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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Holding Redlich will become the anchor tenant of the St James office project being developed by the Juilliard Group in the Melbourne CBD. 
The law firm has committed to lease the top two levels of the 555 Bourke Street building together with a portion of the ground floor. 
CBRE brokered the 6,500-square-metre lease, which will provide the law firm with a dedicated entry and lobby space.
 Holding Redlich senior partner Chris Lovell says the location, overall design and quality of the building are the three main drivers underpinned its decision to relocate the firm to 555 Bourke Street from its current offices at 277 William Street. 
The Juilliard Group is currently redeveloping the St James precinct and office building to include two additional floors on top of the current structure as part of a comprehensive refurbishment of the existing floors and an active precinct of 3,000 square metres of food and retail outlets. 
The Juilliard Group hopes to achieve a five-star NABERs rating for the project. 
CBRE has also been appointed to lease the remaining approximate 14,000 square metres of office space in the development that is due for completion by mid-2012.
It is speculated that St James will be seeking rents in the mid $400s net for the remaining space, which is commensurate with prime market rentals in 2012.
CBRE regional director of office services Hamish Sutherland says the balance of the space will enter the market in mid-2012, “coinciding with a forecast shortage of good-quality office accommodation in the Melbourne CBD”.
The latest Property Council office vacancy statistics pinpoint Melbourne as having the lowest vacancy rate of Australian’s mainland capitals as at June 30, 2010.
Six months of strong tenant expansion pushed the CBD vacancy rate down to 5.8% - the lowest level since before the global financial crisis.
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lschlesinger-FZcF9M3vE6

Holding Redlich to anchor Bourke Street tower

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Elevated gearing in A-REITs such as Macquarie Countrywide and ING Industrial Fund and the exuberant entry into foreign markets by A-REITs such as the Centro Properties Group and Valad Property Group caused significant damage to many A-REIT balance sheets. These imprudent strategies led all four of these A-REITs to be taken over or sold into other entities.
The expansion into foreign markets was designed to capture growth opportunities outside <country-region><place>Australia</place></country-region> in addition to the benefits of diversification into markets with fundamentally different underlying economic and social drivers. The low cost of debt capital in those overseas markets had encouraged acquisitions of assets and portfolios of assets. The A-REITs bought into markets that were characterised by rising asset values, and when debt availability dried up, asset values dropped substantially. A-REITs were then forced to raise equity to restore basic lending covenants and asset sales were effected to restore balance to balance sheets.
The poor outcome for the A-REITs that did not implement this strategy appropriately damaged the investor sentiment which had supported their price growth in the mid-2000s, as noted in Figure 1.
<img src="/images/stories/wistoct20.gif">
The 70% price drop across the board between October 2007 and March 2009 was testament to the damage caused by the unavailability of credit in the strategies implemented over the four years prior. In the two and a half years since that time there has been 35% price recovery as A-REITs regain ground, but they remain 59% below their 2007 peak. A-REITs such as Mirvac, Multiplex and GPT progressively withdrew from overseas markets signalling a shift in focus back to the domestic market. <city w:st="on"><place w:st="on">Westfield</place></city> and Goodman Group remain substantially invested in overseas markets as a core part of their investment strategies. 

The lessons learnt from recent experience include the importance of understanding property and its risks in overseas locations in its local context, as property is priced in accordance with local conditions. Associating with local partners who demonstrate aligned investment philosophies is also a critical criterion for successful overseas investment.

Mark Wist is senior asset consultant at <a href="https://www.atchison.com.au/" title="Atchison Consultants" target="_blank">Atchison Consultants</a>.
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markwist-Vaq6S8Xoby

A-REITs recovering from foreign investment gambles

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None of us like to be lied to or feel we’ve been fooled – and very few of us want to be beaten in a deal.

Buying a home is a significant emotional experience – and for many buyers there’s an extra emotional stress when we start dealing with agents and negotiating.

Selling agents are masters at managing buyer emotions. They’re quite capable of bending the truth when it’s in the interests of their client – the seller. As a buyer though, being at the other end of that manipulation can be incredibly unsettling.

