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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Processing tenancy applications must be one of the most important aspects of the property manager’s role.  Although things can always go pear-shaped, securing the right tenant is paramount to having a tenancy that runs well and without too many hiccups.
So often when a management is changed to another agent, you can see how poorly some agents treat this aspect of their role.
Things to check include the applicant’s current employment and previous employment and ask questions such as:
<ul>
<li>How long have they been there? </li>
<li>Are they reliable?</li>
<li>Why did they leave?</li>
<li>Would their boss rent to them if he or she had a rental property? </li>
</ul>
In relation to their current rental history and previous rental history, your questions should include:
<ul>
<li>What date is/was their rent due? </li>
<li>When were the payments made?</li>
<li>How did they look after the property? </li>
<li>Would you rent to them again?</li>
</ul>
It’s important to be very clear with your questions and take the time to speak to everyone in person.  So often I see a summary arrive on our fax asking for a reference for a tenant.  How can another property manager make a true assessment on a potential tenant when they haven’t taken the time to speak with the property manager or landlord/owner?  So often there is more to the story, but you won’t find that out if you rely on your fax summary.
I have to say I am astonished the amount of times I have heard from my team members (past and current), family and friends that they have been approved to rent a property and no one called their employment or the property manager for a reference.  How is this possible?
If your property manager / real estate agent include character references as part of the application form, then they too should be called.  Otherwise what’s the point of having it on the application form??
Make sure any attachments you ask for continue to tell the story. Are the payslips from the current employer and are the wage earnings as per the application form? What about the drivers licence – does the address match their current residence?  If not, why not?
Finally, remember in some ways the processing of a rental application is no different to the steps you would take if you were employing that person to work in your organisation.  So spend the time to get it right!
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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leahcalnan-pwE6GD6KY9

Checking references is paramount to securing a good tenant

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<img src="/images/stories/jackman1.gif">
- Hugh Jackman on Australian property prices, speaking to a UK property website. 
<img src="/images/stories/jackman2.gif">
<a target="_blank" href="https://www.findaproperty.com/displaystory.aspx?edid=00&amp;salerent=0&amp;storyid=24084">Jackman is now looking to buy in London.</a> 
The report does contain some details that aren't quite right. His New York purchase was made in 2008, and he's not known to have as much property in Australia as suggested.
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jchancellor-FAypfDUnLy

Quote of the week

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Plastic surgeon Chris Moss and his wife, Andrea John, the former television journalist, have won their legal battle with Toorak real estate agent RT Edgar in the Victorian County Court over deceptive selling tactics.
Judge Tim Ginnane found that the couple were deceived in post-auction negotiations over a Toorak property sale.
The couple paid $2.7 million for the property but Ginnane ruled it was only worth $2.5 million and he awarded them the $200,000 difference. They had claimed damages of $475,000.
The purchasers sued the selling agents claiming that they were misled and deceived into bidding $2.7 million by a representation that a person identified as “Tom” had made a post-auction offer of $2.6 million, when in fact that was not the case.
The judge noted it was an irony of the case that the purchasers of the property went to elaborate lengths to mislead the vendors and the agents as to their interest in the property. They also failed to disclose the fact that they recorded a number of important conversations that they relied on at trial.
"However, under the law applicable to the issues in this case, it is the conduct of the vendors and their agents that calls for consideration," Ginnane noted during the 14-day trial.
The agents and the vendors were said to be liable for the misleading or deceptive conduct in contravention of the Trade Practices Act 1974 and the Fair Trading Act 1999 and to have accessorial liability for those breaches.
The agency denied that the agent Greg Herman had engaged in any misleading or deceptive conduct claiming the statements about “Tom” were made to placate Andrea John, who had behaved in an aggressive and inappropriate manner.
The agents described the plaintiff’s case as an instance of buyers’ remorse.
The purchaser of the <a target="_blank" href="/news">Toorak </a>property was the trustee of the superannuation funds of a plastic surgeon who practised in a building next door. The agent was the twin brother of one of the vendors.
The doctor’s case was that he wished to buy the property to give privacy to his high-profile plastic surgery patients, including those he said were “celebrities”. The doctor and his wife developed an elaborate strategy to purchase the property. The property was passed in at $2.1 million and negotiations commenced. A bid was made on behalf of the doctor at $2.4 million and then bids were made on the separate apartments. The agent said that he had already received an offer of $2.6 million, on his version, from a man driving a silver Mercedes. The doctor offered $2.7 million, which was accepted.
By chance, the doctor’s wife saw the underbidder, who was a man named “Tom”, driving past the property in a silver Mercedes a short time after the contracts had been signed. She flagged him down. He told her that he had not offered $2.7 million but $2.1 million. The doctor considers that he was duped and claims the difference between the true value of the property and the $2.7 million.
The RT Edgar agents and vendors denied any misleading or deceptive conduct or misrepresentations, but Ginnane says estate agents, in selling properties, may not engage in misleading, deceptive or fraudulent conduct. This law has general application to all commercial activity, including estate agents’ actions in selling residential property.
Ginnane added the law does not cease to apply because, as was the case in this proceeding, the purchasers themselves engage in conduct to attempt to disguise their interest in the property.
He ruled there was an entitlement to damages calculated by the difference between that price and the real, true or fair price of the property on auction day. The real, true or fair value of the property was $2.5 million.
The case for deceit was that the representations made by selling agent Herman were made fraudulently, in that R T Edgar Toorak knew the representation to be false, or alternatively, did not have a genuine or honestly held belief in the truth of the representations at the time it was made.
The buyer was induced to act upon the statements, and did so and had thereby suffered loss and damage.
The court heard Herman agreed to act for a low commission of 0.55% plus advertising costs of $15,000. R T Edgar Toorak was retained by an exclusive auction authority that stated an estimate of selling price of between $2 million and $2.2 million.
It was advertised at $2 million plus in the newspaper and appeared in the $1.5 million and $2 million section on the websites.
Moss and John arranged for two people to assist in purchasing the property at auction so that their interest would be disguised.
Tom Kartel was also interested in purchasing the property. He intended to use the property as his family home. Kartel made bids for the property and was the auction underbidder, although Herman did not consider that Kartel was a serious purchaser, as he had not sought copies of the contract documents.
RT Edgar Toorak office said there would be no comment.
Greg Herman, a company director, remains selling property with the agency including property in Toorak and South Yarra.
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Plastic surgeon wins court case against deceptive Toorak estate agent

