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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Competition is cooking in the Melbourne CBD amid ongoing demand for space from food and beverage retailers.
It is particularly fierce in the high-end sector of the market, which is leading to high rents, according to Colliers International agent Ben Tremellen.
The retail agency executive says high-end food retailers are among a few key categories of retailers who are shrugging off the doom and gloom, including luxury retailers.
“As the office market tightens and new CBD apartment developments are announced weekly, the potential customer base for these operators is expanding rapidly,” he says.
“There are several proven operators chasing new sites in Melbourne CBD, keen to position themselves to meet the customer demand.”
Tremellen says food and beverage deals are being negotiated for upwards of $1000 per square metre as operators compete to secure space.
At 485 La Trobe Street, Tremellen negotiated a deal on behalf of landlord CLSA for cafe operator Café  Saporo to lease 120 square metres of space that was previously foyer seating, maximising the income opportunity for the landlord.
At 206 Bourke Street, Tremellen leased 501 square metres to another food operator over two tenancies, and at 400 Collins Street, a café operator has taken 194 square metres.
“All three deals were negotiated on rates of more than $1000 square metres,” he says.
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jchancellor-FAypfDUnLy

High-end food retailers hungry for space at $1000 per square metre

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Half of all residential sellers in 2011 had previously refused a higher offer, according to a straw poll undertaken by Ray White Group estate agents.
“This is an incredible statistic,” the group joint chairman Brian White says.
“In a profession that prides its purposefulness in achieving the highest possible price for our sellers, it comes as a shock.
“Is there a better way that we can communicate with our sellers the attractiveness of early offers?
“At the present time, so many sellers are hopeful of higher figures – conditioned by years of justified confidence in the underlying value of their assets,” he notes. “It’s only natural to express disappointment at earlier offers and to ignore them.
“It is clearly painful when that rejection leads to even further disappointment later on,” White says.
The Ray White Group’s total turnover for July totalled $2.03 billion, which held its $2 billion plus monthly track record.
Sales volumes has been maintained year on year, with the 10% overall reduction from July last year reflected chiefly by falls in price values.
Queensland had its strongest month for 2011, as did Western Australia – the two Australian states with highly publicised difficulties.
“Our other markets continued at previous levels established this year,” White notes.
“But the market is adjusting. Our high-profile Broadbeach office made four sales in the month – each under $200,000 – for properties that haven’t realised that amount for more than 10 years.
“Spring is just around the corner, and already our offices are reporting increasing marketing campaigns set to soon commence.”
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Half of vendors accepting lower offers as market weakens

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There are 10 world cities in a class of their own when it comes to residential real estate, according to international property advisors Savills. Average values across the newly created World Class Index of premier global residential property locations have risen 77% since 2005, despite the intervening financial crisis or two, with growth of 6% in the first six months of 2011.
But the index average hides big differences between emerging flash new-world economies and the indebted old-world ones.
Sydney ranks alongside Tokyo, London, Paris and New York as “old-world” economies, while Shanghai, Singapore, Hong Kong, Moscow and Mumbai are the exciting “new-world” emerging economies, according to Savills.
A clear gap can be seen.
Tokyo, London, Paris, Sydney and New York grew by 32% since 2005
But the “new-world”, or emerging, economies of Shanghai, Singapore, Hong Kong, Moscow and Mumbai grew, on average, by 123% over the same period.
And within the old world the more cosmopolitan cities fared much better than those that restrict foreign purchasers.
“It becomes apparent that the debt-induced crisis of 2008 was suffered most by the old-world cities and not the new-world ones,” says Yolande Barnes, head of Savills Residential Research.
“The biggest old-world value rebounds have been experienced in the cities most open to new-world investment, notably London and Paris.”
She concludes that for wealthy, globally footloose investors, prime residential property in London and Paris will remain the favoured safe haven for the wealth created in the new-world economies.
“Increasingly, our cities have more in common with each other than with the domestic, mainstream markets in which they operate,” Barnes says.
“Their future performance will depend upon their continued appeal as places to live and work as well as to invest.
“Meanwhile, old-world cities like Tokyo and Sydney are geographically very well placed to benefit from investment from frustrated Chinese and other Far Eastern investors, but they will need to open up their markets to such investors to trigger this.”
<img src="/images/stories/savillsaugust81.jpg">
<img src="/images/stories/savillsaugust82.jpg">
Source: Savills
 