When it happens – or rather, when we perceive it is happening – we feel a charge of emotion. We feel we are losing balance and self-interest and ego comes into play. Emotion builds up inside us and we change chemically. Our decision making processes alter – not necessarily to our benefit.

Feeling that we’re being lied to undermines our trust in the salesperson and in the whole buying process. I’m not dealing with that lying salesperson, we think. I’m not buying my home through an auction because it’s unfair.

That’s what you feel. However misdirected emotion can cause intolerable stress, leading to poor decisions, which can result in missing what should have been bought, paying way too much or buying the wrong home just to get rid of that stress.

As buyer advocates, the technique we use to help buyers maintain their equilibrium while knee-deep in difficult negotiations is to ask themselves some questions about how they are responding to the process. Only by being a master of your own responses can you remain in a balanced state to have the best opportunity to make the right decisions.

Ask yourself: Is it the action of the agent or your reaction to it that is causing you angst? The way you react to an agent’s manipulations may well be what is creating the emotion, increasing your stress and potentially lessening your outcome.

And if you are feeling outraged by what you believe are an agent’s lies, consider whether you as a buyer, haggler or negotiator are not also capable of the same when it suits your own interests.   Is your role as a buyer really more noble than the role of a selling agent?

For instance, if a selling agent asks me if my client has any more money to give in this deal, I don’t say yes, not if I feel the deal can be done there and then at that price. Is me telling the agent ‘no that’s the absolute limit’ a mis-truth, acceptable salesman’s puffery or a straight out deceitful lie?

From the other side, if as a buyer agent I knew I could buy this home at $2,000,000 but instead answered truthfully when asked the more money question as yes actually I have $2,080,000 or $2,340,000 have I committed a greater sin of deceit?

Should you even presume that your relationship with a selling agent will be based on trust? After all the deeper the relationship, the greater the emotional effect of the lie. But why would you try to form a normal trusting relationship with the specific people whose allegiance is completely to their client and whose role is to create conflict amongst buyers (auctions) and to minimise buyers’ interests where that benefits their client, the seller? (That role has legitimacy according to the Estate Agents Act and Common Law).

Why not form those relationships with people whose role is to minimise your conflict and to maximise your interests!

Selling agents are not bad people. They engage in techniques to maximise the interests of their client (the seller), most of which are legal and that you yourself would engage in, if you were skilled enough to do so.

Feeling aggrieved about being manipulated or feeling that you have been lied to by an agent rarely helps you.  All it does is make you emotional, alters your chemical balance and changes your decision making processes generally for the worse.

You can minimise the “lying effect” and the emotional roller coaster responses by engaging professional buyer representation, acquiring a deeper understanding of your main goals and good questioning technique when you hit the bumps along the way. All of this hopefully leads to a different, more beneficial perspective of what it’s all about – buying the right home not about “getting the agent”.

Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

maljames-vHwm28JUAa

Keep your emotions in check when negotiating for a property

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Australian banks are coping well with the current global market stresses in contrast to the challenges faced by their European banking counterparts, according to RBA assistant governor Guy Debelle.
Addressing the 24th Annual Finance and Treasury Association Congress in Sydney today, Debelle said Australian banks' funding structures were “considerably more resilient to periods of stressed markets than they were previously, given the changes that have occurred over recent years” compared with the stresses felt in Europe.
During the address, Debelle noted the funding pressures being felt by European banks and the need for European Central Bank funding support.
“The cost of funding for European banks generally has risen, while many banks in the European ‘periphery’ countries have all but been locked out of funding markets,” Debelle said.
In contrast he said, the equivalent spread between the bank bill rate and the expected cash rate in the Australian market while higher than earlier in the year, “had remained markedly lower than that in Europe”.  “To mitigate the impact of the sharp increase in the cost of unsecured interbank lending for European banks, the ECB has recently announced an expansion of its open market operations. Since May 2010, the ECB has stood willing to provide three month funding to banks in unlimited amount (against acceptable collateral) at its policy rate,” Debelle said.
“By way of contrast, the RBA's provision of liquidity has not changed in recent times. Australian banks' deposits with the RBA have remained around $1.25 billion for over 18 months now. More generally, we see little sign of strain or counterparty concern in the local interbank market.”
He also highlighted the fundamental differences in offshore funding costs for Australian banks versus those faced in Europe noting that the cost of swapping Australian dollars for US dollars has not increased in the most recent episode and indeed has gone negative at times.
In contrast the cost for European banks to obtain US dollars “has increased substantially since May this year, although it remains below the peaks post-Lehman [Brothers’ collapse]”.
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Australian banks more resilient than European: RBA

