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

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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The Brisbane market has become saturated with high-rise apartments, with aggregate stock levels sitting at 1,683 apartments, or more than two years’ worth of supply.
At current clearance rates it will take 26 months to sell the current stock of apartments, according to the latest Midwood Investment report for the May 2011 quarter.
New projects added to the Brisbane stock count include the “ultra-high rise” 289 Infinity apartments being developed by Meriton on George Street in the Brisbane CBD, 77 apartments in Capitol on Peel Street, South Brisbane, Madison Heights and 286 apartments in the Madison Heights development in Bowen Hills.
The highest stock levels are in Fortitude Valley (381 apartments for sale) – where Alex Perry Residential is marketing the first of its apartment blocks – followed by the Brisbane CBD (348) and Bowen Hills (325 apartments).
The stock built up comes as Queensland lost its crown as the population growth capital of Australia for the first time in nine years, attracting 89,083 new residents in the year to June 2010, compared with 105,421 new residents in NSW.
In addition, unconditional sales of new apartments in Queensland has remained stagnant for the three month period ending 31 May 2011, according to the according to the Midwood Report.
Total unconditional sales for new apartments in the state’s major growth regions totalled 405, compared with 464 in the same period a year ago.
Sales of new high-rise apartments were particularly sluggish, with Gold Coast recording 51 unconditional sales and Brisbane 189 sales.
Brisbane sales are up on the February quarter, when 116 sales were recorded, but down on the 206 apartments sold in the November 2010 quarter.
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lschlesinger-FZcF9M3vE6

Brisbane market saturated with apartments

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Steve Bellotti, ANZ’s managing director of global markets, has spent $8.4 million on a beachfront property in the pricey part of Sydney’s northern beaches peninsula, Palm Beach.
The vendor, dentist Graham O’Neil, had wanted $9.95 million for the 558-square-metre holding with an architect-designed two-storey, five-bedroom beach house complete with boat and watercraft storage area with hydraulic floor lift.
It ranks among the few Iluka Road properties with title to the high-water mark, whereas the other properties are mostly reserve frontage.
Its more-than-respectable final selling price at $15,000 per square metre suggests the tide might finally be rising when it comes to prestige prices.
There was a nearby $6 million sale nearby last year with a tiny cottage that reflected $10,900 per square metre of land value. And another house slightly less comparable to the Bellotti purchase sold mid-2010 at $7.2 million, which reflected $13,400 per square metre.
While it would be pushing it to suggest that Palm Beach become a peninsula of paupers, there's no doubting beachfront property prices had come off by 20% or so by late 2009 due to the global financial crisis.
The pre-global financial crisis beachfront record was $12,980 per square metre, also on Iluka Road, in 2007.
At one stage during the downturn there was a $4 million oceanfront reserve sale on Ocean Road – directly opposite the northern end of beach – reflecting $3,550 per square metre in 2009.
Prices, however, eventually found their floor in the wash-up of the much-credited Lehman's effect.
The latest sale came after marketing through LJ Hooker Palm Beach agents David Edwards and Peter Robinson, who had it listed for December 2010 tender.
But the ongoing twin challenges for Palm Beach are the strength of the Australian dollar – and the virtual absence of expatriate buyers – and perhaps the greater underlying inhibitor to any sustained recovery, the detrimental impact of land tax.
Look at the rubbish trolleys still out on the narrow streets well after garbage night, and it is easy to conclude about 80% of Palm Beach properties are holiday houses. So their purchase requires not only the initial outlay – with its inevitable NSW government premium property stamp duty – but also the annual land tax.
The best thing to do is make Palm Beach one’s principle place of residence and have a land tax-free apartment in town.
But Bellotti, who joined ANZ in March 2010 from Blue Sky Capital Strategies, where he remains chairman, bought a Mosman house in 2010 for $9 million through Richard Simeon at Richardson &amp; Wrench.
The 558-square-metre Bellotti Palm Beach block comes with a current $5.61 million unimproved land valuation. The 2008 land valuation was $5.28 million and $5.5 million in 2009, so with the NSW government's three-year land value averaging system, it would trigger an annual $93,700 land tax bill as a weekender.
Its value in 1984 was $350,000, according to RP Data.
Palm Beach sales peaked with the $15 million sale in 2007 of Anakela, the beachfront retreat of the late grocery tycoon Jim Fleming and his widow, Angela.
It was bought by the Uncle Toby's founder Doug Shears.
The Flemings had paid $3.65 million in 1995 for the 1,947-square-metre Iluka Road property, which had sold in 1973 for $140,000.
The Flemings constructed an expansively lavish house that came with a second-floor see-through glass bathtub, which was suspended above the ground-floor living area.
It was 1981 when the late Kerry Packer broke through the suburb's million-dollar threshold with his $1 million purchase from the MacCormick family. But the pianola is the raciest accoutrement around at the Packer family bungalow.
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jchancellor-FAypfDUnLy