<hr class="system-pagebreak">
 
 
The report notes a shift has occurred in the global real estate premier league since 2005.
Hong Kong remains the most expensive, and values are now 107% above the 10 World Cities Index average, and 63% more expensive than second-place London.
Singapore has grown 123% over the past five and a half years, so it has come up the ranks from seventh position in 2005 to fourth in 2011.
“With its strategic location in a time zone between Europe and North America, Hong Kong has emerged as one of the world’s elite financial centres, and as a gateway to China has prompted increased capital and talent inflow over the past decade,” says Simon Smith, head of Savills research in Asia Pacific.
At the other end of the scale, Mumbai is the least expensive world class city, costing 43% less than the average of all the 10 cities. But it has grown by 154% off its low base, and recorded the highest rate of growth over the period, marginally ahead of Shanghai’s 143%.
On an individual basis, cities have performed very differently.
Against Mumbai, Singapore and Shanghai’s stellar growth, New York grew by just 7% and now, along with Sydney, represents the best value in the old world, Barnes says.
The report noted there was little uniformity in the pattern and timings of price movements as some cities had grown steadily over the whole survey period while others have shown pronounced peaks and troughs – at different times.
Savills Research used a basket of properties required to house an executive group of people that might start up or expand a global business in any country, where real estate costs become an important element of doing business.
Capital Value League Table
 
