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>
{yoogallery src=[images/stories/november8collette]}
Actor Toni Collette and her musician husband, David Galafassi, have snapped up a $6 million Paddington property.
It’s the double-fronted Paddington offering of Nick and Susie Kelly, the founders and owners of Industrie clothing.
It was snapped at an undisclosed price – but understood to be slightly more than $6 million.
Designed by architect Anthony Gill and completed in 2009, the five-bedroom, four-bathroom house on a 360-square-metre block sold well ahead of its October 14 closing date for expressions of interest.
The sale price through McGrath agent Ben Collier last month was a record for the southern side of Oxford Street, Paddington.
Consisting of two classic Victorian terraces combined into a palatial single residence, the contemporary tri-level family retreat had been reinvented to embrace light flooded indoor/outdoor living.
The two terraces cost $2.15 million in 2003 and $1.865 million in 2005.
The five-bedroom house will replace their hillside house at Bronte, <a href="https://www.propertyobserver.com.au/new-south-wales/toni-collette-set-to-cop-%24900000-loss-as-bronte-cottage-renovation-plans-shelved/2011110752228" target="_blank">on which the renovation rebuild costings defied property logic and has prompted its listing</a>.
The 1885 weatherboard Bronte cottage cost $4.4 million in mid-2009. They’ve since obtaining rebuilding approval, but have opted not to proceed given the rebuild construction tender quotes are understood to have tallied about $4 million. 
Given the current top-end market conditions aren’t resplendent with sunshine, its McGrath Estate Agents listing agent Bethwyn Richards has given public estimates she expects the property to sell for about $3.5 million and that Collette and Galafassi are prepared to cop a $900,000 loss.
</body></html>

jchancellor-FAypfDUnLy

Actor Toni Collette and muso David Galafassi fall for the charms of contemporary inner-city Paddington

<html><body>
The rules that apply to banking are changing radically, and these shifting sands will impact the way the banks deal with you. Indeed, the changes are already starting to percolate through to the banks’ products, in the way they are designed, how they are advertised, and the specific customer categories to which they are targeted. 



Did you know that banks can now permanently lock you into term deposits? Or that many “bonus” savings accounts offer a lower return over 12 months than an equivalent term deposit? Or that banks are deliberately trying to capture small, unsophisticated and sticky retail clients?



Today I will try and lift the lid on some of the banking world’s Byzantine secrets to help you better understand the thinking that drives their product and marketing strategies.



As with most puzzles, it is useful to start from first principles. So we need to ask ourselves the question, “Why are the rules that govern the business of banking changing?” 



The most obvious answer is because so many private banks failed in recent years, or required injections of taxpayer money and/or government guarantees to survive. Even in <country-region w:st="on"><place w:st="on">Australia</place></country-region> this was true: all banks benefited from unprecedented taxpayer guarantees of their borrowings (be they deposits or institutional debts).



Another motivation for revisiting the rules of the banking game was the consensus among policymakers that private retail banks and their investment banking offshoots were at the very heart of the crisis that pushed the global economy into recession, and which has caused millions of job losses around the world. 



In fact, the public policy response to this crisis, which necessitated government “bailouts” of numerous big businesses and resulted in massive taxpayer-funded “cash splashes” to stimulate  local economies, has perversely imperiled entire sovereign states, such as the US, UK, Greece, Ireland, Spain, Portugal and Italy. Some believe that it is possible that the Eurozone and its common Euro currency could collapse as a consequence.



OK, so that’s the context. How then have governments started to shift the banking goal posts, and what does this practically mean for you? Notwithstanding the affinity bankers and bureaucrats have with the use of impenetrable verbiage, these changes are not hard to get a grip on.



First, banks are going to need to hold more “equity” (or “cash”) and less “debt” (i.e., loans). That’s a simple enough concept. It is exactly the same as a bank manager requiring you to have a larger deposit when purchasing a property. The higher your deposit, the more cash (or equity) you have in your home, and the less debt you need. And if you are reducing your debt, that, by definition, means you are less likely to default on your mortgage. All told, you have lower risk – for both yourself and the bank.