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While an 18% increase in land sales in the June quarter is an encouraging sign, there will be no turnaround in the new home building sector until the March 2012 quarter at the earliest, according to Housing Industry Association and RP Data. 
Despite the significant increase in land sales over the June quarter volumes are still 25% lower than in the June quarter last year and 51% lower than their June 2004 quarter peak, according to the HIA-RP Data Residential Land Report.
 
The release of the report coincides with quarterly ABS building activity data which shows the value of new residential building work done <a target="_blank" href="https://www.propertyobserver.com.au/residential/residential-building-down-5.3-in-june-quarter/2011102052005">fell 5.3% to $9.53 billion over the June quarter</a> on a seasonally adjusted basis.
“The profile for residential land sales remains weak, indicating that the earliest we can expect a turnaround in new housing starts is the March 2012 quarter,” says HIA chief economist Harley Dale. 
“It is encouraging that land sales have stopped falling, but there is a long road ahead to ensure a sustainable recovery in new home building to levels commensurate with the housing requirements of Australia’s population,” he adds. 
<img src="/images/stories/hiaoct20.gif">
RP Data national research director Tim Lawless agrees that the improvement in land sales over the June quarter is an encouraging sign. 
“Land sales provide a solid leading indicator for future dwelling commencements. A further improvement in land sales over the September and December quarters will be warmly welcomed by the development and home building sectors which have felt the full brunt of the housing downturn,” he says.
According to Lawless, the Australian vacant land market hit rock-bottom during the December quarter last year with the following March quarter not much better.
“The fact that land sales showed a marked improvement over the June quarter, a time when the RBA was still hinting at interest rates hikes, suggests land markets around the country are likely to continue showing an improvement in transaction volumes over the remainder of 2011,” he says.
Dale says the over the last decade in particular the cost of serviceable land has escalated at a rate far in excess of general inflation and building construction costs, “driven by a lack of appropriate land release and excessive, government-imposed costs”.
“Independent research finds that over 40% of the cost of a house and land package can be attributed to taxation and much of that burden falls within the serviceable land component. Policy reform to reduce the excessive taxation levied on new housing is vital to ensuring Australia’s poor record on housing affordability is sustainably turned around.”
While land sales picked up over the June quarter, median land prices fell marginally over this period, though prices are still higher than a year ago, the report found.
The weighted median land value in Australia fell by 1.3% in the June 2011 quarter to be 3.5% higher than the comparable quarter in 2010. 
The median value for capital cities was effectively flat in the June 2011 quarter at $214,656, 5% higher than a year earlier. 
The median value for regional Australia fell by 3.7% in the June 2011 quarter to $155,784, to be up by just 0.5% on the June 2010 quarter.</body></html>

