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

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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The median price of Melbourne land has fallen for the second consecutive quarter, down 2.5% to $220,000, as supply levels reach their highest point since 2008, according to research by Oliver Hume.
In the March quarter, Melbourne land prices fell by 0.3% (or $750) to $225,000.
Based on the current rate of project sales, 2,250 Melbourne lots are available for sale equating to 3.4 months of supply. Six months’ supply is considered to be the industry benchmark, but that was last experienced in the September quarter of 2006.
The Olive Hume June quarter house-and-land package index shows a median house-and-land package cost of $457,209, up 2.8% since the start of the year.
However, land, which peaked at 51% of the package price in the December quarter 2010, has now slipped back to around 48%.
In contrast, the median building permit value has increased by 8.4% or $12,600 since the start of the year, to $237,209.
This trend contradicts wider market sentiment, which suggests that in the current climate purchasers are spending more on land than on houses.
While median lot size in the first stage of each new project in the June quarter increased by about 6.6% to 468 square metres the median house size median increased by about 8% to 250 square metres.
The City of Wyndham, which has the highest median house-and-land package at over $515,000, is also where the biggest houses are being built in relation to the land size.
Houses in Wyndham are being built on 55% of the block at a median permit price of $284,000.
Residential developments in Point Cook account for one-third of all dwelling growth in the City of Wyndham over the six months to June 2011, or about 730 dwellings.
Realestate.com.au lists more than 500 blocks of land up for sale in Wyndham, with prices ranging from $340,000 for a 500-square-metre block to $650,000 for a 626-square-metre block.
According to Oliver Hume, Melbourne has most likely reached the peak of the current land-price cycle, with the decline in first-home buyers a key factor.
First-home buyer activity over the last six months has declined from around 70% to around 45% of all buyers, with a greater reliance on upgrading buyers to underpin sales.
“However, this market segment is subject to the vagaries of the established housing market, where auction clearance rates are declining and are now worse than during the global financial crisis and in line with levels last experienced in 2004,” the report says.
The most affordable municipality is Cardinia, with a house-and-land package median of $393,725. It is the only municipality with a median below $400,000.
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lschlesinger-FZcF9M3vE6

Melbourne land price falls for second consecutive quarter

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Where will house prices be in 10 years’ time? It’s a question that confronts almost every buyer. Framed differently, what are reasonable expectations for the return I will make on my biggest lifetime investment? 
We recently tried to tackle this subject through some independent analysis. In particular, we surveyed 21 leading market economists – including all the big bulls and bears – for their expectations of nominal house price growth over the next 10 years. To the best of our knowledge, a survey of this kind has never been conducted before. And the (anonymised) results, which I will come to shortly, are fascinating. 
Before commencing this test, our own projection was that, all else being equal, nominal house price appreciation would average about 4.5% per annum on the basis that this was a fair benchmark for disposable income growth over the ensuing decade. 
By way of historical context, disposable income on a per household basis has averaged a healthy 5.8% per annum over the plast 10 years, and 4.9% per annum over the past 18 years. 
Yet for a range of reasons that I have explained many times before – including the once-off, 40% plus reduction in nominal interest rates over the 1980 to 2011 period – historical house price appreciation has consistently outperformed disposable income growth. 
For example, we estimate that between 1982 and 2011 median Australian house prices rose at a 7.7% compound annual growth rate. 
Taking an alternative, and demonstrably more robust, approach, we examined every individual purchase and sale transaction in Australia since 1990 to work out what the median “buy-and-hold” return was. As the first chart below shows, this landed at a strikingly similar 7.8% per annum pace (before transaction/holding costs). 
Interestingly, the best and worst performing cities were <city>Perth</city> and <city><place>Sydney</place></city>, respectively. Since 1990 the median <city><place>Perth</place></city> home owner has realised an impressive 10.3% per annum capital return before including rents. Sydneysiders, on the other hand, have typically fared one-third worse.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust251.jpg"><img src="/images/stories/joyeaugust251thumb.jpg"></a>
Folks sometimes forget that in addition to (potential) capital growth, all housing assets generate income, one way or another. In the case of investment property, this is known as the rental yield. In respect of home-owners, it is called the “imputed” rent, or, in effect, the rent you save. 
If we take historical gross rents and cut them in half to control for residential transaction/holding costs, the ‘total return’ yielded by Aussie housing over the last 20 to 30 years creeps up into double-digit territory (see <a href="https://www.propertyobserver.com.au/trends/economy/aussie-housing-market-outperforms-shares-with-significantly-less-risk/2011081851211">this article</a> for our analysis). 
Yet these guides strike us as being far too ambitious when thinking about the future. Sure, if Westpac chief economist Bill Evans is right and the RBA slashes interest rates four times, we could see the housing market storm back with near double-digit gains, much like it did in 2009. 
And it is certainly true that housing is probably your best “hedge” (as the economy’s most interest rate-sensitive sector) in the event that the resources boom genuinely blows up and our central bank is compelled to change course. 
While the current leverage in the household system cannot realistically increase much further, it is sustainable. As the next chart illustrates, Australia’s household debt-to-disposable income ratio has, in fact, flat-lined since a number of years before the GFC. This tells us that the “new normal” for credit growth is income growth, which is why the two lines have moved sideways.
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust252.jpg"><img src="/images/stories/joyeaugust252thumb.jpg"></a>
 
