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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Minutes released from the July 5 RBA board meeting indicate that the next set of inflation figures will be the pillar around which the bank will build its monetary policy outlook.
“Members noted that the CPI outcome for the June quarter, to be published later in the month (July 27), would be important in helping to shape views about inflation, and therefore the future path of interest rates,” the minutes read.
“Accordingly, members considered that the current mildly restrictive setting of monetary policy remained appropriate.”
The Australian dollar fell slightly to just under $1.06 following the release of the Reserve Bank note.
The wait-and-see approach adopted by the RBA comes as Westpac dramatically altered its interest rate forecasts for the remainder of the year, with the bank now expecting a rate cut in December. Westpac earlier forecast a rise on Melbourne Cup Day.
ANZ is also factoring a potential rate cut this year and expects no further rate rises in 2011.
JP Morgan Australia economist Helen Kevans told AAP it is forecasting core inflation of 0.7% for the second quarter, which is up 2.5% on a year ago.
While this figure will not set off alarm bells at the RBA, Kevans says it still forecasts core inflation at the upper end of the RBA's target by year end.
For that reason, a further hike in the interest rate is still warranted, she says.
Westpac chief economist Bill Evans, who has forecast a rate cut in December, also noted the importance given to the June quarter CPI outcome in the minutes
“The Reserve Bank Board minutes have emphasised just how important the near term inflation position is for the Board. While it was indicated that the recent data had suggested there was more time available to assess inflationary pressures an even stronger than anticipated emphasis has been given to the June quarter CPI outcome. While we think that this outcome is unlikely to cause a rate hike it appears that the Board will be prepared to move if the number is very high,” he says. The bank is also forecasting underlying inflation of 0.7% for the quarter, which it believes will not be sufficient to generate a hike in August.
In its July 5 minutes the RBA notes that the economy is subject to both overseas and local headwinds, as the housing and mortgage sector continue to struggle.
It notes that housing credit growth had eased further, to its slowest pace in many years, “although housing loan approvals had picked up in April and May” and that that the housing market remained soft, with another small fall in nationwide prices in May.
“Mortgage arrears rates had risen over recent months, although they were still much lower than in most other countries. Arrears rates had increased the most in Western Australia and Queensland, where house prices had been falling after large run-ups in previous years,” the minutes say.
On the global front, Australia’s equity markets have been driven down by global factors centred around Europe while local credit markets continued to be “relatively unaffected by the global uncertainty over the past month”.
“Issuance by Australian banks, both secured and unsecured, had remained solid and pricing had not materially changed,” the RBA says.
Once again, the RBA board takes note that the “multi-speed nature of the Australian economy was clearly evident in recent economic data”. “The resources sector remained strong, as did some service sectors. However, household cautiousness and the high exchange rate were having a dampening effect on a number of other sectors.
“Supply-chain disruptions, due to events in Japan, had also caused a fall in motor vehicle production and sales. Survey measures of overall business conditions and confidence showed significant differences across industries, but overall conditions remained around their long-term averages.”
While the unemployment rate held steady at 4.9% in May and had been around this level for about six months, employment continues to slow overall.
Employment growth is strong in the mining, business services and household but flat or falling in manufacturing and goods distribution.
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lschlesinger-FZcF9M3vE6

July inflation figures will be key to interest rate policy: RBA

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Michael Edgley, the theatre entrepreneur who hit the big time in the 1980s with the Moscow Circus and, more recently with Cirque du Soleil, has been bankrupted owing about $7 million to his creditors.
His financial troubles stem from a $4.5 million Challenger loan in 2007 on a Gold Coast hinterland holding.
Edgley likened the hinterland Lower Beechmont district to Beverly Hills or Bel Air in Los Angeles, but repeated attempts to sell the holding failed until its recent mortgagee listing.
Edgley filed his statement of affairs with his trustees Nick Combis and  Peter Dinoris on July 13.
He now gives his address as a five-bedroom house on three hinterland hectares that was sold for $1.3 million in 2009 at Tallai to a company directed by his wife, Justine Summers.
It was 2005 when Edgley first tried to sell the 26-hectare hinterland estate with ambitious $12 million expectations. In 2008 it was relisted with $8 million hopes. Offers over $5 million were sought in 2009. It sold earlier this year for $2.35 million through Ray White Broadbeach, which marketed it as a potentially luxurious, partially renovated home in need of TLC.
The property, with views from Stradbroke Island to the Tweed Coast, was bought in 2001. Sitting 350 metres above sea level, the property has three separate dwellings plus resort-style facilities including an authentic Japanese bath house, tennis court, swimming pool and mediation area.
Challenger sued Edgley in the Queensland Supreme Court last month in an attempt to force him to repay the loan.
Edgley has not yet filed a defence to the claim but offered $500,000 to settle the debt, according to the Daily Telegraph report by Vanda Carson. The offer has not been accepted, and negotiations are continuing.
Edgley says he took up property development in retirement following his successful career in entertainment.
"I felt that I had enough of that life [in showbiz]. It was a wonderful time, and I was looking to do other things.
"This development became my passion, but property development was obviously not my area of expertise," he says. "I'm not turning my back on my creditors, I'm endeavouring to work through the situation."
In 2002 the family company sold its nearby 100-hectare Guanaba holding, which was sold for $1.7 million and had cost $20,500 in 1973.
During his heyday Edgley variously had homes on Wolseley Road, Point Piper, the Hunters Hill Riverfront, the Gold Coast's prestigious Hedges Avenue and Jutland Parade, Dalkeith in Perth.
In March he married his partner of 12 years, the former principal ballerina for the Australian ballet Justine Summers. They have two children.
Michael Edgley's involvement in his family's theatrical management business began at the age of 19. In 1967 at the age of 23 Edgley took over management of the family company.
It was in 1920 when Eric Edgley and his brother Clem Dawe, born Eric and Clem White, were invited to Australia by J. C. Williamson Ltd. in 1920 to star in the pantomime Sinbad the Sailor at the King's Theatre, Melbourne. The subsequent success of this production encouraged their families join them in Australia and the establishment of the production company Edgley and Dawe in the mid-1920s.
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jchancellor-FAypfDUnLy