lschlesinger-FZcF9M3vE6

New home building recovery at least six months off: HIA/RP Data

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A rare 10,000-square-metre Warrawee offering topped the auction sales across Australia this week.
It was marketed as one of the largest blocks on Sydney's upper north shore, sold for the first time in 50 years.
The vendors, the Diocese of Broken Bay, pocketed $5.5 million.
The property’s house comes with seven bedrooms and five bathrooms. 
It sold through by Peter Hilton at Hilton Real Estate.
Mosman, then Hawthorn followed on the weekly RP Data top 10 sales list. (Click to enlarge)
<a href="/images/stories/rpdataoct20large.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpdataoct20small.gif"></a>
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Warrawee holding leads top 10 sales of the week

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Quarterly building activity figures have delivered depressing news for the residential construction sector spurring the Housing Industry Association to reiterate its call for a reform of housing taxation.



The value of new residential building work done fell 5.3% to $9.53 billion over the June quarter on a seasonally adjusted basis, according to the Australian Bureau of Statistics.



Work done on new houses fell 2% to $6.32 billion, while other residential building activity (units and attached housing) fell 11% to $3.2 billion over the three-month period.



NSW registered the biggest drop in new residential building work done, with activity falling by 13.7%



Building activity fell by 9.6% in Western Australia, by 6.9% in Queensland, 6.5% in the ACT and by 2.2% in Tasmania. 



The only state to record a significant uptick in residential building activity was South Australia, which recorded a 7.7% rise. Activity was flat in Victoria, up just 0.8%. 



The drop in new residential building was offset somewhat by an increase in the volume of major alterations and additions work done, which increased by 2.6% over the quarter. Major alterations and additions account for around 20% of total renovations activity.



HIA chief economist Dr Harley Dale says the final update for June quarter activity confirms a tale of two halves, with new home building activity continuing to deteriorate as major renovations activity climbs higher. 



“Renovations activity, both in terms of major jobs … and smaller jobs valued at less than $10,000, is the source of growth in the housing industry in 2011,” says Dale.



“This situation reflects an inherently more cautious household sector post the GFC, together with the excessive taxation of new housing and very high stamp duty incurred when moving home.” 



“Substantial reform of the very high and inefficient taxation of housing, especially new housing, in Australia is a vital area for policy focus and cooperation across levels of government,” he adds. 
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Residential building down 5.3% in June quarter