<table width="328" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" width="63">
Rank 2011
</td>
<td valign="bottom" width="63">
Rank 2005
</td>
<td valign="bottom" width="75">
City
</td>
<td valign="bottom" width="66">
Relative Total Cost Index
</td>
<td valign="bottom" width="63">
Growth
Dec-05 to Jun-11
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
1
</td>
<td valign="bottom" nowrap width="63">
1
</td>
<td valign="bottom" nowrap width="75">
Hong Kong
</td>
<td valign="bottom" nowrap width="66">
207
</td>
<td valign="bottom" nowrap width="63">
98%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
2
</td>
<td valign="bottom" nowrap width="63">
3
</td>
<td valign="bottom" nowrap width="75">
London
</td>
<td valign="bottom" nowrap width="66">
127
</td>
<td valign="bottom" nowrap width="63">
32%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
3
</td>
<td valign="bottom" nowrap width="63">
2
</td>
<td valign="bottom" nowrap width="75">
Tokyo
</td>
<td valign="bottom" nowrap width="66">
112
</td>
<td valign="bottom" nowrap width="63">
44%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
4
</td>
<td valign="bottom" nowrap width="63">
7
</td>
<td valign="bottom" nowrap width="75">
Singapore
</td>
<td valign="bottom" nowrap width="66">
110
</td>
<td valign="bottom" nowrap width="63">
123%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
5
</td>
<td valign="bottom" nowrap width="63">
4
</td>
<td valign="bottom" nowrap width="75">
Paris
</td>
<td valign="bottom" nowrap width="66">
110
</td>
<td valign="bottom" nowrap width="63">
49%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
6
</td>
<td valign="bottom" nowrap width="63">
8
</td>
<td valign="bottom" nowrap width="75">
Shanghai
</td>
<td valign="bottom" nowrap width="66">
79
</td>
<td valign="bottom" nowrap width="63">
143%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
7
</td>
<td valign="bottom" nowrap width="63">
5
</td>
<td valign="bottom" nowrap width="75">
New York
</td>
<td valign="bottom" nowrap width="66">
69
</td>
<td valign="bottom" nowrap width="63">
7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
8
</td>
<td valign="bottom" nowrap width="63">
6
</td>
<td valign="bottom" nowrap width="75">
Sydney
</td>
<td valign="bottom" nowrap width="66">
67
</td>
<td valign="bottom" nowrap width="63">
27%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
9
</td>
<td valign="bottom" nowrap width="63">
9
</td>
<td valign="bottom" nowrap width="75">
Moscow
</td>
<td valign="bottom" nowrap width="66">
62
</td>
<td valign="bottom" nowrap width="63">
94%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
10
</td>
<td valign="bottom" nowrap width="63">
10
</td>
<td valign="bottom" nowrap width="75">
Mumbai
</td>
<td valign="bottom" nowrap width="66">
57
</td>
<td valign="bottom" nowrap width="63">
154%
</td>
</tr>
</tbody></table>
Source: Savills Research
Fundamental visitor business and relocation activity in each city was revealed in Savills International rental rankings that show that of the 10 cities, London has the highest rents and Mumbai the lowest.
For the top five most expensive rental cities, London, Paris, Hong Kong, Tokyo and Singapore, demand is fuelled by domestic, as well as corporate demand as would-be purchasers are pushed into the rental sector due to credit restrictions. Rents have moved, on average, across all cities at a slower pace than capital values, thereby suppressing yields.
There is an old world/new world difference in the growth of rents, but it is not as pronounced as with capital values – 3.6% new-world rental yields compared with 5.1% old-world rental yields. Savills suggests this highlights that strong capital-growth-motivated investment activity is driving capital values in the new world and means that yields are moving in much faster in these cities. In consequence, it might be said that there is a stronger case for rental-return-motivated investment in the cities of the old world.
Rent League Table
<table width="320" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" width="63">
Rank 2011
</td>
<td valign="bottom" width="63">
Rank 2005
</td>
<td valign="bottom" width="69">
City
</td>
<td valign="bottom" width="63">
Relative Total Cost Index
</td>
<td valign="bottom" width="63">
Yield Growth Dec-05 to Jun-11
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
1
</td>
<td valign="bottom" nowrap width="63">
1
</td>
<td valign="bottom" nowrap width="69">
London
</td>
<td valign="bottom" nowrap width="63">
142
</td>
<td valign="bottom" nowrap width="63">
13%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
2
</td>
<td valign="bottom" nowrap width="63">
4
</td>
<td valign="bottom" nowrap width="69">
Paris
</td>
<td valign="bottom" nowrap width="63">
141
</td>
<td valign="bottom" nowrap width="63">
20%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
3
</td>
<td valign="bottom" nowrap width="63">
5
</td>
<td valign="bottom" nowrap width="69">
Hong Kong
</td>
<td valign="bottom" nowrap width="63">
124
</td>
<td valign="bottom" nowrap width="63">
28%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
4
</td>
<td valign="bottom" nowrap width="63">
2
</td>
<td valign="bottom" nowrap width="69">
Tokyo
</td>
<td valign="bottom" nowrap width="63">
123
</td>
<td valign="bottom" nowrap width="63">
-11%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
5
</td>
<td valign="bottom" nowrap width="63">
3
</td>
<td valign="bottom" nowrap width="69">
New York
</td>
<td valign="bottom" nowrap width="63">
121
</td>
<td valign="bottom" nowrap width="63">
-3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
6
</td>
<td valign="bottom" nowrap width="63">
7
</td>
<td valign="bottom" nowrap width="69">
Singapore
</td>
<td valign="bottom" nowrap width="63">
98
</td>
<td valign="bottom" nowrap width="63">
95%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
7
</td>
<td valign="bottom" nowrap width="63">
6
</td>
<td valign="bottom" nowrap width="69">
Sydney
</td>
<td valign="bottom" nowrap width="63">
88
</td>
<td valign="bottom" nowrap width="63">
19%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
8
</td>
<td valign="bottom" nowrap width="63">
8
</td>
<td valign="bottom" nowrap width="69">
Moscow
</td>
<td valign="bottom" nowrap width="63">
71
</td>
<td valign="bottom" nowrap width="63">
43%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
9
</td>
<td valign="bottom" nowrap width="63">
9
</td>
<td valign="bottom" nowrap width="69">
Shanghai
</td>
<td valign="bottom" nowrap width="63">
47
</td>
<td valign="bottom" nowrap width="63">
6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="63">
10
</td>
<td valign="bottom" nowrap width="63">
10
</td>
<td valign="bottom" nowrap width="69">
Mumbai
</td>
<td valign="bottom" nowrap width="63">
45
</td>
<td valign="bottom" nowrap width="63">
69%
</td>
</tr>
</tbody></table>
Source: Savills Research
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New world cities outperform old world