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In the past few weeks two major personalities – doomsday US commentator Harry Dent, who is spruiking a book, The Great Crash Ahead, and the telegenic star of Channel Nine’s The Apprentice show and founder of listed wealth manager Yellow Brick Road Mark Bouris – have gone head-to-head with their conflicting views of the world in high-profile presentations in Sydney and Brisbane. 
The Dent-Bouris clash has coalesced around several predictably sensational forecasts from the US economist, including, of course, that Australian house prices will fall by 50% (which has led Dent to beseech Aussie families to sell their homes), that the global economy is set for a big crash, and that you should get out of risk asset classes and squirrel your money away in cash. Interestingly, while the protagonists disagree on much, they also find some common ground. 
I was lucky enough to get access to Bouris’s presentation, and thought it was worthwhile reviewing in detail today. 
The founder of Australia’s largest non-bank lender begins by assaulting the presumption that the world is set on an irreversible course towards recession simply because the US and Europe are in trouble. 
More specifically, Bouris argues that there is too much financial market and media focus on the G7 economies, pointing out that they have accounted for less than 34% of global growth over the last decade. 
The “developing world”, on the other hand, has been responsible for generating nearly half of all global GDP over this period.
Bouris tells us that this disconnect is projected to widen: according to the IMF, emerging and developing economies will account for more than 60% of global economic growth over the next five years (see his first two charts below). Click to enlarge
 
