these “bad” loans with “good” ones. 
Since covered bonds are expected to be AAA-rated securities, this seems like a reasonable demand. 
A $1 billion covered bond will probably have about 5,000 residential dwellings underpinning it. One problem with the ABS index is that it excludes 20% to 25% of all property types in Australia. Specifically, the ABS index only includes “freestanding houses”, and ignores all apartments, units, semi-detached homes, terraces and so on. 
About one-quarter of all home loan borrowers live in these “attached” dwellings. Given the sometimes wide divergences between the gains and losses attributed to free-standing houses versus apartments, use of the ABS numbers as a mark-to-market tool is likely to generate misleading results in the context of covered bonds backed by home loans. 
In contrast, both APM and RP Data-Rismark’s indices include all dwelling types, which is why they deviate so significantly from the ABS results on occasion (the RBA prefers that we report these “all dwelling” figures). 
A second problem with the ABS index is that it is only reported at the “capital city” level. To properly mark-to-market a portfolio of 5,000 homes, one should really be using postcode or regional house price indices to minimise the substantial “basis risks” that would otherwise exist between the index and the home. For example, about 2,000 properties will, on average, be situated in NSW. But within the state of NSW there are huge differences in the rate of house price change across regions. 
One only needs to reflect on the example of southwest Sydney in the post-2003 period. This region accounted for an extraordinarily high share of all mortgage defaults across Australia (some estimates put it at over 75%), and experienced substantial house price declines. In comparison, many other areas within Sydney had low default rates and steady house price growth. Benchmarking using a capital city index would have underestimated the southwest Sydney problems. 
A third issue with the ABS index is the fact that it is reported on only quarterly basis, and then one month following the end of the subject quarter. This means that the sales data upon which it is predicated can be up to four months old.
 
<hr class="system-pagebreak">
 
As I noted earlier, investors in covered bonds are likely to be most concerned about collateral values during a crisis. Any stress imposed on Australian banks, which on average have 60% of their assets invested in residential home loans, is likely to have been either caused by, or precipitate itself, substantial house price declines. This is precisely why in APRA’s stress-testing of bank balance sheets it assumes that Australian house prices fall by about 25%. 
In such situations, investors are presumably going to demand the most timely pricing information possible so that the bank in question can remove the impaired assets from its covered bond portfolios. It is hard to see how this could be achieved with the ABS’s current reporting frequency. The monthly house price proxies made available by RP Data-Rismark, APM or even Residex are likely to be a superior alternative. 
On this note, RP Data and Rismark will be shortly launching the world’s first “daily” house price index, which has been designed especially for the Australian Stock Exchange. This index, which is based on a sophisticated statistical method known as “hedonic imputation”, will afford extremely accurate and low variability house price estimates right down to the suburb level. It will be the first time in history that all homes in a suburb have been repriced every single day using the daily flow of incoming sales data. 
How big can the differences between indices really be? In the chart below I have overlaid the ABS national capital city index against RP Data-Rismark’s equivalent measure.
Click to enlarge
<a href="/images/stories/nov15.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/nov15thumb.gif"></a>
Observe how in the global financial crisis the ABS’s crude median index reported substantially lagged house price declines that were also twice as large (-7%) as those documented by RP Data-Rismark’s regression-based benchmark (-3%). The same was true during the 2009-10 period, when the Australian housing market bounced back strongly and banks like CBA came in for criticism for having excessively large exposures to the first time buyer market. (They ended up using some of our analysis to refute this claim!) 
According to the ABS measure, house prices inflated 23% between March 2009 and December 2010. Once again, the ABS numbers were reported with a material delay. Yet the month-to-month RP Data-Rismark index only recorded 16% growth. Anyone investing in a covered bond in March 2009 would have been led to believe that they had superior collateral protection than was actually the case had they been relying on the ABS. 
The confusion that could be potentially caused by house price measurement problems in the covered bond market is graphically highlighted by a “<a href="https://www.commbank.com.au/about-us/group-funding/articles/covered-bonds-primer.pdf">Covered Bond Primer</a>” published by the CBA. 
Like every other major bank and investment bank in Australia, CBA’s economists have expressed reservations about the biases inherent in the ABS house price proxy. 
Notwithstanding this, on page 17 of CBA’s covered bond primer, the bank appears to have unwittingly presented data from both the ABS and RP Data-Rismark. I have enclosed this image below. 
The very wobbly lines in the first chart are from the ABS’s non-parametric median price index. The second chart is a replica of a similar diagram regularly reported by the RBA, and is, of course, prepared using RP Data-Rismark’s hedonic index. 
Covered bond investors are likely to be best serviced by common valuation benchmarks. In the absence of a consistent standard, investors may price at a discount covered bonds relying on less accurate house price information relative to those that are valued using the best available data. And since the major banks expect to eventually issue close to $100 billion worth of covered bonds, seemingly small differences in the rate at which house prices are expanding or contracting could perpetuate substantial dollar value variations in covered bond prices, to say nothing of all-important investor perceptions.
<img src="/images/stories/nov151.gif">
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.
 