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Borrowers can be forgiven for being confused about the direction of interest rates over the past five weeks. Property Observer has compiled the top 10 defining economist announcements since the RBA's July decision to keep interest rates on hold: 
<h1 align="center">1 </h1>
July 5 Rates on hold for rest of 2011: ANZ
Following the RBA’s decision to leave rates on hold on July 5, ANZ forecast rates to be on hold for the rest of 2011 but also estimated a “more gradual tightening cycle, with the cash rate to reach 5.75% in the second half 2013".
<h1 align="center">2</h1>
July 5 A rate hike in November: Westpac
“We see the first possible window for a hike as the November meeting. That would require an improvement in consumer spending and more clarity on the situation in Europe,” Westpac forecast on July 5. 
<h1 align="center">3</h1>
July 12 A 25 basis point rise in December: NAB
On July 12, NAB said the next 25 basis point rise would be deferred until December, “when growth momentum is more apparent and labour market tightens significantly”. The bank put a second 25-basis-point rise back to May 2012.
<h1 align="center">4</h1>
July 15 Rates to fall in October: Westpac
On the back of “further adverse developments in Europe” Westpac changed its minds on rates, forecasting a 25 bps rate cut by October and 50% chance of a follow-on move by February next year.
<h1 align="center">5</h1>
July 21 Rates down by 1% by late 2012: Westpac
Following publication of its Red Book, Westpac said the RBA would move to an easing bias in the months ahead before delivering a series of rate cuts from December with a 1% reduction by late 2012.
 
<h1 align="center">6</h1>
July 27 Rise of 25 bps before the end of 2011: ANZ
Following the release of higher-than-expected quarterly CPI figures for June, ANZ said a 25bps interest rate rise before the end of the year was very likely.
<h1 align="center">7</h1>
July 27 No rate hike in August: Westpac
Following its bold declaration that rates would fall, Westpac had a go at the method the ABS used to compile its inflation data – “We note with relief that the ABS plans to change this troublesome sub-component from the CPI from the September quarter” – but became a lot more cautious about future rate cuts.
<h1 align="center">8</h1>
July 29 Rates up in fourth quarter to 5%, peaking at 5.75% by mid-2013: CBA 
“We do expect the RBA to lift the cash rate to 5% at the November board meeting after the release of the third-quarter CPI in late October, which is likely to confirm intensifying underlying inflation pressures. We then see the RBA gradually lifting the cash rate to a likely peak of 5.75% by early 2013," said Commonwealth Bank of Australia. 
<h1 align="center">9</h1>
August 2 Rates going down in November: Westpac
Following the RBA's August 2 decision to leave rates on hold, Westpac declared: “Given our view that the global economy is likely to remain a risky place and that inflation pressures will continue to ease in the Australian economy, we see no reason to change our forecast that the next move in rates will be down by late in 2011.”
 
<h1 align="center">10</h1>
August 8 Emergency rate cuts possible: ANZ
Following S&amp;P’s US downgrade and global equity markets crashing, ANZ warned that a further sharp decline in equity markets would increase the risk of the RBA enacting “emergency rate cuts”. However, should international markets stabilise the bank says the RBA thinking would “reverse toward higher interest rates once more”.
Rismark economist Christopher Joye wrote on his <a target="_blank" title="Christopher Joye" href="https://christopherjoye.blogspot.com/2011/08/calm-pays-during-chaos">macroeconomic blog</a> that he remained of the view that interest rates werelikely to go up rather than down. However, he noted the possibility of the RBA doing a 180-degree spin if the crisis worsened, with interest rate markets pricing in potential for six rate cuts between now and March next year.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust83.gif"><img src="/images/stories/joyeaugust83thumb.gif"></a>
Click to enlarge
Source: Christopher Joye
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lschlesinger-FZcF9M3vE6

