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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Actor Jack Thompson accepted that as investments go, his Hotel Gearin joint acquisition in in the Blue Mountains would cost him money, given the current state of the hotel market.
It was bought in 2006 for $4.1 million and sold today, June 23, 2011, for $1,925,000.
But Thompson said in the pre-auction marketing that the Gearin sale was far more an emotional than financial wrench for the actor, as its purchase was the realisation of a youthful dream.
His enduring acting career was among the reasons it was up for sale.
A syndicate led by Jack's son Patrick bought the historic Katoomba hotel in 2006.
There was a $1.9 million vendor bid at the auction through Jones Lang LaSalle Hotels agent Sam Handy. Bidding came from two interested parties.
The locals who know say the pub is turning over about $33,000 a week.
Located in the heart of the Blue Mountains, the hotel occupies a prominent corner site opposite Katoomba railway station and features a public bar, dining room, nine poker machines, 40 accommodation rooms and a 24-hour liquor licence.
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jchancellor-FAypfDUnLy

Jack Thompson calls last drinks at Katoomba

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The much-besieged Western Australian regional town of Mandurah has claimed the title of Australia’s fastest-growing district, adding 2,805 residents at a rate 3.38% over the last year, according to the latest ABS population estimates
Mandurah, 72 kilometres south of Perth, has attracted headlines of all the wrong kind of late.
It is rated among the 20 worst-performing suburbs across the country in terms of mortgage delinquency rates, according to Fitch Ratings.
Mandurah owners and investors who purchased premium waterfront apartments off the plan during the height of boom are now desperately trying offload them, a report on Perth Now claims.
But strong population growth appears to have helped keep Mandurah house price declines in check.
House prices have fallen by 2.8% over the year to March 2011, according to the REIA Market Facts.
This is significantly smaller than 6.5% yearly price declines recorded for Perth.
According to the ABS figures, Mandurah now has 85,814 people.
From 2005 to 2010 its population has grown at annual growth rate of 4.34%. In June 2005, the town’s population was estimated at 69,407.
The opening of the Perth-Mandurah railway line in December 2007 sparked the initial boom, with the town growing from an isolated fishing community to the second-biggest city in WA and attracting a wave of investors and coastal developments.
Second behind Mandurah is the fellow WA town of Bunbury (growth of 3.25% for the last year, 4.18% annually over the last five years), followed by four Queensland districts – Hervey Bay (3.24%), Cairns (2.59%), Mackay (2.42%) and Tweed (2.40%) on the Gold Coast.
Over the last five years Hervey Bay has had the fastest annual growth of 4.73%, adding 12,547 residents to the coastal town near Fraser Island.
Perth’s recorded the greatest population increase of all the capital cities, increasing by 2.26% for the year to June 2010 and at an annual rate 2.68% from 2005 to 2010 to currently stand at 1,696,065.
Darwin’s population is up 2.1% to 127,532 and has grown at the fastest annual rate over the last five years of 2.77%.
Of the big east coast cities, Melbourne has grown fastest over the 12 months to June 2010, adding 79,014 people (1.98%) for a total of 4,077,036, followed by Brisbane (up 1.94%, or 38,960people), which now has 2,043,185 people, and Sydney (up 1.68%, or 75,644 people), which now has 4,575,532 people.
Adelaide’s population is up 1.27% to 1,203,186, Canberra is up 1.78% to 358,222 and Hobart has grown by 1.27% to 214,705.
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lschlesinger-FZcF9M3vE6