A rising tide lifts all luxury yachts in Palm Beach

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I was recently asked to outline my thoughts on how the Australian urban landscape might look 40 to 50 years from now.  Go on, you can laugh.  I did too.  It’s hard enough to forecast the next 12 months, let alone two generations away, but I’ve given it a go, of sorts, so here it is.
Firstly, though, it might be best to outline my methodology.  In short, this forecast will be based on underlying trends, some understanding of human nature, and importantly, the Australian mindset.  My outlook is supported by evidence – what people actually do rather than say – and importantly, not by urban myths or fallacies, despite the frequency and noise with which they have been aired of late.  Unfortunately, we don’t have the space or the time here to support every claim or go into massive detail, so this discussion is confined to broad shapes – not nitty-gritty.
Australia's urban landscape can best be summed up in two words –diverse and dispersed.
Let’s deal with the second D – dispersion – first.  Our regional centres are likely to become a whole lot bigger and at the expense of the already crowded capital cities.  The move away from the world’s bigger cities is already underway, as evidenced in the recent census in the United States, but also throughout much of Europe.  Several Asian and Middle Eastern countries are now also following suit.  The annual ABS small-area population data suggests it is already happening here and the 2011 census, due later this year, I believe, will provide further evidence.
Within our capital cities themselves, the move downtown will slow – again, it already is doing so – as the cost to live within close proximity to the CBD is just too high compared with the real benefits.  The urban myths that perpetuate inner-city density over other housing forms – suburban growth worsens carbon emissions and traffic congestion; people are being forced to live far from jobs concentrated in our CBDs; and denser development will make it cheaper – are all incorrect, but more significantly, they are not being embraced by the wider market.
Instead of having a single high-density city core with lower development density radiating outwards, the most likely urban shape in the future will be one of more even distribution of housing density throughout the city – concentrated more, no doubt, around middle-ring transport hubs and new master-planned town centres.  Our middle-ring and outer suburbs will have much more compact urban settings.
Diversity relates to the housing stock itself.  The current push towards smaller dwellings has little to do with demographics and the market’s wants and is more about housing affordability.  Moreover, it really has to do with being able to flog cheaper stock quickly, often to an unsuspecting audience.  There is a demand for tightly sized product, but it is nowhere as near as high, nor is the long-term trend towards such as strong, as the urban boosters advocate.
Taking a wider view, Australia (and America too) is still in its frontier or “barbaric” stage of its cultural evolution.  We walk with wide gaits, worship most things large, and don’t really like crowded spaces or queues.  Go visit any major city in Europe or Asia for that matter and you can spot the Aussie (or Yank) a mile away.  We like our space, aren’t really ready to give it up, and are not likely to do so for many decades to come.
Rather than cling to the idea that density and concentration are best, all those planners, architects and developers out there might do better to focus on what appeals to the vast majority of the population, particularly the middle and working classes.  Nurturing smaller, more efficient cities, as well as expansive suburbs and revived small towns, may prove far more practical and beneficial than imposing a manic agenda for relentless centralisation.
For mine, rather than force a density agenda on a largely unwilling population, it makes sense to consider how to make a more dispersed (and diverse) urban future more workable and sustainable.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped more than 500 new residential developments come to fruition and writes the weekly  <a target="_blank" title="Matusik's Missive" href="https://matusikmissive.wordpress.com/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Matusik's Missive</a>.
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michaelmatusik-49YzLvdmNv

