Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

What does it really mean for a building to be 'green'?

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

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First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

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The Reserve Bank has lowered both its inflation forecasts and GDP growth forecasts, paving the way for future rate cuts while noting the subdued and uneven housing market in its lengthy monetary policy statement following the Melbourne Cup Day rate cut.
“Reflecting recent developments in both the domestic and global economies”, the RBA now forecasts GDP growth in 2011 to be around 2.75% “with the slow recovery in coal production accounting for a significant part of the downward revision since earlier in the year”.
“In 2012, growth is expected to be around 3% to 3.5% and to be a little stronger in 2013.”
RBA inflation forecasts have also been lowered with underlying inflation (excluding the effect of the carbon price) expected to be around 2.5% in 2012, half a percentage point lower than forecast at the time of the August statement and within the 2% to 3% target band.
“In 2013, inflation is expected to pick up a little, but still be consistent with the inflation target,” the bank says.
The RBA says it reduced the cash rate to 4.5% this week to a more neutral stance, with inflation “likely to be consistent with the medium-term target and that economic growth remained moderate”.
“At its future meetings the board will continue to set monetary policy so that it is consistent with achieving sustainable growth and 2% to 3% inflation over time.”
Once again the RBA noted that the housing market remains subdued, with nationwide measures of housing prices declining over 2011.
“Perhaps not surprisingly, the weakest markets have been those that had the largest run up over the preceding few years. At the aggregate level, the ratio of housing prices to income has been broadly steady for almost a decade now after its earlier large increase,” it says.
“Growth in housing credit is noticeably slower than in earlier years and is running at a little below that in household disposable income.
“Nationwide housing prices are estimated to have fallen by around 1.25% in the September quarter and by 3.5% over the year. Brisbane and Perth have been the weakest markets over the year, with prices in these cities falling by around 5%.
“Auction clearance rates are below decade-average levels in Sydney and Melbourne. Demand for housing finance has been subdued since the beginning of the year, although the value of loan approvals has picked up a little in recent months. While housing turnover rose in the June quarter, it remains at quite a low level,” the bank notes.
“Indicators of dwelling investment have softened over the year, with builders reporting that households are cautious about committing to contracts. However, there are divergences in the level of activity by type of building and state. While the number of building approvals for detached houses has fallen since late 2010 to relatively low levels, the number of approvals for higher-density housing (mainly apartments) has been higher than over recent years.
“Growth in the dwelling stock is currently quite strong in Victoria, reflecting growth in the building of apartments. In contrast, the growth in dwellings in New South Wales has been soft, and well below the rate of population growth.”
According to the RBA, the largest risk to its inflation and GDP forecasts is the sovereign debt and banking problems in the euro area.
“The bank’s central scenario continues to be one in which the European authorities do enough to avert a disaster, but are not able to avoid periodic bouts of considerable uncertainty and volatility. A worse outcome in Europe would adversely affect the Australian economy, and underlying inflation would be likely to decline,” it says.
As a consequence of these bouts of uncertainty and volatility, the bank’s central scenario for global growth over the next couple of years has been revised lower since the previous statement to about 4%.
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RBA lowers inflation forecast in November statement, suggesting more rate cuts possible