So the boffins that provide the best-practice guidelines are saying that all institutions should have minimum levels of equity, much like a lender insisting you have a minimum, say, 10% deposit against your home. The policymakers take this one step further by also saying that the bigger and more complex banks, especially those with substantial offshore operations, should hold another extra layer of cash again.



To fathom the second suite of rule changes, you need to understand what banks do. At the crudest level, banks borrow money from people who want to earn a safe return (e.g., mum and pop savers and corporations that need to park cash) and lend that money back out at higher rates of interest to people that want to borrow to build or buy stuff (e.g., home owners and businesses). A bank sits in the middle and takes the “spread” between the rate of interest it pays to savers, who are actually lenders to the bank, and the return it gets from people that borrow from it. 



In this way, the bank is the ultimate “middle man”, inducing people to save and borrow while clipping tickets along the way. Don't get me wrong: we need them, as the conversion of savings into loans is the lifeblood of any economy.



The fundamental problem with banks is that there is typically an enormous mismatch between the respective terms (or maturity dates) of their “sources” and “uses” of funding. When we put our money into a bank account we like to have the flexibility to withdraw that cash at any time. But the wrinkle here is that the bank then uses that money to make 30-year home loans. Blind Freddy can see that if everyone demands their cash back at the same time the bank is going to be in strife.



The objective of the second batch of banking rule changes is, unsurprisingly, to try and more closely match the terms associated with the banks’ different sources of funding. That is, to better align the life of a bank’s assets with the life of its liabilities. More simply stated, the regulators are saying to banks: we want you to reduce your reliance on short-term borrowings if you are going to continue to make long-term loans.



While, ironically, the shortest term of all funding sources is an “at-call” retail deposit, regulators take the view that this money can be dependable if: (1) the customer has an established transactional relationship with the bank; (2) the customer is relatively small and unsophisticated (more sophisticated investors are more likely to run during a crisis); and (3) if there is some form of government insurance or guarantee protecting depositors. That is, of course, a simplified summary.



Under the new rules, banks have to show they have enough immediately accessible, or “liquid”, cash available to cover a “bank run” over a 30-day period. So if a bunch of people demand their money back from the bank, the bank can actually pay them out. 



Take our biggest bank, CBA. It gets about 60% of its funding from depositors, who are lenders to it. CBA will now have to show the bank regulator in Australia that if a significant share of its short-term funding flees because of some unforeseen financial mess-up, it has enough cash on hand to meet these repayments.



In boffin-speak this test is formally known as the “Liquidity Coverage Ratio” (or LCR).  To meet the LCR, banks in overseas countries will be forced to hold – rather ironically – a certain sum of government debt securities. 



The target LCR is 100%: that is, banks have to demonstrate that they can sell their liquid assets and meet 100% of the redemptions projected during a 30-day crisis. (Expect to see banks offer products with 30-day notice periods for withdrawals to cutely circumvent this rule.)



Since <country-region w:st="on"><place w:st="on">Australia</place></country-region> does not have much government debt, our banks will be treated differently. Specifically, they will be able to borrow from taxpayers via the RBA in order to pay their creditors. We will, of course, charge them a fee for this service.



A second major test will require banks to show that they have a minimum amount of “stable” funding to match the longer-term loans they make using that money. Roughly speaking, these two variables will have to (sensibly) match each other one-for-one. 



Once again, if a retail depositor is small, unsophisticated, and has a long-term transactional relationship with the bank, it may be regarded as a stable source of funding under the new regulations.



By understanding these new rules, you can start to work out what kinds of product changes the banks will want to make. For instance, we will likely see banks trying to attract lots of small retail depositors whom they can convert into long-term transactional clients. They will also be seeking to subtly lock customers into lending money to the bank for longer periods of time, even if these lock-ups are non-obvious.



There are already a few practical examples emerging in the market. One is the “teaser” rates that you increasingly see the likes of ING Direct, UBank, and Rabo Direct advertise. These are the opposite of the “honeymoon” rates some lenders attach to their home loans. 



Teasers are all about cheaply acquiring low-tech customers who will be incented to stay in transactional accounts for at least four months. Such folks have a good chance of eventually falling into the bank’s all-important “stable” funding basket.



Along these lines, ING Direct promotes a “6.35% per annum” savings account. To be clear, you can never earn a 6.35% interest rate over any 12-month period with this product (taking as given no change to the RBA’s rate). This is because you only get the high 6.35% rate for the first four months, after which it drops down to a much lower 5% rate. 



