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.

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<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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Today I am going to drill into two key measures of real-time housing market activity: vendor discounting and average time on market. But before I do, I want to take stock of the all-important “rate debate”, which is so crucial to divining our housing destiny. 
Rismark’s bearish view on 2011 house prices (juxtaposed against a bullish position on rents), which we began outlining in September 2010, was predicated most importantly on our belief that rates would rise several times in the year ahead, which, we argued, would lead to “downward pressure on dwelling prices”. 
In November last year we got two hikes (care of the bank “top ups”), and, as I have explained too many times to count, we <a href="https://www.propertyobserver.com.au/economy/we-have-had-more-than-three-rate-cuts-without-the-rba-lifting-a-finger-christopher-joye/2011100351778">arguably received a brace of further “virtual hikes”</a> in 2011 via the impact of RBA “jawboning” on the spectre of rate increases. In particular, all the survey data suggests households have been budgeting on two to three additional hikes, which has helped crush consumer confidence.
As I have noted here before, the financial markets are pricing in a steep reduction in the RBA’s official cash rate over the coming year. These are the same folks who at various times have given us prices that implied rate cuts in 2010 (they rose), rate cuts earlier this year (they stayed on hold), and, at one juncture, a 100% probability of two rate cuts in October (no change). Suffice it to say, the financial markets have been relentlessly wrong. But then, as the RBA and I have gone to some lengths to <a href="https://www.businessspectator.com.au/bs.nsf/Article/reserve-bank-interest-rates-Christopher-Joye-bond--pd20110922-LX7AE?OpenDocument&amp;emcontent_spectators">explain</a>, the interest rate changes implied by financial market prices can be quite misleading. 
Notwithstanding a bounce back in global sentiment in recent days (bet you did not read about the positive US jobs report on Friday night that trounced analyst expectations?), a number of the RBA’s main media proxies have sung a decidedly dovish – i.e., rates heading lower – tune of late. This was presumably prompted by both private prodding and by the fact the RBA has, for the first time in a long time, explicitly countenanced “easing” policy should demand require it. One especially worded-up journo, who implied that he had access to the otherwise highly confidential discussions that take place at the RBA’s board level, claimed that the bank almost cut the cash rate in October but was prevented from doing so by the looming third-quarter inflation data. 
The RBA has invested an enormous amount of capital in its story around the positive income shock wrought by the structural increase in demand for Australian exports from developing Asian countries, which, it believes, will generate long-term inflationary pressures and the need for higher interest rates. It has given scores of speeches and parliamentary testimonies, and published vast volumes of research, in support of this specific thesis. It desperately needs some cover if it is to temporarily abandon it. One partial canopy has been supplied via the modest rise in the domestic unemployment rate to a still-low 5.3%. Yet as a purportedly “inflation-targeting” central bank, the RBA would ideally like the inflation data to also fall in line. 
For what it is worth, I employ the “inflation-targeting” label hesitantly since it is no longer clear whether the RBA has the political fortitude to respond to its forecasts of high inflation – either because it simply has no faith in its own guesses (one distinct possibility) and/or because it is worried about the fallout associated with hiking without the hard inflation case to back up its decision. At this stage, the RBA looks like it will only move rates into genuinely restrictive territory after the event: that is, when it has demonstrable evidence that the inflation cat is out of the bag. 