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{yoogallery src=[images/stories/november4bonniedoon]}
Property investor Richard Moseley’s Bonnie Doon holiday shack near Lake Eildon in Victoria – which featured in the comedy The Castle as the serene holiday home of the Kerrigans – has become no laughing matter with another reduced price adjustment.
Moseley proudly secured the property for $169,950 in 2006 but has wanted out since early 2011.
The two-bedroom cottage – located 115 kilometres from Melbourne – was initially listed at $195,000. After a bit of feedback, the price eased to $188,000, then $182,000 by June.
Now its asking price is back almost bizarrely at $169,950.
Moseley, a Sydney telecommunications technician, bought it sight unseen – other than of course having viewed the movie.
Dean Shipley and Andrew Houghton at RT Edgar Yarra Valley have the listing, which has been a popular rental.
Shipley says it is a unique opportunity to purchase the original holiday home of the Kerrigans from Australia's favourite movie, The Castle. The home consists of two bedrooms, open-plan kitchen, dining and living area, bathroom and laundry.
“Outside we have the famous veranda – with the mozzie zapper included – situated on a good-sized block opposite the lake and approximately 500 metres from the boat ramp.
“The property would make a great holiday home-cum-accommodation business when you are not using it yourself, and creates a high level of interest with holiday makers stopping for photos and to experience the serenity.
“With the lake full, recent good snow seasons and high tourist numbers visiting the area, it is the ideal holiday rental.
“And the right marketing – perhaps a good website and some items like stubby holders, T-shirts and caps – could provide extra income as well,” Shipley says.
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Kerrigans’ Bonnie Doon holiday shack back to its old price as investor abandons profit dream

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{yoogallery src=[images/stories/november4milne]}
Leisa Milne, the wife of jailed millionaire entrepreneur Michael Milne, has listed their Neutral Bay abode on Sydney’s lower north shore. It’s one of two freestanding buildings set on a 1761-square-metre deep-waterfront block. It had been two apartments with the first bought by Leisa in 1987 for $999,999 and then Leisa paid $4.75 million for the other in 2005.
The renovation turned it into a six-bedroom house with views across Shell Cove to the main harbour. It has two marina berths, a jetty and pontoon.
Michael Milne, jailed for eight years last December for money laundering and tax evasion, is seeking to have the money-laundering conviction overturned in a case in the NSW Court of Criminal Appeal. Milne was caught in the Operation Wickenby tax probe. His wife raised a $5 million surety for his bail when he was initially arrested in 2008. Milne  was a client of Philip Egglishaw, whose Swiss firm Strachans sparked the $300 million Wickenby investigation.
The Shellcove Road house has been listed for sale by expressions of interest through Kingsley Yates of Ray White Lower North Shore.
 
 
 
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Wife of jailed entrepreneur Michael Milne puts Neutral Bay home on the market

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Purchasing your first investment property can be daunting and exciting at the same time. It is also often the most important purchase an investor will make. The property selection process will dictate whether the buyer will be able to grow her portfolio to a second, third, or fourth investment property. 
The selection process is the first and most crucial step to securing a property that will achieve a high level of capital growth and return on investment. 
In-depth research is imperative to gaining a compressive understanding of the property market, in order to identify out-performing suburbs and homes. The best investors spend time attending auctions, monitoring sales trends and tracking suburb growth figures to gain an insight into how much they should expect to pay for their properties. 
First-time investors should consider properties that have proven historical capital growth patterns. Melbourne areas that have performed well in the long term are the bayside, inner east and inner southeast areas, as well as select suburbs on the north and western side of the CBD. 
For investors who feel they have been priced out of the housing market in popular areas, apartments can offer a more affordable solution. Look for apartments of at least 50 square metres in quiet residential locations, with parking and outdoor space. 
It may be tempting to purchase a cheaper investment property further away from the city, however the rental demand in these areas isn’t as high and as a result rental properties have a higher vacancy rate. If your property is vacant, you’re left having to cover a larger gap in mortgage repayments than you had intended. 
Poor property selection is one of the biggest mistakes a first-time investor can make, because it sets them behind from the very beginning. Often soon-to-be investors approach us with very little knowledge of the local property market. As buyer advocates, we are able to use our knowledge and experience to select the best properties. 
Now is a great time for first-time investors to enter the market, as many capital cities across Australia have hit a soft patch. 
Sellers are having to vie for the buyers’ interest, providing buyers with the opportunity to negotiate a price that will deliver a good return on their investment. 
A well-researched investment property appeals to the rental market, ensuring a strong and consistent rental income for the investor, which will enable an investor to expand her investment portfolio, or use equity to purchase a dream home.
Lauren Staley is director of <a href="https://www.infolio.com.au/" target="_blank">Infolio</a>, a buyers’ advocacy and property management company.
For more advice on buying your first investment property, download our free e-book. 
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Your first investment property will set up the rest of your portfolio

