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.

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<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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Of all the sectors within the commercial market, most people feel comfortable with retail. And that's only natural, because all your family members are usually going in out of shops as part of their everyday lives.
However, familiarity with something doesn't always make for good investment decisions.
And yet, investors continue to out-bid one another – and are quite prepared to accept yields as low as 3% per annum – for some retail investment properties.
Inherent in such decision is the belief there will be a significant rental increase not too far away.
But store rent has been outstripping store sales for quite a while. And turnover is unlikely to reach its long-term growth level 4% any time soon.
That means a significant re-adjustment is about to take place within the retail sector.
There are two structural changes driving this inevitable change:
<ol>
<li>Australians were net spenders in 2005, but we now have a historically high 11.5% savings rate.</li>
<li>Traditional retailers shot themselves in the foot by highlighting the presence of online shopping, which is currently at 6%. Westfield Group is predicting this will reach 10% of sales over the next five years.</li>
</ol>
Bottom Line: Not all retail properties are at risk, because it all comes down to your tenant.
Food and hardware outlets near new housing estates (for example) will be in high demand. As will traders who have wholesale or corporate clients in addition to their in-store traffic.
However, if you currently hold retail property with specialty tenants (like fashion or gifts), now would be a good time to rationalise your portfolio.
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chrislang-EQKojcgJPV

Retail not always the best investment

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Construction, retail and property companies sit among the private companies that have become more pessimistic about their short-term prospects than they were 12 months ago, according to KPMG’s annual Private Companies Survey.
The survey of nearly 300 private companies conducted in April and May 2011 also shows that 44% of respondents did not meet their revenue targets in the past 12 months. More than 70% of the respondents had been in existence for two decades or longer.
Construction companies comprised 11.3% of the respondents, retail traders 7.9%, and property industry respondents made up 6.5% of the respondents, but the report was not broken down by sector.
Peter Siebels, head of KPMG’s Private Enterprise practice, said the past 12 months has proved very challenging for private companies. South Australian businesses were the most negative, with 26.5% thinking the Australian economy was on a downward cycle. Only 8% in Western Australia thought the country was on a downward cycle.
“The environment has been more tumultuous than many businesses would have expected, especially when you consider the spate of natural disasters.
“This survey on the outlook of Australian private companies is highlighting what appears to be a very unique set of business challenges and a patchy business environment,” Siebels says.
Skill shortages, softening consumer confidence and continuing global uncertainty are the key challenges facing businesses, which all lead to a multi-speed economy.
“The challenges vary between states. For example, the resource sector is going along nicely, but if you are a manufacturer in Victoria, times are very tough,” he says.
“While skill shortages are the biggest challenge to businesses in Western Australia, those in Queensland are more concerned with low consumer confidence, which may reflect the recovery from the floods and cyclones.
“In South Australia and Victoria, respondents are more concerned about business confidence and competitor activity.
“New South Wales is most concerned about the impact of continuing global uncertainty,” Siebels says.
One positive all states agree on is the opportunities arising from the digital economy. The survey found that despite 45% of respondents reporting an increase in online business transactions this year, less than 5% regard the growth of online business to be a major challenge.
“I don’t think Australian private companies are embracing the potential of the digital economy enough. Social media is a good example; only 31% of respondents have leveraged this technology into their business strategies. What private companies should be doing is understanding how these new technologies can provide them with more efficient ways of reaching their markets, or even reaching markets they haven’t reached before,” Siebels says.
One-third of respondents reported experiencing constraints to capital expenditure over the past 12 months, with the cost of debt and the availability of credit seen to be the biggest causes of that constraint.
Despite the short-term decline in confidence and multiple challenges, 72% of private companies still see a return to brighter business prosperity in the long term.
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jchancellor-FAypfDUnLy

Companies gloomy about short-term business prospects

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Actor Nicole Kidman has unwittingly secured a 200-metre exclusion zone between her $6.5 million Sutton Forest, Southern Highlands farming property and the nearest coal exploratory drill hole in the area.
The joint venture partners of the coal exploration project, Cockatoo Coal and the South Korean company POSCO, now insist the two drill holes planned for the perimeter of Nicole Kidman’s property have been moved further away than was outlined in mapping in the publicly displayed March 2011 Review Of Environmental Factors.
The nearest drilling hole will now be 200 metres away from Nicole Kidman’s property.