It seems to think that the risks of getting rate hikes wrong are too great to tolerate, which helps explain why the two core measures of inflation in Australia have averaged 3.2% per annum since 2002 (I only select June 2002 to put some distance between that date and the GST in July 2000). That is, the RBA likely has a policy bias to overshoot its target 2 % to 3% per annum band. 
Many once-hawkish economists have jumped on the burgeoning rate cut bandwagon, which was first kicked off by a now-famous reversal in the views of Westpac’s experienced chief economist, Bill Evans. Evans, who, to his credit, has held dovish dispositions for quite some time now, was reportedly pushed over the edge by a disturbing trip to Europe and North America. Following these meetings, Evans swung from projecting hikes to four cuts, commencing in December. 
After the high second-quarter inflation numbers – which were subsequently revised down – Evans looked like he had spent too much time in the European sun. But with the advent of the US debt ceiling crisis, ever-worsening European sovereign debt problems that threaten the fabric of the entire Euro zone, IMF downgrades to its global growth forecasts, and weakening local employment growth, Evans has quite rightly become the genius de jour. And all power to him: he deserves considerable kudos for making what was, at the time, a rather brave call. 
The only thing we know with certainty is that nobody, including the RBA, really has much of an idea what is actually going to happen on the first Tuesday of November. Some are paid to guess (economists), others are willing to punt (investors), and some like me get to bite their tongues until they obtain better information. 
And it is fair to say monetary policy rests on yet another knife edge, as it has done for much of 2011. If we get another upward movement in the unemployment rate combined with a, say, circa  2% (annualised) or less core inflation outcome, it seems that the RBA is set to abandon its February and August forecasts and undertake a major policy turn. Absent a meltdown overseas, and subject to the impact of bank funding costs on the latter’s “ability” to pass through one-for-one changes in the RBA’s cash rate, the first cut, if it comes, is likely to be 25 basis points. 
In a low third-quarter-inflation scenario, the RBA’s goal, one assumes, will be to put monetary policy back on a more balanced, or “neutral” footing, until it gets more dependable data on the local and global outlook. This implies a modest easing of policy in the form of one to two cash rate cuts. 
As most of the circa 5 million households with mortgages are on fully variable rate loans that can adjust with changes to the RBA’s cash rate, the influence of this decision on Australia’s listless housing market should be immediate. While we have yet to see any discernible improvement in housing atmospherics outside of <city><place>Sydney</place></city>, there are some partial data, such as the housing finance flows, which insinuate that it may be starting to “base”. 
The most important change is already taking place. This relates to the expectations of households regarding the future course of rates. Just as all the talk of rate hikes earlier in the year acted as de facto increases, tamping consumer and housing demand, so the unravelling of this sentiment will almost certainly have the opposite effect. 
The more thorny monetary policy question is what happens if core inflation prints in the third quarter at the top, or, heaven forbid, above the RBA’s 2% 3% target range? In quarterly terms, if the RBA’s two preferred measures of underlying inflation come out at around 0.7% or higher, the central bank will be placed in yet another bind. 
It will no longer have the inflation cover it was seeking: that is, evidence that price pressures are benign, and could be projected to remain around “two point something”. A bad third-quarter release will be all the more surprising given the ABS is adopting a new weighting system that many argue will help eliminate an upward bias, and a more comprehensive seasonal-adjustment method that reduces the risk of seasonally high (or low!) price changes giving us a bum-steer.
<hr class="system-pagebreak">
