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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Signs of a strong spring selling season for the Brisbane unit market are emerging with its inner-city market recording a 15% bump up in preliminary sales and the median unit price holding steady at $395,000 over the June quarter. 
On an annualised basis, median apartment sale prices in the inner ring increased by 1.3% from $400,000 in June 2010 to $405,000 in June 2011, according to Real Estate Institute of Queensland data.
Across the greater Brisbane area, prices improved marginally 0.5% to a median of $375,000 over the June quarter. On annualised basis the median sales prices was up 0.3% in June 2011 to $376,000 compared to $375,000 recorded in June 2010.
On an annualised basis the number of suburbs recording annual median price increases from June 2010 to 2011 outnumbered those were sales prices have declined.
More than half (36) of the 70 suburbs included in the REIQ survey recorded price increases, while 28 recorded annualised price declines.
<table width="435" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="195"></td>
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<td valign="bottom" nowrap width="80"></td>
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</tr>
<tr>
<td valign="bottom" width="195">
Locality
</td>
<td valign="bottom" width="80">
Median Sale Jun11
</td>
<td valign="bottom" width="80">
Median Sale 12mths Jun11
</td>
<td valign="bottom" width="80">
1yr change
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="195"></td>
<td valign="bottom" nowrap width="80">
 
</td>
<td valign="bottom" nowrap width="80">
 
</td>
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</td>
</tr>
<tr>
<td valign="bottom" width="195">
BRISBANE (SD)
</td>
<td valign="bottom" width="80">
 $375,000
</td>
<td valign="bottom" width="80">
 $376,000
</td>
<td valign="bottom" width="80">
0.3%
</td>
</tr>
<tr>
<td valign="bottom" width="195">
BRISBANE CITY (LGA)
</td>
<td valign="bottom" width="80">
 $395,000
</td>
<td valign="bottom" width="80">
 $405,000
</td>
<td valign="bottom" width="80">
1.3%
</td>
</tr>
<tr>
<td valign="bottom" width="195">
 
</td>
<td valign="bottom" width="80">
 
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</td>
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CARINA HEIGHTS
</td>
<td valign="bottom" width="80">
$372,500
</td>
<td valign="bottom" width="80">
$393,250
</td>
<td valign="bottom" width="80">
-12.7%
</td>
</tr>
<tr>
<td valign="bottom" width="195">
NEWSTEAD
</td>
<td valign="bottom" width="80">
$835,000
</td>
<td valign="bottom" width="80">
$605,000
</td>
<td valign="bottom" width="80">
19.8%
</td>
</tr>
</tbody></table>
 Source: REIQ
Median annualised sale prices in Newstead, on the banks of the Brisbane River, have increased by almost 20% from $505,000 to $605,000 though the results were skewed by the small number of sales.
Of the 28 suburbs to record a decline in median prices over the year, the biggest fall (12.7%) occurred at Carina Heights, about 7.5 kilometres southeast of the CBD, with annualised prices falling from just over $450,000 in June 2010 to $393,000 in June 2011.
Across Queensland unit and townhouse sales were up about 8% compared to the March quarter courtesy of increased first home buyer and investor demand particularly.
Over the June quarter, REIQ figures show the preliminary number of sales across Queensland in the sub-$250,000 price range increased 13%, while the number of sales in the $350,000 to $500,000 price bracket increased 5% over the same period.
“The affordability of units and townhouses, especially in times of economic uncertainty, is certainly helping to drive this segment of the market,” says REIQ managing director Dan Molloy. 
“First home buyers and investors are also making a return after being fairly absent from the market for more than a year and their increased activity is partly behind the increase in the number of sales in the $350,000 to $500,000 price bracket, especially in the southeast.”
Colliers research for the first half of 2011 found the inner Brisbane apartment market to be stabilising with investor demand continuing to underpin transaction volumes “especially for price-pointed, affordable stock generating strong rental income”.
There were almost 1,400 transactions of new apartments in inner Brisbane in the March quarter, according to Colliers.
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lschlesinger-FZcF9M3vE6

Inner-Brisbane unit sales up 15%

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Nigerian scammers have homed in on Sydney’s coastal eastern suburbs in their latest attempt to sell property they don’t own.

Successfully done twice in Perth, the latest attempt to sell a $1 million apartment has been thwarted before its scheduled auction.

The apartment was listed without the knowledge of the landlord, its South African-dormiciled investor, who has since complained to the fraud police.