Diversity far and wide is our housing future

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The recent Queensland floods have triggered residential price discounts of between 30% and 40% for inundated dwellings.
Properties that were not as heavily impacted were being discounted between 5% to 20%, according to the estate agency CB Richard Ellis.
Queensland’s “two-speed” economy will mean the state’s residential recovery will only occur in the medium, rather than the short term, according to the CB Richard Ellis forecast.
As the nation’s worst performing capital city, Brisbane’s median house value has fallen during the year to March 2011 by 2.9% to $447,500, according to Residex,, which noted a 14% contraction in the volume of house sales and 12% for unit sales over the past year.
The resource-related growth in the state would be the fundamental driver for a residential recovery in the medium term.
However, the short-term property environment remained subdued in the wake of recent natural disasters and weak tourism numbers that had impacted the state’s growth in 2011.
The report noted the timing for the Queensland economy was “terrible.”
A lag in mining-related growth after the GFC meant buyer optimism had been falling in most residential price brackets across south-east Queensland, given cost-of-living pressures and concerns about rising interest rates, CBRE regional director of residential mortgage valuations Tom Edwards says.
“This has led to falling sales volumes, extended marketing periods and minimal demand across the region,” Edwards says.
The impact of the recent Queensland floods is also becoming more tangible as sales evidence in the affected areas is collated.
“Earlier observations we made concerning value impacts have been maintained, with discounts of 30% to 40% on underlying land values being recorded for properties with inundated dwellings.
“Minor discounts from 5% to 20% have meanwhile occurred for properties that were not as heavily impacted,” Edwards says.
In regard to the overall south-east Queensland market, the CBRE report highlights that buyers in all price brackets are being very selective and are only targeting properties with strong marketing features such as proximity to public transport, public infrastructure and good levels of residential amenity.
“The prestige sector on the Gold Coast has seen particularly steep value declines, with units in this market also under significant pricing pressure,” Edwards says.
“Sales volumes have contracted substantially, with higher quality units on the Gold Coast suffering given the very high levels of available stock.”
CBRE’s report highlights that the outer metropolitan suburbs of Brisbane, consisting predominantly of new housing estates, have also been under strain.
On the flipside, properties situated within 10 kilometres of the Brisbane CBD with family-oriented attributes and good land sizes have performed quite well, albeit with reduced levels of buyer interest.
“Specific projects that have been impacting the residential markets include the Airport Link and Northern Busway, which are expected to assist prices in the longer term but which have negatively impacted on the market around the construction zones in parts of Kedron, Lutwyche and Woolowin,” Edwards says.
“The Gold Coast light rail project many also provide some impetus for price growth for areas that benefit under the proposal.”
CBRE’s global research and consulting manager, Sam Reilly, notes that the recent Queensland government announcement of a $10,000 grant for any person buying a new dwelling or signing a contract to construct a new dwelling between August 1, 2011 and January 31, 2012 is a positive, albeit temporary, initiative for the struggling Queensland construction industry.
The impending abolition of the stamp duty concession currently available for the purchase of a primary place of residence from August 1, 2011 is, however, far more noteworthy, Reilly says, as purchasers would see an increase of 56% in stamp duty charges on the purchase of a $600,000 home.
“There will be some relief for purchasers of a new home under the $10,000 Building Boost Grant until 31 January 2012 but after this date the new stamp duty regime will remain in place, placing further pressure on the subdued Queensland residential property market,” Reilly says.
The rapid reduction in tourist numbers is also a concern, with the high Aussie dollar triggering employment concerns for the Gold Coast, Sunshine Coast and north Queensland tourism industries, according to Reilly.
Despite the difficulties, the report noted that Deloitte Access Economics recently forecast real growth output of 4.3% per annum from 2011 to 2015, with Queensland leading Australia.
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Flood-affected Queensland homes lose 30% of value

The rock musician-turned-entrepreneur Tim Freedman is battling Byron Shire Council for approval to use his near-beachfront Broken Head retreat as a wedding reception venue.

He wants permission to hold up to 35 functions a year with a maximum of 70 guests. The functions to stop at 10pm, with all live acoustic music to finish by 8.30pm. But neighbours have lodged concerns with council before the mid-June close of comments.