 
 
</body></html>

chrisjoye-JYhJsTrNRC

Stand by for world's first daily house price index: Christopher Joye

<html><body>
Sydney’s rental crisis will not be resolved until the state and federal government takes “immediate and sustained action” to encourage property investors back into the market, according to the Real Estate Institute of New South Wales. 
The rallying cry from follows the release of data showing Sydney’s vacancy rate has remained unchanged at just 1.4% in October, while tightening by 0.2% to just 1.3% in the inner-city suburbs. 
Vacancies eased in Sydney’s middle suburbs (10 to 25 kilometres from CBD), up a marginal 0.2% to 1.6%, and in the outer suburbs (more than 25 kilometres from CBD) they are up just 0.1% to 1.4%. 
Alongside a shortage of available rental properties, weekly rents are rising. 
According to the most recent Real Estate Institute Market Facts report for the June quarter, the median weekly rent on a three-bedroom house in Sydney now stands at $400, up 5.3% over the 12 months to June 2011, while two-bedroom apartments and other dwellings are up 7.1% over the same period to $450 a week. 
REINSW president Wayne Stewart says that despite the increases in vacancy rates in some areas, “the overall rental vacancy outlook in NSW remains depressed”. 
“The rental crisis, which has dramatically reduced housing availability across NSW, requires immediate and sustained action by both the state and federal governments to stimulate investment in the residential property market. 
“There will be no relief for tenants until we see interventionist action to encourage private investment as well as slashing planning red tape which is slowing new residential development.
“To create a stable and healthy rental vacancy rate which meets both the needs of tenants as well as landlords, we need to see significant numbers of new rental properties being brought online.
“Until then, we will see growing numbers of people competing against each other for an ever smaller number of available properties,” he says.
Outside of Sydney, rental picture is slightly better in other metropolitan centres, with vacancy rates up 0.6% to 1.9% in Newcastle and up 0.2% to 1.8% in Wollongong.
Vacancy rates fell 0.2% on the Central Coast to 1.7%.
For tips on buying your first investment property, download Property Observer’s free e-book.
 