At best it’s only a pyrrhic victory, for Kidman as the miners could go right under her farm property no matter where they drill holes if the residents lose the battle to stop the coal exploration, one Sutton Forest resident says.

The coal mining company issued a press release through its associate Hume Coal to hose down the media interest in the issue after the company directors became concerned with the international attention the matter was attracting. The residents’ battle against the coal mining has been raised in the English and American media since its recent<a target="_blank" title="Coal mine fears for Nicole Kidman" href="https://www.propertyobserver.com.au/news/new-south-wales/coal-mine-anxiety-for-nicole-kidman-s-sutton-forest-property/2011062150555"> Property Observer report</a>.

The map is no longer reflective of where Cockatoo plan to drill the holes.

The company has declined to advise just how many of the other approved 118 holes had also shifted since the February 2011 maps went on public display on the website of the NSW Department of Primary Industries in March.

Nor was Hume able to give a date of the decision to move the two holes.

The March report had noted: “The proposed drill sites are specially selected to have minimal impact on the environment and community.”

It is understood the company rejects it had been influenced on the location by Nicole Kidman or husband Keith Urban.

“I’d be amazed if she had ever read the March document,” one insider says.
The press release denial fails to refer to the shift in the two holes’ location, instead merely denying the company has plans to drill on or at the borders of the Sutton Forest property owned by Nicole Kidman and Keith Urban.
“A number of Australian media outlets have incorrectly reported that Hume Coal is preparing to drill on or at the borders the property of Ms Kidman and Mr Urban as part of its exploration project. This is not the case,” it says.
Hume Coal holds an exploration licence covering an area of 115 square kilometres in the Southern Highlands of NSW.
Authorisation for exploration in the Hume Project area was first granted in 1967, and various exploration programs have been undertaken since then.
The press release also claims many of the holes would only be 10 centimetres in diameter and are considered very low impact.
Exploration holes could, however, require a disturbance area of 25 metres x 25 metres.
The first 30 holes of this program started last month within the Belanglo State Forest.
All exploration works will adhere to strict regulatory controls and ongoing monitoring by the NSW Department of Trade and Investment, Regional Infrastructure and Services and the Sydney Catchment Authority. Each site will be fully rehabilitated on completion.
“Coal mining has been an important part of the Southern Highlands economy since the 1800s,” the press release says.
“The Berrima Colliery, adjacent to the Hume Coal Project, has been operational for 85 years and has had minimal environmental impact on the area.”</body></html>

Nicole Kidman's Highlands retreat given reprieve – for now – as coal company shifts exploratory holes

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Veteran retail property and business professional Duncan Johnston argues that the wholesale closure of book and fashion stores this year should send a blunt message to retail landlords: Don’t be greedy.
As both a landlord and a tenant, <city><place>Johnston</place></city> has a unique perspective on the fallout for retail property from the collapses of the giant REDGroup and <state><place>Colorado</place></state> chains.
In his role as an accountant and property entrepreneur, Johnston and his associates personally manage 15 to 20 retail and commercial properties for self-managed super funds, including his family’s fund.
And as executive chairman of Collins Booksellers as well as the joint owner of five Collins franchises, <city><place>Johnston</place></city> negotiates hard with retail landlords get the best deal for his fellow franchisees.
Retail property specialists say that although new tenants should rapidly fill the spaces left by the REDGroup (owner of the Borders and Angus &amp; Robertson book chains) and Colorado Group, shopping centres will pay a high price.
The shopping centres will inevitably lose revenue with the changeover of tenants as well as facing the costs of breaking up huge of areas occupied by Borders into much smaller shops.
And there is a strong possibility that some departing tenants will still owe at least some money – particularly because centres typically demand fewer financial securities from their anchor tenants.
But probably the biggest cost for the shopping centres is the loss of Borders as a major drawcard to bring shoppers into the centres, providing a flow of potential customers for small retailers.
“Borders had become an important linchpin in the leisure and entertainment centre of these shopping centres,” says retail specialist Simon Rumbold, national director of property economics with property forecaster and researcher Urbis.
“Borders became a very popular place for people to hang out, browse and spend time,” he adds. “[The loss of] Borders certainly creates holes in some of the larger shopping centres.”
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 such wholesale stores closures a rare event? 
While smaller retailers go out of business with some regularity, Rumbold says the departure of large retailers is relatively unusual. 
 