The property with beach views was taken down from property websites earlier this week before its upcoming September auction.

The listing agent was not aware that the sale instructions were bogus. The apartment had been rented through the same office, most recently at $550 a week.

The first deceit was an email to the leasing office advising that a recent fire had destroyed all the documents associated with the property, its ownership and rental. 

After the estate agency supplied some replacement paperwork, they received instructions to list the property for sale. Contracts were drawn up by Double Bay solicitors and given there was no mortgage the negotiation didn’t require any official approaches to any financial institutions. 

After ads to sell the apartment appeared recently online and in print, an eastern suburbs agent, Brad Caldwell-Eyles, who had initially sold the two-bedroom apartment in 2004 for about $675,000 to the South Africa-based investor emailed the expatriate family, wishing them the best for the listing.

The shocked owner had no knowledge of its listing. The hoodwinked listing agent has assisted the police. 

A check of email has revealed the originating scamming emails from the African continent.  

The Sydney scenario closely followed <a href="https://www.propertyobserver.com.au/western-australia/absentee-investor-alert-nigerian-scammers-sell-%24410000-house-they-didnt-own/2011081751195" title="Nigerian scammers sell house they didn't own" target="_blank">two Nigerian scams in Perth </a>where sales had been achieved with the absentee owner unaware of the listing and sale of their investment property.

It highlights the necessity of absentee investors with unencumbered titles to be vigilant.

Both the Nigerian scams in Perth processed to sale with the absentee owners unaware of the listing and sale of their investment property.
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jchancellor-FAypfDUnLy

Nigerian property scammers move to Sydney after succeeding in Perth

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The recent release of annual results from GPT group marked the end of A-REIT reporting season among the largest trusts. 
Strong income growth and the strong performance of A-REITs with lower gearing were the two key themes to emerge for the sector, according to Mark Wist, senior consultant at Atchison Consultants. 
GPT, which has a diversified portfolio including retail, office and industrial assets, was one of the stocks that performed strongly on these two measures, reporting an 8% increase in realised operating income (ROI) for the six months ended June 30, 2011 of $221.5 million and gearing reduced to a low 21%. 
Other A-REITs that demonstrated resilient earnings and low gearing and that provided strong returns in excess of the share market include Charter Hall Retail and Dexus, Wist says. 
Across the sector as a whole, the S&amp;P/ASX 200 A-REIT index lost 8.8% of its value over the year to September, but outperformed the benchmark S&amp;P/ASX 200, which declined by 14.11% over this period. 
“Across the A-REIT sector, operating income growth averaged 3.5% for six months to June which is greater than economic growth despite consumer sentiment at two-year lows and business sentiment at six month lows,” Wist says. 
“Growth in the retail property sector was higher at over 4% for the six months as inflation-linked rental escalations supported revenue. 
“Limited occupational vacancy across both retail and office property portfolios differentiates this cycle from the previous downturn when oversupply from substantial new developments crippled rental growth,” he says. 
Deutsche Bank analysts Ian Randall, Matthew Bertram and Jason Weate report that A-REIT reporting season stacked up well against the broader market. 
A-REIT earnings came in 0.7% ahead of the bank’s estimates with the analysts also noting the stronger performance of retail portfolios and the marginally disappointing performance of office REITs. 
The most heavily discounted AREITS are Australand, trading at a 22% discount to Deutsche Bank’s valuation, Stockland at a 23% discount and Westfield group at a 20% discount. 
The sector as a whole is trading at a 16% to its net asset value.
Rating agency Moody’s has a “stable” ratings outlook for A-REITs and expects the sector to steadily improve over the next 12 months.
Investment bank JP Morgan has a bullish outlook on listed property trusts with its top picks being those exposed to the retail and residential sectors, these being Stockland, GPT, Westfield Retail Trust and Mirvac.
According to the investment bank, a short term overly bearish sentiment on AREITS has made retail and residential attractive relative to office trusts.
Stockland is trading at a 23% discount to JP Morgan’s target price of $3.85.
Its other picks are Charter Hall Retail REIT and Commonwealth Office Property Office Fund.
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Less risky A-REITs outperform the share market

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Industry group Tourism Whitsundays expects the tourism mecca will shrug off the appointment of receivers to key projects in the region.

