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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An 1886 Jersey Road, Woollahra shop has been sold for $1.55 million to homeware importers Patrick and Marion Horgan.
It had previously traded at $1.63 million in 2007 through Christies International, after which it became the Arabella boutique children's store. Its earlier restoration was undertaken by the interior designer Leslie Walford, the fellow of the Design Institute of Australia.
Built as a single-storey corner store, the building had been untouched for decades before Walford bought it for $260,000 in 1991 and restored and extended it as his showroom and offices.
The site had been the Crowther's corner grocery store. It had previously sold for £1500 in 1951. Set at the corner of Jersey Road and Holdsworth Street, the distinctive building has an elegant ground-floor showroom, two first-floor offices, a heritage bathroom, kitchenette and attic storage. The timber premises, that sit on a 70-square-metre block, were marketed by as suitable for a hair/beauty salon, medical, professional offices, or retail and showroom usage.
Arabella Boutique, Australia’s only store to stock Paris-based Bonpoint apparel, has relocated to Transvaal Avenue, Double Bay since the sale.
The recent Jersey Road sale was through Eddie Levy at Metro Commercial, whose agency has by coincidence listed the Transvaal Avenue premises in conjunction with Colliers International with a $7.5 million asking price. The boutique Double Bay retail and commercial building has 813 square metres of space on its 422-square-metre block. There is approval for increased floorspace and strata potential. It has a $557,000 plus income on fully leased basis, according to Metro listing agent Allan Levy.
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jchancellor-FAypfDUnLy