“No landlord wants to lose larger tenancies, particularly iconic ones like Borders which attract people into their centres for purposes other than buying just clothes or food.”
A <city style="outline-style: none; outline-width: initial; outline-color: initial;"><place style="outline-style: none; outline-width: initial; outline-color: initial;">Westfield</place></city> spokesperson says the task of replacing departing tenants is part of the group’s normal business practices. 
 How quickly will the vacated stores be filled?
Landlords will feel the closure of the REDGroup stores much more sharply than the demise of the <state style="outline-style: none; outline-width: initial; outline-color: initial;"><place style="outline-style: none; outline-width: initial; outline-color: initial;">Colorado</place></state> chain. It comes down to size of the areas – as well as the ability to draw shoppers into the centres.
A typical shopping centre has between 50 and 300 shops so the closure of one, two or three average-sized shops is “not a big deal” for landlords, Rumbold says.
“<state style="outline-style: none; outline-width: initial; outline-color: initial;"><place style="outline-style: none; outline-width: initial; outline-color: initial;">Colorado</place></state> stores [and most Angus &amp; Robertson stores] were typically 100 to <metricconverter style="outline-style: none; outline-width: initial; outline-color: initial;" productid="150 square metres">150 square metres</metricconverter>, which are relatively small shops,” he says. “And the better shopping centres would have waiting lists of tenants looking for those spaces.” 
What are the lessons for landlords from the mass shop closures?
“Don’t kill the golden goose,” says Johnston of Collins Booksellers. “Shopping centres should be investors in caravan parks; they put a lot of people into them.
In his other role as a manager/landlord of commercial and retail properties for self-managed super funds, Johnston says an approach is taken not to squeeze as much rent as possible from tenants.
“We are about making sure have a long-term tenant who is successful and is there for the long term,” he adds.
Before accepting a tenant for one of the properties he manages, <city style="outline-style: none; outline-width: initial; outline-color: initial;"><place style="outline-style: none; outline-width: initial; outline-color: initial;">Johnston</place></city> vets prospective tenants with extreme care. “We go through their business model, making sure it is going to be successful.”
<city style="outline-style: none; outline-width: initial; outline-color: initial;"><place style="outline-style: none; outline-width: initial; outline-color: initial;">Johnston</place></city> says Collins won’t rent from a major shopping centre unless the occupancy costs for its stores can be kept to 12% or less of the turnover.
And he is strongly opposed to the practice of many large shopping centres of having turnover clauses in their leases, stipulating that tenants pay a share of their profits in extra rent after turnover reaches a certain level. “Turnover clauses are common with shopping centres,” he says. “The clauses are in almost every bloody lease.”
Rumbold comments that although most shopping centres have turnover provisions in their leases, very few retailers actually paid turnover rent.
But what about the ex-Border stores?
Rumbold says the much large floor spaces occupied by each Border store – typically about <metricconverter style="outline-style: none; outline-width: initial; outline-color: initial;" productid="1500 square metres">1,500 square metres</metricconverter> – creates much more of a problem for their former landlords.
“It is obviously harder to fill those large spaces than the small ones,” he says.
A spokesperson for <city style="outline-style: none; outline-width: initial; outline-color: initial;"><place style="outline-style: none; outline-width: initial; outline-color: initial;">Westfield</place></city> says all of the vacated Borders stores in its centres have been leased to new tenants. (The majority of Borders stores were in <city style="outline-style: none; outline-width: initial; outline-color: initial;"><place style="outline-style: none; outline-width: initial; outline-color: initial;">Westfield</place></city> centres.)
Duncan Johnston of Collins understands that <city style="outline-style: none; outline-width: initial; outline-color: initial;"><place style="outline-style: none; outline-width: initial; outline-color: initial;">Westfield</place></city> has divided some former Borders shops into two or three small retail spaces in order to attract tenants.
Does bookselling in general face financial problems?
Both Rumbold and Johnston are emphatic that bookselling, including from bricks-and-mortar outlets, is not in trouble.
"There has been a lot of comment around about why Borders and Angus &amp; Robertson went bust,” says Rumbold. “I agree with most of the comment about private equity taking over retail businesses that they don’t really know how to run properly and with too much debt. And Borders was very slow to adapt in the <country-region><place>US</place></country-region> and in <country-region><place>Australia</place></country-region> to the online challenge.”
 But he points out that the giant US book chain Barnes &amp; Noble has had a 7%  increase in its in-store sales over the past year, and its sales last Christmas were the biggest in 10 years.
 "The idea that the REDGroup failure is due to the disappearing book market is completely misconstrued and incorrect,” Rumbold adds. “That is not to say that booksellers or book sales have not been hard hit by on-line; they have.”
 "People will buy books online and in bookshops, and the two will happily co-exist for along time to come.”
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mlaurence-vhAHaLZT8y