<hr class="system-pagebreak">
 
When we think about future household income growth, we want to control for the effects of reductions in marginal tax rates, the rise of multi-income households, and the secular decline in the unemployment rate during the 1990s and 2000s. 
We also assume that the productivity malaise of the last 10 years is not blindly repeated. This suggests to us that a reasonable, non-inflationary disposable income growth rate for households is going to be in the 4% to 5% per annum ballpark, which, depending on your specific assumptions, is a 10% to 30% discount to the historical precedents provided above. 
Another way of thinking about this is to presume that disposable household incomes will not outperform wages (which they have done in the past). Average Australian weekly wages have risen at a 4.4% per annum pace since 1990, which is in the middle of our credible range. 
With the above background in mind, we undertook a survey of <country-region><place>Australia</place></country-region>’s top 21 market economists. The results of this (anonymised) analysis are revealed for the first time in the chart below. 
In short, the “average” and “median” expectations for nominal house price growth over the next 10 years were 4.4% per annum and 5% per annum respectively (as represented by the blue and black lines in the chart). 
This is an important finding: the “market” is telling us that future house price appreciation is going to be around 40% lower than its historical rate. That seems like a fair assumption to us.
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust253.gif"><img src="/images/stories/joyeaugust253thumb.gif"></a>
While all the “market” bears were included in our survey (with the exception of the academic Steve Keen, who does not meet our “market” definition), the lowest forecast was a still believable 0% per annum. This implies a one quarter decline in Australian home values in real, or inflation-adjusted, terms over the next decade (and much more if we deflate by incomes). The highest prediction was 7% per annum, which is still a nontrivial 10% discount to the 20-year growth rate. 
The key take-away from this analysis is that in “income-adjusted” terms Australian house prices are not going anywhere over the next decade. Naturally if we look at house prices in “absolute” terms, this work suggests that they will likely be 55% higher in 10 years’ time. 
Including net rents, that will provide a reasonable total return that is around 4% to 5% per annum higher than inflation. Once you account for the effects of leverage (i.e., the fact that most people buy a property with an 80% home loan), the actual return on your equity is substantially higher again, assuming, of course, that the historical (inflation-targeting) level of interest rates remains roughly the same. 
Having said that, please pay particular heed to <a href="https://christopherjoye.blogspot.com/2010/05/so-how-risky-is-your-home">my repeated warnings</a> about individual property level risk.
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

House prices will be 55% higher in a decade: Christopher Joye

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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.
 
<a target="_blank" title="Retail tenants have upper hand" href="https://www.propertyobserver.com.au/commercial/retail/some-retail-tenants-have-the-upper-hand-in-rent-negotiation/2011082351267">Recently</a> we noted a trend that the current tough retail environment sometimes gives tenants the upper hand when it comes to rent negotiation. The Australian Bureau of Statistics has released data that show retail growth is the slowest it has been in 50 years, and no one disputes that retail strips have been hit hard.
However, there are things retail landlords can do to put themselves in a better position. Property Observer asked retail property specialists for their tips on how smart landlords can try to protect their positions in the face of falling retail sales:
1. Understand your tenant’s business: “You need to understand the success drivers of a retail business are and understand what that means for you as a landlord,” says Simon Rumbold, national director of property economics with property forecaster and researcher Urbis.
 