Nineteenth-century corner grocery store in Woollahra sells for $1.55 million

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The Hoppers Crossing 7-Eleven service station sold at auction today for $3.49 million, the highest price achieved on a day when 12 out of the 13 sites sold.
There were about 10 bidders for the 5,575-square-metre Hoppers Crossing site on the corner of Old Geelong and Heaths Roads in a room packed with about 100 potential investors.
With guaranteed annual rent of $210,000, the property has a yield of 6%. It includes eight petrol bowsers and is three kilometres from Werribee Plaza and near Aldi, Woolworths and Target.
It was marketed by Jones Lang LaSalle agents Steve Bolton and Ben Galanos.
The remaining four service stations all sold for prices ranging from $1.685 million for the Bayswater site up to$2.92 million for the Brandon Park site, which was picked up by an Asian investor.
Earlier in the day seven out of the eight NSW offerings were sold to buyers with only the Narrabeen site at 1497 Pittwater Road passed in at $2.5 million. The highest price of $3.35 million was achieved for the 7,451 square metre Edensor Park site on the corner of Cowpasture and Elizabeth Roads at a yield of 7.34%.
All properties were sold with 15-years lease and renewal options of three five-year terms. The tenant pays all outgoings (except land tax), and rents will rise 4% every year.
Each includes a service station, convenience store and customer parking.
Ahead of the auction, prices were expected to range between $1.5 million and $4 million for the five in the Melbourne metropolitan area and eight stores in the Sydney metropolitan area.
Jones Lang LaSalle director David Bowden said earlier purchasers had been attracted by land rich investment properties in prime locations with secure long-term leases and fixed rental increases.
Interest in the retail sites has been high since Jones Lang LaSalle listed a second tranche of 15 refurbished stores were listed for sale on June 17 2011.
Two weeks ahead of the auction, private investors paid a premium for two in Victoria.
Two weeks ahead of the auction, private investors bought the Blackburn South premises and the Lilydale site.
The 2,738-square-metre Blackburn South site on Canterbury Road was offered with an annual rent commencing at $140,000. It sold pre-auction for $.183 million at a yield of 6.98%.
The 1,463-square-metre Lilydale site on the corner of Maroondah Highway and Cave Hill Road, bringing in $130,000 in annual rent sold for $1.52 million and a yield of 8.45%.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="130" valign="top">
NSW
</td>
<td width="85" valign="top">
Site Area
</td>
<td width="96" valign="top">
Annual Rent
</td>
<td width="103" valign="top">
Sales price
</td>
<td width="103" valign="top">
Yield
</td>
</tr>
<tr>
<td width="130">
Artarmon, 477 Pacific Highway
</td>
<td width="85">
1,548sqm
</td>
<td width="96">
$210,000
</td>
<td width="103" valign="top">
$2.72 m
</td>
<td width="103" valign="top">
6.91%
</td>
</tr>
<tr>
<td width="130">
Granville, Cnr Parramatta Road &amp; Harbord Street
</td>
<td width="85">
1,499sqm
</td>
<td width="96">
$200,000
</td>
<td width="103" valign="top">
$2.56 m
</td>
<td width="103" valign="top">
6.88%
</td>
</tr>
<tr>
<td width="130">
Lambton, 21 Croudace Street
</td>
<td width="85">
1,932sqm
</td>
<td width="96">
$190,000
</td>
<td width="103" valign="top">
$2.13 m
</td>
<td width="103" valign="top">
8.53%
</td>
</tr>
<tr>
<td width="130">
Sth Strathfield, 577 Liverpool Road
</td>
<td width="85">
4,998sqm
</td>
<td width="96">
$200,000
</td>
<td width="103" valign="top">
$2.63 m
</td>
<td width="103" valign="top">
5.91%
</td>
</tr>
<tr>
<td width="130">
Blaxland, 137 Great Western Highway
</td>
<td width="85">
1,809sqm
</td>
<td width="96">
$190,000
</td>
<td width="103" valign="top">
$2.25 m
</td>
<td width="103" valign="top">
7.98%
</td>
</tr>
<tr>
<td width="130">
Kensington, Cnr Anzac Parade &amp; Todman Ave
</td>
<td width="85">
1,429sqm
</td>
<td width="96">
$150,000
</td>
<td width="103" valign="top">
$2.4 m
</td>
<td width="103" valign="top">
4.63%
</td>
</tr>
<tr>
<td width="130">
Edensor Park, Cnr Cowpasture &amp; Elizabeth Roads
</td>
<td width="85">
7,451sqm
</td>
<td width="96">
$260,000
</td>
<td width="103" valign="top">
$3.35 m
</td>
<td width="103" valign="top">
7.34%
</td>
</tr>
<tr>
<td width="130">
Narrabeen, 1497 Pittwater Road
</td>
<td width="85">
1,619 sqm
</td>
<td width="96">
$270,000
</td>
<td width="103" valign="top">
Passed in at $2.5 m
</td>
<td width="103" valign="top">
 
</td>
</tr>
<tr>
<td width="130">
Victoria
</td>
<td width="85">
Site area
</td>
<td width="96">
Annual rent
</td>
<td width="103" valign="top">
Sales price
</td>
<td width="103" valign="top">
Yield
</td>
</tr>
<tr>
<td width="130">
Bayswater East, Cnr Dorset Road &amp; Mountain Hwy
</td>
<td width="85">
1,932sqm
</td>
<td width="96">
$140,000
</td>
<td width="103" valign="top">
$1.685 m
</td>
<td width="103" valign="top">
8.31%
</td>
</tr>
<tr>
<td width="130">
Brandon Park, Cnr Springvale &amp; Ferntree Gully Roads
</td>
<td width="85">
2,720sqm
</td>
<td width="96">
$190,000
</td>
<td width="103" valign="top">
$2.92 m
</td>
<td width="103" valign="top">
6.51%
</td>
</tr>
<tr>
<td width="130">
Hoppers Crossing, Cnr Old Geelong &amp; Heaths Rds
</td>
<td width="85">
5,575sqm
</td>
<td width="96">
$210,000
</td>
<td width="103" valign="top">
$3.49 m
</td>
<td width="103" valign="top">
6.02%
</td>
</tr>
<tr>
<td width="130">
Epping, Cnr Dalton &amp; Childs Roads
</td>
<td width="85">
5,204sqm
</td>
<td width="96">
$150,000
</td>
<td width="103" valign="top">
$2.21 m
</td>
<td width="103" valign="top">
6.79%
</td>
</tr>
<tr>
<td width="130">
Tullamarine, Cnr Mickleham &amp; Melrose Roads
</td>
<td width="85">
1,864sqm
</td>
<td width="96">
$180,000
</td>
<td width="103" valign="top">
$2.27 m
</td>
<td width="103" valign="top">
7.93%
</td>
</tr>
</tbody></table>
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lschlesinger-FZcF9M3vE6