Abel Point Marina at Airlie Beach and the Port of Airlie development have both been handed over to receivers McGrathNichol, after Bank of Scotland International pulled the plug.
Tourism Whitsundays chief Peter O'Reilly says the $750 million Port of Airlie project, promoted as a gateway to the Great Barrier Reef, ran into a long series of troubles.
These included the GFC reducing the risk appetite of its lenders and unseasonal rain during development leading to delays, which then gave buyers the opportunity to contest their acquisitions given a slump in property prices nearby.
But O'Reilly says it's business as usual at the Port of Airlie and the troubles haven't had a huge impact locally despite the project being only partly completed. In fact, Whitsundays tourism is seeing some positive signs.
"The youth adventure backpacking market is soft, but the mainstream is there," he says. "Operators who are good marketers have got business."
"Some say they have had five months of consecutive growth on last year, but last year was an ordinary year as a base."
"It's coming back, but it's challenging, especially the international market."
"But the Townsville, Mackay market has been reasonable, as well as Brisbane, Sydney and Melbourne."
Still, the Port of Airlie development was seen as one that would "raise the bar for the whole of Airlie Beach," O'Reilly says.
"We're not going to see the hotel development and the other retail development go ahead, which is unfortunate," he says.
This article originally appared on <a href="https://www.smartcompany.com.au/business-travel/20110908-whitsundays-tourism-developments-in-receivership-but-industry-hopes-region-can-recover" title="SmartCompany" target="_blank">SmartCompany</a>.
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cknowlton-QnEa6ntUYP

Whitsundays tourism development in receivership

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After 36 bids from six interested parties, a heritage Sydney office building with a ground-floor bar sold under receivers’ instructions at auction today.
The five-level Kent Street building was knocked down in packed rooms for $3.95 million by auctioneer Damien Cooley from Cooley Auctions.
It last sold at $3.45 million in 2007 when bought by a subsidiary of Keith Johnson’s company Johnson Property Investment.
The building is part of the 1888 Merchant and Partners warehouse building, which has stucco detailing designed in the Victorian Free Classical style.
The largest residential land developer in NSW went into administration in April with the creditors owed about $150 million.
The secured creditors are owed $132 million including the Seventh Day Adventist Church ($69 million), St George Bank ($32 million), Greshams ($13 million) and National Australia Bank ($4.7 million).
The unsecured creditors owed about $16 million.
Slow development approvals from government and falling land values after the global financial crisis were cited as reasons for the company's position.
The company retains its holdings of 8,000 lots in NSW, which had an estimated worth $197 million at its peak, but their value plummeted to $67 million after the global financial crisis.
Johnson Property Group assets in the Hunter include 2,500 lots at Cooranbong, 2,000 lots at Bellbird, Cessnock, Trinity Point marina, and residential and tourist sites at Morisset Park.
In March Johnson confirmed he had been a victim of a sophisticated international scam.
The Kent Street building has a net lettable area of 493 square metres.
Newly opened small bar Since I Left You occupies the ground floor tenancy of 38 square metres on a five-year lease.
It was listed by receivers and managers Taylor Woodings through CB Richard Ellis agents Tim Grosmann and Rohan Ramsay.
Tim Grosmann says rarely had such small quality freehold become available within the CBD.
“Since the City of Sydney’s introduction of the Liquor Amendment (Small Bars and Restaurants) Bill 2007 the CBD’s laneways have been revitalised, with small bars such as Since I Left You well positioned to capitalise on previously unusable space,” Grosman adds.
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Keith Johnson receivers sell skinny sought-after Sydney heritage building

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The increasing “<a target="_blank" href="https://www.propertyobserver.com.au/residential/start-spreading-the-news-australian-cities-must-become-more-like-manhattan-christopher-joye/2011090151384">Manhattanisation</a>” of inner Melbourne has been confirmed in the latest annual building approval figures.
Across Victoria, residential high-rise building permits surged 70% over the 12 months to June 2011<a target="_blank" href="https://www.propertyobserver.com.au/news/high-rise-apartments-lead-victorias-residential-building-surge/2011070750734"> </a>to $3.4 billion, according to figures released by Victoria’s Building Commission.
Inner Melbourne, where the majority of high rises are under construction, registered a 12% increase in building approvals, double the 6% increase recorded for the entire Melbourne metropolitan region.
In comparison, building activity in the outer-Melbourne suburbs, where houses predominate, was flat, with approvals down 0.5%.
The north east of Victoria suffered the biggest drop in housing approvals, down 18% to $784 billion with big drops also recorded in Gippsland, North Central, the North West and the South West regions.
<a target="_blank" href="https://www.propertyobserver.com.au/:%20http:/www.propertyobserver.com.au/news/high-rise-apartments-lead-victorias-residential-building-surge/2011070750734">Repeating the May figures</a>, across Victoria, domestic housing approvals remained steady over the period, this time to $13.1 billion.
Confirming the growing investment in retail assets by major listed landlords, retail approvals increased by 18% to $1.3 billion while industrial approvals increased 10% to $451 million
Overall, commercial building approvals increased by just 3% to $2.7 billion,
Across all sectors, the value of building permit activity rose to $24.3 billion over the 2010-11 period, a 2% increase on the $23.9 billion recorded over the previous 12-month period.
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Melbourne takes Manhattan as high-rise approvals soar