Bankruptcy drama for theatre entrepreneur Michael Edgley

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When thinking about investing and life in general, I try to conceive of so-called “non-linearities”’. These are situations where the world suddenly veers off our “central case”, or most probable course.
This is why I find someone like Dr Steve Keen interesting. While Keen has arguably been wrong about a lot of the things he has sensationally forecast, he is effective at painting extreme pictures. Every so often, one of these unexpected events can materialise as our “central case” among the millions of possible paths life can take.
The “Great Recession”, as it is known in the northern hemisphere, or “North Atlantic crisis”, as RBA officials incorrectly call it (recall they cut interest rates to 40-year lows while Aussie government debt exploded!), or the “GFC”, as it is uniquely referred to Down Under, is a graphic illustration of a non-linearity.
And, to Keen’s credit (pun intended), he was right about the hazards that leverage can embed in a financial system.
With that cue, it is instructive to think through the possibility of the Aussie dollar advancing to levels much higher than most currently anticipate — say to US$1.25 or US$1.50. 
This would have serious ramifications for <country-region><place>Australia</place></country-region>’s housing market. In particular, it would crush demand among foreign buyers while also curtailing income and growth in both the export industry, which would be rendered less competitive, and in businesses that compete against imports, which would be dramatically cheaper. 
The one positive of a super-high currency is that it could alleviate the need for future interest rate hikes, and even compel the RBA to cut rates. 
As long-time readers will recall, my own central case has involved a global inflationary cycle as sovereign states seek to inflate their way out of public debt crises, which, it is too rarely noted, were originally private debt problems. Combined with the incredible surge in private investment to capitalise on the “Chindia” induced commodity price boom, this explains why I have been an inflation “hawk” (about 60% of Australian inflation is actually explained by global inflation). 
Another key element of my central case has been a deterioration in the US government's creditworthiness, and a rise in US yields to reflect (a) higher US inflation tolerated by authorities happy to see the fixed-value of US nominal debt decline, and (b) the higher probabilities of US government default. 
Thus far this story has played out nicely, much to the frustration of folks like Nobel Prize-winning US economist Paul Krugman, who would have us believe that US inflation is not, in fact, a credible concern. This does not sit comfortably with the latest data released on Friday, which showed core inflation in the US running at a 2.9% annualised pace over the past three months, which is way above the Fed’s target of less than 2%. (And so much for the pundits who canvassed “deflation” in the US last year.) 
Many respected economists are now openly talking about the merits of a bout of “surprise” US inflation. The trouble is that this would not be a surprise to anyone, and would likely translate into higher long-term inflation expectations, which can then feed back into prices. The real risk is that the current public debt crisis undoes three decades of hard work by central banks to secure so-called “price stability” (or low and relatively predictable inflation). 
I have previously assumed that the rise in <country-region><place>US</place></country-region> government bond yields forces an appreciation of the US dollar since global exchange rates are ordinarily determined by interest rate differentials. This is a contingency that RBA board member Professor Warwick McKibbins also believes is very <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1828363">possible</a>.* 
If the <country-region><place>US</place></country-region> currency rises, the Aussie dollar spot mechanically declines. This means we start importing more inflation on top of any domestically generated price pressures (especially since key trading partners like <country-region><place>China</place></country-region> have US dollar pegs). And higher inflation means higher interest rates. 
One potential shortcoming in my story (and McKibbin’s scenario-analysis), which I have been seeking to highlight of late, is a non-linearity. This is probably best called the “Global War for the Preservation of Capital”. 
More specifically, my base case does not account for the relationship between a deterioration in the US government’s creditworthiness and the value of the US dollar as an international store of wealth – that is, the greenback’s historical role as the international “reserve currency”. 
This non-linearity could produce a seemingly unexpected outcome: soaring <country-region>US</country-region> bond yields coupled with a static or declining (rather than rising) <country-region><place>US</place></country-region> exchange rate. 
Another thread of logic that lends weight to this possibility is the fact that a depreciation in the US dollar improves the international competitiveness of US exports, and thus provides short-term assistance to its economic recovery and the political imperative of reducing the <country-region><place>US</place></country-region>’s 9.2% unemployment rate. 
There is little doubt that much of the motive behind the US’s current program of “quantitative easing” has been a deliberate attempt to put downward pressure on the greenback to help US exporters who have for years laboured to compete against the artificially depressed prices of Chinese products (given the value of the Chinese currency has been held down via its US dollar peg). 
We are already seeing parts of this new story play out, which explains the otherwise bizarre behaviour of the Aussie dollar, which used to be a world growth/commodity proxy (and normally suffers badly during market ructions). 
Today foreign governments, and their agents, central banks, are desperately diversifying out of the old “safe haven” currencies (with the exception of the auspiciously austere Swiss) in recognition of an emerging new world order dominated by Asian economies. So they are selling the US dollar, the British sterling, and the Japanese yen. 
These historical stores of wealth are being destabilised by competitive currency devaluations (resulting from US, UK, and Japanese central banks doing almost anything to keep official interest rates ultra-low) in the name of inflating their way out of the twin evils of difficult-to-pay back sovereign debts and post-GFC economic stagnation. 
Investors are also beginning to realise that the present fiscal challenges are a veritable “pimple on the arse of an elephant” when juxtaposed against the future pension crises that could be eventually triggered by the ageing of Western (and Japanese) populations. 
In the race to preserve wealth in a world in which governments are either defaulting on their debts or debasing them through currency depreciations and inflation, the Australian and Swiss exchange rates stand out as two islands of economic, fiscal, social and political rectitude (despite what local partisans might have us believe). 
In addition to having negligible net government debt, high interest rates (and hence attractive yields to holders of government bonds) and the providence of possessing an extraordinary bounty of natural resources that just happen to be in high demand (these points are actually related), Australia’s trade relationships, unlike the Swiss and, say, Canadians, are relatively insulated from the US and European woes. 
In economic terms, we are a resolutely Asian nation, albeit with the legal and political stability of an Anglospherean Western democracy. Our four biggest trading partners are, after all, <country-region>China</country-region>, <country-region>Japan</country-region>, <country-region>South Korea</country-region> and <country-region><place>India</place></country-region>. 
Sure, this is a globalised economy, with deep interdependencies. Yet Australia’s developing country partners, China and India, will almost certainly keep on urbanising and industrialising even with stasis in the US and Europe. 
 