Hoppers Crossing 7-Eleven sells for $3.49 million, with nine bidders missing out

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First-home buyer number are likely to remain low in the short term, although initial signs of  improvement came in recent housing finance commitments after numbers fell in January 2011 to their lowest levels in six years, according to RP Data.
The important buying group accounted for 15.4% of owner-occupier finance commitments, based on housing finance data issued by the Australian Bureau of Statistics for May 2011.
There were 8,226 new home loan commitments by first-home buyers during the month, which was 17.2% higher than during the previous month.
Over the 12 months to May 2011 there was a total of 90,317 finance commitments for first-home buyers, compared with 149,469 at the same time last year, a fall of 39%.
RP Data analyst Cameron Kusher says the result highlights the slowdown in first-home buyer activity after the conclusion of the First Home Owners Grant Boost.
First-home buyer numbers fell to a low of 14.9% of the market in early 2011.
Kusher predicts it’s unlikely that first-home buyer activity will increase much in the short-term given current housing market conditions.
He believes that consumers have become extremely debt-cautious.
“The issue facing the housing market is that at a time when first-home buyer activity is low, so too is activity from investors.
“Although investors can negatively gear properties, the cashflow still needs to be found to fund day-to-day expenses and any mortgage payment gaps.
“With caution surrounding debt, the likelihood of investors taking on a negatively geared property investment which has such a high cost to purchase is unlikely.
“Rental returns have improved over the last 12 months increasing from 3.9% to 4.2% for houses and for units from 4.7% to 5% across the combined capital cities,” Kusher says.
“Although the uplift in rental returns is positive, these need to improve substantially if significant opportunities for positively geared rental properties are to be achieved.”
RP Data expects fairly robust rental growth in the coming few years as building approvals fall and sales volumes remain below average resulting in increased competition for rental stock and rental rate increases.
<img src="/images/stories/rpjuly20.gif">
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Robust rental growth forecast for coming years: RP Data

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Tax and superannuation lawyer Robert Richards is among a growing group of professionals and business owners to hold their business premises in their self-managed super funds. 
His legal practice pays his SMSF a commercial rent for use of its small strata-title office on the top floor off a 1930s office block, overlooking 
<address>
<street>Martin Place</street>, <city>Sydney</city>
</address>. 
The property is ungeared, having been bought before amendments to superannuation law four years ago unequivocally allowed SMSFs to gear property and other investments under strict conditions. 
Richards says his SMSF acquired the commercial property for the main purpose of increasing his retirement savings in a tax-efficient way. And there are the added benefits of having a centrally located office for a tax lawyer and not having to deal with an unrelated landlord. 
Philip La Greca, technical services director for self-managed super fund administrator Multiport, says many more professionals and business owners are considering holding their business premises through their SMSFs. 
La Greca attributes this growing interest in business property to SMSF trustees wanting to take more advantage of superannuation’s concessional tax treatment and asset-protection attributes. And, he says, more trustees are seeking an alternative to shares given the level of sharemarket volatility. 
He points out that when business owners eventually retire, the trustees can decide whether to sell the business premises together with the business or to keep the premises in the fund to provide a retirement income. 
The latest Multiport SMSF Investments Pattern Survey, conducted in late March, shows that a least 13% of the 1400 SMSFs administered by the firm are borrowing to invest using limited-recourse loans. (Multiport will publish an updated report over the next couple of weeks.) 
The average property loan among Multiport client funds is $200,000, compared with $110,000 for shares and managed investments. And 56% of the loans taken by these SMSFs are invested in property. 
La Greca describes the average $200,000 property loan as conservative, considering that the SMSFs administered by Multiport have an average asset value of almost $900,000. 
“The funds are dipping their toes [into borrowing for property], not making a head-long plunge,” he says. 
La Greca agrees that interest among SMSFs in borrowing to invest under the borrowing provisions introduced four years ago was relatively low until early this year. But he says that interest has since accelerated. 
SMSF trustees were gaining more of an understanding about the borrowing rules. And financial institutions were becoming more comfortable about lending to SMSFs despite the requirement in superannuation law for the use of limited recourse loans. 
As discussed in Property Observer’s latest e-book, 16 questions SMSF trustees should ask before investing in property, geared assets in self-managed funds must be held in trust until payment of the final loan instalment. And lenders cannot make a claim against any other assets of the super fund, apart from the geared asset, in the event of a default on the loan. 
La Greca says about four SMSFs a month – among those administered by Multiport – are entering new gearing arrangements, up from about one a month last year. 
“And there is no question that the prime asset for SMSF gearing is real estate,” La Greca adds.
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mlaurence-vhAHaLZT8y