Ten twists and turns: The interest rate forecast rollercoaster

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The monthly private sector credit numbers for June 2011 were released by the Reserve Bank last week. The data highlights the amount of outstanding credit for the private sector. Of particular interest is the housing credit data.
<img src="/images/stories/tighthousing1.jpg">
Housing credit is broken into two parts: owner occupier and investor credit. Total housing credit grew by just 6.0% over the 12 months to June 2011, the slowest annual rate of growth in housing credit over the length of the time series which dates back to January 1991. Owner occupier credit increased by just 6.5% over the year and investor credit grew by 5.8%. Annual owner occupier credit growth was the lowest in history while investor finance growth reached a low of 2.3% in October 2009.
The limited growth in credit is indicative of the response to the Global Financial Crisis (GFC) by financiers, having tightened credit requirements for home loans. It is also representative of the higher interest rate environment resulting in lower home loan demand and consumer caution which is resulting in home loan owners paying down debt.
The annual growth in housing credit across Australia has actually been easing ever since March 2004, which was also the time the housing boom of 2001-04 was starting to run out of puff. As the graph shows, ever since private sector housing credit peaked the rate of capital growth in property values has also been slower.
<img src="/images/stories/tighthousing2.jpg">
The most recent RP Data-Rismark Capital City Home Value data is to June 2011, 74 months since housing credit began to fall. Over this time, home values across the combined capital cities have increased by a total of 40%. During the preceding 74 months, capital city home values increased by a total of 97.4%. The evidence certainly suggests that as growth in housing credit slows so too does the rate of property value appreciation.
Although a decline in housing credit is likely to result in lower levels of home value growth, there is no precedent that it will result in substantial falls in home values.
<img src="/images/stories/tighthousing3.jpg">
What is a likely result of lower growth in housing credit is a lower number of housing transactions. When the volume of home sales in the three largest cities (Sydney, Melbourne and Brisbane) are plotted against the annual change in housing credit you can see that volumes have been trending lower since growth in housing credit peaked during March 2004.
Obviously this changing market dynamic is going to have an acute impact on home owners and property professionals.
Home values are unlikely to grow at a similar pace to that which they have grown in recent years. It is important to note that this shift has been happening without much notice in recent years. Over the past five years, capital city home values have grown at an average annual rate of 5.5% compared to annual growth of 7.1% on average over the decade. So clearly the last five years have recorded a much slower rate of capital gains than the preceding five years. Lower rates of capital growth mean less equity in homes and as a result less housing market speculation. In-turn, we will likely see fewer investors actively looking to invest in property unless rental returns climb markedly from their current levels, providing opportunities for positive gearing.
For property professionals, fewer transactions coupled with lower equity levels is likely to result in less commission and lower demand.
How long will these conditions last? Who's to say but affordability is an issue and not one that is likely to be improved upon quickly so these conditions are the new normal with property values likely to grow more in-line with household incomes going forward. The banks have stated that consumers will have to get used to lower levels of credit after the GFC, now obviously that won't continue forever but a restricted credit supply is likely to remain for a number of years, especially while debt problems persist in many economies.
Tim Lawless is the head of research for<a target="_blank" title="RP Data" href="https://www.rpdata.net.au/"> RP Data</a>. This article originally appeard on <a target="_blank" title="SmartyCompany" href="https://www.smartcompany.com.au/property/20110808-tight-housing-credit-brings-little-joy-to-the-market">SmartCompany</a>.
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Tight housing credit brings little joy

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After a sharp slump in share markets – as we are now seeing – it is natural to wonder what the implications for residential property market might be. 
Will investors rush into property as a safer alternative to shares much as occurred after the 1987 share crash? Or will the deteriorating economic backdrop cause buyers to sit on the sidelines as distressed selling picks up, much as occurred initially around the GFC? 
Our view is that the odds favour the later. As in 2008, the environment today is very different to what see saw after the 1987 share market crash – there is much more economic uncertainty, house prices are percieved as overvalued and affordability is terrible. Investor surveys show that property is almost as out of favour for investors as shares are.
With non-mining parts of the economy already struggling, the global outlook taking a turn for the worst, share markets falling and unemployment likely to start drifting up again, it is likely we will see an increase in the supply of homes on the market over the next few months, particularly at the upper end. This combined with fear of the unknown keeping potential buyers on the sidelines is likely to ensure that the recent softening in house prices will continue into year end.
Eventually the RBA will start to cut interest rates and this should start to help the residential property market from around the middle of next year, but in the meantime its hard to see the property market picking up.
Shane Oliver is chief economist at <a href="https://www.ampcapital.com.au/" title="AMP Capital Investors" target="_blank">AMP Capital Investors</a>.
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Property to be sidelined until mid next year