<hr class="system-pagebreak">
The shifting of the currency sands I have described above is confirmed by discussions with leading investment bankers, who report immense demand for Australian government bonds almost irrespective of their price. 
That is, buyers don’t really care if Aussie bond prices fall in value a bit in the event that the RBA nudges rates higher to subdue inflation because they are earning strong and secure (from a credit perspective) underlying yields. And most of these buyers are foreign governments that will likely hold the bonds to maturity, and are therefore indifferent to fluctuations in price. 
The demand for Aussie government debt has caused a tremendous increase in its price and thus a decline in its implied yield (the two are inversely related), which at around 4.3% today is well below the RBA’s target cash rate of 4.75% (see chart).
<a href="/images/stories/joyejuly191.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyejuly191thumb.gif"></a>
Normally this “price action” would portend disaster for the local economy. The likes of Westpac’s Bill Evans evidently thinks so. Yet I would venture that it is perhaps more a reflection of the global war for the preservation of capital.
One constraint on the ability to obtain Aussie dollar exposures is that there is only a <personname>sma</personname>ll stock of government debt – about $197 billion worth. This means that the currency could face unprecedented demand combined with limited supply, which could collectively conspire to propel its price to previously unimaginable highs.
The risk of this event is highlighted by the vastly asymmetric responses of the Aussie dollar to the 2010 and 2011 sovereign crises. Last year the Aussie battler plummeted from 93 US cents to 80 cents (see chart), which is what typically happens when financial markets are in turmoil. In contrast, the Aussie dollar has hardly budged during the graver 2011 episode.
<a href="/images/stories/joyejuly191.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyejuly191thumb.gif"></a>
There is a further nuance here that could make central bank purchases of Aussie dollars a <personname>sma</personname>rt trade. If the currency keeps on appreciating, the exchange rate could end up doing much of the inflation-fighting work for the RBA.
Crucially, this means that the holders of Aussie government bonds (more than 75% are foreign investors) would minimise any capital losses inflicted by an inflation-induced rise in market yields (which would reduce the price of their bonds) while benefiting from an increase in the capital value of those assets on their balance-sheets via the soaring Aussie dollar.
Forecasting is a difficult trade to ply given the complexities of the world in which we live. It is more useful to think of the future as a distribution of potential paths. For example, imagine the world as having a “‘base case” bookended by “upside” and “downside” scenarios. When trying to sketch the contours of any downside event, it pays to twist your mind to visualise non-linearities.
History has a tendency of surprising us by overshooting both good and bad expectations.
*A crucial assumption made in McKibbin’s analysis is that “the main financier of global public debt (namely <country-region>China</country-region>) to the major borrower (namely the <country-region><place>United States</place></country-region>) [does not lose] its appetite to continue lending on the same basis as before.” One objective of this article was to test that assumption.
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;" target="_blank" title="Rismark International" href="https://www.rismarkinternational.com/">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Shifting currency sands could trigger unexpected consequences for Australia