</body></html>

lschlesinger-FZcF9M3vE6

Government action needed as Sydney rental crisis worsens: REINSW

<html><body>
Australian construction industry profits are due to slip as the number of construction projects diminishes and construction costs increase in 2012, according to the latest report by Rider Levett Bucknall.
“Risk-averse banks and lending institutions continue to demand high levels of pre-sales in order to satisfy their stringent risk criteria. Consequently, there are still large numbers of projects unable to gain access to finance,” says RLB head of global research Roger Hogg.
Levels of construction in the Darwin and Canberra markets began to ease in the third quarter of 2011 and currently tenders in the marketplace are being keenly contested.
Darwin is hardest hit, with tender prices predicted to fall 11.4% and construction costs due to increase 5.3%, according to RLB.
In Adelaide tender prices will fall 3.4% and costs will increase 4% in 2012.
Tender prices increased moderately in other cities but labour and material costs are expected to exceed these price rises.
In Brisbane tender prices will increase 1% but costs are expected to rise 4%. In Canberra tender prices will increase 2.4% as costs increase 3.5%, in Melbourne prices will increase 2.7% as costs increase 3.5% and in Sydney prices will increase 2.2% as costs increase 3.5%.
Hogg says the private sector has failed to take in the slack from government stimulus projects.
“With the private sector failing to replace the government stimulated construction and infrastructure programs, contractor concerns regarding diminishing workloads will increase through the remainder of 2011 and into 2012,” he says.
The report found that residential construction work done for the June quarter was down 8% year-on-year and the national housing sector down 12% as house prices continued to fall in most capital cities.
National apartment construction slipped 2% although Melbourne bucked this trend, growing 11% by volume.
It also found that total non-residential construction work fell 24% for the June quarter year on year, thanks to weakening demand and low levels of consumer and investor confidence.
Hogg says as construction work falls, competition increases and to add to the pain costs are increasing at the same time.
“Margins are still being placed under pressure as competition for work is elevated. In the context of general levels of CPI, continued stable labour, materials and fuel costs will further enhance the cost competitiveness of building in Australia,” he says.
“It is difficult to say when these conditions will ease, but much depends on the strength and speed of the global recovery and the confidence this will provide the larger lenders.”
However, the outlook is not entirely grim. A number of projects have been awarded in Adelaide, including the $800 million Southern Expressway. National office construction increased 6.8% and industrial construction increased 20.8%.
 
 
 
</body></html>

awalsh-7Ub9EypybQ

Slower times predicted for construction industry in 2012 given risk-averse banks 

<html><body>
Days on market is a strong indicator of how the private treaty sales market is performing.
<img src="/images/stories/stocknovember15.gif">
Source: APM
And the most recent statistics certainly show there has been a slowing in house sales intensity in most capital city markets in September.
The data has been provided by Australian Property Monitors.
Property Observer has put sunshine over the best-performing months of the past year and clouds over the slowest-performing months.
It will be interesting to see whether the dramatic Melbourne result continued into the mid-spring. Ditto the improved conditions in Brisbane and Canberra.
</body></html>

Sunny days far behind as days on market for houses increases in all capitals except Brisbane

<html><body>
Victoria has cemented its position as the epicenter of new residential and commercial building projects, accounting for nearly a third of all national building work, according to the Building Commission’s November report.
Victorian building work made up 32% of national building approvals during 2010-11, up from 28% recorded in 2009-10.
For the month of August, Victoria accounted for 31% of the nation’s building activity, compared with 33% in July and 32% in June.
It has been the leading construction state since January 2010.
Overall, the east coast continues to dominate building construction in Australia, accounting for 85% of activity in 2010-11.
During 2010-11 building approvals in New South Wales made up 23% of national approvals, down from 24% in 2009-10. Queensland reported 20%, down from 21%, South Australia was stable with 6%, and Western Australia’s share decreased to 13% from 15% over this period.
<img src="/images/stories/vicbuilding.gif">
Source: Victorian Building Commission
The report also revealed the challenges facing the building sector, with the value of building activity per building industry employee down 8% over the last year to about $128,000.
As of June 2010, there were currently just over 14,200 domestic builders in Australia and around 4,400 commercial builders, 4% more than there were in June 2009.
 
 
</body></html>

Victoria leads nation in new building approvals

<html><body>
The Queensland economy has been slow to recover from all its natural disasters. But its industrial property sector has been quick out of the blocks.
The boom in Queensland gas now has Brisbane with the lowest vacancy rate for industrial property.
Next comes Melbourne — with Sydney well back in third place, according to a recent survey by Knight Frank.
And increasing demand will put further upwards pressure on rentals, thereby encouraging more developers into the market.
While the Brisbane market is gas-driven, Melbourne (which is Australia's largest industrial market) enjoys a much wider tenant profile.
As such, its increase in speculative A-grade buildings has been readily absorbed over the past 12 months.
Sydney, however, his languished somewhat — with a cautious market showing an even split in the take-up, between A- and B-grade facilities.
Bottom Line: Industrial property is poised for some good rental and capital growth over the next few years, as yields start to firm.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
</body></html>