Accordingly, if you hold the account for a year, you are actually getting a circa 5.45% per annum rate, which is substantially less than ING Direct’s one-year term deposit rate of 5.7%. You are also restricted to investing a maximum of $250,000.



Rabo Direct offers a similar product. You can only invest $200,000 and get a high “bonus” interest rate for the first four months, following which it reverts to the lower standard rate. 



UBank runs a slightly different “special” that gives you an extra 0.5% per annum over its basic variable rate as long as you keep adding $200 to the account every month (thereby demonstrating your long-term “commitment” to it), and on the proviso that you invest no more than $200,000.



Perhaps the most subtle product catches I have seen come with term deposits (TDs). I only discovered these traps by reading the very fine print in the terms and conditions. You see, I and most other people presume that with a TD you can take your money out at any time subject to an interest rate penalty. That is, you don’t get the higher TD rate if you pull out. 



As it happens, this assumption is incorrect. In the two TDs I checked – one offered by a major bank and another supplied by a smaller one – the bank, and only the bank, has exclusive “discretion” as to whether it “allows you” to take your money out of the TD before maturity. 



I had a sneaking suspicion there would be a catch like this because the banks need to show that TDs are long-term sources of funding, and that depositors cannot simply exit en masse.



In the major bank’s fine print, it says, “you may apply to the bank…to request the withdrawal or all or part of your funds prior to the maturity date. The Bank may, in its discretion, approve a request for early withdrawal”, in which case you are also charged a prepayment penalty and a fee. 



This is carefully worded legalese that means the bank can, in its sole judgment, reject your application to withdraw your money (it is just not stated that way). 



How big are the penalties the banks charge you if they “allow you” to withdraw your money from a TD? With this major bank, if you wanted to take out your money 20% of the way into the TD’s term, you would lose 90% of all your interest. If you withdraw 40% into the term, you lose 80%, and so on. These are very big penalties, and have a termination fee added on top.



An example of similar language is found in the terms and conditions of a TD offered by a smaller bank. They say, “We may, at your request, allow you to break your Term Deposit before maturity… You must pay a termination fee if we allow you to terminate your Term Deposit prior to its maturity.” 



If this bank “allows you” to break the TD, it is then permitted to charge potentially substantial “break costs” much like the early repayment fees associated with a fixed-rate home loan. Specifically, it says:



“Break costs reflect future cash flow losses incurred by us as a result of interest rate differentials that exist between wholesale market rates applicable to the existing term deposit and current wholesale market rates applicable for the remaining period of the term deposit, adjusted to reflect a net present value. Break costs increase in line with increases in the following: interest rates, the amount withdrawn and the market margin.”



The sleight-of-hand extends to the marketing strategies used to promote TDs. Take this “screen shot” from Rabo Direct’s webpage (see below). Now what number leaps out at you? Why, a stunning 6.4% per annum interest rate? Notice that there is no asterisk next to this rate, but just the lightly shaded words in the top left-hand corner of the bold blue box. Yes, the words that attach the caveat “Up to”. Hard to see, isn’t it?
<img src="/images/stories/nov8.jpg">
As it turns out, this super-duper 6.4% per annum interest rate only applies to Rabo’s five-year term deposit. So what is the much more popular one year TD rate? A substantially lower 5.5% per annum.




The bottom line is that banks are having to evolve their businesses. The policy objective is to make them safer and less prone to failure. This is a good thing. Just be aware that your money may be part of the solution. And all investments, even term deposits, carry risks. Accordingly, do your homework before you enter into one.