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House values eased 1.19% during the past year across Australia, according to Residex, with Brisbane and Perth the worst-performing capitals.
Brisbane’s 5.66% fall to a $441,000 median house price is the largest drop Residex has recorded in any 12-month period for the city. Perth fell 2.2% over the year ending June 2011 to a $475,000 median house price.
Sydney – down 0.47% to a $673,5000 median – is the brightest prospect on the property front, but veteran Residex forecaster John Edwards envisages there are the makings of a perfect storm that could undermine the national property market.
The Melbourne market is Australia’s most at-risk market at the moment, Edwards says, and poor management of the economy by the federal government could easily bring about a “1 in a 100-year” national property collapse.
“Our star is Sydney, which is the market that generally points to the future performance of other markets across Australia.
“The worst-performing capital city, Brisbane, is in trend terms indicating that the worst of its corrections are probably over,” Edwards says.
He says Melbourne is early in its correction phase, with houses dropping 1.1% in value in the last quarter, but up 1.5% for the year at $593,5000. Residex figures have Melbourne unit prices down 1.8% for the June quarter to $448,000.
“Our numbers indicate that Victoria could have a significant stock surplus of something in the order of 24,000 dwellings, mainly in the medium-density market,” Edwards says.
“The net outcome, without careful economic management, could see reductions in value in this market that are considerable higher than those recently seen in Brisbane (where there is more than likely no shortage of stock).
“Overall I view the Melbourne market as our most at-risk market at this time,” he warns.
“Our housing markets are usually a lead indicator to what is happening on the domestic economic front.
“We can often point to potential increases of unemployment in areas of a city by simply looking at how that housing market is performing.
“People stall their buying activity when they think their jobs are at risk or their wealth is falling.”
He says the Reserve Bank narrowly averted a “1 in 100-year event” leading into the global financial crisis by dramatically cutting interest rates.
“Poor management of our economy at this point in time could easily bring about that 1 in a 100-year event that was previously avoided,” Edwards says.
“I’m not against a carbon tax or how it encourages us to be ‘greener’ and work toward reducing the excessive amount of carbon dioxide we are producing.
“However, I do believe there is a sensible process and time to introduce this tax and that time does not seem to be now when we are most vulnerable.
“We don’t need issues that will reduce consumer confidence even further at this point in our economic cycle.”
RESIDEX HOUSE MEDIAN VALUES
 
ACT $540,500 3.3%
Adelaide $403,000 -1.3%
Brisbane $441,000 -5.6%
Darwin $500,000 -0.9%
Hobart $385,500 3.1%
Melbourne $593,500 1.5%
Perth $475,000 -2.2%
Sydney $673,500 0.4%
Australia $437,500 -1.1%
 
RESIDEX UNIT MEDIAN VALUES
 
ACT $421,500 1.9%
Adelaide $312,000 -0.3%
Brisbane $360,000 -3.1%
Darwin $397,000 -5.6%
Hobart $281,500 -2.1%
Melbourne $448,000 0.2%
Perth $396,000 -3.5%
Sydney $485,500 4.43%
Australia $397,500 0.4%
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Australian capital cities at increased risk of property crash: Residex