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<img src="/images/stories/delmegequote.jpg">
 
- Anthony Walls at Max Walls International after the Bank West mortgagee sale of the resort-like Mona Vale beachfront residence of veteran property developer Max Delmege for about $3.5 million. <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/max-delmege-s-sydney-northern-beaches-property-finally-gets-over-the-line/2011102652087">It had a $9 million valuation after its 2008 renovation</a>.  Despite hopes of starting the auction proceedings at $6 million plus, the house was passed in without a bid through Ray White Prestige agent Michael King at that October 2010 auction.
 
 
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Quote of the week: Max Delmege's house result

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There was daylight between first and second place on RP Data's list of the top sales of the week, with the late arts patron <a href="https://www.propertyobserver.com.au/residential/ann-lewis-romantic-rose-bay-villa-fetches-about-%2415-million-after-auction-title-tattle/2011102752108" target="_blank">Ann Lewis’ house claiming the top spot at $15 million</a>. The second-place sale, 6 Penshurst Avenue, Neutral Bay, last sold for $1.3 million in 2005 but had been on the market since early 2009, when it was listed for $3,575,000. Its price expectations were reduced to around $3.39 million last month. It sold for $3,275,000 through Raine &amp; Horne Neutral Bay agent Stewart Robertson. A property from the ACT appeared in 10th spot on RP Data’s list.
1. 8 Bayview Hill Road, Rose Bay, NSW, six-bedroom, four-bathroom house, sold at auction on October 27 by Ken Jacobs of Christie's International Real Estate in conjunction with McGrath Estate Agents for $15 million




2. 6 Penshurst Avenue, Neutral Bay, NSW, five-bedroom, five-bathroom house, sold on October 28 by Raine &amp; Horne Neutral Bay for $3,275,000



3. 34 Chatsworth Road, Prahran, VIC, four-bedroom, three-bathroom house, sold at auction on October 25 by Marshall White Real Estate Armadale for $3,137,500



4. 18 Willowie Road, Castle Cove, NSW, four-bedroom, three-bathroom house, sold at auction on October 29 by Belle Property Mosman for $2.99 million



5. 132 Hargrave Street, Paddington, NSW, four-bedroom, three-bathroom house, sold on October 26 by McGrath Estate Agents for $2.9 million



6. 77 Grey Street, East Melbourne, VIC, two-bedroom, two-bathroom house, sold at auction on October 29 by Caine Real Estate for $2,832,500



7. 12 Rosemeadow Drive, Cabarita, NSW, four-bedroom, three-bathroom unit, sold at auction on October 29 by McGrath Estate Agents for $2.55 million



8. 26 Holt Avenue, Mosmand, NSW, four-bedroom, three-bathroom house, sold at auction on October 29 by Raine &amp; Horne Neutral Bay for $2,457,000



9. 70B Iris Street, Frenchs Forest, NSW, four-bedroom, two-bathroom house, sold on October 25 by Century 21 Robert Campbell for $2.45 million



10. 18 Wells  Gardens, Griffith, ACT, five-bedroom, four-bathroom house, sold at auction on October 26 by Luton Properties Manuka for $2,375,000.
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Daylight between first and second-place sale of the week: RP Data