In turn, this puts the landlord in a stronger position to help attract shoppers to a particular tenant.
2. Treat your tenants as your customers: “I always quote Frank Lowy, who says his customers are his retailers,” Rumbold says. 
“And Westfield is a customer-focused business and so is entirely focused on the relationship with its tenants – as opposed to its relationship with their customers walking through the front door and spending money in the shops,” he explains. 
Rumbold says shopping centre landlords should be thinking about the marketing of the centre for the tenants’ benefit and “optimising the tenant mix so overall everyone succeeds – drawing from their common strengths”.
3. Help struggling tenants: In this way, retail landlords step in and help an ailing tenant before it fails. 
“Good shopping centre managers will walk the floor everyday of the shopping centre,” Rumbold says. “If they see a shop where stock is getting run down or not well-presented, or a shop that doesn’t seem to be operating every well, they will have a chat to the retailer, making suggestions for improvements.” 
“They are obviously not able to pry into the personal financial position of a shop or retailer – that’s not their business – but they are there, ultimately, to make sure retailers succeed as far as possible,” he explains. 
Duncan Johnston, executive chairman of Collins Booksellers, also manages 15 to 20 retail and commercial properties for self-managed super funds. And in his role as a landlord, Johnston keeps a close watch for retail tenants that may be experiencing difficulties. 
“If our tenants are suffering, we look at ways to assist them,” he says. In one recent example, <city><place>Johnston</place></city> has arranged to share advertising with a tenant to give its business a boost. 
With another tenant, Johnston says his SMSF investors have agreed to cut the rent by 20% until November. “This will ensure they have a good lead-in to Christmas,” he says. If rent relief is being given, <city><place>Johnston</place></city> tells the tenants they have to spend more on marketing.
4. Ensure tenants have a viable business and a good track record: This is a time for picking tenants with even more caution than usual because of depressed retail sales and because the viability of retail businesses varies greatly. 
In attempting to ensure that a tenant has a viable operation, Rumbold suggests that landlords take care not to duplicate businesses already in a shopping centre or nearby in a shopping strip. 
And landlords should satisfy themselves that a would-be tenant’s type of business is likely to generate enough income to succeed.  Rumbold gives the example of a video outlet wanting to rent a shop. He says a landlord who believes that the internet is taking over from video shops might favour a tenant with a different type of business.
5. Get the basics right: Whether you are a residential, commercial or industrial landlord, there are a range of basic dos and don’ts that should be followed without fail, Rumbold emphasises. 
These include don’t try to charge above market rents, look after good tenants, and don’t put tenants into properties they can’t afford. 
Rumbold says landlords can only get away charging above-market rents for a short time – if at all. “If tenants can’t or are unwilling to pay their rent, you are wasting your time as a property owner.” He stresses that rents are dictated by the market and landlords should charge whatever rents they think the market will bear.
6. Buy smart: <city><place>Johnston</place></city> believes that the troubled state of retail sales is producing some opportunities to buy retail property at excellent prices – “no doubt about it”. 
He says some landlords have geared their properties to their previous rental income but are now being forced to sell if their rents returns have fallen. 
On behalf of some SMSF investors, Johnston is looking at buying 11 neighbouring strip shops in a Victorian regional town. “The owner is obviously struggling,” he says. 
Johnston underlines the need to have a good mix of neighbouring tenants – whether buying a single shop or several shops.
Simon Wheatley, executive director for real estate research at Goldman Sachs, says buyers of property in shopping strips should ideally seek property with a long lease in place. “If a property has a short-term lease or a rent review coming in the short-term, your risks would generally increase,” he says. 
When assessing a property to possibly buy, Rumbold suggests asking such questions as: “How many people are going to walk past the shop every day? How busy is the location? How successful are the adjacent tenants? What is the condition of the building? Where is the parking?” 
Parking is a particularly important issue for the success or otherwise of a retail investment. “Most people still drive to shopping centres,” Rumbold says. This means that shops in locations with poor parking should ideally be near a train station or supermarket or something else that will generate potential customers. 
“Otherwise, you could find yourself in a low-traffic area that struggles to attract good business,” Rumbold adds. 
Smart buyers of retail property also make themselves aware of any planned changes in a location that could either weaken or strengthen the viability of a retail investment. 
Check, for instance, whether a new supermarket is being built nearby – it could be positive or a negative for your intended investment. And keep in mind that changes to traffic conditions could affect the number of shoppers in an area.
Photo courtesy of Tourism Victoria
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mlaurence-vhAHaLZT8y