Freedman, the singer with ARIA-winning band The Whitlams, paid $2.8 million in 2009 for the 1.1-hectare holding in the upmarket bushland Pavilions Estate at Broken Head. The Newtown-based Freedman had for many years prior been content with a cabin at the local holiday park.

[smartcode_project:default project_id=7363 project_image_fid=41840]

Tucked away adjoining a beachfront bushland reserve, it&#39;s one of seven in the Pavilions development by Mathew Macpherson and three partners. It comes complete with interconnected pavilions, one each dedicated to living, dining, entertaining and sleeping.

The neighbours&rsquo; complaints mostly relate to excessive noise, litter, traffic, access and parking problems.

There are also concerns regarding the local fauna, which could be affected adversely &ldquo;by the light, noise and impact by vehicle strikes&rdquo;.

Freedman&rsquo;s lawyer, Wroth Wall, has told the <a href="https://www.northernstar.com.au/" target="_blank" title="The Northern Star">Northern Star </a>that Freedman&rsquo;s case centres on the fact that the area is zoned T2, for tourist use, and that weddings and other functions fall within that category.

After the council received several complaints in relation to weddings occurring at the Pavilions development, it served a noise abatement direction on Freedman last November.

[smartcode_project:default project_id=25196 project_image_fid=165544]

The council report noted that the premises had since been advertised as a wedding venue with a capacity of 50 guests sit-down or 90 guests canap&eacute;-style.

Following an order to cease use of the property as a place of assembly, a Land and Environment Court proceeding could determine the future of Freedman&rsquo;s plans.

In May 2011 Freedman lodged a development application to use his premises as a place of assembly on nominated conditions.

The application has yet to be presented to a formal council meeting for consideration.

Little cloud hovers over Tim Freedman's Byron Bay wedding venue plans

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<a href="https://www.propertyobserver.com.au/commercial/after-borders-a-new-chapter-in-retail/2011062850630" title="After Borders, a new chapter in retail" target="_blank">Yesterday</a> we looked at the collapse of REDGroup and the departure of Borders stores from shopping centres, and what it means for landlords. Today, in the second part of our two-part series on the impact the collapse of major chains has on retail landlords and shopping centres, we ask how much due diligence REDGroup's landlords would have done and what the state of the industry looks like. 
Property Observer asked several retail specialists about the impact from the mass store closures, the lessons for landlords and tenants, how landlords vet tenants and about the true state of retail property.
 Are the landlords usually owed money when tenants suddenly depart?
“Absolutely,” says retail specialist Simon Rumbold, national director of property economics with property forecaster and researcher Urbis. “When a tenant simply just walks away, cash flow stops immediately.
“In all likelihood, there are rental arrears with possible legal arguments over who is owed what.”
Additionally, it usually takes a few months before new tenants occupy the spaces, which can cost landlords money in lost rent. 
Is the entry of such international retail giants as Gap and Zara into <country-region><place>Australia</place></country-region> fortuitous for landlords, given Borders’ demise? 
Unquestionably. “We are aware of two or three other international groups occupying large-format stores that are looking at coming into the Australian market right now,” Rumbold says.
“At least one, possibly two, of those international groups is looking at taking ex-Border spaces right now.” 
How highly do landlords value big brand names when vetting prospective tenants?
Rumbold says the strength of the trading brand is the landlord’s number-one concern. Landlords asked themselves such questions as: Is this brand going to succeed in our shopping centre? What is the track record of this brand in other shopping centres?
“Ultimately, they want the rent from the shops, but they also want the brand to add to the appeal of the whole shopping centre,” he says. “They want the money and the brand.
“Less-known retailers are basically working off the shopping centres, whereas the big brands can contribute to the strength of the shopping centre.”
 