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More than half (57%) of future home buyers say the proposed carbon tax is discouraging them from purchasing a property, according to an online poll by mortgage broker Loan Market.
About a quarter (22%) of the 482 respondents said they were holding off buying to see how the mooted tax would affect them, while 35% said the proposed tax had put them off buying a house entirely.
Loan Market chief operating officer Dean Rushton says the results of the poll shows the carbon tax is not something that is likely to encourage consumers in what is already a challenging market for the home finance and real estate sectors.
The carbon tax appears to be less of a worry for younger borrowers, with 51% of the 18- to 25-year-old age group saying the proposal would not delay their property moves.
More than a third (35%) of respondents still plan to buy a house despite the carbon tax plan, and 8% hope to budget around it, the poll found.
The Real Estate Institute of NSW estimates that the cost of building a house will increase by over $5,700 as a result of the Carbon Tax and additional GST and stamp duty charges.
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More than half of potential home buyers put off by spectre of carbon tax

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Buying a house in Perth now costs roughly what it cost before the onset of the GFC in late 2007, according to preliminary figures released by the Real Estate Institute of Western Australia.
The median house price in Perth dropped by about 3% during the June quarter, with the metropolitan area experiencing its fifth consecutive quarter of price retraction, according to preliminary data from the institute.
Final data is expected to confirm a 2% drop in the Perth median house price to about $475,000. This is 6% down from the March 2010 peak of $505,000.
“This means the Perth median house price is now pretty much where it was in the December quarter of 2007 before the strong market correction and Global Financial Crisis of that year,” says REIWA president Alan Bourke. 
Flat sales turnover, little pressure on rentals and a surplus of listings are the main reasons for the Perth housing market remaining depressed. 
Markets were stronger in regions outside of Perth with the dip in median house price just under 2%, producing a median of $370,000. Sales activity picked up by about 4% in the quarter for areas outside of the city. 
The key beneficiaries of the fall in house prices have been first home buyers, with numbers increasing by 10% to 2,348 purchasers, the highest level since March 2010. 
However, this is still 26% below the average quarterly figure since the first-home owners’ grant was introduced 11 years ago. 
“First-home buyers remain a strong part of a weak market and represent 25% of all buyers in the quarter. The median purchase price for this group is now $413,000 in the city and $339,000 in regional areas,” Bourke says. 
The average first-home buyer loan in WA for April-May 2011 was $282,000, down by 5% from the peak of $298,000 in December of 2009.
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Perth house prices fall to pre-GFC levels