<a href="/images/stories/oct191.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct191thumb.gif"></a>
<a href="/images/stories/oct192.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct192thumb.gif"></a>
His critical insight here is that Australia is one of the few developed nations that is industrially leveraged to the much more propitious emerging world: 65% of all our exports go to developing countries, with 75% sent to Asia alone. 
With this in mind, Bouris contends that notwithstanding the ineluctable vagaries of the business cycle, the urbanisation and industrialisation processes taking place in China and India – which collectively absorb one-third of all Australian exports – will inevitably continue. 
Here he draws on his bete noir, the RBA (more on that later), quoting the latter’s estimates that 300 to 400 million Chinese will migrate out of country dwellings into urban cities over the next two decades. Another fascinating statistic he digs out in this context is that whereas there are 170 Chinese cities with more than one million residents, Europe, by comparison, has only 35. 
In a dose of good fortune for the lucky country, it just so happens that the modernisation underway in “Chindia” is dependent on three things that we produce in abundance: steel (iron ore); energy (coal and LNG); and protein (agriculture). On the latter variable, Chinese protein consumption per head has exploded, as it typically does when per capita incomes rise. 
Bouris explains that this is directly impacting Australia’s economy via an unprecedented, and mostly assured, wave of private investment. He presents data showing that the domestic capex that has already commenced, but is not yet complete, is currently worth about $105 billion, or 8% of 2011 GDP. If you then include the more speculative “planned” investment for 2011-12, total expected capex spending rises to a stunning $160 billion, or 12% of 2011-12 GDP using past “realisation ratios” (i.e., the share of planned capex that actually gets expended). The two charts below graphically outline this thesis. Click to enlarge
<a href="/images/stories/oct193.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct193thumb.gif"></a>
<a href="/images/stories/oct194.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct194thumb.gif"></a>
The message from the Wizard Home Loans founder is perhaps best paraphrased as: Yes, the North Atlantic economies will likely experience challenging economic times. But, the G7 is emphatically not the “global” economy; in fact, it will contribute less than 29% of global output in the next five years. So while difficult days could lie in wait, the world will not end, as our friend Dent insinuates. 
The key take-away is that Australia is well-positioned to navigate any future turbulence given that most of our major commercial linkages are with those parts of the globe that represent the new world. 
At this stage, Bouris temporarily digresses to critique the RBA. He thinks interest rates are being held too high by the RBA’s obsessive inflation focus, which, it must be said, is scorn that has attracted added weight in recent months. After initially reporting two scorchingly high headline and core inflation prints, the ABS has unusually revised down the underlying numbers to much more benign levels. Recent changes to the ABS’s weighting methodology also cast a more favourable light on the current inflation pulse. It would appear that the RBA is reluctantly moving towards this Boursisian view of the world, with its media proxies canvassing a once-off Melbourne Cup Day cut in the last couple of days. 
While Bouris disagrees with Dent on the outlook for the Australian economy, he is more sympathetic to his portfolio construction preferences. In particular, he agrees with Dent that the emergence of people in the “baby boomer” demographic, which were in the “accumulation” phase of their life-cycles during the 1980s, 1990s and 2000s, drove demand for higher-returning (and higher-risk) investments like shares and real estate. 
This effect was redoubled, Bouris notes, by the introduction of superannuation in 1992, which directed the vast bulk of household savings into volatile shares. As the baby boomers transition into retirement and start to “de-accumulate”, the demand for higher-growth assets will dissipate, which is a negative for equity returns. The main beneficiaries of this demographic dynamic will be those asset-classes that offer certainty and security; namely, cash and fixed-income. 
At this juncture, however, the back-slapping ends. Whereas Dent maintains a very pessimistic position on shares and real estate care of his prediction that the “great crash” is coming, Bouris’s views are founded on a more nuanced evaluation of risk. 
Using 30 years worth of data, he shows that the total returns to 10-year Australian government bonds have outperformed both global equities and ASX-listed property trusts (LPTs). On a risk-adjusted basis, government bonds and cash (i.e., bank bills) leave Aussie shares, global shares and LPTs for dead (refer to the Sharpe Ratios, which divide the investment returns – less the risk-free rate – by the volatility, in the table below).
 
<img src="/images/stories/oct195.gif">
The story here is simply that cash and fixed-income have an important – not exclusive – role to play in properly diversified investment portfolios. 
 
<hr class="system-pagebreak">
 
Bouris backs this up with much more sophisticated “portfolio optimisation” analysis across the major asset-classes over the last three decades (see next chart). He explains that if one were to “target” an expected nominal return of, say, 10% per annum (or inflation plus 4% to 5%), most of your money should have been invested in cash and fixed-income, with only a relatively small 10% to 20% weight to Aussie shares. Click to enlarge
 