How deeply do landlords check a prospective tenant’s finances?
“The financial security of the lease and the lessee is obviously of primary concern for a landlord,” Rumbold emphasises. Landlords want to closely review a would-be tenant’s financial statements.
And the monitoring a tenants’ finances continues after the signing of the leases. “In the shopping centres [as opposed to strip shopping areas], landlords are on your back the whole time,” says Duncan <city><place>Johnston, executive chairman of Collins Booksellers</place></city>. Johnston and his associates also manage 15 to 20 retail and commercial properties for self-managed super funds, including his family’s fund.
What financial sureties are sought from tenants?
Rumbold says a landlord would want a guarantee that a tenant will pay the rent, and typically a bond is required.
“That means that if something happens and if the tenant vacates or doesn’t pay rent, they can draw upon the guarantee or the bond,” he explains.
However, it seems that shopping centres might not be as demanding with some heavyweight tenants regarding rental guarantees.
“With such companies as <state><place>Colorado</place></state>, Borders or whatever, I can’t tell you what sort of guarantees would have been in place with individual leases,” Rumbold says. “They would have varied from landlord to landlord. But there would have been some guarantees in place.”
But he stresses that if a business fails financially, a guarantee “may count for nothing”, depending upon the type of guarantee.
Do shopping centres require tenants to provide personal guarantees for rent? 
Personal guarantees would not, according to Rumbold, be sought from the big retail chains “But mum-and-dad retailers would have to provide personal guarantees.”
Is the level of retail vacancies in good or bad shape?
“It is still in very good shape,” Rumbold says. The latest Urbis annual national survey of shopping centres, conducted last year, reported a vacancy rate of 2.9 % in large regional shopping centres, and 3.9% in second-tier centres.
Despite the impact from the jump in household savings and the slowdown in consumer spending, shops are not lying vacant for long between tenants.
“The vacancy [level] has increased very marginally since the previous year,” says Rumbold, “but is still at a very low. It is not at a level of concern and it is well below international benchmarks. Australian shopping centres have always performed exceptionally well in terms of vacancy rate.”
Rumbold comments that that a 3% vacancy rate for retail property is sustainable, but a 2% vacancy rate is preferable – giving sufficient flexibility for a changeover between tenants.
He stresses that any vacancies in many shopping centres such as those in Chatswood and <place>North Bondi</place>, in NSW, “often fill at the drop of a hat”.
“Although retail conditions overall have been fair to soft, they haven’t been negative. Landlords have been reporting reasonably stable or improving sales.”
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mlaurence-vhAHaLZT8y

Landlords coping with the loss of anchor tenants

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The national residential vacancy rates were down modestly during May on April 2011, with a drop of 0.1% month-on-month, according to SQM Research.
With a total of 43,786 rental vacancies, the national vacancy rate stood at 1.7%, SQM managing director Louis Christopher says.
“When compared to the same month last year however, vacancies increased by 0.3%, indicating that the rental market has loosened slightly since May 2010.
“That being said, a national vacancy rate of 1.7% still signifies a considerably tight market, and with no capital cities recording vacancies above 2.4% it is safe to say that the 'rental crisis' is yet to be alleviated,” he says.
He says until there is more substantial buyer interest in the housing market, vacancies are set to remain tight as fewer prospective buyers leave rented dwellings to purchase homes of their own.
Christopher says vacancy rates over the past 12 months have been moving in a significantly small range, with a stable trend overall.
The capital city to record the lowest vacancy rate was Canberra at 0.6%, a total of 272 vacancies.
Melbourne was the capital city to record the highest vacancy rate, at 2.4%, a total of 8,707 vacancies.
The only capital city to record a month-on-month growth in vacancies was Hobart, increasing from 1.7% to 1.9% – a total of 443 vacancies.
Darwin was the capital city that experienced the largest month-on-month decline, with vacancies falling by 0.4% to 1.4% - a total of 317 vacancies.
Both Melbourne and Darwin recorded the largest year-on-year growth in vacancies, increasing by 0.9% to 2.4% (8,707 vacancies) and 1.4% (317 vacancies) respectively.
Both Brisbane and Perth recorded the largest year-on-year declines in vacancies, falling by 0.3% to 1.8% (4,584 vacancies) and 1.1% (1,770 vacancies) respectively.
Christopher says SQM's calculations of vacancies were based on online rental listings that have been advertised for three weeks or more compared with the total number of established rental properties.
Sydney had 5,633 vacancies, reflecting 1.0%, in May last year. It now sits at 7,038, or 1.3%, slightly better than the 7,707, or 1.4%, in April.
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Vacancy rates down slightly with rental market still tight, says SQM's Louis Christopher