 Similar levels of complexity characterise current housing dynamics. Today I want to touch on two variables that RP Data and Rismark track closely: “vendor discounting”, which measures the amount by which owners have to reduce their list prices in order to secure a sale; and “time on market”, which, as the name implies, simply tells us how long homes remain available for sale before they are sold. The first chart below quantifies the vendor discount over time for Sydney, Melbourne and Brisbane houses. And the story is an interesting one. Whereas owners of dwellings in <place><city>Brisbane</city></place> are having, on average, to drop their list prices by nearly 9% before triggering a sale, the average Sydneysiders’ discount is a considerably lower 6.5%. In comparison to Brisbane, the Melbourne market also looks healthy, with the three-month moving average discount currently sitting at 7.2%. Click to enlarge
 <a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeoct111.gif"><img src="/images/stories/joyeoct111thumb.gif"></a>
As the chart above highlights, discounting is pro-cyclical, and the germane benchmark is obviously the 2008 crisis. Recall that during this episode the RBA had its cash rate slashed by a stunning 300 basis points by December 2008, whereas rates have been held at above-average levels throughout 2011. 
Drilling into the detail further, the Brisbane and Melbourne discounts look like mirror images of their 2008 forebears. In fact, conditions in <city><place>Brisbane</place></city> appear a tad worse, which may be explained by the impact of the floods. While it is similarly difficult to distinguish between the discounting in <city>Melbourne</city> in circa 2008 and 2011, today’s correction should be contextualised against the 29% capital growth realised by <city><place>Melbourne</place></city> homes over 2009-10. 
It is <country-region>Australia</country-region>’s largest city, <city><place>Sydney</place></city>, that seems the stand-out. At the depths of the GFC, Sydneysiders were compelled to cut the value of their homes by 8% to crystallise buy-side interest. Today the discount is 15% to 20% less, and has not increased – or decreased, depending on which way you look at it – nearly as much as its Melbourne or Brisbane equivalents. 
This accords with the story told by RP Data-Rismark’s hedonic indices: while <city><place>Sydney</place></city> homes have actually increased in value over the last 12 months, Melbourne and Brisbane dwelling values are down by 4.3% and 6.1%, respectively.  In the year to date, the Melbourne downdraft has been more noticeable, with values off 6% from their highs. 
The vendor discounting narrative is reinforced by our time on market data (see next chart below). Once again, we find historically very poor conditions prevailing in the <city><place>Brisbane</place></city> market, which look as bad as those that emerged during the GFC. Today the typical home takes about 58 days to sell. The Melbourne market also looks to be enduring a repeat of the 2008 experience, with the average time between listing and sale estimated to be around 50 days. It is <city><place>Sydney</place></city> homes that have again bucked the trend, with the time on market of 49 days well down on the 60 days recorded at the 2008 peak. Click to enlarge
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeoct112.gif"><img src="/images/stories/joyeoct112thumb.gif"></a>
These housing dynamics are important to the RBA. At the limit, it will be cognisant of the risks to bank balance sheets; more specifically, a deterioration in collateral values increasing the probability of a transmission of the North Atlantic contagion. If the stability of the overall financial system is in any way threatened, the RBA will not hesitate to act by reducing rates and ramping up the liquidity it provides deposit-taking institutions via its “repo” facilities. Think 2008 redux. 
This time around, however, Australian banks have far more secure funding lines in place (i.e., with more finance sourced from domestic depositors as opposed to fickle wholesale creditors), and know that the Commonwealth is prepared to use its unblemished AAA credit-rating, if required, to act as a guarantor (or lender) of last resort.
Christopher Joye is a leading financial economist and works with <a href="https://www.rismark.com.au/" title="Rismark International" target="_blank">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Rates on a knife edge as discounting and time on market increase