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

Busting big bank secrets: Insights on avoiding bank fee traps

<html><body>
The commercial property market is driven mainly by supply and demand, especially offices.
And therefore, with falling vacancies, positive net absorption and few new projects in the pipeline, this means a looming shortage of office space around Australia — with rentals poised to rise sharply.
A recent study by Savills shows a 22% decline in available full floors nationally — currently sitting at 591 floors in September this year.
With the surge in the mining sector, Perth had a 50% fall to 65 available prime floors over the past two years.
And in Brisbane the number of prime floors available has declined 32% (to 99 floors) over the past 15 months, as its mining sector also regains momentum.
The Melbourne office vacancy rate has remained consistently low (currently at around 5.3%) due to a more even balance in its tenancy mix. Plus, most of the new Docklands projects proceeded with significant pre-commitments.
As such, it has mainly been back-fill space (left by relocating tenants) that has provided the 56 vacant floors within the Melbourne CBD.
Sydney also enjoyed a decline of over 20% in full floors. However, it still has about 260 prime floors available —just under half of the total number of floors available nationally.
Bottom Line: With the lack of any major new construction until around 2013-14, vacancy rates will continue to fall. In turn, this will cause sharp increases in both rentals and capital growth — making commercial property a great performer over the next five years.
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

Falling vacancies make offices a good commercial investment

<html><body>
A five-year view of house prices in Australia’s four biggest cities following the release of the <a href="https://www.propertyobserver.com.au/residential/house-prices-fall-slightly-in-best-result-in-seven-months-rp-data-rismark/2011103052126?source=flicker1" target="_blank">RP Data/Rismark September house price index</a>
<img src="/images/stories/rpnov7.gif">
Source: RP Data/Rismark 
 
</body></html>

lschlesinger-FZcF9M3vE6

House price growth: How capital city house prices have fared since 2006

<html><body>
The price difference between Brighton beachfront and the not so-back blocks works out to be about $6,000 a square metre, according to weekend auctions.
<img src="/images/stories/mytton.jpg">
Brighton notched up the weekend’s biggest sale when $6.05 million was paid on the beachfront property at 2 Mytton Grove, Brighton (pictured above), when two bidders competed after the $5.9 million reserve was met at its RT Edgar auction.
It worked out at $9,869 per square metre given it’s a 613-square-metre block.
Mal James from James Buyer Advocates suggests the price per square metre was “almost identical to previous absolute beachfront square metre rates over the past year.
“They have maintained themselves in the last year and increased on previous high water marks,” James adds.
<img src="/images/stories/mouleave2.jpg">
On nearby Moule Avenue, number 8 (pictured above), a classic Golden Mile address but not absolute beachfront, also sold at weekend Buxton auction.  It was originally designed and built as the home of mid-20th century architect, Ronald "Tiger" Lyon.
Its $2.31 million price reflected $3,510 per metre.
“Brighton golden mile beachfront – these are four words that mean money,” James notes.
“In recent times that has meant $8,000 to $10,000 per square metre – at least at the northern end.”
<img src="/images/stories/maljamesview.jpg">
Source: James Buyer Advocates
He suggests the $3,510 per square metre was not too far off previous Golden Mile square metre rates.
Of course, 2 Mytton Grove has three storeys, whereas 8 Moule Avenue has one.
</body></html>