<a href="/images/stories/oct196.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct196thumb.gif"></a>
Interestingly, in these optimisations global shares and LPTs don’t attract any capital at all because of their ultra-high correlations (or “beta”) with domestic shares, which means that allocating across all three assets just parlays up your risk with no performance benefits (since global shares and LPTs yield inferior returns). 
Regular readers will know that I have made similar comments in this column over the years, and Bouris echoes my censure of Australian pension fund portfolios harnessing the latest OECD data. The OECD’s analysis demonstrates that Australian super funds have among the highest exposures to risky equities of any pension system in the world, which has propagated comparatively poor returns. 
The final clash in the Bouris-Dent conflict takes place over the familiarly emotive territory of Australian house prices. In remarks on David Koch’s Sunrise program, Dent begged viewers to sell their homes before the 50% crash in prices arrived at their doorsteps. Dent’s argument appeared based solely on the claim that Australian dwelling values were “9.5 times family incomes”, and should, in his view, be about “half” this level. 
As with many spruikers in search of a headline, Dent’s claim is incorrect. And Bouris was more than happy to set him straight. He starts by noting that while Australian interest rates are among the highest in the OECD, Australia’s mortgage default rates are a fraction of most peers. In particular, the latest RBA data finds that only 0.8% of the circa 4 to 5 million households with a mortgage are behind on their repayments. This is around one-tenth and one-quarter of US and UK ratios, respectively. 
He then contrasts the long-term rise in the cost of Australian housing with house prices in a nation that has endured a sharp correction: the United Kingdom. During the GFC, UK house prices fell by 14% peak-to-trough, while the unemployment rate has soared to over 9%. 
Despite the partial collapse of the UK banking system, extreme credit rationing and default rates multiples Australian levels, Bouris’s analysis shows that long-term house price growth in the two countries has been indistinguishable. It was, in fact, UK house prices that substantially overshot their Australian siblings in the five years before the GFC hit. And it has only been the recent crash that has brought them back in line Australian prices indexed since 1993. 
Bouris extends this insight to a range of other countries again using RBA data. This confirms that the run-up in Aussie house prices in the period 2003 to 2007 was actually substantially less than that experienced in the US, UK, Spain, Ireland and France (see first chart below). Indeed, if there was any “bubble”, it would appear to be found in Australian commercial real estate (refer to the left-hand-side panel in this same chart), which has produced much stronger price appreciation than equivalent assets overseas. Click to enlarge
 
<a href="/images/stories/oct197.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct197thumb.gif"></a>
<a href="/images/stories/oct197.gif" title="Click to enlarge" rel="shadowbox"></a>As the final chapter in the housing debate, Bouris directly attacks Dent’s proposition that Australian house prices are 9.5 times family incomes. He presents a chart released by the RBA in the latest Financial Stability Review (see below),  which shows that their estimate of the correct house price-to-income ratio is, in fact, around four or five times (or, ironically, half Dent’s claims). With this information in hand, Bouris opines that “Australian house prices are not going to fall 50%, and your home should remain a solid, tax-effective store of wealth over the long-term.”
<a href="/images/stories/oct198.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/oct198thumb.gif"></a>
As you can tell, I find the Yellow Brick Road chairman’s view of the world more persuasive than Dent’s. Bouris left his listeners with a final thought, which I think is worth quoting in full: 
“I believe we do indeed live in the ‘lucky country’, but the RBA cannot afford to roll the dice with our destinies in the name of pursuing some statistical abstraction. We are incredibly fortunate to be endowed with rich natural resources, and to be highly leveraged to that part of the world that is growing rapidly – the developing countries – rather than the old world that is stagnating. Having said that, it makes sense to prudently diversify your wealth to protect against adverse outcomes, and, subject to your risk preferences, you should have part of your portfolio invested in safer income-generating assets like cash and fixed-income.”
 
Harry Dent and Mark Bouris appeared at three-day Brisbane conference “Secure the Future”.
Christopher Joye is a leading financial economist. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Mark Bouris tackles Harry Dent's bearish claims: Christopher Joye

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Property developer Dexus will take at least four years to fully lease its recently completed 1 Bligh Street tower in the Sydney CBD, according to Bank of America Merrill Lynch analyst Simon Garing.
The 27-storey tower features floor plates measuring 1,600 square metres.
Its major tenant is law firm Clayton Utz. <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/prime-minister-julia-gillard-seeks-new-sydney-office-digs/2011081751191">The Commonwealth government is believed to be considering taking up to 4,000 square metres of space in the building.</a>
In an October ASX filing, <a target="_blank" href="https://www.propertyobserver.com.au/office/sydney-s-1-bligh-street-valued-at-%24629-million/2011101051875.">Dexus said 51% of the office tower was still available for rent.</a>
In a note, Garing says the listed trust faces an increasingly volatile environment with key tenants in the highly leveraged financial services sector remaining cautious.
The investment bank has an “underperform” rating on Dexus, while Goldman Sachs and CLSA more optimistically describe the trust as a “safe haven”, the Australian Financial Review reports.
Rents in excess of $1,100 per square metre are being sought for the upper floors of the oval-shaped tower, which is significantly higher than nearby office towers.
The office tower is advertising rents around $650 per square metre.
The 1 Bligh Street tower was recently valued at $629 million tower and is the first high-rise office building to win a six-star rating from the Australian Green Building Council.
It was completed in July this year and officially opened in August 2011 by Prime Minister Julia Gillard.
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Dexus will take four years to lease 1 Bligh Street: Merrill Lynch analyst 