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At precisely 11.30am next Wednesday you should be able to work out whether the RBA will give borrowers an interest rate break at its November board meeting.
Why? Because that is when the ABS releases the all-important third-quarter inflation data, which tracks movements in “headline” and “underlying” consumer prices between June and September 2011.
The official headline number will not have much influence on the RBA board's decision since the bank believes that it has been biased by the see-sawing associated with various flood-affected prices.
This is one reason why the official figures have been so high over the last six months, expanding by 1.6% in the first quarter and by another 0.9% in the second quarter. What the RBA will be focusing on is the average of its underlying or “core” inflation estimates that strip out both rapidly rising and rapidly falling prices.
The two top guys at the RBA have both publicly commented this year that setting monetary policy – that is, the process by which the RBA, which is an independent, taxpayer-owned, central bank to our private banks, changes its "target cash rate" in order to influence the actual interest rates we receive on our savings and pay on our loans – has been the most difficult they can recall since the early 1990s.
That particular period is an important marker since it denotes the time when the RBA adopted a new policy approach called "inflation-targeting". In brief, the RBA decided that the smartest thing it could do was to try and influence the interest rates prevailing in markets in order to keep the change in the price of consumer goods and services between 2% and 3% per annum as frequently as possible (or, in the jargon, "through the cycle").
This 2% to 3% per annum inflation target, which is a little higher than the bands adopted by most other developed countries, was selected by the RBA simply because it was the rate at which consumer price inflation settled following the painful 1991 recession. While most 20- and 30-somethings will have forgotten, unemployment peaked at around 11% in 1991 in part because the RBA had lifted borrowing rates to an incredible 17%.
The 2% to 3% per annum band has been kept deliberately wide by the RBA’s boffins since they don't believe, frankly, that they can accurately forecast inflation to a single decimal place, nor, therefore, hope to be held to such an exact goal. This explains why the head of the RBA, Glenn Stevens, refers to the RBA’s objective as keeping the rate at which consumer goods and services prices rise to “two point something”.
The RBA's job has been particularly difficult this year because it had projected elevated inflation over 2011, 2012, and 2013, which, it understandably assumed, would necessitate higher rates.
These forecasts appeared uncannily accurate when the ABS released its official inflation data for the first and second quarters. Specifically, the RBA's preferred core inflation benchmarks averaged about 0.85% for the first six months of the year. This is considered well above the RBA's "acceptable rate", and would ordinarily have led to reflexive hikes.
While it came very close to pulling the rate trigger as recently as August – the decision not do so incidentally cost arbitrageurs billions of dollars – the RBA exercised the option to wait. Why? Well, there were three main reasons.
First, the devastating floods caused a major 0.9% real contraction in economic growth over the first three months of the year.  The RBA did not think it would be politically smart to lift rates during this period.
Incidentally, even with the floods reportedly lopping 0.5% off growth in the final quarter of 2010, GDP still managed to print at (an upwardly revised) 0.8% – or 3.2% annualised – which gives you a sense for the strength of the economy. Following the June quarter data, we know that domestic demand in the first half of 2011 has been running at a very healthy 5% per annum pace.
The floods were then followed by an unprecedented sequence of crises, from the earthquakes in New Zealand to the Japanese tsunami-cum-nuclear catastrophe (no small deal for Australia's second-biggest trading partner and the world's third-largest economy), then the adverse oil price shock invoked by a series of Middle Eastern revolutions, and, finally, the European and US sovereign debt crises. It is hard to conceive of more going wrong in any half-year period absent the outbreak of a global war.
Finally, there was the Australian dollar, which soared to what would have, until recently, seemed like unimaginable levels. The RBA's research implies that an increase in the value of our exchange rate pulls down the cost of imported goods and depresses activity in export and import-competing industries. All told, this helps to attenuate inflation.
So there were certainly credible reasons for the RBA to think very hard about its 2011 decisions. After the experience of 2007-08 when Australia's underlying inflation rate surged to 4% to 5% per annum, the RBA was keen to avoid a repeat of this episode. One quarter of bad data amidst the aforementioned headwinds was, to be sure, forgettable. But the even stronger second-quarter numbers appeared to make hikes a certainty.
Since wages and a host of other things are "indexed" to the official inflation numbers, the ABS gets the willies if anyone starts talking about "revisions" to its data (check out this <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbyReleaseDate/43D82029B57A002FCA25790D0003B123?OpenDocument">press release</a> scolding such talk). Formally, there are never revisions: the official numbers are the raw headline estimates, and they never change. Yet since these are affected by modifications to tax rates and once-off shocks like the floods, the RBA, and its financial market acolytes, get to mostly ignore them. They concentrate on the "cleaner" core measures of price changes discussed above.
While the ABS happily released its shocking core inflation numbers just before the RBA's August board meeting, what nobody in the public domain knew – save possibly two well-informed journalists at Fairfax – was that the ABS would subsequently publish substantial revisions to these numbers one to two months later.
These controversial "revisions" came in two forms. The first was a change to the way in which the ABS "smooths" the inflation data to manage clearly identifiable "seasonality". The ABS used to only smooth 20 of the 90 consumer price categories. It has now increased this to 64 classes of goods and services. This increased the historical rate of inflation a touch, but, more significantly, materially cut the (already smoothed) second quarter "core" inflation proxies from 0.9% to just 0.6%.
This really changes everything. Rather than a demonstrably accelerating rate of underlying inflation over 2010 and the first half of 2011, we have just one stand-out result in the first quarter after the ABS’s rehashed numbers.
The second revision was a change to the weightings that each of the consumer goods and services categories get in the overall make-up of the CPI. These weightings are adjusted every six years, and, according to the RBA, the new weights reported by the ABS (combined with an additional change to the way in which financial services inflation is calculated) further lower the underlying rate of inflation over the last year. These numbers might sound small, but they all add up.
The net effect of the revisions is that the underlying pace of inflation over the year to June 2011 fell from the RBA’s original estimate of about 2.75% to somewhere between 2.25% and 2.5%. To be clear, that is in the bottom half of the RBA's target band and has big consequences for the way in which we think about inflation.
Given the RBA's public statements following the original publication of the ABS’s second quarter inflation results, which characterised core inflation as "troubling", "broad-based", and, more importantly, caused the RBA to lift its underlying inflation forecast from 2.75% over 2011 to an unpalatably high 3%, it is unlikely that the bank fully understood the impact of these adjustments before they were released.
While it is not constructive to waste much time debating this point, we know, as a matter of record, that prior to the two revisions, the RBA had upgraded its official inflation projections, canvassed raising rates at its August board meeting, and made numerous remarks to the effect that it was worried by the data it was seeing, fingering, in particular, a rise in the cost of workers (or “unit labour costs”) as a culprit.
After the ABS revisions, the RBA has decidedly changed its tune, and argued that there is evidence to suggest that inflation might not be as strong as they had first thought.
For an institution that is paranoid about its credibility, this insinuates that there was, for some reason, a disconnect between the ABS and the RBA on the subject of the revisions.
This itself is no surprise given the two organisations have had a frosty relationship, with the ABS for years refusing to publish the RBA's preferred measures of underlying inflation. (This, as an aside, led investors into an analytical “arms race” after the release of the ABS's official inflation data to see who could first work out what the RBA's measures would actually be.)
Another wrinkle layered on top of all this is, I suspect, that the RBA would not be opposed to "normalising" the level of interest rates in view of its new information. If the third-quarter inflation numbers print on the very low side, they will hammer the final nail in the coffin of the current inflation debate. There will be no evidence that price pressures are accelerating. With a still high currency, this will then denude the rationale for holding the cost of money at the RBA's "mildly restrictive" level (assuming that the RBA is able to revise down all of its currently-elevated inflation forecasts out to 2013).
By bringing the price of money back to what the RBA considers to be a "neutral" level, it can signal to the community that it is not going to unnecessarily punish it on the basis of a misguided pursuit of inflation-fighting zealotry. In doing so, it builds up more goodwill with the public that can be expended when the RBA has a real inflation battle to fight.
A really low core inflation print next Wednesday of equal to or less than 0.6% might give the RBA sufficient ammunition to justify a pleasant Melbourne Cup Day present. It is hard to know what the bank would do if the core numbers come out at between 0.6% and 0.8%. One can be more confident that a core print of 0.8% or higher would significantly reduce any chance of interest rate accommodation, at least for the time being. Of course, all of this is subject to the usual condition that “bad stuff” can, and does, happen.
Christopher Joye is a leading financial economist. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Next week’s inflation numbers will determine the RBA’s next rate move