More business owners holding premises through DIY super

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In early 2010 the effects of the Global Financial Crisis set in motion an upturn in both the inner-Sydney and inner-Melbourne apartment markets. The lower level of construction instigated by the GFC in the latter half of 2008 constrained new apartment completions in both markets. This further tightened rental markets, which, together with the post-GFC fall in prices in 2008-09, resulted in rents and yields rising.
As the economic outlook improved over 2009-/10 (and alternative investment forms such as equities remained weak) investors began to flood the inner-Melbourne apartment market. Investor demand in Sydney also improved, albeit at a more modest rate.
Given the resultant increase in the pipeline of supply, BIS Shrapnel is asking if the conditions in the inner-city apartment markets remain conducive for the upturn in Melbourne to be sustained, and to create a further upside in Sydney.
In answering this question, analysis of the population profile of inner city apartment occupants is relevant. Looking at census data for occupants of inner-city apartments in both Sydney and Melbourne indicates the large majority can be divided into three categories:
<ul>
<li>Students, with the growth mainly coming from overseas students.</li>
<li>Young professionals, who are typically employed in white-collar occupations in the CBD or CBD fringe locations.</li>
<li>Empty nesters, such as older singles or couples without children living in the family home.</li>
</ul>
The first two groups largely create demand for apartments as tenants, while empty nesters are typically owner-occupiers.
Demand for apartments from young professionals experienced a brief setback during the GFC as employment in the financial sector declined. However, this rebounded quickly as the recovery came through.
Student demand has weakened, although most of the reduction in overseas student numbers has taken place in the vocational education sector. Student commencements in the university sector have experienced a more moderate decline and, with major university institutions located close to the Sydney and Melbourne CBDs, the softening in student demand has been less pronounced. Consequently, tenant demand has remained relatively solid.
However, although off-the-plan sales have shown a post-GFC recovery, actual new apartment completions have fallen. The long lead time for an off-the-plan sale to result in an apartment completion means the effects of the GFC are still impacting new apartment supply. Apartment completions experienced a setback in Sydney in 2010/11, while in Melbourne the setback was seen a year earlier in 2009/10. (See Figure 1)
Given projects in the development pipeline – those that are currently under construction or on track to proceed shortly – will take some time to reach completion, new supply in 2011/12 will remain below the long term average in Sydney, and only just above the long term average in Melbourne. This will not be high enough to create a significant impact on vacancy rates, and the environment for pre-sales from this perspective will still remain relatively positive in 2011/12, particularly if the economic environment and confidence improves.
The challenge will emerge from 2012-13, as new apartment completions will rise well above the long term average in both Sydney and Melbourne, and this is where differences will occur across the cities.
 