Six tips for retail landlords in tough climate

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Sydney was the only capital city where rental vacancies eased over the month of July, according new research by property research company SQM Research. 
Vacancies eased by 0.2% to 1.6% during the month of July. A year ago the vacancy rate stood at 1.5%. 
Canberra again recorded the tightest vacancy rate for the month of July –  remaining at 0.7, or a total of 333 vacancies. 
Vacancies in Brisbane, Perth and Darwin all fell by 0.1% during the month of July. 
The Melbourne vacancy rate remained unchanged at 2.8%, with 10,238 properties available for rent. 
Nationally residential vacancies have plateaued for the month of July, remaining at a tight 1.9% for the second consecutive month. 
Total vacancies stand at 49,466 nationally, compared with 48,330 in July 2010. 
SQM managing director Louis Christopher says: “A general oversupply of stock for sale and an undersupply of properties for rent. That is where the market is right now. It perfectly explains why we have falling house prices while rents are rising at a faster rate than inflation.” 
<table cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td>
City
</td>
<td>
Vacancies July 2010
</td>
<td>
Vacancy %
</td>
<td>
Vacancies June 2011
</td>
<td>
Vacancy %
</td>
<td>
Vacancies July 2011
</td>
<td>
Vacancy %
</td>
</tr>
<tr>
<td>
Sydney
</td>
<td>
8398
</td>
<td>
1.5
</td>
<td>
7883
</td>
<td>
1.4
</td>
<td>
8575
</td>
<td>
1.6
</td>
</tr>
<tr>
<td>
Melbourne
</td>
<td>
9311
</td>
<td>
2.6
</td>
<td>
10086
</td>
<td>
2.8
</td>
<td>
10238
</td>
<td>
2.8
</td>
</tr>
<tr>
<td>
Brisbane
</td>
<td>
5739
</td>
<td>
2.3
</td>
<td>
5272
</td>
<td>
2.1
</td>
<td>
5018
</td>
<td>
2.0
</td>
</tr>
<tr>
<td>
Adelaide
</td>
<td>
1440
</td>
<td>
1.0
</td>
<td>
2277
</td>
<td>
1.6
</td>
<td>
2286
</td>
<td>
1.6
</td>
</tr>
<tr>
<td>
Perth
</td>
<td>
2591
</td>
<td>
1.6
</td>
<td>
2005
</td>
<td>
1.3
</td>
<td>
1900
</td>
<td>
1.2
</td>
</tr>
<tr>
<td>
Canberra
</td>
<td>
268
</td>
<td>
0.6
</td>
<td>
332
</td>
<td>
0.7
</td>
<td>
333
</td>
<td>
0.7
</td>
</tr>
<tr>
<td>
Hobart
</td>
<td>
307
</td>
<td>
1.3
</td>
<td>
451
</td>
<td>
1.9
</td>
<td>
442
</td>
<td>
1.9
</td>
</tr>
<tr>
<td>
Darwin
</td>
<td>
212
</td>
<td>
0.9
</td>
<td>
282
</td>
<td>
1.2
</td>
<td>
261
</td>
<td>
1.1
</td>
</tr>
<tr>
<td>
National
</td>
<td>
48330
</td>
<td>
1.9
</td>
<td>
49125
</td>
<td>
1.9
</td>
<td>
49466
</td>
<td>
1.9
</td>
</tr>
</tbody></table>
 
Perth is the capital city to experience the largest year-on-year decline, falling by 0.4% since July 2010.
 