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The median house values of some flood-affected Brisbane suburbs have edged higher than they were before the floods in December, according to  RP Data, but prices in most affected suburbs have fallen.
The survey looked at the automated values of 7939 inundated and 10,334 partially inundated properties worth $12.53 billion in Fairfield, Rocklea, Graceville, South Brisbane, St Lucia, Chelmer, West End, Auchenflower, New Farm and Kangaroo Point.
Fairfield and Rocklea showed the biggest overall drop in values, down 9.4%.
Values in the inner-city suburbs New Farm and Kangaroo Point increased marginally by 0.4%.
At the same time values in non-flooded suburbs dropped overall by 1.5%, according to RP Data's head of research Tim Lawless.
Sales volumes have dropped dramatically in both flood-affected and non-flood-affected suburbs.
In the flood-affected suburbs there was a 56% decline in sales in March 2011, compared with March 2010.
Sales also slowed in non-flooded suburbs, dropping 43%.
Lawless stresses the lack of sales data means it is too soon to adequately reflect new values.
“Another factor muddying the waters is the fact that the Brisbane housing market as a whole is quite weak – and this was the case well and truly before January 2011,” Lawless told Quest Community Newspapers.
The real fallout seems to be a low volume of sales rather than a serious fall in values, although the true value change post floods is yet to be seen, Lawless says.
He says the market is still correcting from a period of spectacular growth.
“Brisbane has been such a weak performer [since about June last year] due to the fact it was such a strong performer prior to 2008,” Lawless says.
“The softness in the market for Brisbane was a relatively new phenomenon during 2008. Brisbane had been such a strong performer really since 2002.”
Brisbane house values peaked in May last year at $450,000, Lawless says, before starting to slide in June.
Ray White Queensland chief executive Peter Camphin says top-end Brisbane houses have been discounted by about 15% since the beginning of the year, with riverfront properties the hardest hit since the January floods.
In March, the Real Estate Institute of Queensland said 17 of 50 flood-affected suburbs recorded too few sales to allow a median house price to be calculated.
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Sales down 56% in flood-affected Brisbane suburbs: RP Data

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Sydney is the brightest star on the property front, but veteran Residex forecaster John Edwards envisages there are the makings of a perfect storm that could decimate the national property market.
The Melbourne market is Australia’s most at-risk market at the moment, Edwards says, and poor management of the economy by the federal government could easily bring about a “one in a 100-year” national property collapse.
Edwards believes that a similar catastrophe was only avoided during the global financial crisis due to quick initiatives on the economic front.
He suggests any further reduced consumer confidence – combined with a carbon tax after debilitating debate  – will put more downward pressure on the Australian housing market at the same point in time as it is naturally in decline and is most at risk.
“Significant reductions in these markets could quickly change our economic fortunes,” he says.
“The impact of significant reductions in housing values on an economy has been well and truly demonstrated in the world events of the last five years,” he says.
“The June quarter numbers in some states are the worst recorded for more than 30 years. In the whole time I have been studying the market I have not seen the makings of such a perfect storm.”
At the moment he sees the market as patchy.
“There are bright stars on the horizon, but they could be dimmed very easily, as their glow is weak and flickering, like any new flame is in its infancy.
“Our star is Sydney, which is the market that generally points to the future performance of other markets across Australia.
“The worst-performing capital city, Brisbane, is in trend terms indicating that the worst of its corrections are probably over,” Edwards says.
Brisbane’s 5.66% fall is the highest Residex has recorded in any 12-month period for the city.
“Moving down the eastern coast to Melbourne, the picture is better than Queensland, but the market is early in its correction phase, with houses dropping 1.1% in value in the last month and down $6,800 over the last 12 months.
“The unit market is correcting more strongly, however when we look at the supply of stock of properties in Victoria it is clear that this market could have a considerable amount of adjustment in it,” Edwards says.
“Our numbers indicate that Victoria could have a significant stock surplus of something in the order of 24,000 dwellings, mainly in the medium-density market.
“The net outcome, without careful economic management, could see reductions in value in this market that are considerable higher than those recently seen in Brisbane (where there is more than likely no shortage of stock).
“Overall I view the Melbourne market as our most at-risk market at this time,” he warns. “Our housing markets are usually a lead indicator to what is happening on the domestic economic front.
“We can often point to potential increases of unemployment in areas of a city by simply looking at how that housing market is performing.
“People stall their buying activity when they think their jobs are at risk or their wealth is falling.”
He says the Reserve Bank narrowly averted a “one in 100-year event” leading into the global financial crisis by dramatically cutting interest rates.
“Poor management of our economy at this point in time could easily bring about that 1 in a 100-year event that was previously avoided,” Edwards says.
“I’m not against a carbon tax or how it encourages us to be ‘greener’ and work toward reducing the excessive amount of carbon dioxide we are producing.
“However, I do believe there is a sensible process and time to introduce this tax and that time does not seem to be now when we are most vulnerable.
“We know consumer sentiment is low; if there is any doubt then we simply need to look at the retail sales numbers and the public downgrading of David Jones’ profit forecast.
“We don’t need issues that will reduce consumer confidence even further at this point in our economic cycle.”
“Frankly, I would have thought that the RBA has a tough enough task in managing a two-speed economy as Australia goes through a period of structural change, moving to be more of a resource-based economy with a portion of our population relocating and finding employment within that industry,” he says.
Late last year Edwards suggested the next interest rate movement would be downwards.
“I remain of this view,” he says, “and think that a rate cut will be sooner rather than later – I expect this to take place in September, however if the carbon dioxide tax does not come to pass then I predict the rate cut will be later. “I acknowledge that one should never criticise an approach or policy as that is easy to do unless you can suggest an alternative. In the Residex Report for this quarter, I set out an approach that I believe would work more effectively. It would allow the management of our currency by using interest rates and at the same time encourage a change in the way we as a population use energy,” Edwards says. “The months ahead are going to be very interesting. The markets for opportunity are in New South Wales (lowest risk), Queensland and Perth. The latter two should be used to find bargains as these markets do have a little more correction in them.”
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Warning of property catastrophe if carbon debate emasculates consumerism: Residex