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So is it OK to buy now? Is this a window of opportunity or the start of the slippery slope?
It’s human nature as buyers to want to get a great deal at any time. We as buyers want to make the best decisions on our needs and maximise our individual long-term emotional and financial outcomes for our family – just as sellers do. But there is wanting and there is making it happen.
Going forward, what will happen is that:
Some buyers will panic.
We are all a bit circumspect and nervous, but if we become panicked we become a danger to our families.
The best way to avoid panic is to be clear on what it is that you, as the breadwinner or decision maker, are trying to achieve.
What do you want for your family?
A home with four bedrooms, a good backyard near schools and with a good floorplan in Boroondara or Bayside? Good – well stick to it.
The condition of the Greek economy shouldn’t make you now think you want a two-bedroom home in Epping with no backyard because that is somehow less risky than Hampton or Glen Iris.
Some buyers will not learn from history.
Think what happened during and post the GFC, during the ‘90s drop, and during the ‘70s – if you are as old as I am.
If you understand what is happening now you may be able to take advantage of it – even in little ways. It all adds up.
Some buyers will act.
You can only take advantage of an opportunity if you act.
Those who appear to be the wisest of men who pass on everything in life are not that.
You can’t look after your family on inaction. Your spouse can’t sleep in your concern and your kids can’t play in your risk-avoidance strategies.
Good things to think about when you realise you still need to do something:
Take your time, as most sensible buyers have this year. If you see something you like, look at its characteristics: are they what you want and are they any good? If not, move on – prices seem unlikely to be going north in a hurry.
Elevate your risk taking in negotiations and go harder on price. Especially if it’s been passed in for longer than a few days. Providing you don’t have to have it at any cost, push a little harder. It’s not immoral to try for a good deal.
Aim higher – especially if you are above $2 million. If you can stomach a bit more debt, then now may be the perfect time to look for something a bit better than what you could have afforded last year.
Marry a doctor or someone with equally good cash flow, because over the next few months some bargains may appear and cash-flow kings will be able to take advantage of the debt bunnies.
We admit we have a complete bias towards property, so maybe our thoughts are not quite balanced. But maybe that’s why we feel some comfort right now. If the kitchen in stocks is a bit too hot maybe nervous investors could come over and try the relatively stable inner-Melbourne housing market. Sure, it’s a bit rough around the edges, but it is solid inside.
The rest of this year is an opportunity for us all – and for some that opportunity will be a time for action, for others a time for reflection and for a few a time for panic.
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

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Don't panic, Europe's economy shouldn't affect your Melbourne property investment

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You’ve probably woken up this morning a little confused. The <country-region><place>US</place></country-region> government has been downgraded from a AAA rating to AA+ over the weekend. Every newspaper or media outlet you read is talking about financial markets mayhem. One minute you are hearing about higher interest rates, the next there is confident talk they will be slashed. The Aussie dollar has fallen more than seven cents from its high last week to have traded as low as US$1.0378 in this morning’s markets. The local sharemarket is off more than 10% in recent days. Media commentators are working themselves up into hysterics about how <place><country-region>Australia</country-region></place> is hurtling towards recession. All this turbulence is probably doing your head in. 
At times like this, it is useful to reflect on the hard facts. The so-called G7 economies – the US, UK, Germany, France, Japan, Italy and Canada – only actually account for about 30% of global economic growth, which is what we are really worried about (see chart). The higher-growth emerging and developing countries account for about 60% (i.e., they are far more important). About 30% to 40% of Australia’s exports go to two of these countries alone: China and India. 
So while the IMF projects that the world economy will advance at a healthy 4% to 5% per annum clip this year and next – with Australia’s trading partners expected to expand at an even faster pace – it believes that growth in the US and Europe will be much lower (and likely downgraded further).
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The financial markets and media commentators have not yet really understood that the global centre of economic gravity is rapidly shifting away from the North Atlantic countries towards the emerging world and <place>Asia</place> in particular. <country-region><place>Australia</place></country-region> is lucky to be situated in this region, and to possess the vital ingredients these high-powered nations require in order to fulfill their industrialisation and urbanisation plans: viz., natural resources, like iron ore, coal and natural gas, for steel and energy. 
Already our floating exchange rate is acting like a reflexive “shock absorber” and relieving pressure on the economy during this time of uncertainty. The seven cents sliced off the Aussie dollar (and counting) will make our export- and import-competing industries temporarily more competitive. While this is great news for those sectors, the one drawback is that a depreciating currency means we are likely to import more inflation from China and India (the huge appreciation in the Aussie dollar over the last year had been working in the opposite direction). 
As it stands, Australians remain in rude health. The unemployment rate is at its so-called “full-employment” level of just under 5%. Private wages including bonuses grew by 4.1% over the last year. Disposable household incomes rose by even more than this amount. And, if push comes to shove, the RBA can inject enormous stimulus into the economy by cutting home loan rates to as low as 2% to 3%. 
In this context, one surprisingly resilient store of wealth during financial market turmoil tends to be Australian housing. 
Compared with shares, this was certainly the case during the 1987, 2002-03, and 2007-08 equity corrections, when local share prices plummeted by 44%, 15% and 50%, respectively and cruelled the retirement plans of so many Australians who were “overweight” in this risky asset class. 
It was also true in the 2001 “tech wreck”, when global shares, which have historically attracted about 30% of all Australian super fund money, fell by about 40 to 50%. 
During the recent GFC, the peak-to-trough fall in Australian home values was just 3% to 4% notwithstanding that an inflation-focused RBA kept mortgage rates at 9.6% as late as August 2008 (see chart). That’s less than what the Aussie sharemarket lost in a single day last week.
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A final test case is the 1991 recession, when despite a spike in the unemployment rate to 11%, and double-digit mortgage rates, overall Australian house prices moved sideways. 
 