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Bulky goods retailers are being forced to pays thousands of dollars in rent on premises they must wait months to use, according to the Bulky Goods Retailers Association.
The BGRA represents 54 brands including Bunnings, Harvey Norman, IKEA and JB Hi-fi.
Currently retailers must submit a development approval application even if few structural changes needed before they move in, the BGRA argues in its submission to the Productivity Commission’s retailing inquiry.
Approval times range from four to eight weeks for a non-food retail business and up to six months for industrial premises after lease agreements have been signed.
“Currently the delays inherent in the DA system mean that a tenant, having signed a lease, then has to pay rent for premises in which they cannot operate, in some cases for several months, resulting in significant costs to business,’ the BGRA says.
It argues small retailers could save $250 a day on early rent commencement and those leasing industrial premises could save $1,000 a day if the Council of Australian Governments adopts NSW’s Commercial and Industrial Code.
The BGRA claims the code “provides a rapid and cost-effective alternative to the DA process”.
“The NSW Commercial and Industrial Code has thus enabled many forms of retail development, including bulky goods retail, to achieve swifter development approvals where the proposed development has minimal environmental impact because complying development applications must be determined within 10 days. “Where a proposed development is classified as exempt development, no planning approval is required,” the BGRA says in its submissions paper.
Despite the code being in place in since 2009, most NSW councils still require that retailers submit a development approval application.
 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="122" valign="top">
 
</td>
<td width="130" valign="top">
Retail (non-food)
 
</td>
<td width="122" valign="top">
Retail (food)
 
</td>
<td width="122" valign="top">
Industrial
</td>
</tr>
<tr>
<td width="122" valign="top">
Project fit-out value:
</td>
<td width="130" valign="top">
$150,000 (110m2)
</td>
<td width="122" valign="top">
$150,000 (110m2)
</td>
<td width="122" valign="top">
$1,000,000 (10,000m2)
</td>
</tr>
<tr>
<td width="122" valign="top">
Indicative assessment cost - Council:
</td>
<td width="130" valign="top">
$2,400
</td>
<td width="122" valign="top">
$2,900
</td>
<td width="122" valign="top">
$9,000
</td>
</tr>
<tr>
<td width="122" valign="top">
Indicative assessment cost - Certifier:
</td>
<td width="130" valign="top">
$1,900
</td>
<td width="122" valign="top">
$1,900
</td>
<td width="122" valign="top">
$7,000
</td>
</tr>
<tr>
<td width="122" valign="top">
Processing time
 
</td>
<td width="130" valign="top">
4 to 8 weeks (average 4 weeks)
</td>
<td width="122" valign="top">
5 to 9 weeks (average 5 weeks)
</td>
<td width="122" valign="top">
12 to 26 weeks (average 12 weeks/84 days)
</td>
</tr>
<tr>
<td width="122" valign="top">
Potential early rent commencement savings
</td>
<td width="130" valign="top">
$4,500+
(based on $250/day)
</td>
<td width="122" valign="top">
$6,250+
(based on $250/day)
</td>
<td width="122" valign="top">
$74,000+
(based on $1,000/day)
</td>
</tr>
</tbody></table>
Source: BGRA submissions to Productivity Commission
 
The BGRA forecasts the bulky goods retail sector, which includes retailers of electronics, whitegoods, furniture and automotive parts, will generate sales of nearly $64 billion in 2012. 
In April, Jones Lang LaSalle reported that bulky goods retailers along with the regional shopping centre sub-market were driving the increase in the supply pipeline in the first three months of 2011.
Bulky goods retailers that have increased their expansion this year include Bunnings, which plans to open 150 stores nationally over the next four years in response to the roll out of Woolworths’ new hardware brand Oxygen.
 
Total retail space under construction nationally expanded to 676,170 square metres in the first quarter of 2011, according to Jones Lang LaSalle – substantially higher than the trough of about 470,000 square metres in late 2009, but is still well below the peak reached in mid-2008, when more than 1.4 million square metres of retail space was under construction across the country.
NAB identified bulky goods as the worst performing retail property sector in Australia in its March 2011 update.
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Bulky goods retailers baulk at paying for premises awaiting occupation approval