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All economic activity is fuelled (and limited) by the availability of three things: land, labour and capital.  The term “demand” can be interchanged with “labour” in some instances.  Without all three components, economic activity does not grow – well, not as fast as it could.
When it comes to new housing in Australia, the availability of land is largely restricted by politics and poor policy and not the actual absence of land.  Hence, serviced land is what is expensive and not the actual dwelling itself.  A recent housing study by the RBA shows that land costs far more where development restrictions are tightest.
Over the last 10 years or so, the cost of vacant serviced suburban land has escalated by over 230%, and the price of urban redevelopment sites has increased even faster.
More new houses would be built across the country if the current jihad on detached homes were dropped; we simplified our planning schemes; stopped all the nonsense compliance and shut down troublesome state government departments.  The Queensland Department of Environment and Resource Management (known in the industry as DNO or the Department of NO), for example, springs to mind.  We want our bureaucracy “on tap”, not “on top”.
Such action would improve the supply of land, thereby reducing its cost and making new homes more affordable.  The demand for new homes would subsequently rise.
Too simple?  Well, in fact no.  This is exactly what needs to happen on the supply-side of the equation.  The trouble is this takes political will – and even if such will were to emerge (the sooner Queensland goes to the polls the better), it will take time to implement.  And many of us just cannot continue to hang on for that long.
It is also painfully obvious that the new housing industry is being penalised by the lack of adequate finance.  While this situation is unlikely to improve dramatically until global funds free up – something that largely depends on an economic recovery in United States – there are certain things on the finance or capital side that could be done to help boost sales.
One solution would be to include overseas sales in off-the-plan, pre-construction financial prerequisites.   For some reason, bankers think that the only “real” sale is a local one.  But, as is blatantly obvious to local retailers these days, the internet has changed the way we buy (and sell) products, and real estate is no different.  An internet inquiry (with certain caveats) is as good as a walk-in these days.
The finance industry is doing its developer clients a major disservice by not treating overseas off-the-plan sales with the same weight as a local transaction.
Now, I would understand the reluctance to accept an overseas sale if they had a track record of not settling; reselling quickly or for major losses – effectively dumping the stock if their finances got a bit dicey.  But all the evidence is to the contrary.
Overseas buyers, especially given current market conditions, are more likely to settle than Australians, yet the banks continue to discount any overseas buyer for pre-construction finance purposes.  Nowhere does this speak more loudly than on the Gold Coast.  We understand that the settlement rate is 100% for overseas buyers across the likes of The Oracle and Nirvana.  Pity the same cannot be said about local sales.
Our recent study of apartment sales across the Brisbane CBD found that close to one-quarter (23%) of the off-the-plan buyers were from overseas.  Overseas interest now equals sales from interstate (a 26% share of the new Brisbane CBD apartment market).  Overseas buyers now make up a substantial and growing market segment.  To ignore this trend is foolhardy, indeed.
It would also be great if overseas buyers were allowed permanent residency if they bought a new dwelling in Australia.  Certain caveats would apply such as the cost of the dwelling (maybe over $500,000); the length of the initial PR status (suggest five years, owners can reapply in due course) and a limitation (maybe denial) to accessing our welfare system.  Such as change would dramatically increase demand for new property in Australia.
Allowing overseas owners of all property, regardless if it is new or established, to resell their Australian assets overseas and not just to a local (Australian) buyer would also do wonders.
Many across the world view Australia as a safe haven.  We should be capitalising on this.  Yet, when you go to an Asian property expo, watch which exhibits make the most sales. They are nearly always those that offer buyers PR (with caveats) and the right to resell anywhere.  Will someone for the federal government please take note!
We need to fix the new housing industry from the ground up (pun intended) – major changes need to be made to correct the high cost for producing serviced land.  This will take political will and time.   In the meantime, much more can be done to ease up capital and get more new developments off the ground.
Many of us like a fair fight, but we are growing tired of having to fight with both arms and now legs tied behind our backs.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
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Overseas buyers must be encouraged to help our housing market