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As we move on into the spring it is an opportune time to “take stock” and see where the Australian economy, and its housing market, are heading.
Yesterday we received the official economic growth data from the ABS, which while surprising on the high side, confirmed the medium-term outlook I pitched in August last year.
The smart money was punting on relatively uninspiring real growth of 0.9% in the second quarter, which was going to be driven by an inventory rebuild after the floods. Instead, we generated substantially greater 1.2% real GDP growth, which was notable for being surprisingly broad-based. This was even more impressive given the flood-induced contraction in the first quarter was revised down from -1.2% to -0.9%, which meant that the second quarter was starting off a higher base.
The details surrounding <country-region><place>Australia</place></country-region>’s economic growth engine were revealing. Net exports actually detracted 0.5 percentage points from the GDP result due to a slower-than-expected recovery in coal volumes. Had net exports been flat, the real GDP growth estimate would have been +1.7%, which is a little higher than the RBA’s priors. The good news is that coal exports should recover forcefully in the third quarter. The public sector also lopped off another 0.4 percentage points from growth as the government tries to eliminate its deficit before the next election.
A reader referred me to a statement I had made in August 2010. Specifically, I argued, “the economy is about to embark on a period of above-trend growth.” Naturally, I am no weather forecaster. So I will admit that I did not predict the savage <state><place>Queensland</place></state> floods, or the Japanese earthquake-cum-tsunami-cum-nuclear crisis.
Yet even in the face of these unanticipated events (and some extraordinary geopolitical turbulence in the Middle East and Europe), yesterday’s statistics tell us that real private final demand in Australia – that is, private consumption plus private investment – has been advancing at a well-above trend 5.4% annualised pace over the first six months of 2011 (see chart). There is no doubt that had <country-region><place>Australia</place></country-region>’s export market not been cruelled by the east coast floods in the first quarter of 2011, real GDP growth would have been strikingly strong.
<a href="/images/stories/joyeseptember81.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyeseptember81thumb.gif"></a>
Here HBSC’s chief economist, Paul Bloxham, comments: “Domestic demand is rock solid. That’s the key message from [yesterday’s] GDP release. Yes, the <state><place>Queensland</place></state> floods have disrupted coal exports, but the domestic economy has continued to grow strongly.”
Notwithstanding the many hysterical claims that both consumer spending and the non-mining economy are weak or in recession, including from some of the RBA’s conflicted independent board members, the non-mining sector managed to expand by 1.2% in the June quarter. Even the reportedly death-spiral-bound manufacturing sector grew by a vigorous 2.8% over this period.
It also turns out that Australian consumers are spending money at very normal rates. Consumption increased by a strong 1% (real) in the June quarter, and has risen by a trend-like 3.2% over the last 12 months, which is its best rate in a year and accounted for almost half of all GDP growth. Importantly, there has been a shift in consumer spending away from goods towards services, which surged 2% in the quarter and are growing at an annual rate of 5.5% (the highest since 2008).
On this note, RBS’s highly regarded chief economist Kieran Davies argues: “This supports our view that the monthly retail sales numbers – which continue to exert a strong influence on financial markets – are no longer a good guide to overall consumer spending. It also makes us wonder about the link between consumer [confidence surveys] and spending, which our past research has shown is not a consistent predictor of consumption.”
In concert with healthy consumer activity, we saw the household savings rate fall from a recent high of 11.7% to 10.5% while real, net per capita disposable income increased by 2.9% over the June quarter to hit its highest level ever ($48,988 for every man, woman and child in Australia).
In summarising the GDP numbers, UBS chief economist Scott Haslem opined: “Today's data reveals much more underlying strength in the economy in the second quarter than anticipated, with the likely temporary weakness in exports and the unwinding of public capex from the GFC stimulus masking a 'private economy' expanding above trend.”
 