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The newly completed Dexus Property-built oval-shaped building at 1 Bligh Street has been valued at $629 million.
The flagship development was completed in July 2011 and was officially opened in August 2011 by Australian Prime Minister Julia Gillard.
The $629 million tower has been built to be the first high-rise office to win a six-star rating from the Australian Green Building Council.
The Bligh Street office tower has been to have asking rents for the top floors of about $1,100 to $1300, plus outgoings, according to a recent Australian Financial Review article.
Leasing agents are continuing to negotiate tenants for vacant floors, <a href="https://www.propertyobserver.com.au/new-south-wales/prime-minister-julia-gillard-seeks-new-sydney-office-digs/2011081751191" target="_blank">with the Commonwealth government yet to be confirmed as having struck any leasing deal</a>.
Some 51% of the office space is available, according to the latest ASX filing
The architects, Australian practice Architectus and German firm Ingenhoven Architects, came together for the design competition in 2006.
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jchancellor-FAypfDUnLy

Sydney's 1 Bligh Street valued at $629 million

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A review of some market indicators over the past 10 years shows that a lot has changed in the past decade.
In the June quarter this year the median Melbourne house price was $590,000, which is 103% higher than the $291,000 recorded in the June quarter 2001.
A decade ago the stamp duty payable was $13,120, which is 132%than the $30,470 that was payable on the median house if purchased in the June quarter this year. Unlike a decade ago, first-home buyers can now benefit from a 20% reduction on this bill for most homes.
However, the first-home owner’s grant was valued at $7,000 in 2001 and is still valued at $7,000.
According to the Australian Bureau of Statistics, the average home loan to a non-first-home buyer was $291,200 in June this year, 99% more than the $146,500 recorded in June 2001.
The median price of a house in Toorak was $2,175,000 in the June quarter this year, 105% higher than the $1,062,500 in the June quarter a decade ago.
In more affordable Broadmeadows the median was $370,500 in this year’s June quarter, a substantial 219% higher than the $116,000 in the June quarter 2001. This is indicative of a trend that the more affordable suburbs have increased in value more rapidly.
And finally, in the City of Ballarat the median house price has increased by 122% from $130,000 a decade ago to $288,500 in the most recent June quarter.
Enzo Raimondo is the CEO of the<a href="https://www.reiv.com.au/" title="REIV" target="_blank"> Real Estate Institute of Victori</a><a target="_blank" title="REIV" href="https://www.reiv.com.au">a.</a>
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enzoraimond-7fvRFHPR52

House prices (and stamp duty) more than double in past decade

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Deteriorating global credit markets are feared to have an adverse impact on earnings in the Australian real estate investment trust sector, according to research from Goldman Sachs and Morgan Stanley.
The listed property trust sector took a hit immediately after research was released yesterday, given concerns especially surrounding the debt due for refinancing within the current financial year.
The ASX 200 Property index closed down 2.1% against a 0.92% rise in the general market on Monday, October 10.
Close to $7 billion, or about 12% of the sector, is due for refinancing, of which about $4.2 billion is due before June 30, 2012.
A further $2.8 billion is drawn down but also to be refinanced this financial year.
Goldman Sachs property analysts warned there was a significant amount of listed corporate debt due for maturity in 2012, including: Westfield Retail Trust ($1.3 billion), Mirvac ($581 million), Dexus ($464 million) and Goodman Group ($406 million).
Since the initial media reports of the research Mirvac Group has advised the share market it had a strong capital position, with current funding headroom of greater than $600 million.
Mirvac managing director Nick Collishaw says Mirvac’s balance sheet remains in a robust position.
The company notes the report of the $581 million of corporate debt due for maturity in 2012 but stresses $505 million relates to a bond facility for which Mirvac has cash set aside sufficient to repay 100% of the facility; and $47.5 million relates to a bank debt that Mirvac repaid after June 30, 2011 from available cash.
“Our treasury team has worked hard to ensure that Mirvac's capital needs are able to be met by our existing facilities and cash flow.
“We believe that this activity is likely to significantly reduce the impact for Mirvac of any uncertainty that might be created by disruption in overseas financial markets,” Nick Collishaw advised the ASX.
Goldman Sachs executive director for real estate investment research Simon Wheatley suggests the debt crisis in Europe could force local companies to confront alternatives to refinancing their debt, according to a report by SMH commercial property editor Carolyn Cummins.
Most analysts say many REIT balance sheets are in better shape than they were during the last recapitalisation wave of 2008-09, but any debt concerns were unhelpful.
Two years ago REITs secured close to $14 billion from investors to boost balance sheets collapsing under high debts and falling asset values.
Morgan Stanley research notes global uncertainty is putting pressure on credit markets, resulting in an increase in collateralised debt security spreads for the sector.
''All, of course, will however depend on the macro environment, and if we do see the European sovereign crisis worsen, this will put pressure on the sector,'' the analysts say.
The A-REIT market closed Tuesday at 774, which was down 0.58% on the day.
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A-REITs take a hit due to debt fears