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As regular readers will know, our central case remains that the RBA will hike interest rates once or twice more. This should continue to put mild pressure on the housing market, which has suffered from a combination of the RBA’s de facto double rate hike in November last year and the very “hawkish” expectations of consumers, who have been working on the basis that they would be hit with another two to three hikes. If this comes to pass, a modest downward adjustment in dwelling prices should present prospective buyers with attractive investment opportunities before a very robust recovery as the RBA normalises rates over 2012-13. 
I should note here that this view is quickly slipping into the minority despite the extraordinarily high “core” inflation readings in the first and second quarters of 2011 (these core estimates strip out unusual events like the floods that affect the “headline” numbers). 
After 20 years of uninterrupted growth, many Australians have forgotten what the cost of high and volatile inflation is. Well, I can tell you: high nominal interest rates. 
The average home loan rate in <country-region><place>Australia</place></country-region> between 1980 and 1995 was a scorching 12.6%. That was before the RBA broke the back of inflation during the 1991 recession. Since 1995 the average home loan rate has declined by 42% to be just 7.3%.
The cost of price stability (or low inflation) is occasional periods of higher interest rates when the RBA strives to bring those price pressures back into its target 2% to 3% per annum band. 
Of course, it also pays to remember that inflation is a tax on hard-earned savings. That is, it punishes savers and rewards spendthrifts (i.e., those with debt). Hence the many net savers out there in the community who have loaded up on cash and fixed-income and want to see the RBA do its job properly, even if it means lower growth and higher unemployment in the short-term. 
A second major thesis we have been running for a few years now is that housing could be a solid hedge against extreme adversity. The financial markets are currently pricing an incredible six rate cuts within the next year on the basis of the belief that we are going to get a GFC Mark II (see chart).
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On the assumption of its “peachy” base case, the RBA has deliberately sought to crush consumption, retail spending, and the household sectors to make room for the huge amount of private investment that is starting to take place in Australia. 
Ordinarily, consumption accounts for 55 to 60% of all economic growth. Yet there is another $140 billion or so of new private investment that will be commenced in the next two years alone, which amounts to about 11 percentage points of GDP growth. Even if you take an axe to that number and halve it, it remains chunky. 
Yet if the China and India urbanisation stories blow up, and demand for Australian resources disappears, what will the RBA do? 
It will slash interest rates (as the financial markets believe it will), and invite the consumer and household sectors to step into the breach left by evaporating resources investments. 
And what is the most interest rate-sensitive sector of the economy? Housing. 
Think about what happened during the GFC. The RBA slashed home loan rates from 9.6% in August 2008 to just 5.75% by April 2009. And, unsurprisingly, Australian house prices soared by a stunning 12.1% in 2009. 
Since I believe the world will muddle through this current speed bump, which is a reflection of the profound structural adjustment taking place in the global economy, I remain of the view that interest rates are more likely to head up than down (although it is possible that a crisis will compel the RBA to spin 180 degrees). 
This will be especially true if the Australian dollar keeps falling, as this will be equivalent to rate cuts and only exacerbate the RBA’s inflation challenge. In this environment, I would keep my investments in cash and floating-rate fixed-income. 
To protect against a downside scenario whereby the RBA is forced to abandon its base case and radically reduce interest rates – let’s say to zero – the good news is that virtually all Australians have, quite uniquely compared with peers overseas, fully adjustable rate home loans. 
If the RBA reduced the cash rate to zero, we would be paying 2.5% mortgage rates. And, in this contingency, housing will likely once again be a very solid store of wealth.
Christopher Joye is a leading financial economist and works with <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" 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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