<hr class="system-pagebreak">
 
So where does that leave <country-region><place>Australia</place></country-region>’s housing market? Based on the latest RP Data-Rismark findings, Australian dwelling prices are down a modest 2.9% over the last 12 months. This, however, conceals considerable cross-sectional dispersion. For example, whereas the <city>Sydney</city> and <city>Canberra</city> markets have actually realised capital gains of 0.5% and 1.9% respectively, <city><place>Melbourne</place></city> homes are off by 4.3% after surging 29% over 2009 and 2010. A flood-weary <city>Brisbane</city> market is also down 6.6% over the year, while <place><city>Perth</city></place> home values have fallen by a slightly smaller margin. After quite extraordinary growth during much of the 2000s, the cost of housing in <city>Perth</city> and <city><place>Brisbane</place></city> has not risen in three to four years.
The 2011 outcomes are broadly in line with what we forecast in October 2010. At the time, I commented, “Our analysis suggests that a substantial increase in rates would put some downward pressure on dwelling prices…. It is now just a matter of time before the RBA and/or the banks raise rates again.” As it happened, we got a sharply felt double hike a month later in November.
The additional dynamic in 2011 has been the remarkable conviction of households that they will be hit by more rate hikes. As recently as August this year, Westpac’s survey analysis suggested that Australians were budgeting on another two rate hikes with an amazing 29% of respondents expecting more than four hikes. In a sense, therefore, the housing market has been behaving as if it is being constrained by interest rates that are actually higher than current levels. In central banker speak, this is the benefit of “jaw-boning” on rates: that is, compelling behavioural changes without actually having to touch the interest rate lever.
<a href="/images/stories/joyeseptember82.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyeseptember82thumb.gif"></a>
Set against these challenging conditions are some reasons for optimism.
First, the RBA has, in practice, ignored the very high core inflation numbers that were published by the ABS in the first and second quarters of 2011. That is to say, consumers’ hawkish interest rate expectations have not been satisfied.
Second, economists believe that there will be no hikes this year. Indeed, Goldman Sachs and Deutsche Bank are both bravely predicting interest rate cuts (!) in October and November, according to Bloomberg data. AMP and Westpac forecast one cut before the year is out. And Macquarie Bank and Westpac are predicting that rates will be a full percentage point lower (i.e., the equivalent of four cuts) by the end of next year.
If these projections prove accurate, we are likely to see a rebound in housing activity. I should add for the record that I do not personally agree with them. I believe the next move in rates will still be up, not down, and do not think the RBA will be relaxing policy until some time in the second half of 2012.
But let’s hope I am wrong: in particular, let’s cross our fingers that the third-quarter inflation numbers prove benign, and the RBA does not as a consequence feel the need to tighten the screws again. Nobody wants an inflation problem in this country: inflation is, after all, a tax on prudent net savers, and inevitably means higher rates for those of us with loans.
A third positive portent is to be found in the housing finance data. In August <country-region><place>Australia</place></country-region>’s largest mortgage broker, AFG, reported that it had written $2.7 billion worth of new finance, which was its single best month in one and a half years. This was reinforced by positive official housing finance data from the ABS. Specifically, the ABS reported that the number of new owner-occupied loans rose by a healthy 1% in July, following upwardly revised growth of 0.6% in June. Indeed, approvals have now risen for the last four consecutive months. Having said that, they remain well below previous peaks, and are consistent with soft prevailing conditions.
<a href="/images/stories/joyeseptember83.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyeseptember83thumb.gif"></a>
As a final observation, we are seeing some de facto cuts in the fixed-rate home loan market caused by the inversion of the yield curve. It is now possible to get three-year fixed-rate loans for around 6.4%, which is substantially below the headline standard variable rate of over 7.5%. This is based on a more bearish economic outlook, which is being driven by both the offshore turbulence and conflicting domestic data, such as today’s unemployment survey. Only 600 net new jobs have been created in the last 3 months, which has forced the unemployment rate up to 5.3%. This will help the RBA do its inflation-fighting job and, at the margin, reduces the probability of future rate hikes.
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