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An article in Melbourne’s Herald Sun this weekend (October 9, 2011) highlighted how it’s just as possible to lose money through unwise investment in the real estate market as it is with any other financial acquisition.  Residex sifted through 268,000 sales transactions to conclude that over the past three years 5,427 vendors have sold property for less than they paid (not taking into account stamp duty and transaction costs). 
To put this into perspective that’s a little over 2%, with the main losses occurring in areas that either have a surplus of high-rise developments – for example, Docklands and Southbank in Melbourne’s CBD – or in areas that suffer accentuated volatility during the property cycle such as those with $1 million-plus price tags such as the bayside suburb of Brighton, with a median house price of $1.79 million. Furthermore, the losses were incurred over a three-year period, which in real estate terms is too short to make any substantial profit even in the best of times.  However, even taking this into account, for many still hoping to get a foothold into their area of choice, life isn’t getting any easier or property prices any lower.
One sector of the market particularly feeling the strain is young families wanting to enrol their children in reputable inner-city schools.  Melbourne’s population is estimated to reach 5.6 million by 2026.  It’s growing faster than any other Australian metropolis, and while a bulk of the population is being squeezed into newer suburban regional areas such as Warrandyte and Werribee, it’s only a result of increasing density in the inner- and middle-ring suburbs with facilities unable to cope with the growing demand.  
While the state government has been busy planning large developments of high-density housing on disused industrial land such as Fisherman’s Bend in West Melbourne – an area expected to provide accommodation for an extra 12,000 residents – little planning or finance has been dedicated to adequately facilitating existing public schools or building new establishments to cope with the extra surge in enrolments.  Furthermore, the squeeze is putting pressure on an already limited supply of residential family accommodation for middle-income families wanting to give their children the best education Melbourne has on offer.
This is why there is a very strong connection between Melbourne’s top public schools and the prices of residential property.  If you analyse the statistics, being in a school zone for one of the top 20 or so government schools in Melbourne can increase the price of properties in the area an average of 10 to 15% – and the smaller the zone, the greater the pain.
For example, Melbourne’s McKinnon Secondary School zone only covers an area of around four kilometres – however, it spreads over four suburbs (McKinnon, Bentleigh, Bentleigh East and Ormond). There can be a big difference in the price of a house on one side of the street in the zone and the other side of the street outside the zone, even though they may be located in the same suburb. We’re talking differences of $100,000 or more on a house in Bentleigh East for example - which has a median price currently recorded at $732,500.  Even within such a small area, the number of enrolments being submitted to the school each year is often so high there is always talk of the zone reducing in size, which obviously worries anyone who is purchasing property near the zoning boundaries – take away the zone, and you can potentially wipe that $100,000 off the price tag.
As a consequence, the homes closer to the school (easy commutable distance –within two kilometres) will sell for higher prices and potentially generate a greater appreciation in price than those located on the edges.  Even in soft markets such as we’re experiencing at the moment, demand in the school zones remains robust. The average clearance rate in Melbourne is currently 58%, however in the areas surrounding McKinnon high school it’s sitting at approximately 70% and so tightly held is the location, there have been fewer than 50 house sales recorded by the REIV over the past 12-month period.
Investors add to the demand in school zones because not only is capital growth generally higher, so too is yield from families who have been forced to rent due to high property prices or not finding a suitable property in time for enrolment.  Neither is it unheard of for an old property located in a popular school zone to be rented by a family never intending to move in, but simply using the address to meet the criteria for enrolment into year 7. However, it’s important for investors to understand they will only reap the benefits of a school zone if purchasing a property that suits the major home buyer demographic in the area.
Purchasing a “set and forget” two-bedroom unit obviously won’t attract the same intensity of demand and will therefore only produce comparable returns for the general suburb rather than the school zone.  Developers aren’t missing out either – land sizes are shrinking as full blocks are being sliced in half to accommodate high-spec townhouses often selling for double the price of the initial land value – and to further accentuate the point, according to the latest valuer general data, over the past five years, houses in the McKinnon school zone have recorded an average annual growth rate of 12.62%.
It’s another symptom of poor planning for a growing population, which is unduly inflating property prices of desirable inner-city residential real estate.  For example, six years of secondary education at Melbourne Grammar School is currently around $139,920.  When you take into account stamp duty and transaction costs, plus the time and effort it takes to find a house appropriate for a growing family, you can easily pay more to get a foothold into a popular school zone. Therefore, even though we’re seeing price falls in some areas of the state, we’re still facing challenging problems adequately accommodating an increasing population looking to settle into the world’s most liveable city – and this will only result in increasing prices over the long term.
Catherine Cashmore is senior buyer advocate for <a href="https://www.jpp.com.au" title="JPP" target="_blank">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year.
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catherinecashmore-6LXia3pPQj