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You can analyse as much statistical data as you like, and in many cases twist it to argue any point you want to make, but ask the average home buyer if he or she is finding it any easier to purchase property, and I doubt the answer would be an out-and-out yes.
Bear in mind a home buyer is not like an investor. Investors can pick and choose the areas they search in. They don’t have to warm to the “feel” of a home. They can be walking distance from any café, not their favoured one. They can purchase close to any good school, not the one their children attend. Investors don’t need to buy until a good opportunity presents itself, and for this reason they can step in and out of the market at will while targeting those “need to sell” vendors. In such cases, there are often multiple properties that tick the right boxes, and we’re currently in a perfect market atmosphere to take advantage of them.
However, home buyers rarely have such a luxury. When home buyers purchase property it often follows months of searching through limited suburbs of choice for a property with the particular idiosyncrasies to suit individual tastes. More often than not, when a home buyer finds a “dream home”, there are half a dozen other people who have targeted it as well and the vendor is less than willing to compromise.
If we do a rough breakdown of the dominant players currently in our marketplace, they fall into two main camps. About 30% are investors (who can step in and out of the market as they see fit) and 60% are home buyers (single first home buyers make up a smaller less influential demographic and therefore are not included in this example). Most investors target apartments close to the CBD, which are both low-maintenance and easy to tenant. However, the dominant demographic of home buyers are either young couples looking for a family home or current owner-occupiers looking to upgrade. They also tend to fall in the $600,000 to $800,000 price range (or in the case of upgraders, the $1 million plus price point.)
On top of this we have a largely a discretionary market. Most vendors don’t “need” to sell – especially if they can’t get their price. They’re happy to sit and wait for better times, and this has an effect on how much further we can expect prices to drop. Indeed, if there were really a widespread belief of a housing “crash”, vendors would be settling for any number they could get, and this is simply not happening
It’s OK releasing reports of high numbers of stock on market that give the impression of oversupply, but without a breakdown of where and what type of stock this bumper crop represents, it’s impossible to draw conclusions about its effect on our current home buyer demographic. In fact, with simple reasoning, it’s fair to conclude if turnover is down and prices are not falling at a rate to signify underlying economic concern outside of cautionary sentiment, it’s more likely that those homes currently representing the largest supply in the market place are simply not suiting the major current home buyer demographic.
This comes as no surprise when you consider the major bulk of development has been concentrated on going up rather than out. In Melbourne for example, there has been approval of more than 20,000 high-rise apartments over the last two years, mostly in the CBD. Whether these developments will be completed is debateable, however it points to an abundance of accommodation largely aimed at the investment/rental market (particularly overseas investors).
In fact, a recent ANZ report entitled Australian Property Research – Growing pains for the Inner-Melbourne apartment market the ANZ bank warned of impending volumes of high-rise accommodation that could top around 5000 to 7000 by 2013.  Such is the concern over the short term potential of these types of developments that it can be extremely hard to get finance without a very low LVR. Check with individual lenders if this is a concern.
Although most buyers have been forced to accept apartment living if they want to stay in inner-city ring suburbs, given the choice, Australians have always preferred larger floor space. In fact, Australian houses lead the world in growth per capita. Furthermore, while apartments tend to appeal to young single home buyers – particularly first-home buyers – they do not fulfil the needs of the largest current home-buying demographic actively shopping in the marketplace.
Detached family accommodation close to schools and transport is in anything but oversupply, and considering on top of this the cost of new homes is set to increase, supply is not accumulating fast enough to meet demand. Therefore, it doesn’t matter how much stock is on the market, if that stock doesn’t suit home buyers’ needs, it can hardly be called a “buyer’s market” and in the current climate, would probably be better termed an “investor’s market”.
Catherine Cashmore is a senior property adviser and buyer advocate for <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.jpp.com.au" title="JPP" target="_blank">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy in Melbourne. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiate more than $100 million worth of property each year for clients.
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catherinecashmore-6LXia3pPQj