chrislang-EQKojcgJPV

Outlook good for industrial property

<html><body>
Remember this picture? It might look like a museum image of pre-historic man, but it’s a rock located in the Cydonia region of <a href="https://www.solarviews.com/eng/mars.htm">Mars.</a>
<img src="/images/stories/face.jpg">
JPL scientists made the discovery of the “Face on Mars” in July of 1976 while searching for a suitable landing site for Viking 2 Lander. Wanting to give the public a familiar looking feature, they released this image to the tremendous delight of daily tabloids that ran with headlines suggesting ancient intelligent life had been found on Mars.  Of course it all ran amok a few years later when on closer inspection the imagined eyes, nose, and lips turned out to be nothing more than peaks and ridges. The search for extra-terrestrial life continues. 
It’s an example of what can happen when you look too closely at a composition and consequently miss the underlying truth. This year I’ve spoken with many anxiety-ridden investors wanting to know why the clearance rates are dropping and if their property is about to become a victim of the market snapping under the strain. Most based their concerns on reports in the media ranging from Harry Dent’s guest spots on Sunrise to sensationalist headlines run in major newspapers that suggested houses were losing thousands daily (<a href="https://bit.ly/ttQ3h3" target="_blank">for example</a>). 
The questions don’t surprise me – newspapers have to sell, and property editors need to find a new angle to explore each week. Therefore out comes the microscope and a blown-up picture is used as conclusive evidence for a brand-new theory of property evolution – one which shows property is on a long-term downward curve, usually based on short-term data and speculation (despite the weight of evidence countering otherwise).
However, no one is suggesting the view is always sunny.  Seasoned investors who have experienced and prospered through property cycles, lived through similar predictions of dramatic crashes in the 1970s, ‘80s and early 2000s, and they know how to keep the picture in perspective.  However we’re not out the doldrums yet.  Many expected the 0.25% interest rate drop to produce a change in sentiment; however a drop in rates indicates the RBA is cautioning us about the continuing fragile state of our economy, and therefore it’s no surprise cautionary sentiment still rules. 
Investors aren’t like home buyers – they can step in and out of the market as their “gut feeling” dictates. However, the mistake many make is waiting for the microscope to show a positive outlook before choosing to climb on board.   Once they can see their desired asset class rising in value, they’re happy to take the initial step. However we’ve all witnessed the unsustainable booms which suddenly escalate once they start to gain momentum. Why wait for another to occur?  It’s not wise buying – which is essentially where investors make their dollars. 
It may be a buyer’s market – it’s certainly being spruiked as such – however it’s only a buyer’s market if buyers are prepared to stop being spectators and take advantage of current flat conditions.  The fact that many are still sitting on the sidelines can only indicate there’s speculation prices may fall further.
However it’s not the likely reality - there are two parties in the purchase of real estate, and while some buyers may be willing to sit back and wait for more price falls, there’s no indication vendors are prepared to drop their expectation any further. Many aren’t in a position where they need to – hence why many homes linger on the market or get withdrawn to wait for better times ahead. 
Caution is a valuable emotion; however it can be better employed at the buying side of the equation if it’s used to build strong buffers to weather against market movements – history bears witness they’ll be more to come.   Protective measures include not over leveraging, investing within your means and understanding “long term” means more than a couple of years.
The property market in Australia isn’t immune from bubbles – invest in the wrong type of home or at the wrong time, and you could well find yourself sitting on top of one – I’m thinking in particular of mining towns, new estates, and the high-rise culture dominating inner-city CBDs.