After Borders, a new chapter in retail

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The Queensland government’s decision to cut the stamp duty concession from August 1 will definitely hurt the property market in the short term, according to the Real Estate Buyers' Agents Association of Australia president Byron Rose.
Queenslanders thinking of upgrading homes can avoid higher stamp duty fees if they exchange over the next month.
But suggestions there will be a flurry of buying activity in the market appear premature, with Rose warning that buyers need to be careful they don’t get caught up in a pricey rush to snap up properties before the changes to stamp duty kick in from August 1.
Rose’s comments come in the wake of the Queensland government’s recent decision to scrap the stamp duty concession for people trading up or downsizing to an existing home.
Under the new regulations, stamp duty on the purchase of a $400,000 home will increase from $5250 to $11,825, and those buying a $540,000 home will pay an extra $7,175 from August 1.
Stamp duty fees on a $1.5 million property will increase from $57,250 to $64,425 once the new rules come into effect.
Brisbane has a $430,000 median house price, according to the latest RP Data research.
The budget included a $140 million stimulus package of grants to first- and new-home buyers, but the trade-off was higher stamp duty on sales of most established houses.
“The decision to cut the stamp duty concession so swiftly is like ripping off a Band-Aid,” Rose says.
“If the Queensland government wants to kickstart the building industry, why doesn’t it provide concessions to the building industry rather than penalising aspiring home owners trying to step up the property ladder?
“REBAA believes that a confident and recovering housing market would deliver more to the Queensland economy than any short-term measures.”
The property analyst Michael Matusik has noted that although the stimulus measure is likely to boost construction of new homes, the stamp duty hike is yet another impost on the market.
“It’s sad that stimulus has been found from within the industry. In other words, they’re robbing Peter to pay Paul. It may backfire,” he says.
Matusik suggests stamp duty generally does not have much impact on sales prices, but the current buyers’ market means sellers might have to discount their properties further to clinch a deal.
He says the transfer tax system needs an overhaul, as it is holding people back from moving around the state.
REBAA Queensland spokeswoman Liz Wilcox says stamp duty is an unwelcome burden for anyone who wants to buy a home and fails to recognise the challenges that modern buyers face.
“As lenders demand greater deposits, buyers are already struggling to pay the huge capital outlay that stamp duty demands without an additional increase,” Wilcox says.
“It would be fair to say that stamp duty is one of Australia’s most unpopular taxes and is widely regarded by those buyers who pay it as being punitive and a serious impediment to anyone wanting to buy their own home.
“The decision to abolish the stamp duty concession in Queensland is a tax on ambitious home owners with no other purpose than to give the government as much cash from as many people as they can.
“The government should be doing more to aid housing affordability rather than encouraging more barriers to entry,” Wilcox says.
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Stamp duty rise will hurt Queensland, says buyers' agents association