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A private investor has paid a premium for two 7-Eleven sites in Melbourne, due to have been auctioned by Jones Lang LaSalle as part of a batch 15 stores on July 20.
The two early sales are the 2,738-square-metre Blackburn South site at 2 Canterbury Road with annual rent commencing at $140,000 and the 1,463-square-metre Lilydale site on the corner of Maroondah Highway and Cave Hill Road, bringing in $130,000 in annual rent.
Jones Lang LaSalle agent Steve Bolton says the net yield on the Blackburn site is 6.98% and the net yield on the smaller Lilydale site 8.45%.
The sale prices are undisclosed but did meet price expectations.
Prices are expected to range between $1.5 million and $4 million for the eight stores in the Sydney metropolitan area and the remaining five in the Melbourne metropolitan area.
Bolton says the Lilydale and Blackburn properties were sold ahead of auction on the basis that the price offered may not be achieved on auction day.
Premium offers for other sites that exceed auction expectations may also be considered ahead of the July 20 auction.
“Each offer will be considered on an individual basis,” he says.
Jones Lang LaSalle agents Ben Galanos and John Macree, along with Bolton, are marketing the remaining sites, which are expected to yield investors returns of between 7.5% and 8.5% on passing rentals.
The stores, purchased as part of 7-Elevens acquisition of 250 retail sites from Mobil Retail in 2010, each include service station, convenience store and customer parking.
All stores come with 15-year leases to 7-Eleven with renewal option of three times five years and offer fixed annual rental increases of 4%. 
Bolton says there has been “excellent interest” in the retail sites, which Jones Lang LaSalle has been selling in tranches on behalf of 7-Eleven since early 2011.
Expressions of interest in the latest batch of stores up for sale have come from a range of potential buyers including petroleum operators, superannuation groups and some institutions.
Though they are being sold of individually, Bolton says they can be bought in batches.
“The sale can be tailored to suit the buyer,” he says.
Tenants of the stores pay all outgoings except land tax.
The eight NSW stores range in size from the smallest in Kensington, Sydney on the corner of Anzac Parade and Todman Avenue, which is 1,429 square metres and offers annual rent of $150,000, to the South Strathfield store at 577 Liverpool Street, measuring 4,998 square metres and offering returns of $200,000 in rent annually.
The smallest Victoria store is in Bayswater East, on the corner of Dorset Road and Mountain Highway, measuring 1,932 sqm and generating annual rent of $140,000, and the largest is the 5,575-square-metre Hoppers Crossing store on the corner of Old Geelong and Heaths roads, returning $210,000 per year.
The tranche of 15 will be sold by public auction on July 20, 2011.
Since being purchased by 7-Eleven, the properties have been refurbished and re-opened as 7-Eleven stores.
Earlier this year, seven properties in Thomastown, Clifton Hill and Noble Park in Victoria, Blacktown East, West Gosford and Long Jetty in NSW and Robina in Queensland were successfully auctioned by Jones Lang LaSalle with net yields ranging between 7.28% and 7.95%.
Jones Lang LaSalle director David Bowden says since March some sites have been sold on an individual basis and demand among investors has been strong.
“The purchasers have been attracted by land rich investment properties in prime locations with secure long-term leases and fixed rental increases,” he says.
7-Eleven Stores is the biggest convenience retailer in Australia, operating about 600 stores, and is owned by the Withers/Barlow family.
It ranks in the top 30 of BRW’s Top 500 Private Companies listing.
What’s for sale:
<table border="0" style="width: 470px;"><tbody>
<tr>
<td>Site</td>
<td>Site area</td>
<td>Annual rent</td>
</tr>
<tr>
<td>New South Wales</td>
<td></td>
<td></td>
</tr>
<tr>
<td>Artarmon, 477 Pacific Highway</td>
<td>1,548sqm</td>
<td>$210,000</td>
</tr>
<tr>
<td>Granville, corner Parramatta Road and Harbord Street</td>
<td>1,499sqm</td>
<td>$200,000</td>
</tr>
<tr>
<td>Lambton, 21 Croudace Street</td>
<td>1,932sqm</td>
<td>$190,000</td>
</tr>
<tr>
<td>Narrabeen, 1497 Pittwater Road</td>
<td>1,619sqm</td>
<td>$270,000</td>
</tr>
<tr>
<td>South Strathfield, 577 Liverpool Road</td>
<td>4,998sqm</td>
<td>
$200,000
</td>
</tr>
<tr>
<td>Blaxland, 137 Great Western Highway</td>
<td>1,809sqm</td>
<td>$190,000</td>
</tr>
<tr>
<td>Kensington, corner Anzac Parade and Todman Avenue</td>
<td>1,429sqm</td>
<td>$150,000</td>
</tr>
<tr>
<td>Edensor Park, corner Cowpasture and Elizabeth roads</td>
<td>7,451sqm</td>
<td>$260,000</td>
</tr>
<tr>
<td>Victoria</td>
<td> </td>
<td></td>
</tr>
<tr>
<td>Bayswater East, corner Dorset Road and Mountain Highway</td>
<td>1,932sqm</td>
<td>$140,000</td>
</tr>
<tr>
<td>Brandon Park, corner Springvale and Ferntree Gully roads</td>
<td>2,720sqm 
</td>
<td>$190,000</td>
</tr>
<tr>
<td>Hoppers Crossing, corner Old Geelong and Heaths roads</td>
<td>5,575sqm</td>
<td>
$210,000
</td>
</tr>
<tr>
<td>Epping, corner Dalton and Childs roads</td>
<td>5,204sqm</td>
<td>$150,000</td>
</tr>
<tr>
<td>Tullamarine, corner Mickleham and Melrose roads</td>
<td>1,864sqm</td>
<td>$180,000</td>
</tr>
</tbody></table>
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Two sell as 7-Eleven tempts investors