However if you don’t see the bigger picture it’s too easy to make sweeping statements and lump everything under one umbrella. It’s a dangerous concept to promote because however strongly <country-region><place>Australia</place></country-region> has faired over the GFC the memories remain and people are susceptible to media suggestion.  What’s more, we can see GFC aftershocks continuing to affect Europe, and there are also those who suggest China will fall at some point and therefore we shouldn’t assume our strong economic position is set in stone. So investors have a right to be understandably concerned where they place their income, and confidence plays an important role in the choices they make. 
However like it or not, the well-worn argument that population growth underpins the market is based on fact, not speculation – and providing you invest where the expanding population wants to reside, you can be pretty sure you’re holding onto an asset that will grow over the long term.
Furthermore, out of all our states, Victoria is set to take the lion’s share of this population growth – everyone’s read the reports of how Melbourne’s on track to outgrow Sydney.  <city><place>Melbourne</place></city> has one of the strongest economies in the developed world.  Four of Australia’s top five most profitable public companies are headquartered in Melbourne, and the demand for Melbourne’s lifestyle and lack of inner- and middle-ring suburban dwellings to absorb the need is clearly evident in all the long-term graphs you can source.
In particular, if you choose to invest in areas that follow the train lines and if possible, also the bay, it’s hard to envisage supply ever fulfilling demand.  Town planners would do better investigating the price of extending existing train services into new outer-metropolitan areas to ease inner-suburban inflation rather than forever building in far-off lands that have little more than a daily bus service and do little to attract future growth. 
Melbourne’s real estate, for example, has historically never gone down over a 10-year period, so any arguments put on the table to suggest it’s about to happen and “the bubble burst” need to be backed up with more than a blown-up microscopic view similar to our man on Mars – I’d rather base my theories on historical data while keeping a cautionary eye on future events than run for the hills in panic of what are merely predictions of extreme market falls.   Short of a natural disaster of magnificent proportions, or a new law restricting the amount of children each family is allowed to have, the long-term cyclical upward trend in our markets is not likely to change any time soon. 
The demand for houses – particularly close to the city – is vastly beyond the supply most of our capitals are currently able to offer.  And while variables in the economy (such as interest rate rises) have an effect on certain areas of the market – for example the first-home buyer sector - the need for well-located accommodation will be largely resilient against economic factors – over the long term.
To speculate on future trends is unwise considering the problems facing Europe, however providing our economy continues to perform well and unemployment doesn’t rise disproportionably (of which there’s no indication) – and taking into account the RBA has also left the door open for a further drop in rates over the coming months – historical data (which is the best thing we can base speculation on) tells us that at some point house prices must start to rise again. It’s not a green light that we’re heading into a boom; it’s the looming reality of living in country that has a shortage of quality real estate in the areas in which people want and need to live. 
We have no control what so ever over the short-term influences that affect our market cycle, however short-term forecasts only affect those who buy today and sell tomorrow – and whether it be stocks or real estate, such high-risk investment is always a volatile option.
So don’t be fooled – you can spend your life looking through microscopes, reading long market reports and predictions based on speculation, but if you choose to look at the bigger picture and withdraw yourself from the heard, you stand a much better chance of making the right choices for your life, rather than worrying about everyone else’s. 
Catherine Cashmore is senior buyer advocate for <a href="https://www.elitebuyeradvocates.com.au/" target="_blank">Elite Buyer Advocates</a>. With extensive experience in all matters regarding real estate, Elite Buyer Advocates purchases and negotiates more than $100 million worth of property each year for its clients. 
 