Property in prestigious school zones always in demand for both investors and owner-occupiers

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According to BlueScope Steel business, governments, industry associations and unions need to share responsibility for its recent decision to reduce (by 50%) Port Kembla's production capacity.
However, this attempt to distribute blame serves only to deflect attention from the more fundamental (and structural) changes occurring within the manufacturing sector as a whole.
Within his new book The Next Convergence, Nobel laureate economist Michael Spence makes some telling forecasts.
In his view, developing economies like China, India and Brazil (which house about 60% of the world's population) will reach “advanced status” by 2050-60.
And the current problems facing the West — excess debt, over-consumption and poor banking practices — are not merely a cyclical aberration.
Rather, they reflect permanent structural changes resulting from globalisation and technology — which are providing a shift in competitive advantage towards these developing countries.
However, as Alan Mitchell pointed out in a recent AFR article: "It is the resources sector that is allowing Australia to profit handsomely from the industrial revolution in Asia. And it is the services sector that employs 80% of the workforce and produces 80% of our gross domestic product."
Both these sectors employ a far greater proportion of uni graduates than does the manufacturing sector. And it is the resource and knowledge-based sectors that hold the key to Australia's competitive advantage going forward.
Clearly the growth of mining and the reluctance by consumers to spend are both adversely affecting manufacturers. And the Australian dollar is also likely to remain high for the foreseeable future.
Bottom line: It's not all bad news!
This shift in resources from the unprofitable manufacturing to mining allows us to capitalise on Asia's extraordinary growth. Plus, higher savings levels means that households will be better cope with any future global crises — as well as avoiding further rates rises, and an even stronger dollar.
Furthermore, the resultant growth in the service sector will also need to be accommodated — creating increased demand for office space within our capital cities.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

As manufacturing dwindles, office a better commercial investment

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Perth’s CBD would be a ghost town if it were not for the constant demands of bourgeoning resources companies.
The four big players – BHP Billiton, Chevron, Rio Tinto and Woodside – take nearly 20% of the CBD’s 1.5 million square metres of office space.
BHP, which is preparing to move into the city’s newest and most glamorous address, City Square, next year, takes up a massive 100,000 square metres of space spread across the CBD. Currently this includes 18,000 square metres in Central Park on St Georges Terrace and 15,000 square metres in 225 St Georges Terrace plus 3,000 square metres in 66 Murray Street, which is dedicated to training. The mining giant has other space in about four different buildings around town.
Four years ago BHP pre-committed to 40,000 square metres in the City Square project. Within the year this pre-commitment expanded to 60,000 square metres, which put the frighteners on several of the building owners who could ill afford to lose BHP as a tenant. However, the power of the resources boom has ensured that BHP will remain in its many leased addresses while expanding into City Square.
Meanwhile, over the past five years Chevron has been growing, with its initial 13,500-square-metre take-up of space climbing to about 68,000 square metres today. It is widely known that the oil company is looking to buy its own premises. Rio Tinto and Woodside each lease about 50,000 square metre of commercial space in the Perth CBD.
The Property Council WA deputy executive director Lino Iacomella agrees that the mining sector is the most important player in the CBD.
“Resources companies are the main driver of commercial office space in the Perth CBD, and increasingly those companies that are doing business with the core resource companies are becoming important players in the office leasing market,” he says.
In fact, most new office buildings going up have exposure to the mining sector.
“Mining companies are constantly bringing more people in to work in Perth. This creates a market not only for office space, but for new restaurants, shops and small bars and gives confidence for the very big projects like the Waterfront development and the state government’s Northbridge Link to go ahead,” Iacomella says.
Savills forecasts a 2.8% office vacancy rate for the September quarter. The report claims that the combined office take up from resources and associated supply companies account for more than half of the CBD’s leasing profile.
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Mining companies dig deep into Perth's CBD office rental stock