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During the past four days days the latest monthly data on credit growth in Australia from the RBA and the latest quarterly house prices data and monthly building approvals data from the ABS have ll been released. Together, these confirm trends that I’ve identified on numerous occasions between the acceleration of mortgage debt and the change in house prices.
Building approvals plunged 13.9% in September, while housing credit increased by 0.5% over September (see the <a target="_blank" href="https://www.rba.gov.au/statistics/frequency/fin-agg/2011/fin-agg-0911">RBA release</a> for details), but this involved a further deceleration of mortgage debt, as figure 1 shows.
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Figure 1: Change and Acceleration of Mortgage Debt in Australia
<div style="text-align: center; font-family: Arial, sans-serif; color: #3d66ab; font-size: 12px; width: 380px;"><img src="/images/stories/keen1.gif"> </div>
 As I explained in <a target="_blank" href="https://www.debtdeflation.com/blogs/2011/09/04/%E2%80%9Ca-much-more-nebulous-conception%E2%80%9D/">A Much More Nebulous Conception</a>, there is a complex causal link between the acceleration of mortgage debt and the change in house prices. In a nutshell, the two sources of monetary demand are income and the change in debt; these then finance the purchases of both newly produced goods and services, and the turnover of existing assets. There is thus a causal link flowing from change in debt to the level of asset prices, and consequently a link between the acceleration of debt and the change in asset prices.
That relationship is evident in the pattern of change in Australian house prices over the last two decades. The most recent figures – that prices fell 1.2% over the June to September 2011 quarter, and 2.2% from September 2010 to September 2011 (see the <a target="_blank" href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6416.0Main+Features1Sep%202011?OpenDocument">ABS Release</a> for details) – confirm that mortgage debt acceleration, and not “population pressure” etc., is the key determinant of house prices.
Figure 2: The Mortgage Acceleration and House Prices Change Relationship (R^2 = 0.54)
<img src="/images/stories/keen2.gif"> 
Of course, one can’t forget the role of government intervention in sustaining an asset bubble either, and here the Australian government has a peerless record – whether the conservatives (Liberal Party) or progressives (Labor Party) have been in power. Whenever the economy was facing a recession, its favourite tool of macroeconomic policy has not been fiscal stimulus, but stimulating the housing sector via the 'First Home Owners Scheme'.
It was first introduced by the Hawke Labor government in 1983, in response to the recession that had swept the previous Liberal government from power; it was reintroduced by the Hawke government after the share market crash of 1987, given fears then of a serious recession; the Howard Liberal government brought it back as a "temporary" measure to counter the impact of the GST in 2000 (and it has never been removed!), and then doubled it in 2001 to counter an imminent recession; and finally Rudd doubled (and for new homes, tripled) the grant as a counter-measure to the Global Financial Crisis in late 2008.
<img src="/images/stories/keen3.gif">
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Though restarting the housing bubble wasn’t the express intent of government policy, its 'collateral damage' included spikes in house prices as well (see figure 3). The turnaround from an 8% per annum rate of fall in real house prices to a 15% rate of increase was merely the latest (but not the greatest) such instance of government manipulation of house prices that has given Australia the most expensive housing in the Western world.
Figure 3: The First Home Vendors Scheme and House Prices
<div style="text-align: center; font-family: Arial, sans-serif; color: #3d66ab; font-size: 12px; width: 380px;"><img src="/images/stories/keen4.gif"> </div>
 
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 So will they try again? I’m sure they will be sorely tempted should yesterday's unemployment data reveal a rise in unemployment – against the conventional expectation that Australian unemployment should be falling. But I doubt that they will, for two reasons.
 