 
 
 
</body></html>

catherinecashmore-6LXia3pPQj

Looking through a microscope leads to property myopia

<html><body>
The hospitality industry is suffering under lower consumer demand and higher wages, and now the number of businesses shutting down is exceeding that of new businesses entering the market, experts warn.

The warning comes as new figures from Westpac reveal the value of impaired loans has increased in the construction, accommodation and hospitality industries.
John Hart, chief executive of Restaurant and Catering Australia, says this year has been a dire one for the hospitality industry, saying it's taken a huge toll on the number of businesses that are actually operating in the field.
"This is the first year we've seen the rate of closure exceed the rate of new businesses opening in the industry... that's pretty damning," he says.
"We've always had churn of about 18-19%, and we've always had that number going out of business, but we're just not seeing the number of new businesses coming up to take their place."
As part of Westpac's legal requirements it released figures on impaired loans last week. One of the most significant increases was in the accommodation, cafes and restaurants sectors, which saw impaired loans rise from $134 million to $205 million – growth of 52%.
Hart says the failures are due to a combination of factors, although says higher wages are a key reason why some businesses can't afford to survive.
"This brings up the question of how the industry is going to look moving forward, because you can't sustain having nearly 50% of your revenues going out the door as wages."
"That's part of it, and it's just because wage costs have gotten so high, the average business is not in a profit-making situation. That's associated with this rise in impairment costs."
Overall, Westpac revealed impaired loans grew from $4.58 billion to $4.61 billion, but specific industries reveal a much darker picture.
The construction industry saw its impaired loans grow from $111 million to $180 million over the past year, while finance and insurance also grew from $150 million to $213 million – growth of 42%.
Westpac's figures show the utilities industry also saw its impaired loans rise from $56 million to $133 million, while the dedicated services industry saw impaired loans rise from $176 million to $242 million.
Actual losses for the previous year rose from $1.3 billion to $1.8 billion.
Meanwhile, separate figures from Westpac show the bank is expecting this Christmas to only be a "so, so performance", at least in the retail sector.
The bank explains that as part of its Consumer Sentiment survey, there were additional questions on Christmas gifts. Just over one-third of respondents said they would spend less, while 54% said they would spend the same amount.
Similar results were recorded in 2009, leading Westpac to believe this year will be a lacklustre Christmas season.
"That said, the outlook is mixed rather than bad with attitudes towards gift spending about mid-way between the 'dire' reading in late 2008 (immediately after the GFC) and the upbeat responses seen in 2007, the last 'boom' Christmas for retailers."
This article originally appeared on<a target="_blank" href="https://www.smartcompany.com.au/economy/20111114-more-restaurants-and-cafes-closing-than-opening-as-impaired-loans-jump-for-construction-and-hospitality-sectors"> SmartCompany</a>.
 
 
 
</body></html>

cknowlton-QnEa6ntUYP

More restaurants and cafes closing than opening

<html><body>
The construction and tourism industries are set to be the biggest beneficiaries of the Gold Coast's successful bid for the 2018 Commonwealth Games, but the ICT, transport and services industries are all set to receive a boost as well.

Both the state government and business leaders welcomed the announcement on the weekend, which is expected to give the state an economic boost worth $2 billion and create 30,000 jobs over the next seven years.
Graham Cuthbert, executive director of the Queensland Master Builders' Association, says a large portion of the spending will be put to the construction industry with $500 million of investment expected over the next seven years.
"Certainly for the area it will be a huge benefit, there is a fair amount of construction to be done, both on venues on the Gold Coast and in Brisbane," he says.
The games will require new sporting venues on the Gold Coast, along with accommodation for athletes, along with upgrades to existing facilities in Brisbane as well, Cuthbert said.
"But I think the big key is the flow on it will have to accommodation for tourists, corner shops, corner little medical centres, all the infrastructure you get when construction boosts."
Cuthbert says tourism and construction are "absolutely linked", so the two industries will see benefits at the same time, but also says other industries such as information technology and retail will see bigger benefits as well.
"The light manufacturing stuff will be required, retail is there, there is a spin across the entire city. For every onsite job we do, we create more for other businesses."
Games consultant and entrepreneur Andrew Bell says those 30,000 jobs will appear across a number of industries, including in technology and retail.
"Across a very broad base, there will be a lot of required services. Even talking to universities, they are cranking up and doing a whole lot of work in terms of supporting new positions created within that."
"Areas that people wouldn't have imagined would get benefits. And not just limited, there is that knock on effect, so cab drivers and restaurants will see things start to build and as the state starts to focus on it over the years to come."
According to a report published by the Commonwealth Games Federation, budgets have been set aside for various elements of the games that may very well include the use of local firms and services businesses.
The games will see money spent on new information systems, telecommunications and other technologies, including the need for broadcasting equipment, installation of communication infrastructure and operating costs.
Money has also been set aside for various traffic management costs.
Other money has been set aside for medical services, catering and transport, while millions have been set aside for security costs as well. Money has also been set aside for merchandise costs.
Premier Anna Bligh said in a statement the bid would deliver up to $2 billion in benefits, saying the event would bring "superb tourism opportunities" to the Gold Coast.
"The Games will also act as a catalyst to fast track infrastructure development," Bligh said.
The Gold Coast has been suffering from low tourism numbers, due in part to the higher Australian dollar and low consumer sentiment.
"We have made a promise to the Commonwealth Games Federation and will deliver on this promise."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/economy/20111114-construction-tourism-not-the-only-industries-to-see-benefits-from-gold-coast-commonwealth-games">SmartCompany</a>.
 
 
</body></html>

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News