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Are <place><country-region>Australia</country-region></place>’s banks overexposed to housing vis-à-vis business lending, as so many pundits claim? Does the regulator madly tilt the odds in favour of the former? And should banks have a softer, social objective to extend more finance to businesses as opposed to residential borrowers, since, it is argued, the latter are “unproductive”? I hope to address all these questions today.
<place><country-region>Australia</country-region></place>’s banking regulator, APRA, is regarded as being a far-sighted and prudent agency in comparison to many of its overseas peers. (I’ve previously made the case that there was as much providence as prescience in <place><country-region>Australia.</country-region></place>). It is certainly true to say that over the years APRA has placed Australian banks under tremendous pressure to adjust practices it considers to be unnecessarily hazardous.
APRA works hand-in-hand with <place><country-region>Australia</country-region></place>’s central bank, the RBA, which until 1997 also had responsibility for banking supervision. Following the findings of the Wallis Inquiry, APRA was created, and the prudential supervisory responsibility previously held by the RBA transferred to it. The idea was that the RBA had too much on its plate – too many objectives once one accounted for its central role of keeping prices stable via management of economy-wide interest rates. There is much to be said for this logic, which is actually a rather unique regulatory setup in a developed world context (most of our contemporaries have their central banks, like the US Federal Reserve, do pretty much everything).
Having said that, the RBA does, in fact, continue to exercise regulatory responsibilities in the banking domain through two chief means: first, the RBA controls the so-called “liquidity facilities” that all Australian banks and building societies have access to and tap from time to time. These facilities allow them to “put” their assets to the RBA in a liquidity crisis and obtain funding from it (i.e., the RBA lends to them against this collateral).
The second way the RBA exercises influence over the banking system is through its so-called “financial stability” remit. Inside the RBA there is a team of very highly qualified economists – led by assistant governor-in-waiting Dr Luci Ellis – who spend all their time monitoring the manifold risks that have the potential to threaten the viability of Australia’s financial system.
Since most of this system is dominated by the banks, the RBA’s team does an enormous amount of analysis on different credit risks, default rates, the exposure of banks to the housing and commercial property sectors, and so on. All of this work comes to fruition bi-annually in a detailed, 100-plus page study known as the Financial Stability Review.
Neither APRA nor the RBA get rewarded for banks making big profits. They are typically only recognised when they help us avoid some catastrophe, such as during the GFC. This tends to make both institutions exceedingly conservative.
With that background in hand, we can turn to my first question: what do APRA and the RBA consider to be riskier – housing or business lending? This is actually easy to answer through the formal “risk weights” that APRA forces banks to apply against different types of loans. The risk weights in turn determine how much capital, or money, a bank needs to hold against every dollar of residential or business credit it extends. These weights are, therefore, a proxy for the probability of loss when you get into the lending game.
For all non-major banks, business loans attract a 100% risk weight, whereas residential credit gets half this amount (i.e., a 50% risk weight). APRA applies a much lower risk weight to residential credit precisely because the proven empirical risks associated with this form of finance indicate that it has lower probabilities of loss than conventional business lending. If the opposite were true, and home loans were a more hazardous credit, then the risk weights would work the other way around.
The major banks get the benefit of even lower risk weights (and, thus, a lower cost of capital) compared to their competitors because they are permitted to use an “internally determined” risk-weighting system under what is known as the “Advanced Route”. This means that APRA allows them to set their own risk-weights subject to a range of sophisticated rules.
You can see in my first chart, which was extracted from the RBA’s latest Financial Stability Review, the various risk weights the major banks apply to different credits. On average, the risk weight on home loans is about one-quarter the risk weight on business loans to large companies. Since banks can hold less capital against a home loan, this is, in theory, a relatively more profitable activity for them to undertake. That last statement ignores, however, the impact of bank margins. Margins on business loans tend to be much higher than residential loans (as seen in higher business lending rates) in recognition of the former’s risks and the relatively greater labour intensity associated with assessing business credit risk. When all is said and done (i.e., adjusted for margins), the actual returns on the two forms of finance are likely to be similar.
 
<a href="/images/stories/Joyejune28/joyejune281.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/Joyejune28/joyejune281thumb.jpg"></a>
 
<hr class="system-pagebreak">
 
A second powerful quantification of business versus residential risk is supplied by examining bank default rates (i.e., “non-performing” loans) and associated losses (or impairments). Once again, the Financial Stability Review delivers in spades here.
The next two charts cast into sharp relief the fundamental problem bank regulators have with business lending. In the right-hand-side panel of the first chart, the RBA has broken out Australian banks’ non-performing loans by type. Non-performance (i.e., loans in arrears) is expressed as a percentage of the total loans in that category.
 
<a href="/images/stories/Joyejune28/joyejune282.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/Joyejune28/joyejune282thumb.jpg"></a>
So, we can see that more than 3.5% of all business loans (blue line) are non-performing (i.e., in default). In comparison, only about 0.7% of all residential borrowers (orange line) are materially behind on their repayments. That is, default rates on home loans are a fraction of arrears on business loans.



Yet the real clincher is in the total dollar value of these non-performing loans. Today Australian banks tend to have a rough 60:40 split in favour of residential/business lending. Before the 1991 recession, the ratio was the reverse, with the majority of bank credit going to businesses. These exposures almost caused the collapse of two of the majors, ANZ and Westpac. Since that time, the majors have acknowledged the higher risks inherent in their business portfolios, and reversed course, with the encouragement of regulators. 