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Criticism has been heaped on the recently completed and not yet fully leased 1 Bligh Street office tower over its office plate design, restricted harbour views and premium rents.
Earlier this month, Dexus reported in an ASX filing that 44%<a href="https://www.propertyobserver.com.au/office/sydney-s-1-bligh-street-valued-at-%24629-million/2011101051875" target="_blank"> of the building was still untenanted</a>, with an analyst from Merrill Lynch saying it could take up to four years to find enough tenants to fill the state-of-the-art oval-shaped building,  jointly owned by Dexus Property Group, the Dexus Wholesale Property Fund (DWPF) and Cbus Property.
Commercial property insiders say the 1,600-square-metre curved floor plates, which each have a bite taken out of them by the atrium running all the way up the tower, is an unappealing feature for tenants considering taking up a whole floor.
In addition, insiders claim that the building offers more restrictive and less impressive Harbour views than other nearby office towers, where rents are significantly cheaper.
Rents are believed to be in the $900 to $1,100 per square metre range for lower floors rising up to around $1,300 for the upper floors.
Office space of up to 2,000 square metres in nearby 1 Chifley Square is being advertised for net rent of between<a href="https://www.realcommercial.com.au/property-offices-nsw-sydney-5294475"> $480 and $500 per square metre</a>.
The 1 Bligh Street building, valued at around $629 million, has a six-star green star rating with standout features being its double-skin façade and glass atrium requiring high rents to deliver a suitable return to its owners.
Levels 17 and 18 in 1 Bligh Street are due to be subdivided to cater for small boutique tenants following a trend emerging across other CBD office towers including Gateway Tower, Aurora Place and Chifley Square, The Australian reported.
Commercial leasing directors say smaller spaces can command higher rents adding as much as a 10% premium.
Its current anchor tenant is law firm Clayton Utz, which has taken 23,000 square metres of space comprising the first 15 levels of the building. <a href="https://www.propertyobserver.com.au/new-south-wales/prime-minister-julia-gillard-seeks-new-sydney-office-digs/2011081751191" target="_blank">The Commonwealth government is believed to be considering taking up to 4,000 square metres of space in the building.</a>
As part of its leasing agreement with Clayton Utz, Dexus agreed to pay the law firms rent at its previous premises at 1 O'Connell Street until the lease expired.
According to a report in The Australian, the bill totalled $50 million.
However, Dexus recently reached agreement with Australian Prime Property Fund and the Abu Dhabi Investment Authority, landlords of 1 O'Connell Street to allow refurbishment of the building. European bank BNP Paribas is reportedly considering taking up 10,000 square metres.
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Dexus’ 1 Bligh Street criticised over price, design and views