Figure 1: Apartment completions, Inner Sydney and Inner Melbourne.
History and those in the pipeline
<img src="/images/stories/bisjuly20.gif">Source: BIS Shrapnel
The pipeline in inner Melbourne is much larger. Off-the-plan sales to investors have been much higher in Melbourne over 2009-10 and 2010-11. This has been driven by tight rental markets, but also the solid residential price growth during 2009-10. With most of these sales located in large scale high-rise projects, the completion pipeline extends not just into 2012-13, but also 2013-14. Indeed, apartment completions in Melbourne in 2013-14 are expected to reach a record level. This is based only on those projects that are already under construction or set to commence and could be higher if additional projects achieve enough pre-sales to proceed. 
The sustained high level of apartment completions will create pressure on vacancy rates and rental growth in inner Melbourne from 2012-13. While there could be pent-up rental demand still to be absorbed after years of undersupply during 2007 to 2011, this is not likely to be the case by 2013-14. With a possibility of oversupply, vacancy rates in Melbourne are likely to rise, with falls coming through in rents and, potentially, prices.
In contrast, new apartment completions in inner Sydney will have remained well below the long run average between 2005-06 and 2011-12. While recent pre-sales are underpinning a sharp increase in new apartment completions in 2012-13, we do not anticipate it will have a significant impact on vacancy rates. This is mainly due to the substantial latent demand created by the low construction of the previous years. As a result, further solid rental growth in Sydney is expected to come through, particularly with employment and income growth anticipated to pick up pace over 2011-12 and 2012-13.
At this stage, if only current projects under construction and those on track to proceed make it through to completion, supply of apartments in Sydney is projected to fall in 2013-14. However, further off-the-plan sales will result in more projects coming through to provide some upside to completions for the year.
Finally, unless a substantial increase in new supply comes through, it is likely that new apartment supply in inner Sydney will remain in deficiency. This will continue to maintain pressure on rentals and result in upward pressure on prices over the next two to three years.
Angie Zigomanis is senior manager of <a href="https://www.bis.com.au/" title="BIS Shrapnel" target="_blank">BIS Shrapnel.</a>
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angiezigomanis-VT64gGbExQ

A tale of two cities: The challenges of the Melbourne and Sydney apartment markets

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Hotel room rates in the Perth CBD have risen 9.6% in the first six months of the year and are now almost back to pre-GFC levels, according to a report by research firm STR global.
The Western Australian capital has led a nationwide revival in hotel room revenue increases across all the major capital cities, with rates rising 8.1% in Brisbane, 8.4% in Sydney and a more modest 2.2% in Melbourne.
Bryon Merzeo, business development manager from STR Global Australia and New Zealand, says the corporate business purse driven by the mining sector is leading the revival in the Perth market.
“International growth is not that powerful, but domestic consumer stays on Tuesday, Wednesdays and Thursdays have been incredible,” Merzeo told Property Observer.
Another factor pushing rates up to levels last seen four years ago is a lack of new supply in Perth.
It is also a key reason why Sydney and Brisbane has registered growth comparable to Perth over the period.
“No new hotels have been built in Sydney over this period,” Merzeo says.
In comparison, the more moderate growth in Melbourne reflects new hotel stock coming on to the market in the Melbourne CBD.
Merzeo expects these growth rates to be sustained over the next few years.
Apart from Brisbane, Queensland continued to suffer, with Cairns and Port Douglas revenue per room rates down 6.8% and revenue down 2.4% on the Gold Coast.
Across Australia, hotel occupancy is currently around 75%, with the revenue per room about $125 for May 2011. This is compared with $129 two years earlier.
STR Global bases its growth forecasts on daily data from 750 hotels across Australia.
It does not provide rate increases in dollar terms for each city due to the diversity of hotel stock.
However, official ABS tourist accommodation figures for the three months to March 2011 correspond with the strong growth reported by STR Global for the six month period.
For the first three months of the year, Perth occupancy rates climbed from 70% to 84%, with takings per room per night up $182 to $205.
STR estimates that at least 90,000 hotel rooms will be added each year to the Asia-Pacific region within the next six years. Of these, just 4,000 are estimated to be in Australia.</body></html>