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A proposed 12-storey Richmond apartment block with shops is set to hurt the re-sale potential and rental income of the four homes sold recently on Channel Nine's hit TV series The Block.
The Coles supermarket group has revealed plans for a $250 million, 333-dwelling apartment complex immediately opposite the Cameron Street homes.
Coles has lodged plans with Yarra Council to demolish the Richmond Plaza centre between Bridge Road and Church Street.
The proposal, which includes 12,000 square metres of retail and commercial space, 530 basement car parking spots and 151 bicycle spaces, has yet to be put out for public consultation.
Yarra mayor Alison Clarke notes the site is in a heritage area, with low-rise residential immediately behind it, and is above the general council policy of five- to six-storey development.
Yarra councillor Steve Jolly told the Melbourne Times Weekly the proposal was a "medium-sized skyscraper in the heart of Richmond… This is not planning, this is an orgy of profit-driven development."
The <a target="_blank" href="/news">Richmond </a>cottages, bought by four investors, sold for between $855,000 and $1 million in August.
Prominent Melbourne buyers’ agent Mal James concluded after his August pre-auction inspection that “the position was a shocker.”
“Stand in the street or look on Google streetview and do a 360-degree turn – what do you see? Industrial sites, multistorey car parks. And who knows what is going there in the future?” <a href="https://www.propertyobserver.com.au/auctions/eight-property-rules-broken-by-the-block/2011082851318" target="_blank">James noted before the auction.</a>
“This for me was the real killer,” he said.
“As a bit of fun we rated all The Block properties,” James said, noting his firm traditionally only dealt with prestige $1 million plus houses.
“While all contestants had done some great things, we are not sure we would put any on our shopping list.
“The internals may excite but the externals of no car parking, industrial street and commercial neighbours do not,” James added.
James Home Ratings examines pieces of information about a home and matches them against established buying criteria ranking them with a score out of 1,000. His rankings for the four Cameron Street houses ranged between 502 and 615.
A rating below 550 means the property “has issues”. Between 550 and 650 is at the low end of average.
None of the Cameron Street buyers contacted by The Age property editor Simon Johanson were aware of Coles’ plans.
One buyer, who did not want to be identified, said: ''We thought Coles was going to be doing some revamping but we weren't aware there was going to be an apartment block.''
Valuer Robert Bath said such a large development would have a ''detrimental'' impact for owners in the neighbourhood.
''Anything that's high density is going to have deleterious impact,'' he told The Age.
Coles spokeswoman Alecia Batten says Coles is working in conjunction with developer Gresham Property for the project.
Jolly says developers are “trying to rip the heart out of Richmond''.
If approved, it would be the latest in a string of major developments across Richmond, including the Jaques site in Palmer Street, the former Channel 9 site in Bendigo Street, and the Dimmeys redevelopment in Swan Street.
Coles’ bid to redevelop the shopping centre was first reported by the Melbourne Leader last month.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our free e-book Lights, Camera, Auction!</a>
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The Block buyers face a proposed 12-storey Richmond apartment block threatening their investments