The capital city to experience the largest year-on-year growth was Adelaide, rising by 0.6% to 1.6%, or a total of 2,286 vacancies.
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Rental vacancies ease in Sydney, plateau nationally

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Australian government employees’ super fund ARIA (Australian Reward Investment Alliance) is considering buying half of Perth’s QV1 office building for $300 million.
The 43-storey office tower at 250 St George Terrace was designed by architect Harry Seidler and completed in September 1991. It overlooks the Swan River.
It cost about $340 million to build.
The super fund is carrying out due diligence on the building, according to a report in the Australian Financial Review.
If the sale goes ahead it will be the biggest office deal of the year in Perth.
However, it is by no means certain. In April this year, Queensland Investment Corporation conducted due diligence on a half-share of QV1 but did not proceed with the purchase.
Up for sale is the half share owned by property group Dexus, which appointed CBRE as selling agent in August 2010. Rob Sewell, Rick Butler and Peter Agostino from CBRE are in charge of the sale.
The other half is owned by the Investa Property Group, which had pre-emptive rights to buy the half owned by Dexus.
Tenants include Shell, Chevron, Allens Arthur Robinson, Texaco, Freehills and PwC.
According to the QV1 website it is fully tenanted.
ARIA has a $2.5 billion unlisted property portfolio.
The super fund is being assisted by the Eureka Property Group, which last year helped ARIA acquire a tower on Clarence Street in Sydney for $83 million.
Office vacancies in Perth have dropped from more than 10% to 7.8% over the six months to July, with virtually no prime space available in the city.
The last major office transaction in Perth took place in June when half of 108 St George Terrace, the BankWest Tower, was sold for $260 million to US fund manager Brookfield Asset Management.
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Government employee super fund tipped to buy half of Perth office tower QV1

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Residential and commercial construction remains in the doldrums, according to the latest ABS statics.
The value of residential building construction undertaken during the June quarter fell 4.1% while commercial construction fell 6.1% on a seasonally adjusted basis.
During the June quarter just over $9.5 billion in residential building work was undertaken compared to $10.1 billion in the March quarter. Strong activity levels occurred in Queensland, with construction work up 14.9% over the quarter
Westpac says the state is experiencing a “strong post flood rebound” with strength in “infrastructure activity, both private and public”.
The biggest slump in construction activity occurred in the Northern Territory (down 19%) while among the bigger states NSW recording a decline of 4.4% with Victoria down 3.1%.
“Weakness was generally evident elsewhere. Public building activity is weakening as stimulus is being unwound. The housing sector is facing a number of headwinds and private non-residential building activity remains weak,” Westpac says.
The value of alterations and additions to existing houses increased marginally from $1.73 billion in the March quarter to $1.79 billion over the June quarter.
For the year to date, the value of residential building construction undertaken is down 7.6% while commercial building is down 23.2%. Westpac said construction work in the second quarter was broadly in line with expectations.
The HIA called the figures "a disappointing update for new housing activity".
HIA chief economist Harley Dale said: “New residential building work done fell by 5.4% reflecting a 1.8% decline in detached housing and a slump of 11.9% in "other dwellings".
“This result suggests that new dwelling investment will detract from GDP growth in the June quarter national accounts due for release in two week's time.”
Overall, construction activity rose 0.7% over the June quarter and is up 2% on the year due to engineering construction increasing 5.9% over the quarter and 21.2% for the year to date.
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New home building slumps in June quarter