Firstly the “collateral damage” of such a policy – a further boost to our house prices – would be political suicide today. Though house price inflation was initially very popular – and it remains popular with those who are highly levered into house prices today – it would evoke huge opposition from the many who are now locked out of home ownership. The entry costs into home ownership in Australia are now prohibitive – even after the fall from its peak level, houses are still more expensive in real terms than they were before the Rudd government’s spin of the house price boost bottle.
Figure 4: Real House Prices are still above the pre-FHVB peak
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Buying a first home therefore involves taking out a mortgage that consumes a prohibitive share of the average wage – when First Home Buyers can be expected to be earning below average wages.
<img src="/images/stories/keen6.gif">
 Secondly, the policy has only worked because it has gone in concert with the banking sector’s willingness to lever the grant with additional mortgage debt. The very success of this process is now the best reason why it won’t be tried again – or why, if it is tried, it might not work as it has in the past. Australian mortgage debt is now substantially higher than American (when compared to GDP), and though banks may still be willing to lend, willing borrowers are much harder to find. Our mortgage debt is once again falling when compared to GDP, and I doubt that anything the government can do can make it rise yet again from its already unprecedented peak.
Figure 5: Australian mortgage debt grew more rapidly than US, and now exceeds it
<div style="text-align: center; font-family: Arial, sans-serif; color: #3d66ab; font-size: 12px; width: 380px;"><img src="/images/stories/keen7.gif"> </div>
The one trick that Australia does have up its sleeve for re-inflating the house price bubble is interest rate policy. Since the vast majority of Australian mortgages are floating rate, a cut to official interest rates rapidly translates into falling mortgage payments for borrowers (see figure 6). If rates fell substantially, this could encourage Australians to take on yet more mortgage debt, and thus re-ignite the Australian housing bubble.
Figure 6
<img src="/images/stories/keen8.gif">
 Even this is, I think, unlikely – again, because the past success of this “asset price inflation as macroeconomic policy” game has made it unlikely that the same play will work again. Australian private debt levels have risen from the historically low level of 25% of GDP in the period from 1945-1965 to an unprecedented peak of almost 160 percent in early 2008. Government policy – especially the First Home Vendors Boost – merely temporarily delayed the deleveraging process from Peak Debt.
Figure 7: Private debt ratio now falling from unprecedented level
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 Since deleveraging results in falling asset prices as well as rising unemployment, it is unlikely that even substantially lowering interest rates will encourage Australians back into debt once more. Australia’s apparently stellar economic performance over the last two decades, which was primarily driven by accelerating private debt, may soon drop back to the pack now that the inevitable deleveraging can no longer be delayed.
Figure 8: Credit Accelerator drives change in unemployment (R^2 = -0.65)
<img src="/images/stories/keen91.gif">
 Steve Keen is Associate Professor of Economics and Finance at the University of Western Sydney and author of   <a href="https://debunkingeconomics.com/" target="_blank">Debunking Economics</a>  and the blog <a href="https://www.debtdeflation.com/blogs/" class="=article" target="_blank" style="text-decoration: none; color: #287bce; margin-top: 3px; margin-right: 0px; margin-bottom: 3px; margin-left: 0px; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; line-height: 14px; padding: 0px;">Debtwatch</a>.
This article originally appeared on <a href="https://www.businessspectator.com.au" title="Business Spectator" target="_blank">Business Spectator</a>. 
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Australia's housing bubble will burst eventually, with debt the main cause

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The expected improvement in consumer and business confidence on the back of the November 2 rate cut will have positive flow-on effects for the struggling retail property sector as well as provide to stability to office and industrial leasing markets, according to CBRE regional director of global research and consulting Kevin Stanley.
Stanley says there are already some “early signs of confidence returning to the household sector, which may have developed in anticipation of a rate cut and will only be further reinforced now the decision has actually been made”.
“For commercial real estate, a rise in retail spending will ultimately lead to higher turnover in retail outlets and shopping centres, which in turn will support growth in rents,” he says.
“It will also improve the viability of those retailers who’ve been feeling the effects of lower revenues and this in turn should reduce vacancy risk across the retail sector.  It may also ignite interest in leasing some of the vacancy which has emerged in the last couple of years.”
Stanley also expects the 25-basis-points cut to stabilise business sentiment toward reducing costs further, such as reducing area leased or the workforce.
“This is likely to lead to more stability in the office and industrial leasing markets, where business confidence is critical to decision making concerning occupancy.
“While the interest rate cut has flowed through to household mortgages, the cost of debt for commercial loans may not necessarily drop to the same extent, given banking exposure and attitudes toward risk in the commercial sector.
“It is interesting to note, though, that the long term cost of debt is now about 4.4% (the 10-year bond rate), which means the spread to commercial property yields is at its widest for almost 20 years – that’s compelling evidence of the current attractiveness of commercial property pricing.  It adds support to the notion there’s now plenty of room for prime commercial real estate yields to compress some.”
Overall, he says the small cut will be a “real positive for real estate”.
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Rate cut to add stability to commercial property market: CBRE

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The declining interest rate environment is combining with other factors including a lack of new development and rising rents to create an interesting trend in the real estate market: the clock is being wound back 10 years. 
There are signs of a repeat of the conditions experienced in the early 2000s, when lower interest rates stimulated the real estate market.
 