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A small increase in the value of owner-occupied housing finance in August is an encouraging sign for future housing construction, according to the Housing Industry Association.
The total value of owner-occupied housing commitments excluding alterations and additions rose 1.3% in trend terms and by 0.6% on a seasonally adjusted basis, according to ABS figures for August 2011.
In seasonally adjusted terms, the total number of loans increased by 5.7% in the Northern Territory, 1.1% in Victoria and Queensland, 0.7% in Western Australia and 0.1% in New South Wales. 
The total number of loans fell in the Australian Capital Territory (-9.7%), South Australia (-2.1%) and Tasmania (-0.6%).?
"The overall profile for new home lending has essentially bottomed out through the middle months of 2011," says HIA chief economist Dr Harley Dale. 
"Considering new home starts fell in 2010-11 and look set for a further decline in 2011-12, it is encouraging to observe this bottoming out in a key leading indicator of new residential construction activity."
"There is a long way to go to turn around the new home building cycle and ensure a sustained recovery can begin making inroads into the substantial dwelling shortage Australia faces,” Dale says. 
"It is vital to see a commitment now and in future years from all levels of government to reduce the excessive and inequitable taxation of new housing which cripples new home affordability, hinders labour mobility, and constrains productivity growth." 
The number of loans for construction increased by 0.8% in August 2011 while loans for the purchase of a new dwelling were up by 6%, yielding a 2.4% rise overall in new home lending for the month. 
The number of loans for established dwellings (excluding refinancing) increased by 0.6% in August.
"New home building conditions remain weak, but interest rates are steady, skilled labour is more readily available, and the market is very competitive. If you're in a financially sound position to do so, now is an excellent time to be building a new home," Dale says.
Commercial loans increased by 7.9% in August, the second consecutive strong month for business loans, coming after a rise of 5% rise in July.
Loans for investment properties were down 0.7% in August.
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Small uptick in home loans an encouraging sign: HIA

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Punters betting on a Melbourne Cup rate cut should seek long odds, according to three of the major banks. 
ANZ, Westpac and Commonwealth Bank have all highlighted the RBA’s less concerned outlook on inflation following the release of the minutes of the October board meeting as well as expectations that inflation figures will be revised down when quarterly figures are released on October 26.
The banks expect the Reserve Bank to keep its hand on the pause button for at least another month, weighing up solid domestic growth prospects against global economic concerns. 
Westpac chief economist Bill Evans says the minutes of the RBA’s October meeting provide confirmation that the board now sees scope for monetary policy to ease. 
Evans highlights the belief among RBA board members that an improved inflation outlook, “if confirmed by further data, would increase the scope for monetary policy to provide some support to demand, should that prove necessary”.
According to Evans, the implication of revised inflation figures is enormous. 
“In the space of three months we would see the bank move from forecasting a clear breach of the inflation target for two consecutive years to staying comfortably within the target and in fact seeing a modest slowdown through 2011,” he says. 
Furthermore, Evans points to other weaknesses in the local economy such as house price depreciation, a drop in business confidence and expectations of a softening labour market. 
However, he says global markets have rallied since the “absolute low point”, which coincided with the October 4 decision, while the Australian dollar has recovered significantly. 
As a result, Evans says the bank is sticking with its December rate cut call, which it first made back in July. 
“At this stage we retain our call for a December cut while recognising that the inflation print for the September quarter could easily open the door to an earlier move,” he says. 
Commonwealth Bank senior economist Michael Workman says the most likely scenario is that the RBA will leave the cash rate at 4.75% in coming months rather than opt for a rate cut. 
“We think that the rate cut case is incomplete and the medium-term outlook still favours a higher, not lower, cash rate,” he says. 
“The data released since the October board meeting had not added to the case for a rate cut. The markets’ reactions to the EU proposals to resolve their debt problems are the next major international hurdle for domestic monetary policy considerations,” Workman says. 
ANZ senior economist Craig Michaels is forecasting a 0.5% month-on-month increase in inflation for the September quarter, which would make it increasingly likely that underlying inflation would be under the upper limit of the RBA’s target range of 3% by year-end. 
“Such a significant change in the short-term inflation outlook, with the RBA previously forecasting underlying inflation of 3¼% by end-2011, in our view suggests there is minimal cost to a small 'insurance' rate cut of 25bps come Melbourne Cup Day,” Michaels says. 
However, should RBA ease monetary policy, ANZ expects only a modest easing cycle, which “may well be unwound in late 2012 or early 2013, should growth pick up more strongly than expected”. 
“This contrasts with current market pricing of sharp easing over the next few months, which appears to factor in a disaster scenario in Europe,” ANZ says.
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