Beach frontage adds $6,000 per square metre in Brighton

<html><body>
The Reserve Bank of Australia is officially in 'wait-and-see' mode after it first downward adjustment to its target cash rate back to a notionally neutral 4.5%. In its 72-page Statement on Monetary Policy released on Friday, the bank cut all of its growth and inflation projections. I was asked by a friend before the statement what I thought it would say. My response was: 
“I expect all core [inflation] forecasts to be between 2.5% and 2.75%, with possibly a 3% in 2013. The RBA is highly unlikely to give any direction in the SMP given it does not know itself what it will be doing with rates following the fourth-quarter CPI release in late January. Thus, the SMP is likely to be vague/open-ended… I think RBA will be very eager to emphasise "neutrality" as the main policy objective.”
The RBA made all the anticipated downgrades, while signalling uncertainty about its longer-term expectations by offering a 2.5% to 3% inflation range in 2013. So while the RBA 'hopes' for on-target core inflation of 2.5% per annum in 2011 and 2012, it believes the balance of risks are skewed to higher results in 2013. In addition, the RBA says these forecasts presuppose a rebound in Australia’s productivity performance in concert with wage restraint over the next three years. It would privately acknowledge that these could prove to be optimistic assumptions.
I’ve previously noted here that the RBA does not believe it can forecast inflation with any high degree of accuracy, and the Statement on Monetary Policy lends weight to that view. Despite a rising path of core inflation over the five consecutive quarters to June 2011, the RBA’s hawkishness has been cauterised by a triumvirate of: (1) the lowest underlying inflation outcome in September since way back 1997 (based on the 'trimmed mean' measure); (2) marked changes to the way the ABS calculates its inflation numbers; and (3) conflicting revisions to the ABS’s past inflation data (eg, the second quarter going from +0.9% to +0.6% and then +0.8%).
After accounting for the ABS’s new inflation smoothing and weighting methods, the RBA now thinks that year-on-year underlying inflation in Australia is around 2.25 per cent to 2.5 per cent, or slightly below the mid-point of its target, through-the-cycle objective of 2% to 3% per annum.
Don't be fooled by the artificial precision here. Just as the RBA has in various research reports and speeches conceded that it cannot project future inflation outcomes to single decimal places, likewise it does not like being held to a 'point estimate' target.
In the governor’s words, the name of the RBA’s game is keeping core inflation to “two point something” as frequently as it can while acknowledging that there may be tax changes and other supply shocks, such as natural disasters, that temporarily knock it off course (eg, by lifting headline inflation).
To understand the RBA’s current state of mind, you need to wrap your head around the following dynamics.
First, if one simply looks at the underlying inflation numbers in year-on-year terms, one can conclude that prices are rising at a modest pace, in contrast to what the RBA had earlier thought.
As a contradictory aside, in Friday’s SMP the RBA observed that core inflation had risen at an above-average rate over the first half of 2011. This defuses claims made by some folks that Australia’s core inflation spike was limited to just the first three months of the year.
Nevertheless, by using the year-on-year numbers the RBA can maintain that underlying inflation is anodyne. On the potentially anomalous September print, the RBA does hedge its bets by noting that the “quarterly” data need to be interpreted with “care”. Once bitten, twice shy. For all the RBA knows the low third quarter result could be revised back up in late January, as both the December 2010 and June 2011 data were.
A second insight is that 2011 has undermined what remaining faith the RBA has in its own projections. Crucially, this means that is has no choice but to drop its 2010-11 experiment with genuine monetary policy “pre-emption”.
The theory goes that the RBA sets interest rates on the basis of its inflation forecasts for the next two years. So even when the current inflation pulse is weak, the RBA has every right to lift the price of money in order to keep future price pressures within its target band. On this basis, current inflation numbers are only relevant insofar as they affect the RBA’s projections.
This theory has unravelled for two reasons. First, the RBA has discovered that trying to make a case for higher interest rates amidst middling economic conditions is an awfully difficult practical exercise. There was a tremendous backlash in 2011 against the RBA’s hawkish sentiments, even with the confirmatory evidence of the high core inflation results over the first half of the year.
You can see this challenge manifest in the RBA’s actions. The RBA ended up ignoring the first and second quarter inflation data, which were in line with its hawkish expectations, but cut rates the second it got one low print.
I used to think the RBA had an intrinsic bias towards tighter policy or higher interest rates; that is, it would prefer to undershoot rather than overshoot its 2% to 3% per annum target given its past performance. There is now a case to be made that the RBA’s policy bias runs the other way: ie, towards tolerating slightly higher inflation given its community constraints.