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A major correction in Australian property prices will occur over the next two years and an  even bigger one over the next decade and a half, according to University of Western Sydney associate professor of economics and finance Steve Keen. 
Keen is forecasting a 20% drop in house prices between now and the end of 2013.  
The economist has also also stuck with his forecast that prices will ultimately tumble by about 40% but stressed that this would occur over a much longer timeframe than previously reported. In September 2008 Keen made headlines when he was quoted as saying properties prices would fall 40% over the next few years, a statement he is eager to correct.
“I’ve always been strong in saying that [the 40% drop] will be over 10 to 15 years,” Keen said in an interview with Business Spectator.
“But in terms of bringing it to a tighter timeframe, I think you could tie me down to saying I’d expect something of the order of a 20% fall from peak to trough, whatever the peak might be, whatever the trough’s going to be. 
“I’d be quite happy now to say the last price peak was the overall peak and so I’d expect something of the order of a 20% fall between now and say the end of 2013.” 
Keen made the comments following publication of a new version of his book Debunking Economics. 
 
The academic forecasts that it will take up to two decades for the global economy to recover from the GFC. 
He criticised the US government’s response to the GFC and said it had got it wrong by giving money to the banks, which just put in their reserve accounts instead of to the indebted firms and households that needed it most. 
“If you look at what would happen with, say, an economy worth roughly a trillion dollars and an injection of a hundred billion dollars one year after a crisis begins, you do get about three times as much bang for your buck by giving it to the households than giving it to the banks. 
“So, Obama effectively wasted two-thirds of the money he gave to the banking sector – if he’s lucky. In fact, that’s probably an underestimation,” Keen says.
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Property prices to fall 20% by 2013 year's end: Steve Keen

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Against a backdrop of overall softer conditions in the Australian commercial property market, retail property remained the poorest-performing sector and has the weakest outlook, according NAB’s September quarter survey.
Hotel property remained the strongest performer in the commercial property sector in the September quarter, with the All Hotels Index standing at +23 points. However, conditions have softened since June (+27 points), with this market also impacted by a less favourable economic backdrop.
The overall decline in the commercial property sector was the result of “persistent uncertainty in the global economy and equity markets impacting negatively on confidence,” the bank says.
As a result, NAB’s Commercial Property Index fell to -13 points in September (-5 points in June), with the index now at its lowest point since NAB began surveying the market in March 2010.
The index is a measure of market sentiment and based on responses from commercial property market participants.
<img src="/images/stories/naboct20.gif"> 
 Source: NAB
Conditions in the retail property market turned down further in the September quarter, with the NAB Retail Property Index falling to an all-time low of -40 points. 
Forward expectations were also revised down, with the retail property index now forecast to remain negative through much of 2012 before rising modestly in 2013. 
Overall conditions have weakened in all states and are expected to be weakest in NSW. 
Capital value expectations were negative in all states in the September quarter and are expected to continue falling over the next 12 months. 
A mild recovery in capital values is forecast by September 2013. 
At the other end of the spectrum, industrial property was the only sector that reported stronger conditions in September, though NAB’s Industrial Property Index was still negative (-12).
Conditions in the industrial property market are forecast to bottom out this year, with the sector emerging as one the strongest performers in the commercial property space over the next one to two years.
WA is currently the best-performing state market, but the outlook is strongest in Victoria. There were no significant changes in national capital values and rental growth in September, with both still falling but at a slower rate than in June.
Positive growth is set to resume next year, with expectations for capital values and rents over the next one to two years strongest in WA and Victoria.
Improved conditions are forecast in all property segments over the next two years, but the pace of recovery is expected to be slower than previously anticipated.
Office property is expected to remain the strongest-performing segment overall and retail the weakest.
All states reported weaker conditions in September, except Queensland – although it remains among the weakest markets in the country. WA continues to be identified as strongest market and the only state with a positive index reading. However, it is expected to be overtaken by Victoria as the strongest market by September 2013.</body></html>

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