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The inner-Sydney suburbs of Pyrmont and Ultimo, where the best gross office rents are on average 43% lower than the nearby CBD, are likely to get an influx of big businesses over the next five years.
Pyrmont and Ultimo are identified as city fringe markets with the biggest percentage difference in office gross rents compared with the corresponding CBD market, according to analysis from CB Richard Ellis.
CBRE regional director of office services James Patterson expects the gap between Ultimo/Pyrmont rents and the Sydney CBD to be maintained, as rents in both areas are likely to rise in the next three to five years.
“On a national basis, some of the markets with older and smaller office stock, which have suffered higher vacancy rates recently, are those with the widest gap between CBD and city fringe rents,” he says.
The second-most discounted fringe market is Melbourne’s St Kilda Road, where office rents are 35% lower than the Melbourne CBD.
“St Kilda Road in Melbourne is a good example with a rental gap of 35% relative to the CBD. Anecdotal evidence suggests leasing enquiry is starting to pick up in St Kilda Road at present, and the lower rents there are certainly compelling,” Patterson says.
Overall, gross rents in the fringe areas immediately adjacent to CBDs are on average 32% lower than comparable space in the centre of the city.
This stark difference in rental rates is one of the compelling factors forcing businesses to consider moving to the fringe of CBDs or to split operations between a CBD head office while relocating other functions to city fringe locations, according to CBRE executive director of global research and consulting Kevin Stanley
Other contributing factors, Stanley says, are forecasts of CBD office rent rises of between 12% and 24% over the next three to five and a lack of sufficiently large and appropriate floor space.
<img src="/images/stories/cbrejune28.jpg">
“Looking back in history, the gap between CBD rents and the fringe markets never closes, although it may vary depending on the cycle,” Stanley says.
“With CBD rents forecast to rise, we expect this gap to be maintained or increase in the next three to five years, although the cost of building may also punch up rents for new buildings in fringe markets.”
The rental gap between the Brisbane city and fringe markets has remained fairly consistent and is quite large, despite a fall in rents over the last few years.
New buildings recently constructed in Breakfast Creek, Fortitude Valley and Bowen Hills are likely to be popular options for corporations and government departments, according to Stanley.
“Our analysis shows that, despite the downturn in Brisbane, more affordable rents can still be found in quality buildings on the fringe, even if those buildings need to be built specifically for the tenant,” he says.
In Adelaide, the gap between fringe and city is about 24%, lower than the national average of 32%, suggesting less financial benefit in being located outside of the city core.
In Perth, the strength of the economy has caused the higher rents of the CBD to spread to neighbouring locations, such as West Perth.
“With the business cycle now gearing up again, the same pressures are likely to re-emerge as vacancy rates fall in the CBD and rents start to rise both there and in West Perth, providing few options for tenants to escape high gross rentals,” says Stanley.
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