The other issue with pre-emption is that the RBA cannot set interest rates today based on its expectations of the future if those expectations are faulty (or subject to high uncertainty).
So we are now left with a simpler decision-making process. Once Australia’s cash rate is sitting at neutral, the RBA will be practically guided by what the data tells it is actuallyhappening in the real economy.
Turning back to the RBA’s current headspace, a fourth observation from the SMP would be that the bank unmistakably believes that the distribution of risks is tilted to the downside over the near term.
While it has slowly come to this perspective, I suspect that Glenn Stevens’ recent trip overseas, much like Bill Evans’ 180 degree turn following a North Atlantic jaunt, has infused the governor with a deeper appreciation of the challenges that confront the big developed economies. Recall that it was a similar trip to New York at the height of the GFC that compelled Wayne Swan to the view that Australia needed massive fiscal stimulus in order to protect it from the impending storm.
To summarise, the RBA knows that it has positioned the price of money at an innocuous place. Today you can get variable rate home loans for as little as 6.39%. There are one-year fixed-rate deals going at 5.89%. Save a desire amongst some on the RBA’s board to perhaps tweak the cash rate down one notch further, the bank genuinely has no idea when, and in what direction, the next move will be. 
This will depend on three things: what the January inflation data tells it about the pulse of consumer prices over the second half of 2011; what other tier-1 activity data, such as wages, GDP, unemployment and house prices, tell it about the speed at which the economy is advancing; and, finally, what is happening in North America and Europe.
One former RBA board member, and an eminent global economist, Adrian Pagan, has been critical of the RBA’s decision to “trim” rates by one-quarter of a percentage point. Specifically, Pagan argued:
“I can’t see the reason why you would cut interest rates by 25 basis points – I don’t believe in 25 point cuts. I think that’s a silly situation we got into with making such small adjustments…And I don’t think the international situation is as bad as everyone thinks it is, but 25 basis points is not a response to that. If you really thought it was bad, you wouldn’t be doing 25, you’d be doing 50 or 75...”
While Pagan might be technically correct, I would make a couple of comments.
First, whether the RBA likes it or not, this will not, in practice, be a small adjustment to monetary policy. Almost everything in economics hinges on expectations: that is, what we planon doing. The average Australian family expected at least two to three rate hikes over 2011-12, and a big chunk of the community – around 25-30 per cent – were budgeting on four hikes or more.
The RBA’s about-face is going to have a tremendous impact on these expectations, which will swing from hikes, to stable rates or cuts. That is, the expectational effect of the RBA’s decision is more like two to three rate cuts. This will be especially powerful in interest rate sensitive sectors of the economy, such as housing.
Second, it is, to be sure, easy to construct a case that the RBA did not need to shave rates by 25 basis points, especially when, in the RBA’s words on Friday, “underlying inflation…is expected to pick up a little towards the end of the forecast period, with a greater likelihood that it will be in the top half of the target range than in the bottom half.”
All else being equal, this opinion combined with the risks signalled in the RBA’s 2013 projections, imply that it has a slight tightening bias, if it is setting policy today on the basis of its forecasts of the future.
However, the RBA is being more tactically nuanced than this. First it needs to manage the six independent business executives that sit on its board, who are not instinctively disposed to embracing higher rates. Make no mistake: if and when inflation does eventually rear its foul face again, the RBA is going to have a huge task on its hands.
The doves will argue that the RBA got it wrong in 2011. (As a matter of pure fact, the RBA forecasts were arguably right in the first and second quarters, but wrong in the third quarter.) Nonetheless, the optics here are that the RBA has had to undertake a policy reversal. Getting its wider board to trust its decision-making will not be a fait a compli.
This is why I believe the RBA will need demonstrable historical evidence (ie, data) that inflation is on the rise again before it has the fortitude to lift rates. That may mean waiting for at least six months of data before tightening its monetary policy screws.
As a more general comment, long-term forecasting of rates and inflation is, as I argued forcefully <a target="_blank" href="https://christopherjoye.blogspot.com/2009/11/forecasting-future">here</a>, a mug’s game. The world is too complex, with too many interdependencies, to have any chance of consistently getting the long-term estimates right. What analysts and investors should concentrate on is understanding, as best they can, the RBA’s decision-making framework, and how the bank responds to new events.
Christopher Joye is a leading financial economist. The above article is not investment advice.
This article originally appared on <a href="https://www.businessspectator.com.au/bs.nsf/Article/interest-rates-Reserve-Bank-RBA-monetary-policy-ec-pd20111107-NCTXW?OpenDocument&amp;src=sph" target="_blank">Business Spectator</a>.
 