The economy and housing market are stronger than you think

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Gerry Harvey, the executive chairman of the Harvey Norman retail chain, has questioned the sustainability of existing retail lease structures with inbuilt annual rent increases of 4% to 5% plus regular market reviews.
Rents currently could take 15% to 20%, and in some instances 30% to 40%, of retailers' turnover, he has suggested.
Harvey says shopping centres that charged the highest rents faced the most risk of having to take cuts.
Bulky goods centres, by comparison, which rent space at about $200 a square metre are better placed, Havey says.
"You are going to see retailers closing down more than you see them opening up…  And that is going to have a big influence on rents and the valuation of shopping centres," Harvey says.
The fundamental problem was that Australia had too much retail space which would suggest not many more new shopping centres would be built.
"We have come to a halt,” he told The Australian property reporter Florence Chong.
“It is very difficult to justify the cost of building today because of the high cost of land and construction."
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Gerry Harvey says current retail rent structure unsustainable

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Centro has listed a further three regional shopping centres for sale this week, taking the total since July to seven.
<img src="/images/stories/centroalbionpark.jpg">
Alongside <a href="https://www.propertyobserver.com.au/retail/centro-seeks-buyer-for-townsville-centre/2011090651453" title="Centro Townsville" target="_blank">Centro Townsville</a>, the group has also listed Centro Albion Park (pictured above) near Wollongong and Centro Newcomb, near Geelong.
The three centres form part of Centro’s MCS 17 Unit Trust Syndicate.
According to an explanatory note issued in April, the syndicate was forecast to bring in property income of $7.5 million for the year ending June 30, 2011, up from $6.59 million the previous year.
Centro Townsville is valued at $35.5 million, Centro Newcomb at $26.5 million and Centro Albion Park at $15.2 million.
The centres are being sold by Savills agents Peter Tyson and Jon Tyson and Knight Frank’s John Quinlan and Phil O'Donovan.
Other Centro centres listed for sale since July include Centro Warners Bay in Newcastle, Centro Lismore, Centro Emerald Village in Northern Queensland and Centro Newton in Adelaide.
The group is holding onto its prime shopping centre assets, which include The Galleria in WA valued at more than $470 million, the Glen in Melbourne worth about $330 million and Centro Toombul in Queensland worth around $200 million.
Under the restructuring proposal Centro Properties Group will be wound up, with the remaining Australian assets held by subsidiary Centro Retail Trust and other unlisted Centro funds amalgamated into a new listed property trust.
Shareholders will vote on the proposal on December 15. Failure by the board to win approval will most likely see the company placed in the hands of external administrators.
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Troubled Centro now offloading seven shopping centres

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Some 20 buyers are reputedly thinking of expressing interest in Mirvac’s $450 million prestige hotel offering.
The interested parties reportedly include LaSalle Investment Management, US giant Blackstone, and Australian property manager Toga.
The French-based hotel chain Accor, the US-based Marriott Hotels and Resorts, and Singapore's Grand Chancellor, owner of Hotel Grand Central, have also been suggested as among the touted parties.
It has also been reported that LaSalle is considering buying Brisbane’s Chifley at Lennons hotel for about $57 million, according to the Australian Financial Review.
The Australian revealed in June that Mirvac Group had appointed Lazard to review its hotel arm.
Mirvac's hotel offering includes its 49% stake in the Mirvac Wholesale Hotel Trust, which owns seven four- to five-star properties in Sydney, Brisbane and Melbourne.
The group would also offload the Sebel hotels in Newcastle in NSW and Mandurah in Western Australia.
But Mirvac intends to retain The Como Hotel in Melbourne as a redevelopment site.
The offering also includes the 49% stake in Mirvac's Tucker Box Hotel Group, made up of 13 Travelodge hotels.
The Sydney Morning Herald has reported Mirvac is thought to be considering management deals to ensure Mirvac retains an interest in the 46 assets, which include Sea Temple, Quay West Suites, Sebel and Citigate.
Mirvac holds the management rights for almost 6,000 hotel rooms in 41 Australian hotels and three in New Zealand.
The other pricey hotel listing is Thakral Holding's intended sale of its $250 million Wynyard complex, which includes the 446-room Menzies Hotel, along with an office building, car park and retail concourse at Wynyard station.
Craig Collins, of Jones Lang LaSalle Hotels, says Sydney has maintained its position as Australia's top hotel trading market.
Its status was underpinned by consistent occupancy levels above 85% and solid revenue per available room (RevPAR) growth.
The year to date RevPAR had surpassed the 2008 peak with Sydney's accommodation market returning to the strong growth before the financial crisis.
Craig Collins says average daily rate growth has risen to 7.1% over the seven months to July 2011 to $203.68.
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