Business travellers driving Perth hotel recovery

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Interest in energy-efficient commercial buildings is growing since the government released the details of its carbon tax scheme on July 10, according to Ray White.
Ray White Commercial office leasing director Anthony Harris says his office has fielded an increase in enquiries about sustainable office buildings since the government launched its energy plan.
"We have definitely seen a higher level of interest from prospective office tenants about building energy ratings," he says.
According to Ray White Commercial's John Skufris, sustainable buildings with high energy ratings are likely to become more attractive to both tenants and prospective owners.
"The increased demand driven by owners and tenants to secure properties with low operating and refurbishment costs may push up rental prices," he says.
Skufris cites the example of 189 Kent Street, a 15-storey commercial building in Sydney's western corridor overlooking Barangaroo, which upgraded its mechanical systems in late 2009.
The annual greenhouse gas reduction achieved was the equivalent of removing 9,500 cars from Australia’s roads.
“It has assisted our client reduce running costs and hold onto existing tenants for further lease terms,” he says. "The increased demand driven by owners and tenants to secure properties with low operating and refurbishment costs may push up rental prices."
The sustainability message is also being pushed by CB Richard Ellis, which on July 6 became the first commercial real estate services firm in Australia to be certified under the Australian government’s carbon-neutral initiative.
CBRE president and CEO for Australia and New Zealand Tom Southern says the company wants to inspire clients to undertake similar activities and will assist them with introducing sustainability initiatives in their own portfolios.
“We seek to establish deep and lasting partnerships with our clients to enhance the efficiency of their buildings, reduce their environmental footprints and operating costs, and ultimately, add value to their business,” he said following the certification.
The proposed carbon tax is mooted to kick on July 1, 2012, and the government’s Commercial Building Disclosure Scheme will begin November 1 this year.
This requires current energy efficiency information to be disclosed to prospective buyers or tenants of office space. "This scheme aims to ensure that credible and meaningful energy efficiency information is given to prospective purchasers and lessees of large commercial office space," Harris says.
A report by the Green Buildings Council of Australia says the proposed $23 per tonne of emissions charge of the nation's top 500 polluters will add to the operational costs of commercial buildings.
Buildings are set to become more expensive to refurbish due to price increases for emissions-intensive products such as glass, steel and cement.
As a result of these costs, Harris expects a greater demand for higher standards of efficiency and greener materials to not only reduce prices but to cut carbon emissions.
According to Low Carbon Australia CEO Meg McDonald, the introduction of energy-efficient technology into existing buildings will cut emissions dramatically.
“The potential for the commercial property sector is significant,” she says.
Low Carbon Australia estimates that buildings are responsible for about 40% of the world's current energy use and about a third of carbon dioxide emissions. This is more than any other sector.
A National Australian Built Environment Rating System rates a building on the basis of its measured operational impacts on the environment, and provides a simple indication of how well a building owner is managing environmental impacts in comparison with other neighbouring buildings.
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Commercial tenants keen on green in response to carbon debate