 
</body></html>

The RBA's inflation reality check

<html><body>
For the last three years our property markets have been in a state of confusion. What confuses the issue further is that everyone for some strange reason wants to buy in a vendors’ market yet they don’t want to engage in a purchasers’ market. It is well documented that Australians will take a punt on two flies climbing up a wall – yet there is no interest when there is just the one. I guess the reasoning is with two flies they are guaranteed an outcome yet with the one the interest wanes.
Years ago I remember reading a quote on negotiation by Howard Baker “The most difficult thing in any negotiation, almost, is making sure that you strip it of the emotion and deal with the facts. And there was a considerable challenge to that here and understandably so.” Residential real estate is an emotional acquisition, although in difficult market conditions the emotions are removed, with the decision-making process then becoming much more commercial.
So how do you get the purchaser’s mindset from commercial back to emotional in a difficult market?
The market doesn’t determine the sale price; it only sets the parameters for the sale price. My brother developed the PEAK model, which identifies techniques for dealing with the four basic types of human behaviour.
P – Progressive
E –Endearing
A – Analytical
K – Kaotic
It is only when a real estate agent can characterise a purchaser using the PEAK model that the task of communicating with them (on their level) that you then become in a more informed position to take control of the negotiating process. Every purchaser is dominated by one of these categories, so it is important to remember that a great negotiator negotiates first with their ears and eyes – not their mouths.
A “Progressive” purchaser is a risk-taker, innovative, daring, demands efficiency, will confront, is direct and result- oriented and has a high ego. Prepare to negotiate, brevity is the key, flatter this buyer, provide more options and less opinions, close confidently.
An “Endearing” purchaser is shy, quiet patient, traditional and family-oriented. This buyer requires time to think. Agents must earn their trust. Give full explanations. Don’t denigrate the opposition. Needs lots of visits – be patient.
An “Analytical” purchaser is conservative, suspicious, non-personal and avoids risks. Do not rush this buyer, hard sell, exaggerate or threaten. Answer all questions before closing. Provide plenty of anecdotal market data and comparable sales.
A “Kaotic” purchaser is a great creative thinker, expressive, impulsive and undisciplined. Support their dreams and aspirations, allow time for socialising. Don’t lose them in facts and data. When ready, close quickly, be enthusiastic.
Of course in the majority of negotiations a purchaser can be multiple so each party must be assessed individually. Too often real estate agents focus too much on the market conditions as against the modus operandi of the purchasers.
Everybody fits into the PEAK model, and that includes vendors, too. You will also discover that you too are described in the model also.
Robert Simeon is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
</body></html>

robertsimeon-hRNTwJyXkQ

Understanding prospective buyers can put the emotion back into property buying

<html><body>
New Zealand retirement village operator Ryman Healthcare has bought a site in Melbourne’s eastern suburbs, starting its expansion into Australia.
Ryman told shareholders 15 months ago that it was looking for Australian acquisitions. Ryman owns 24 New Zealand retirement villages with 5,700 residents.
It plans for the Wheelers Hill site to be a medium-density village built along similar lines to the villages it has developed in Auckland and Wellington.
There will be a mix of independent apartments, serviced apartments, a village centre and an aged-care centre.
Ryman lifted underlying profit by 17% to a record $72 million for the March year.
The Melbourne land purchase will lift the company’s landbank to over 2,500 units and beds.
Statistics NZ has estimated the number of New Zealanders aged 75 and over will increase from 250,000 to 516,000 over the next 20 years. In Australia the number aged 75-plus is set to double to 2.8 million.
Existing aged-care facilities at Wheelers Hill include The Willows and Cumberland View.
</body></html>

Kiwi retirement village operator expands into Melbourne

<html><body>
Possibly the maddest – but fashionable – phrase used in the marketing of million-dollar homes in Sydney’s exclusive eastern suburbs is the ubiquitous for sale “by expressions of interest”.
You can imagine eager buyers as they leaf from page to page of glossy images of luxury properties along the sparkling harbour foreshore in the weekly dose provided by our very own local Wentworth Courier.
Well, of course it’s obvious, reasons the somewhat puzzled buyer. “Expressions of interest” just means that I should phone the agent and say that I am interested. He or she will give me a price and I’m well on my way to owning the pile I have always dreamed about.
But wait a minute, what if the agent can’t give me a price range because he or she doesn’t actually have one? And hang on again – what if the vendors have agreed to the wording of “by expressions of interest” because they have such an outrageous price in mind that the agent doesn’t dare to print it?
Well, no worries, concludes the interested buyer. What I’ll do is phone the agent and make a completely outlandish expression of my interest and see what he says and that will get the ball rolling for sure.
Now of course I have a fair idea that my dream home is worth about a million (based on the mother-in-law’s invaluable advice and my own research in the same street) so what I’ll do is phone the agent and say, “OK, $750,000, and that’s my best offer”. And crikey, this does get a response as I am clearly a real buyer and worth at least two minutes of his busy schedule.
His instant response is “Sorry, I don’t know the actual asking price, that’s why we are asking for interesting expressions. I mean even the vendor doesn’t know what he wants exactly but I’ve already got a firm offer of roughly over $750,000. Why don’t you try in the mid-ones?” So the buyer replies: “You mean the vendor is looking for twice what I just offered?” A pause and he replies “No, but you are somewhere in the ballpark”.
In these circumstances I feel for the vendor, the agent and the prospective buyer. Before I morphed myself into a buyers’ agent and worked as a real estate sales agent I loved the old system of “for sale by private treaty”. I understood the term and everyone else involved was on the same page from day one. There was actually a price tag on a property then, but clearly times have changed!
Tim Mansfield is founder and principal of Sydney-based buyers' agency <a target="_blank" href="https://www.primepropertybuyer.com/">Prime Property Buyer</a>.
</body></html>