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Demand for industrial space in Melbourne’s west is exceeding available supply due to a surge in multinationals taking up space, according to Colliers.
The industrial suburbs of Brooklyn and Derrimut are proving popular, with a series of major deals negotiated recently by the real estate group. 
Relocation multinational Australian Vanlines and freight and storage group Mountain Industries have both signed leases in an industrial park at 1 Cawley Road in Brooklyn. 
Both companies will lease about 4,000 square metres of “container-rated hardstand” space, with Australian Vanlines signing a five-year lease at $173,200 per annum and Mountain Industries signing a three-year lease at $140,000 per annum. 
Other tenants in the industrial park include multinationals Coates Hire and John Deere. 
Colliers International senior executive Nick Saunders says the leasing deals are evidence of an emerging trend in the area. 
“There is continued pent-up demand for tenants wanting warehouses in the inner west, but with very little stock available it’s becoming ever-frustrating trying to place the enquiry that were are handling,” Saunders says. 
Melbourne’s west has already been one of the few industrial zones to attract speculative development, with Australand completing three speculative projects in the precinct earlier this year. 
CBRE’s Victorian director of industrial and logistic services Walter Occhiuto says there are very good opportunities for speculative development, “particularly given the demand from major retailers who are currently driving strong levels of pre-lease activity.” 
Other multinational that have taken up leases of space in the west include O’Brien Glass, which has signed a seven-year lease at $145,000 per annum for a 1,800-square-metre main road building at 712 Geelong Road in Brooklyn. The warehouse was previously occupied by Toyota Materials Handling. 
“O’Brien Glass saw an opportunity to expand their operations in Melbourne’s west, upgrading from an 800-square-metre office / warehouse a few hundred metres up the road,” Saunders says. 
Australian Graphics, a subsidiary company of Wesfarmers, has signed a three-year, $77,800 per annum lease for 868 square metres at 144 Australis Drive, Derrimut. 
“They are expanding out of Altona North to a brand new building which was leased off the plan,” Saunders says. 
CBRE executive director of global research and consulting Kevin Stanley says the strength in Melbourne port trade has helped stabilise industrial rents and build demand for industrial property. This has helped drive rental growth during 2011. 
Stanley expects industrial yields to compress by around 40 basis points per annum –“a very conservative estimate and one which is likely to spark some debate”. 
“The question will be whether the market comes in and buys stock more aggressively and pushes values up faster that what a traditional compression cycle would suggest.”
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Multinationals snapping up industrial space in Melbourne's west

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A new research note from Deutsche Bank has expressed a number of concerns about the Australian housing market, and has forecast an 18.4% decline in housing starts during the 2012 financial year, based on an assumption interest rates will fall by 50 basis points.