Even so, look what once again happened during the GFC. Compare, in particular, the first two panels of the next chart. The far left-hand-side panel shows the dollar value of impaired housing loans (the red line). It looks like impairments are a little higher than $2 billion in total, which is trivial when you consider that there are well north of $1 trillion worth of residential mortgages out there. Now contrast this against the middle panel, which shows the banks’ impaired business loans based on the latest data. Total business impairments look to be more than $22 billion, or a remarkable 10x higher than residential impairments.

 
<a href="/images/stories/Joyejune28/joyejune283.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/Joyejune28/joyejune283thumb.jpg"></a>
Now ask yourself this question: would you have Australian banks ramp up their exposures to the middle column (i.e., business lending) in preference to the first column (i.e., residential lending), as folks like Steve Keen suggest would be a smart idea? I don’t think so. 



For what it is worth, exactly the same phenomenon asserted itself during the much more acute 1991 recession. My final chart shows the loss rates across CBA’s different credit portfolios in that downturn, when unemployment peaked at close to 11% while mortgage rates hit 17%. Notwithstanding the serious difficulties households were having at the time, the losses on home loans (bottom red line) were a tiny fraction of the losses CBA realised on all other forms of credit.

 
<a href="/images/stories/Joyejune28/joyejune284.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/Joyejune28/joyejune284thumb.jpg"></a>
I want to conclude with some words on the question of whether housing investments are “unproductive”. Notionally respected critics employ this argument to suggest that policymakers should discourage it by changing the negative gearing and/or capital gains tax rules. This logic is, however, flawed.
In standard economics theory, the two most basic necessities for a functioning economy and, more specifically, productive labour, are: food and shelter. We can interpret “shelter” as covering both residential property, which is the accommodation required by a functional labour force, and commercial property, which is the accommodation needed for productive businesses.
You can either be a “producer” of food and shelter by investing in, and owning, the underlying assets that supply these services/products by owning farms, homes, or commercial buildings; or, alternatively, you can just “consume” these services/products and not invest in the assets by simply buying food from the supermarket, renting a home, or leasing space in a building.
There is a final option where you can both consume and invest by living on a farm (and eating its produce), owning and occupying your home, or owning and occupying the building in which your business operates, as some companies do.
As an investor in agriculture, housing, or commercial property, you derive returns as you would with any other productive asset: via a mix of both growth in the capital value of the asset and income from the sale of the products/services (i.e., food, residential accommodation and commercial accommodation).
In addition to its innate productivity as a form of shelter for workers, academic researchers have shown that housing investments positively impact both labour and business productivity. That is, the higher the quality of housing, the more productive workers and businesses can be. The ABS has also demonstrated that investments in new housing have a very high, 2.9 times economic multiplier. This means that every dollar committed to building homes generates another 2.9 dollars of extra spending across the wider economy.
Finally, the housing market is increasingly fulfilling a new economic purpose: with the advancement of technology such as the NBN, housing supplies accommodation for businesses as more people work from home. The home is no longer an office for just the self-employed individual, or for secondary employment activity. It is increasingly the workplace of professional service employees in their primary jobs, who don’t wish to commute long hours to their labour market.
Christopher Joye is a leading financial economist and works with <a href="https://www.rismark.com.au/" title="Rismark International" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">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. You can follow Christopher on twitter at <a target="_blank" title="Follow Christopher Joye" href="https://twitter.com/#!/cjoye" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">@cjoye</a> or read his blog.
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Businesses riskier than bricks and mortar when it comes to lending