tmansfield-Rk8rBecHRA

The mad – and very fashionable – 'expressions of interest'

<html><body>
The receivers of the failed Record Funds Management have re-listed their vacant office block holding at 149 Castlereagh Street with offers at or under the $50 million mark expected to be considered.
Sales agents James Aroney and Robert Harris of Jones Lang LaSalle initially listed it with $60 million hopes in April 2010.
At one stage Telstra was considering tenanting the building, with an investor on board but the sale did not proceed following a due diligence report.
The building was recently redeveloped at a cost of $38 million to provide A-grade office and retail accommodation in the heart of the precinct.
Record was part of the failed Allco Finance Group.
Harris says the re-listing represents a “refreshed” offering in a market that is now “slightly different”.
The building stands on a 1,300-square-metre site with the lower ground, ground and level 1 comprising about 2,300 square metres of retail space and about 10,700 square metres of office space across 10 floors with floor plates of over 1,000 square metres.
The gross office rental is estimated at $573 per square metre, equating to annual income when fully leased of more than $8 million.
It has total annual outgoings of $1.7 million
Harris says it is rare for a building in Sydney’s CBD to have more than 10,000 square metres of contiguous office space. 
“149 Castlereagh Street provides tenants with an opportunity to occupy several adjoining floors which is ideal for medium to large organisations,” he says.
It is currently untenanted except for a small 102-square-metre shop and is one of only five buildings in Sydney’s CBD with over 10,000 square metres of contiguous space. 
The tower features environmentally sustainable design elements, modern fittings and fixtures and balconies on each floor.  The entrance has a three storey water feature as well as a three-storey public art design by glass artist Lisa Cahill.
With the amount of office stock “pretty lean” Harris says the building represents a “value-add” opportunity with the refurbishment now fully completed.
An issue of contention has been the building’s location near to Grocon’s 46-storey project at 163 Castlereagh.
However, with the new tower now half-way complete, Harris says it is clear that it will have a beneficial impact on 149 Castlereagh rather than a negative one. Efforts to sell 149 Castlereagh date back to April last year, when it was placed on the market by receivers Ernst &amp; Young.
In April 2010 the price tag was around the $60 million mark, but it had fallen to around $50 million by June 2010 despite a $38 million refurbishment, which was expected to increase its value to $90 million.
In March this year it was reported that receivers Ernst &amp; Young were negotiating a $50 million sale of 149 Castlereagh Street, but this did not eventuate. 
The Abacus Property Group and Hong Kong-based CLSA Capital Partners were among the parties expressing an interest in the building during a sales campaign that concluded on June 3 last year. 
Record Funds Management owned 149 Castlereagh Street before the company was placed in receivership in August 2009 as part of a property portfolio once worth about $2.1 billion.
Suncorp is the mortgagee and is reportedly owed between $70 million and $80 million.
It was bought by Allco for about $33 million in 2006.
The property is in the same precinct as major developments including the new ANZ/Freehills complex (adjoining to the south), the landmark Westfield redevelopment and the recently completed Mid City / 420 George Street project. 
Aroney says the new developments surrounding the building will attract significant interest from investors looking to get a foothold in the area. “This precinct, along with Barangaroo, offers tremendous upside and capital growth from both a commercial and retail perspective,” he says. 
The open market expressions of Interest campaign closes on November 23.</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