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This may seem obvious, but I have to start with it: in order to create long-term wealth from property it is important to know the type of property that will to be in continuous strong demand in the future.
While many investors think about what will be popular with tenants or the rent they are going to achieve, that’s not what I look for in an investment.
To me a good investment property is one that will always be in strong demand by owner-occupiers. After all, home buyers purchase about 70% of all the properties on the market, and they’re the one who push up property values.
On the other hand, the type of property that is more influenced by investor demand or by tenants tends to be more illiquid and volatile in price.
Don’t believe me? Try selling a property in an inner-city high-rise block, a mining town or student accommodation today and see if you find any buyers.
On the other hand, well-located properties that are popular with owner-occupiers are always in strong demand. This means valuers are happy to put their stamp of approval on them and banks are prepared to lend against them.
This means understanding the needs of our changing markets will be fundamental to success when it comes to securing properties that will attract above-average capital growth in the years ahead. One of the keys to this is to study demographics – that is, the number and composition of our population and how we choose to live in our society.
Interestingly, Australian demographics are undergoing some radical changes at present.
With housing affordability becoming an increasing issue for many first-home buyers and our lifestyle becoming a lot more hectic, we are seeing an increase in the popularity of medium-density apartment living among the younger generations of Australians.
Rather than live in a house with a front and back yard, they’re keen to live close to where they work and play, and they’re happy to swap the back yard for a balcony. Clearly this is very different from the way their parents chose to live.
The fact is, the property investor of the future will be catering for a whole new breed of tenant and buyer.
Think about it…
Gen Y is on the move, as many from this 15-to-24 age group start to think about leaving the family home and starting their own lives independent of mum and dad. In 2010, about 150,000 new households were created in Australia, and approximately 65,000 of these comprised Gen Y singles, groups and couples.
Interestingly, the majority of this younger demographic will be destined to live as tenants for quite some time, stuck on the rental roundabout due to ever-increasing house prices and the cost of living, interest rate uncertainty and of course, annually rising rents. In fact, many won’t buy their first property until they’re in their 30s.
As a result many choose to live in shared accommodation and multi-income households in order to reside in the locations they favour, but could never be able to afford as a home buyer. These include inner-ring suburbs close to our major CBDs, where employment opportunities and a fast-paced lifestyle with plenty of recreation and entertainment facilities are the primary attractions.
With the number of Gen Ys looking for accommodation continuing to rise, rental demand for near-city and inner-suburban apartments will grow significantly in the coming years.
And our old friend the supply and demand equation will ensure that rents for these types of properties keeps rising, as will their values due to scarcity and higher rental yields.
This means that today medium-density properties – apartments and townhouses – make great investments and in general appreciate in value equally, if not more than houses in our capital cities.
Of course this is in part due to affordability, as apartments offer a much more affordable alternative housing option than houses. But it’s about much more than affordability.
Significant changes in our population profile and lifestyle priorities are creating a strong demand for apartment living. Today, our lifestyles are vastly different to those of our parents. We’re working longer, we’re increasingly time poor and we’re starting families much later in life. This means proximity to work, transport, entertainment, cafes, shops and beaches is becoming more important than owning a piece of land.
In Australia’s capital cities, apartments are continuing to improve in design and size and are generally closer to the CBD than affordable houses.
Of course there will always be a demand for houses with a front and back yard, particularly from families with more than one child, yet there is definitely a shift towards apartment living.
And it should be fairly obvious that this trend will continue in the long term.
People are getting married later in life, and apartments suit their busy lifestyles; and when a baby comes along, they will often stay in their apartment or buy a bigger one in the same location.
And don’t forget as baby boomers move into retirement they will also significantly increase the demand for townhouse and apartment living. Low-maintenance, secure “lock and leave” living is a priority for these buyers.
According to a report last year from <a href="https://www.rpdata.com)" title="RP Data" target="_blank">RP Data</a>, capital city units and apartments only accounted for 25% of all home sales 15 years ago. Today though, medium- and high-density accommodation makes up about 35% of all home sales.
Now that’s an interesting trend, isn’t it?
In our two most densely populated capital cities, RP Data found the proportion of unit sales is significantly larger. For the month of August 2010, Sydney and Melbourne unit sales were at 43% and 37% of all dwelling sales respectively.
So if you’re looking for a great investment property you should seriously consider a well-positioned, established apartment in smaller boutique block with value-add potential through renovations. I’d look for a property with a “twist” - something special or an element of scarcity.
Then hold it as a long-term investment and reap the rewards.
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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The changing face of a good investment property