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Are we starting to see more distressed vendors than may have been reported? Australia-wide, the delinquency rate has climbed from about 1.4% to 1.79%. It might be low in comparison to Europe and America, but it’s a figure the Reserve Bank should be paying close heed to because it seems there are other distressed vendors flying under the radar and trying to bail out before they get to the delinquency stage.
The average time Australians stay in their homes is 7.5 years (according to RPData) – although in the established suburbs of Melbourne close to the water and city it’s 9.1 years. However, there seem to be increasing numbers of vendors selling prime real estate after only one or two years of residence – something I’m seeing more and more often when I research the sales history of homes. In many cases these homes are struggling to sell, with days on market stretching into months as vendors try to achieve their “wish price” (a return on investment) in a flat conditions. These are often people who purchased when interest rates were low, and now rates have climbed, find themselves labouring to make the repayments.
Investment in real estate is long-term game plan, so trying to get a return on price one or two years down the line is a gamble no one should take, or be forced to take. Therefore in a flat market, with the possibility of interest rate rises brimming on the horizon, paying the right price and ensuring that decision by purchasing the right property is not only important, it’s crucial. Pay too much in the first place and you’ll get no short-term capital growth. Choose a “lemon” and if you need to sell in a soft market, reducing the price will be the only way to do so.
So how do you know you’re paying the right price? Just because the papers are screaming “buyer’s market” and the agent is giving you a “discount” on the asking price, that doesn’t mean a “bargain”. Drawing comparables against the weekend results in the paper won’t always help, as they only list exact addresses for auction sales, and many of those are now “undisclosed”. In fact, sales results won’t help you much at all unless you’ve been monitoring the market closely and assessing the individual properties listed – and furthermore, how do you know someone else didn’t over-pay on the property you’re comparing against? I was recently asked to help with a report into vendor discounting. This is the amount the vendor discounts throughout the sales campaign in order to sell. It wasn’t hard to find examples, however it was much easier to find examples of advertised prices (private sale) that had been exceeded.
There are three numbers in real estate – what the vendors want, what the market is willing to pay, and what a property’s reasonable market value is against comparable sales. Unless you’ve got a handle on all three you can’t negotiate effectively. If you’re a current buyer who has little experience negotiating and find yourself judging a property’s value based on the quoted range, or “reserve” price, rather than a solid base of knowledge, beware! Selling agents know all the tricks to con a buyer into paying more, from touting they have other offers on the table to convincing them the “distressed” vendor has “a very reasonable” reserve.
And what about choosing the right property? Well, even in flat markets with well-publicised drops over any one year, there are those properties that buck the trend - the roses amongst the thorns – in locations with unique aspects that drive owner-occupiers to stretch budgets. And these are the very properties investors need to target if they’re going to prosper during boom-and-bust cycles.
A suburb-by-suburb look through Melbourne highlights a few of these areas that are withstanding current conditions. Take, for example, Kew, located south east of Melbourne’s CBD. Made up of roughly 70% owner-occupiers, it’s already had a 29% jump during the first quarter in median value and a steady 74% year-to-date clearance rate, according to the REIV. Although this doesn’t guarantee every home in Kew will buck the downturn, you can be pretty sure that if you own a good well-positioned property that suits the buyer demographic of the area, it’s going to attract attention.
I would never advise someone to purchase a property unless they are fully committed to a long-term game plan, however I would strongly advise the essential need to get experienced advice before you risk becoming a distressed vendor.
Catherine Cashmore is a senior property adviser and buyer advocate for <a target="_blank" title="JPP" href="https://www.jpp.com.au">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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Distressed vendors flying under the radar

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
A three-bedroom pre-built home on stilts costing less than $200,000 will be showcased as a solution to dealing with the threat facing properties in flood-prone regions.
The model home will be promoted to governments and consumers as an affordable and appropriate form of construction in flood-prone areas.
Designed by Brisbane architect Dion Seminara, it was the winning entry of the LJ Hooker Flood Home Design Competition, which was co-sponsored by L J Hooker, industry think tank the Future Housing Task Force and the Australian Institute of Architects’ Archicentre.
It comes in the wake of the wake of the December 2010/January 2011 Queensland floods and cyclone, which left the state with a $6.8 billion damage bill, and a report by the Australian Department of Climate Change that says up to $63 billion worth of existing residential buildings are at risk of flooding this century.
The house features a flood clearance level of 4.5 metres above the first floor, allowing floodwater to flow through the building without placing pressure on the structure.
The ground floor is constructed out of materials and finishes that can be hosed down without damage and is suitable for both urban and bush environments.
The home is designed to be built offsite and transported in two parts.
“One of the main aims of the design was to provide for an easy clean-up after the flood, with a flexible multipurpose use of the ground level for vehicles or storage,” Seminara says.
“The concept home is built on posts, making it suitable for any sloping site, and has the flexibility to be expanded through interlocking pavilion extensions.”
Besides these features, Seminara’s winning entry also met the following requirements:
<ul>
<li>Successfully integrate flood resistant, energy efficient and sustainable design.</li>
<li>Meet or provide a well-substantiated challenge to requirements set by the Building Code of Australia along with local and statutory authorities.</li>
<li>Provide three bedrooms and not exceed 220 square metres in size.</li>
<li>Provide undercover accommodation for two cars.</li>
<li>Be able to be constructed on a site with up to a 1:4 slope.</li>
<li>Be built from 80% lightweight materials.</li>
<li>Have a construction budget not exceeding $200,000, excluding consultants and authorities fees and permits, site preparation costs, service connections, site allowances, landscaping works and contingency.</li>
</ul>
According to Climate Change Risks to Australia’s Coast, published by the Australian Department of Climate Change as many as 247,600 individual buildings are potentially at risk of inundation in Australia this century.
The winning design will be built as a demonstration project by Ken Mitchell, director of the Queensland Lifestyle Development Group.</body></html>