Market perfect for investors, not home buyers

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Brisbane’s hotels and resorts sector has mounted a strong recovery in the first quarter of 2011, according to the latest ABS tourist accommodation figures.
Since the start of the year, occupancy rates have risen from 60% in January, just after the floods, to reach 77% by the end of March 2011, official figures show.
Guest arrivals have increased from 61,000 recorded in January to 72,500 in March, while over the same period average takings per room per night have gone from $163 to more than $200.
Brisbane’s hotel sector has been boosted by the strong increase in the number of business visitors coming to Australia, according to CB Richard Ellis analyst Craig Godber.
Conversely, the Gold Coast market, which is more heavily reliant on leisure travellers, is heading in the opposite direction.
Since the start of the year, the occupancy rate at Gold Coast resorts and hotels has fallen from a healthy 75% in January 2011 to just over 60% in March 2011.
The Gold Coast occupancy rate for the March quarter of 2010 stood at 73%.
Godber expects Queensland’s leisure-focused markets to remain subdued in the short term, though investors have shown faith in the long-term health of the market, with major transactions totalling $265 million in 2010.
The strong demand for accommodation from Brisbane visitors comes as investor activity and interest picks up this year.
Jones Lang LaSalle has identified Brisbane as a hotel development hotspot, with the market accounting for 18% of rooms under construction across the 10 major markets.
According to its Australian Hotel Development Register for June, there are 362 hotel rooms currently under construction in Brisbane and 521 on the Gold Coast, compared with just over 432 in Sydney.
Hotels under construction include the 4.5-star Mosaic Grand Chifley Hotel on the corner of East, Church and Ann streets in Fortitude Valley due for completion in 2013, which will comprise 48 rooms and is being built by Leighton Holdings at a cost of $150 million.
CBRE Hotels senior director for Queensland Wayne Bunz says the strength of the Brisbane market is spurring strong demand from hotel investors and could push forward major development projects.
Bunz says hotels have recorded strong occupancy rate growth during the first five months of this year, even after the Stamford Hotel reopened its doors, adding 252 rooms back into the market.
“In this environment, attention is focusing on a number of possible additions for the [Brisbane] CBD, including a 400-room hotel on the ex-State Library site on George Street, a 231-room development at 99-103 Mary Street, a 316-room hotel at 40 Elizabeth Street and the conversion of 171 George Street and the office space at The Chifley at Lennons Hotel,” Bunz says.
“Funding, however, remains the biggest impediment to new development, with significant equity levels still required,” he says.
The decline in the Gold Coast market has corresponded with other coastal Queensland hotel markets heading south.
For the March 2011 quarter, occupancies are down to 39% on the Fraser Coast and 42% on the Whitsundays, compared with 49% a year ago.
However, not all coastal areas are struggling to fill their hotel rooms, with Mackay occupancies rising from 54% to 61% over the first three months of the year.
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Brisbane hotel sector recovering as occupancy hits 77%