The note come just as the International Monetary Fund has released its own report, claiming that despite the enviable status of the Australian economy it is under threat from a housing market that could be as much as 15% over valued.
DB analyst Emily Behncke wrote in the note that if the RBA cuts interest rates by 50 basis points over the next year, and the world economy does not fall back into recession, housing starts may fall 18.4% in the 2012 financial year.
The news comes as the construction industry is continuing to suffer, with many SMEs collapsing as work dries up.
Behncke highlights that Brickworks, Boral and CSR have all downgraded their forecasts for housing starts by about 10%, and that housing prices remained most flat in the year to June 2011, and that the average median house price is seven times the average family income, although this has fallen slightly from last year.
"We believe our forecasts are at the lower end of the consensus range based on a combination of forecasts, (BIS, HIA), which forecast an average rate of 145,100 and 162,700 in 2011-12 and 2012-13 respectively."
"Hence, DB forecasts for 2011-12, and 2012-13 dwelling starts are -12.3% and -14.1% respectively below average forecasts by BIS and HIA."
There will also be a shift in the types of houses developed. There will be an increase in the number of multi-level apartment buildings, with construction already taking up 38% of total building starts, despite the historical average set at 30%.
There is also a shift from investors and first home buyers to upgraders, who will move up to bigger and better homes, the note states. The value of loans from investors has fallen 8.1% in the past year.
"Given first home buyers have also withdrawn from the market – currently at 15.2% of housing finance – the only strong sector is the move-up buyer."
"Annualised move-up buyers have increased 1.9% month-on-month and 15.1% year-on-year in July 2011."
The note explains the after tax cost of maintaining investment properties based on current median house prices on average rents was 2.3% of the purchase price in the June quarter, equivalent to 2006 levels.
"We note the investment property equation is most expensive in Victoria (2.6%) in June 2011. As a result, we are not surprised that investor finance figures show a reduction to investor participation of -1.1% month-on-month and -8.1% year-on-year in July 2011."
And while the note observes housing prices haven't actually fallen, they could do so over the next year. But it also suggests that the RBA may cut interest rates by 25 basis points in the first quarter of 2012, which would potentially offset any falls.
"Affordability declined for all states in comparison to the historical average basis in QJ11 (however, improved marginally in three states on a quarter-by-quarter basis)."
"Cash rate has risen 175 basis points since September 2009. Given our expectation the cash rate will decline 50 basis points in the next 12 months, we would expect affordability to improve."
It also notes that as long as clearance rates remain above 50%, prices are excepted to remain stable.
This article originally appeared on <a href="https://www.smartcompany.com.au/finance/20111010-deutsche-bank-report-predicts-housing-starts-to-fall-18-4-in-2012" target="_blank">SmartCompany</a>.
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Housing starts to fall 18.4% in 2012: Deutsche Bank

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Queensland sales volumes jumped by 33% in July as owner-occupier buyers surged into the market to avoid the August stamp duty rises, according to RP Data’s sales analysis.
<img src="/images/stories/rpdataoct10.jpg">
“The surge in buyer numbers suggests that buyer confidence may not be as low as many thought,” national research director Tim Lawless notes.
“The surge came at a time when the threat of higher interest rates was still quite real.”
While capital gains are likely to be a long way off, the foundations of the Brisbane property market are looking quite firm, with Lawless also noting the magnitude of price declines across the Brisbane housing market had eased.
“The result was still negative at -1.3%, however it was a substantial improvement from the falls being recorded earlier in the year, the worst of which was seen over the March quarter when values were down 3%,” Lawless says.
<img src="/images/stories/rpdataoct101.jpg">
“We have also been seeing the ‘value gap’ between Brisbane and the other major capitals expanding.
“Brisbane house prices are now 21% more affordable than Sydney’s and 11% more affordable than Melbourne prices.
“The gap hasn’t been that wide between Brisbane and Sydney since mid-2007, and the current price gap between Brisbane and Melbourne hasn’t been this wide since late 2003,” he says.
“This renewed affordability proposition may be attractive enough to entice more interstate migrants across the border as interstate migration into Queensland over the March quarter of 2011 was at the lowest level since 1981.”
<img src="/images/stories/rpdataoct102.jpg">
Source: RP Data
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