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Median house prices in the resource boom town of Gladstone, 550 kilometres north of Brisbane, increased by 6.1% over the June quarter, according to Real Estate Institute of Queensland figures. The median house price in <a target="_blank" title="Gladstone" href="/news">Gladstone </a>now stands at $440,250 and has grown 10.8% over the year to June. The institute does not provide the number of properties sold, but realestate.com.au listings reveal that around 115 Gladstone properties changed hands over the three-months period. The most expensive Gladstone house currently up for sale on realestate.com.au is a six-bedroom, two-bathroom dwelling on a 1,500-square-metre block at 3 Yarroon Street, being sold by Darryle Branthwaite from Raine &amp; Horne Gladstone. The property is being targeted at developers and is already zoned for high-density residential with a price tag of $1.2 million.
The surge in houses prices in Gladstone follows the REIQ revealing that <a href="https://www.propertyobserver.com.au/queensland/gladstone-almost-out-of-rental-space-at-height-of-mining-boom/2011081651182" title="Gladstone almost out of rental space" target="_blank">rental vacancies over the June quarter fell from 1.4% to just 0.6% </a>on the back of big energy, mining and infrastructure projects scheduled to commence in the region over the next 10 years. “The multibillion-dollar investment in Queensland’s resources industry in the Central Queensland region is again behind Gladstone’s strong performance but we are also seeing this market strength radiate out to its neighbours of Mackay and Rockhampton in this quarter as well,” says chairwoman Pamela Bennett. Mackay’s median house price increased 4.4% to $413,500 over the quarter, while the number of preliminary house sales in Rockhampton was up 23% compared with the previous quarter.
According to Bennett, the strength of Queensland’s resources sector will underpin the Queensland property market more broadly from the second half of 2012 or early 2013. 
Latest figures from the institute show the median price of Coast housing fell by 0.1% during the three-month period and are down 2.8% for the year to June. It left the median price of Sunshine Coast houses at $450,000 at the end of the June quarter.
The three-month result outshone the Gold Coast (down 6.1%), the Fraser Coast (down 5.1%), <a target="_blank" title="Ipswich" href="/news">Ipswich </a>(down 4.7%), <a target="_blank" title="Cairns" href="/news">Cairns </a>(down 5.6%) and Rockhampton (down 3.9%).
The Sunshine Coast also performed well in volume of sales for the quarter, with figures slightly up while the Gold Coast fell 9% and Cairns was down 10%.
Best-performing suburb for the 12 months was the <a target="_blank" title="Mooloolah Valley" href="/news">Mooloolah Valley</a>, where the median price of a house rose 20.2% to $478,000 while <a target="_blank" title="Moffat Beach" href="/news">Moffat Beach</a> also fared well, up 13.5% to $520,000.
<a target="_blank" title="Doonan" href="/news">Doonan </a>was up 11.9% to $670,000 and <a target="_blank" title="Parrerrea" href="/news">Parrearra </a>rose 8.4% to $535,000.
At the other end of the scale, the median price of a house at Sunshine Beach fell 34.6% over the 12 months to June 30, down to $1.23 million.
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Gladstone Queensland's top performer: REIQ

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The best measure of the data on residential prices, RPData-Rismark Hedonic Index, shows that Australian house prices fell just 0.2% last month.  This equates to an actual drop of $1,200 against a median dwelling value of about $525,000.  Even on a quarterly basis, the drop is just 0.9% or $4,700.
This effectively means no change, which is amazing, really, given the low level of confidence, the high level of advertised stock for resale and the persistent warnings of a real estate Black Friday.  The year-on-year result is a fall of just 2% or $10,600.  Even Brisbane, with the impact of the recent flood weighing down its property market, has fallen just 2.6% or by $11,600 since January.  The Australian share market can fall more than this in a single day.
RPData’s index suggests that maybe the worst is behind us, with the monthly and quarterly results starting to trend upwards.  This recovery, however, is likely to be slower than those in the past, as many markets are now priced over $500,000, which presents an affordability barrier to many households and especially investors and first home buyers.  It will take some time before wages grow enough to start pushing dwelling prices.
Recent research, also by Rismark, shows that just one in 14 resales across Australia over the last decade made a loss.  Importantly, close to half of the sellers since early 2000 made an annual gain of over 10% per annum.  Keep in mind that capital growth can be deceptive as most measures exclude inflation, costs, taxes and charges.  But still, such a positive result is encouraging.
Yet the negative news abounds – the latest being from national valuation firm Herron Todd White.  HTW’s bearish August post has, as one would expect, received lots of airplay via a range of economic websites whose authors are proud of their track record of forecasting about 10 of the last two recessions.
Now, HTW’s work is correct, in that it is a buyer’s market and sellers need to meet the market in order to make sales, and yes, “most markets in SEQ have seen a 5% to 10% fall in prices over the past six to twelve months” But that doesn’t mean that the sellers have made a loss; they may have had to accept less for their property than they would have achieved a year or so ago.
Several Brisbane suburbs were used as examples in the latest HTW release – Gordon Park, Inala, Redbank Plains, Paddington and North Lakes.  I am quite familiar with two of these suburbs and have confined my reply to Redbank Plains and Paddington.
True, HTW, sellers need to seriously cut their asking price in order to make a sale.  My wife and I have just sold two properties in Redbank Plains  for about 10% less than we think we could have achieved a year or so ago.  But we still made about 25% on what we paid for both properties about five years ago.  Not one of our finest investment decisions, true, but we made money, albeit not that much.
Now, let’s look at Paddington.  I lived in Paddington for close to 10 years and it is a market I still know very well.  We concur with HTW’s general comment that if you are looking for a safe investment, then a good bet is an inner-city traditional cottage, and while you can still pick up such a property for around $600,000, this doesn’t mean that those who are selling cottages for these prices are taking a loss.
Over the last six months, the median annual gain made by sellers across Paddington was 7.6%, with just one in 10 properties selling for a slight loss.  This analysis excludes those properties which have undergone a serious renovation.
Also, sales around the $600,000 price point are becoming much scarcer than HTW’s comments would have a reader believe.  For example, during 2007, 55 houses sold for between $550,000 and $650,000 across Paddington.  In 2008, 36 similar sales took place.  In 2009 it dropped to 28; then in 2010 it rose to 31 and so far this year just seven sales have settled in this price range.
For mine, now is the right time to buy.  But you must be able to comfortably service a mortgage at least 1% higher than today’s rates.  Also, you need a long timeframe; the buying power to afford property close to infrastructure; and a property which can be shared by tenants in order to maximise your rental return.
HTW’s work, again, highlights that it is a buyer’s market and if you are not prepared to meet the market, then it may be best not to sell right now.  Sadly, any bearish commentary on the housing market is picked up very quickly these days in the blogosphere and it soon loses its original meaning and context.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
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Bearish property market predictions off the mark