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Commercial property finance is one of those aspects probably the least understood — and therefore, can lead to some are rather poor decisions by investors.
The most important thing you need to grasp is that there are basically no hard and fast rules about the various factors like the leverage that is available, costs associated with commercial loans or the actual lending criteria most financiers and adopt.
When it comes to commercial finance, everything has to be viewed in relation to the strength and size of each particular deal.
Most people are used to residential mortgages — where a lender will offer a set rate and charges, plus different amounts of leverage, depending on the location of the property.
Servicing is calculated by taking into account all of the debts and all sources of income attributable to the borrower(s) or the guarantor(s).
There are some commercial lenders that operate in a similar manner. But generally, these lenders only deal with smaller transactions, in restricted geographical locations.
The main point here is that residential lenders tend to price most deals the same way, with some possibly discounting for larger loans. While perceived risk is the factor dictating whether they will fund a loan or not, it has little or no bearing on the actual price for the loan.
On the other hand, commercial lenders place much greater emphasis on quantifying risk and will apply different lending ratios, depending on the risk they perceive for a particular security. However, they could also adjust pricing according to these same factors.
Therefore, two loans of the same size may be significantly different in terms of pricing.
 
Lenders look at a wide range of characteristics when determining the risk level of a transaction. These will include:
<ul>
<li>The financial strength of the borrower.</li>
<li>The experience of the borrower with the type of property &amp; location.</li>
<li>The term of the lease itself.</li>
<li>The financial strength of the tenant.</li>
<li>Guarantees attached to the lease.</li>
<li>Relevant clauses in the lease (such as market reviews).</li>
<li>The current strength of the local market.</li>
<li>Overall economic conditions at the time.</li>
<li>The lenders view of the geographic location &amp; type of property.</li>
<li>Possible alternate uses for the property.</li>
<li>Whether you plan to hedge against interest rate movements.</li>
<li>The lending ratio you are seeking.</li>
</ul>
These details have been provided by courtesy of <a target="_blank" href="https://his-best.biz/2011/05/25/financing-the-deal/">Perry Finance</a>, which is one of my trusted consultants, when it comes to acquiring commercial property.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Commercial property finance different to residential

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Asian pension funds and property fund managers are leading the charge of offshore investors buying up office towers, shopping centres and industrial parks in Australia’s capital cities.
In total, foreign investors have spent $2.25 billion buying up Australian commercial real estate in the first six month of the year.
The offshore investment accounts for 30% of the total value of commercial transactions undertaken in Australia over the first half of 2011, according to CB Richard Ellis.
While the dominant source of funds has been from Asia, CBRE global head of research Kevin Stanley has told the AFR investments have also come from Germany and the US.
“Over the long run average investment by foreign investors represents about 10% to 15% of the market, so the current levels are very high,” he says.
The boom in offshore investment comes as commercial property sales rebounded strongly in the second quarter of 2011.
Recently released CBRE data show investment activity reaching $2.7 billion in the three months to June 2011, a 432% increase over the $638 million turnover achieved in the first quarter of the year.
The most recent transaction involving Asian investors is Singapore’s K-REIT fund finalising its $166 million, 50% stake in Mirvac’s 8 Chifley Office tower currently under construction in the Sydney CBD.
Other recent large offshore transactions include the Canada Pension Plan Investment Board buying 50% of the Northland Shopping Centre in Melbourne for $455 million at the end of June 2011.
The biggest direct property purchase made to date in Australia over the last 24 months has been the estimated $685 million spent by the South Korea National Pension Service in January last year to acquire Aurora Place, the Renzo Piano designed office tower and residential block, on the corner of Macquarie and Bent Streets in the Sydney CBD.
Philip Ling, managing director of LaSalle Asia Pacific, says Australia is a key for the pan-Asian region.
“We have to have a local presence – we have to be on the ground,” he says.
Ling’s comments follow LaSalle Investment Management buying Brisbane-based Trinity Funds, a manager of wholesale unlisted Australian direct property funds, for $19 million in July 2011 following its purchase of the Novotel on Collins Street in Melbourne and accompanying shopping centre for $204 million in March 2011. The acquisition is part of a broader LaSalle plan to control $5 billion of Australian funds over the next five years.
According to Colliers national director Vince Kernahan, buyers from mainland China are emerging with one group close to buying a Sydney tower for about $120 million.
Jones Lang LaSalle chief executive Stephen Coney says Chinese investors are optimistic about the long-term prospects of the Australian economy.
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