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A few months ago I started a public awareness campaign, which we called "The RBA Appeal", in an attempt to draw the RBA’s attention to the underlying softness in the Australian economy, which could be exacerbated by risks offshore.
It appears that the economists are starting to listen: Westpac’s Bill Evans has done a 180-degree turn from predicting rate hikes to now forecasting four rate cuts.
When you accept the historically low consumer and business confidence estimates reported by the Westpac-Melbourne Institute and NAB surveys, the dismal performance of retailers like David Jones, the striking decline in employment growth, the slide in house prices, and the relentless downgrades of economic growth forecasts from various bank economists, you start to appreciate the pain that pervades the real economy, not the “official” economy that the Reserve Bank theorises about.
The Reserve Bank tells us that wages are growing, which is one rationale for a cycle of rate rises. However, these figures mean little in the suburbs, where the only thing growing is electricity charges, grocery bills, fuel prices and flood levies. Meanwhile, waiting in the shadows is a carbon tax that no one understands except for the fact that it’s another hand in their pockets.
Several weeks ago, I observed that even though the Reserve Bank had raised interest rates seven times in 18 months – and seemed committed to more rate hikes – the bond futures market, which tends to lead equities, was pricing in a full rate cut by January 2012.
I assumed this indicated the Reserve Bank would be pushed to change course by a sudden “sovereign event”, such as a government going broke, defaulting on its debts, or behaving in a way that moves markets, like declaring war.
What a difference two weeks can make: Greece and Italy are now clear contenders for a default-and-bailout scenario that will hit the global credit markets harder than the Lehman Brothers collapse in 2008.
When Lehman Brothers – Wall Street’s fourth-largest investment bank – sought bankruptcy in September 2008, Barclays and Nomura bought out its books. It was as orderly as could be expected, yet it still triggered the global financial crisis.
If a western European nation goes bust, the shock waves could hit Australia much harder; we’ll see credit freezes, lenders going out of business, and a bear market that could take years to recover. The mining industry might sail through untouched, but it only employs 2% of our workers. The other 98% of employers, and small business in particular, will bear the brunt of the turmoil.
The United States is caught in its own sovereign event: a president who wants to raise the national debt ceiling to honour its borrowings, and a Congress that wants to cut government spending to remain beneath the debt ceiling.
And while the fears of a sovereign event create the headlines, there are deeper structural problems in Australia that have already sapped confidence.
One is the “two-speed economy”. It has become fashionable for economists and media commentators to scoff at this idea, but when the derision ends the question remains: how do you judge an entire economy on the extraordinary success of the narrow mining industry? Bloomberg News put it most succinctly a few months ago when it found a 24-year-old mining rigger in Western Australia earning more than the chairman of the Federal Reserve, Ben Bernanke.
A second issue is that Australia is supposed to run on monetary policy where the cost of money controls inflation. But governments still have fiscal programs, such as the first-home owner grants and the Building the Education Revolution scheme. These are inflationary because they pump cash into the system, which the Reserve Bank has to control with rate rises. Our current rate rise cycle started as the Rudd government’s fiscal stimulus package kicked in.
The problem is that the Reserve doesn’t have the capacity to respond to – or ignore – specific causes of inflation. It can’t differentiate between wages growth in industries, or between sources of fiscal stimulus; it can only raise, lower or hold interest rates based on official inflation indices.
But that doesn’t help hardworking Australians. I talk to a lot of business owners, and I can’t recall a time when there has been so much confusion. In the early 1990s, when unemployment was high and banks wouldn’t lend to small businesses, the landscape was very clear. The pain was spread evenly.
Today, business owners are confused: how can interest rates be rising when the economy they operate in is so flat?
Unlike the low-confidence environment of the early 1990s, we’re not worrying about unemployment this time. However, the Reserve Bank should note that the quantitative driver of employment in this country is small and medium-sized businesses, not the mining industry’s wages, which only accrue to those in that industry. The Reserve Bank should remember that most businesses in this country are “mum and dad” affairs, whose business finance is raised off their family mortgages. They are highly sensitive to interest rate movements, and so are their hiring intentions.
With the financial year having ended, the Reserve Bank has an opportunity to take its head out of the technical economy and look at the practical economy. At a time when households and small businesses are low on confidence and high on costs of living, we should be easing interest rates to secure a soft landing from the expected global problems, and to guide the domestic economy back on to a sure footing.
I am glad Westpac has finally bought into my arguments. But rather than cutting rates once this year, and three times next year, as Westpac forecasts, why not get pre-emptive? If the Reserve Bank cuts rates at the next board meeting, it may avoid the need to have to slash rates in a GFC-style fashion after the crisis has already hit our shores.
People like to say the Reserve Bank gets ahead of the curve. They forget, however, that our Reserve Bank kept mortgage rates at 9.6% as late as August 2008, and only reduced rates for the first time in September that year. The RBA got behind the eight ball in the last crisis. I would hate to see history repeat itself.
Mark Bouris is the chairman/co-founder of Yellow Brick Road Group.
This article originally appeared on<a target="_blank" title="Business Spectator" href="https://www.businessspectator.com.au/"> Business Spectator</a>.
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cknowlton-QnEa6ntUYP

Slashing rates could prevent an economic disaster

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Listed property trust investment in NSW retail properties has increased dramatically in the past 12 months.
A-REITs purchased nearly a third (32%) of NSW retail properties sold during the 12 months to June 2011, according to CB Richard Ellis’s latest Sydney Metropolitan Retail MarketView.
This is up from just 14% of transactions purchased by A-REITs during the previous 12-month period.
Major purchases by A-REITs during this period include CFS’s purchase of DFO Homebush in July 2011 for $135 million and Charter Hall buying a 50% interest in sub-regional shopping centre Lake Macquarie Fair and Mt Hutton Shopping Centre in Lake Macquarie, NSW, for $33 million.
Private investors accounted for half of all NSW purchases during the period, generating $261 million in sales.
According to CBRE, A-REITs, along with private investors, have shown interest in Sydney retail properties valued under $30 million as they look to reduce their exposure to overseas assets.
Interest is focused on regional and sub-regional shopping centres. However despite the demand, investment stock supply remains limited.
Yields have held steady at 6% for regional centres, at 7.54% for sub-regional centres and at 7.88% for neighbourhood centres. Regional centre vacancies have dropped to just 0.56%.
<a href="/images/stories/cbrejuly18large.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/cbrejuly18.gif"></a>
Other key findings include a significant portion of retailers shifting back to Pitt Street Mall, resulting in a spike in prime CBD retail vacancies in Sydney.
“King and George streets have been impacted the most; however, high-end retailer demand for stand-alone locations on these streets continues, as demonstrated by the relocation of Burberry and Louis Vuitton, “according to said CBRE retail services senior manager Leif Olson.
Olson says the opening of the second stage of Westfield Sydney has resulted in tightening vacancy, with demand exceeding supply on Pitt Street Mall.
“Pitt Street Mall vacancy remained below 1% despite the total CBD retail vacancy reaching 3.1% in the past six months,” he says.
Sydney prime rents have fallen by 11% during the previous year to an indicative $2,473 per square metre as at June 2011.
Further rental reductions are expected in the short term as national retailers closed underperforming stores to focus on Pitt Street Mall locations.
NSW retail expenditure was flat during the first half of 2011, with consumer spending patterns unlikely to increase as the year unfolds.
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