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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.
 
All the talk of a resources boom which may last for decades has encouraged investors to look at buying property in mining towns chasing the next hot spot.
Only last week Chris, a builder from Tasmania, asked my opinion on investing in a mining town, saying he was chasing capital growth but was worried about the effect the new carbon tax may have on Australia's resource sector and the towns that rely on this booming industry for economic prosperity.
I advise him to steer clear of mining towns, and it has nothing to do with the controversial tax. There are a whole plethora of reasons why buying at the coalface should be avoided.
The first thing I asked Chris was “are you an investor or a speculator?” I explained that seeking out the next big boom location is not really investing.
To me, investing in property is all about generating strong long-term capital growth. To achieve this, investors must have a clearly defined investment plan that outlines their goals and how they intend to achieve them. Then they must do their due diligence and research locations that have a proven history of outperforming the averages and buy the type of property that will help them reach their goals.
Hot-spotting is almost the complete opposite to this sensible, not-so-sexy, tried and tested method of successfully building a property portfolio. It’s more about short-term speculation than long-term wealth creation.
When I asked Chris what type of people were buying properties in our mining towns he correctly said “investors” rather than owner-occupiers.
This helped me explain the reason for the underlying volatility in mining town property markets. I’d rather have a market underpinned by strong demand from a wide demographic of owner-occupiers and supported by a range of industries than a speculatively led investor market.
Just look what happened to property values in our mining towns during the aftermath the global financial crisis. Investors fled these more unpredictable property markets and prices crashed. In fact in many cases there there were no buyers for their properties. Some are still trying to sell their properties today!
If a local real estate market is predominantly driven by speculative investors who jump in feet first during a boom when prices are soaring, but just as quickly move on when the dust settles and sentiment changes, you’re in for a volatile ride.
Basically, when things are good they're very, very good, but when they are bad, they're rotten.
Without strong owner-occupier demand underpinning house prices and creating a pattern of steady, long-term capital growth, there really is limited true potential for a sound, secure long term investment.
And let's face it, owner-occupiers are not scrambling to snap up a home in Australia's remote outback where the majority of mining operations are located.
Then there's always the prospect of the town simply disappearing if the mining company decides to call it a day and move on to greener pastures. Given that the local economy in these resource driven locations is predominantly reliant on mining employees to sustain it, this would prove financially fatal for local businesses and most residents would be forced to pack up and relocate in order to survive. Of course no residents means no tenants and no income from what you may have once deemed a veritable goldmine! Pardon the pun.
If this isn't enough to convince die-hard speculators to stay away, perhaps the growing threat to the economic viability of mining towns – a breed of employees known as “fly-in-fly-out” workers – will set you straight. These highly paid workers set up residence in nearby urban centres or coastal regions, fly in on a weekly basis to perform their duties and reside in temporary accommodation camps, then fly home to spend their hefty paycheques in a more civilised setting.
Of course our mining boom and the resulting billions of dollars spent on resources infrastructure is boon to our economy. And I can understand the temptation to invest in towns that may appear to profit on the back of this boom. But I’ve seen these booms turn into speculative bubbles. Today’s hotspot could be tomorrow’s over-heated market!
Just look back a few years ago when the resources boom hit WA, and thousands of investors jumped on the bandwagon and bought into those mining towns that sprung up literally overnight. Of course, when the resources sector cooled off, many of these towns went from boom to bust as the main industry supporting the local economy slowed down.
Today many investors are still having issues trying to offload their underperforming properties in these towns.
For my money, real estate should be about long term growth and secure returns and these are easy to find in and around Australia's major capital cities – where our diverse economies have been evolving for hundreds of years. These areas are true property investment goldmines!
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Warning to investors: Stay away from the coalface