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Flood-resistant house can keep high and dry

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Investment banker Mike Fitzpatrick, the chairman of the Australian Football League, and his wife, Helen, have bought in the Melbourne suburb of South Yarra for close to $9 million.
It’s a 1930s house on 693 square metres in the Domain precinct, which the Fitzpatricks bought from interior designer Melissa de Campo. De Campo paid $3.45 million for the property in 2003.
Not quite within a drop punt of the MCG, but the Royal Botanic Gardens is almost their front yard.
Designed by architect Marcus Martin, the four-bedroom recently renovated house on a cul-de-sac had been listed for March tender through Kay &amp; Burton South Yarra's Michael Gibson and Ross Savas with $10 million hopes.
The house comes with a north-facing garden, study and casual family area that opens to a deck and pool. The property also has open fireplaces.
Rumours have been rife of the prominent couple’s purchase since its May 30 exchange, with the price yet to be revealed.
At the $10 million asking price being initially sought, the pricing represented $14,430 per square metre. At $9 million it reflects $13,000 per square metre. In 2004 a street sale equated to a local record of $6,160 per square metre. In 2000 the keen punter and former Crown Casino boss Lloyd Williams secured a then record $3,099 per square metre for his family house on the street.
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AFL chairman Mike Fitzpatrick spends close to $9 million in South Yarra

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Support is growing for listed property trust managers to link the fees they charge investors more closely to the performance of their trusts.
The latest to criticise the current fee system is Bill Moss, chairman of Moss Capital, currently locked in the battle to acquire management control of the $3.63 billion Charter Hall Office REIT.
Moss says he will cut the office trust’s base management fee to 30 basis points from an average of 41 if his company is voted as the new manager at a shareholder meeting scheduled for July 27, 2011.
He argues property fund managers should have cut fees more than they have since the global financial crisis, given the poor performance of the listed property trust sector and rationalisation in the industry, The Australian reports.
ASX-listed Centuria Property, which manages a $1 billion unlisted property trust, agrees fees should be re-evaluated.
It says historically, many funds (listed or unlisted) have been able to charge a “success” fee despite poor performance.
Centuria’s performance fee is only charged subject to investment costs being recovered and a minimum 10% internal rate of return per annum being generated for investors.
The fund is also opposed to what it calls “poison pill” provisions, which require the relevant fund to pay the responsible entity, even if it is removed by a vote of investors before the end of a fund.
Centuria’s funds do not include poison pill provisions, and its CEO believes no reputable fund should.
“Whether a trust is listed or unlisted, these are issues that need to be eliminated,” Centuria CEO John McBain tells Property Observer.
“Performance fees are not being tested.”
Centuria’s position on fees is supported by Property Funds Association of Australia, with CEO Geoffrey Gedge saying they will “restore faith with investors”. 
Bianca Rose, portfolio manager of equities and property at Ibbotson Associates Australia, says excessive management fees are part of the reason A-REITs have performed poorly since the outbreak of the GFC.
“There were many reasons why A-REITs performed so poorly: too much debt, paying out unsustainably high dividends, paying expensive management fees to related companies, and sourcing earnings from newer, less stable income sources rather than from traditional Australian property rental,” Rose writes in an ASX investor update newsletter.
Rose says the sector has now recovered and performance prospects are excellent.
“The sector is likely to be one of the most attractive growth asset classes over the next five years on a risk-adjusted basis,” she says.
Moss is battling three hedge funds Orange Capital, Luxor Capital and Point Lobos Capital for control of Charter Hall Office Trust, which hold a combined 19% of the trust’s units.
Moss established the business as the Macquarie Office Trust 1987, before it was taken over by the Charter Hall Group in 2010.
The Charter Hall Office REIT portfolio is made up of 33 office buildings in major business districts across Australia (62%) and the United States (38%).
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