In recent years interest rates have moved in an upward direction before remaining steady for the past 12 months. A higher interest rate environment, while keeping inflation under control, adversely impacts the economy and this is where the market has found itself. 
But the Reserve Bank decision to lower the official cash rate could represent a crucial shift in outlook for the economy as a whole and the real estate market specifically. 
Ten years ago lower interest rates stimulated the property market, and we find ourselves facing similar fundamentals now. Values have shown recent declines but should stabilise in time, creating a soft market that presents attractive opportunities for first homebuyers, upgraders as well as investors to become active again. 
A compelling argument could be made for 2012 being the best year in the past decade to buy residential property. 
Laing+Simmons forecasts interest rates to decline by up to 1% by mid-2012, which should translate to an increase in consumer spending and stabilisation of property values. 
At a broader economic level, higher interest rates in recent times have had the effect of reducing consumer spending as people turned their focus to increasing their savings and reducing their household debt. 
Should a declining rate trend materialise we expect to see consumer spending increase and property values stabilise, particularly for lower priced properties close to the city. 
Property prices, which have been flat or declined over the last four to six months, should again show growth in the medium term as a number of influences converge. 
The long-term low supply scenario in Sydney, driven by a significant period of inactivity stemming from a continued lack of finance for developments, should ensure residential rents keep rising. 
Additionally, with the latest REINSW figures showing rental vacancy in Sydney is just 1.5%, the fundamentals for investors remain strong. 
For developers, the reduced availability of credit could necessitate substantial pre-sales be achieved to secure finance, compounding the contracted supply situation. These constraints should see values resume an upward trend over the medium term as population growth continues unabated and demand further outweighs supply. 
More immediately however, we can expect values to stabilise. There will be pockets where values will rise comparatively quickly, particularly in lower priced new residential developments close to the city, again driven by the lack of supply of properties at lower price points in good locations. 
Declining interest rates, stabilising values, lack of new supply, rising rents and a low vacancy rate are converging to create a most attractive environment for property purchases – a scenario the market has not experienced for 10 years.
Leanne Pilkington is general manager of<a target="_blank" title="Laing + Simmons" href="https://www.laingsimmons.com.au/"> Laing + Simmons</a>
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Next year could be the best year in a decade to buy property

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The manager and trustee of  the Commonwealth Property Office Fund today announced its intentions to launch an off-market buyback tender for between $50 million and $100 million worth of shares in the A-REIT. The share buyback follows the sale of a number of prime CBD office assets held by the A-REIT over the last four months including 259 George Street in Sydney, which sold for $395 million July, (with settlement occurring this week); three Perth offices (1 Mill Street, 5 Mill Street and 197 St Georges Terrace) and a 50% interest in 5 Martin Place, Sydney, for a combined $589 million.
It also follows other property funds such as Stockland, Challenger Diversified Property Group and Investa Office Fund undertaking on-market share buybacks.
The fund could buy back between $50 million and $100 million worth of CPA units but reserves the right to buy back any amount up to 10% of units, or any amount below the anticipated range, depending upon market conditions.
The buyback is in line with the fund’s capital management strategy, which was outlined in August 2011.
The buyback scheme will not impact on CP retaining an appropriate capital and liquidity position for other initiatives such as the development pipeline and it also aims to maintain its distribution policy of distributing 70% to 80% of distributable income, or taxable income, whichever is the greater.
Charles Moore, fund manager of CPA, says the off-market buyback is considered appropriate given CPA’s capital position, and has the advantage that retail investors have the option of participating.
Participation in the buy-back is optional, with tender applications closing at 7:00pm, Sydney time, on Tuesday 13 December 2011.
The buyback is open to all eligible unit holders who are registered as at Friday, November 11, 2011.
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