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Investors looking for holiday rental properties might be better off considering self-catering apartments rather than bed and breakfasts or guest houses, according to a new survey.
Self-contained apartments had the highest national occupancy average rate of 40% in the June 2011 quarter, a Nielsen survey of 900 small accommodation owners commissioned by online holiday listings group Stayz has found.
In comparison, the occupancy rates for holiday houses, cabins and cottages over the period was just 27% and 25% for bed and breakfasts.
Stayz group business development director Justin Butterworth told Property Observer he had noticed a gradual trend of travellers looking for privacy and space, meaning “the configuration of holiday homes is appealing to more and more travellers”.
There is also the issue of price – B&amp;Bs and guesthouses add greater value in terms of the catering component, but at a higher price.
He says self-contained apartments have the versatility of suiting holidaymakers, business travellers and those in the process of relocating.
“They are also suitable for smaller groups,” he says, with families comprising 43% of those who stay in self-contained apartments, couples comprising 33% couples, and friends 15%.
“They access more of the market.”
The survey found that self-contained apartments generated the highest revenue – $8,192 per property per quarter, with holiday houses, cabins and cottages managing $3,048 and B&amp;Bs $2,214 – less than half the average for the entire sector ($4,553).
On average, small accommodation owners earn about $700 per weekend.
The sector as a whole registered a 30% vacancy rate during the quarter, with natural disasters and the strong currency factors in the low occupancy rate. The survey did not take into account seasonal variation.
Possibly the priciest guesthouse on the market currently is Mona, a historic Braidwood property offering guest house accommodation that has been listed by operators Greg and Kerry Schneider.
It’s a 45-hectare property with an 1890s homestead listed through Chris Meares of Meares &amp; Associates in conjunction with Christie's International Real Estate agent Ken Jacobs with a $5.5 million asking price.
<img src="/images/stories/monaguest.jpg" style="border-style: initial; border-color: initial;">
It includes a 1903 coach house used by Cobb &amp; Co (pictured above). Its stables, which date from the 1860s, have been converted into a marble-tiled 7,000-litre plunge pool for guests.
<img src="/images/stories/nimbin.jpg">
More affordable is Grey Gum Lodge (pictured above) in the hippie town of Nimbin, NSW, being sold with $629,000 hopes. It includes four queen-sized bedrooms and two double bed rooms all with en suite bathrooms and is set on 1,214 square metre block with views to Lillian Rock and Border Range. The property is being sold by Chris Hayward from GNF Real Estate Murwillumbah.
According to the Stayz survey, accommodation owners expect demand for self-contained apartments rise the most, with occupancy rates increasing from 40% to 50% in the September quarter before dropping slightly to 49% by June next year.
Occupancy rates for holiday houses, cabins and cottages are expected to increase from 27% to 31% next quarter and to rise again to 34% by June next year.
B&amp;B occupancies are forecasted to rise 3% to 28% next quarter and to rise again to 35% by June next year.
Holiday property owners in Western Australia are the most optimistic, with 45% expecting conditions to improve, while the gloomiest are in Tasmania, with nearly one in two (49%) expecting conditions to worsen.
Western Australia and Queensland had the highest occupancy rates during the quarter of 39% and 36%. South Australia, Tasmania and Queensland had occupancy rates of 30%, 31% and 36% respectively, while Victoria and NSW had the lowest each at 25%.
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