Mandurah population growth helps stem price decline

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The big talk on the property market is auction clearance rates: the fact they are well below last year (true) and that they are perhaps even lower than what agents are claiming (maybe).
Last year auction clearance rates across Melbourne were regularly in the 70s, percentage-wise. This year they are in the 50s, so it is fair to conclude that this year fewer buyers and sellers agree on price and therefore the market is regarded as weaker than 2010.
But while some journalists and publications argue that the ‘true’ clearance rate may in fact be lower because agents do not report every unsold auction, some agents argue that the emphasis on a Melbourne-wide clearance rate is also misleading.
Jack Bongiorno from Marshall White, for instance, says that while papers such as The Age are reporting clearance rates in the 50s, his company has seen clearance rates in the 70s throughout May and June. Andrew James of Hocking Stuart Armadale agrees, saying his office has also seen clearance rates in the 70s all year.
So The Age is saying one thing and agents another. Well, there’s nothing new there.
So who is right and who is wrong – and does it really matter?
Well, they are both right. And as for whether it really matters, the answer is yes – and no. Is that a splinter I can feel in my bottom from sitting on the fence? Well no, in fact this goes to the crux of what clearance rates can and cannot tell buyers.
According to Andrew McCann of BenMac, clearance rates are measured across a broad number of suburbs, price bands and demographics. “The reality is,” he says, “that some parts of the market will always perform better than others so it is not unrealistic to think that while some areas are soft, others are strong. A good case in point is that our firm sold 11 from 12 auctions last weekend, while the market returned 56%.”
Scott Patterson of Kay and Burton supports this: “The clearance rate in The Age of 59% is a general rate for the whole of Melbourne and does not reflect what is going on in certain areas. Hawthorn, for instance, has had a clearance rate of 80% for the year so far, which seems a different picture from the outskirts of Melbourne.”
This makes it important for buyers to take Melbourne-wide clearance rates with a grain of salt.
Brad Pearce of Miles in Ivanhoe says buyers need to be area-specific on clearance rates to ensure they are in line with their market. “Buyers can become too confident with the lower Melbourne-wide clearance rates and miss opportunities to buy in their area, where in fact properties are still selling well.”
Hawthorn and Kew, for instance, are currently shining with clearance rates in the 70s and 80s, according to Richard Winneke of Jellis Craig. But next door, Camberwell, Canterbury and Balwyn North have had clearance rates in the 50s this year, he points out.
Clearance rates are wonderful things for analysts and journalists, says Steve Abbott of Jellis Craig, “but they are only part of the story for buyers and sellers”. Kay &amp; Burton’s Michael Gibson reminds us too that clearance rates only represent a few hours within the selling week.
And according to BenMac’s Iain Carmichael: “Some weeks we have shockers and the next it’s a dream, so clearance rates are area-specific, very cyclical and not always predictable.”
As a buyer, you also need to look at stats on areas, on specific agencies, on different types of homes, price ranges, stock level indicators, Bidderman (number of bidders per auction) and a variety of other measures.
Indeed, while $1m+ Melbourne may be down on turnover this year, of the last 10 homes we as buyer agents went after in the last two weeks of May, all were sold quickly (and not all to us). So to our mind, the late May 2011 “good home” index (describing the kinds of home we go after) had a clearance rate of 100%.
The buyer message in terms of Melbourne-wide clearance rates is to understand what they represent and to not limit your research to the changing weekly auction headline number when determining your individual buying strategy.
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maljames-vHwm28JUAa

Don't take clearance rates at face value

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What exactly is a property developer?   I quite like this description found on Wikipedia:
“Developers buy land, finance real estate deals, build or have builders build projects, create, imagine, control and orchestrate the process of development from the beginning to end.”
I especially like the words ‘create, imagine and orchestrate’ as this is exactly what I do. When I find a development site, I stand on it and spend some time visualising what can work on the land, then I dissect this by considering several factors including:
The local market demand – what do people want to buy or rent in this area?
Local economics – what is the income of the people living in this area, where do they work, what can they afford? What infrastructure spend is going on right now or planned for the area?
Population growth – what is the growth right now and what is it forecast to grow to?
Budget – how much have we got to spend on the development process?
Market growth rates – what historically has this suburb been growing at and what are you expecting it to grow at?
End values – what are similar dwellings selling or renting for now?
Choosing the right area in which to develop is crucial. It requires research, research and more research. Most first-time developers can’t afford to develop property in areas such as capital cities where everything – including land, building costs and professional services – is more expensive. Instead, I suggest you cut your teeth on an affordable area within a three-hour radius of a capital city.
Look for areas that: - Offer promise, perhaps going through a gentrification phase; - Going through a growth phase, where median prices historically perform well; - Where the population is expanding;  - Where diverse industries support employment;  - Where private enterprises, such as large retailers or mines, have announced expansion plans.
All these factors result in strong rental and sales demand. Once you’ve settle on a location, search the area for land in close proximity to schools, shops and public transport, which will attract buyers or renters.
Below are tools to aid your research in finding the perfect location for your development. They include:
Newspapers and property magazines: subscribe to a local paper or magazine to keep up to date with community and industry news;
Property data sources: where you can purchase specific reports;
Websites: realestate.com.au, domain.com.au and Property Observer to name but a few;
Budget reports: look at federal and local government budgets and spending reports as this will show you where money is being spent on infrastructure. You will find areas that are pinpointed for future growth.
Planning information: from your state planning body and local council’s website. Once you have chosen an area to develop, it then comes down to good site selection. To assess a site, you will need to:
- Narrow down the area or suburb you want to develop; - Complete extensive due diligence on the economic and social factors of the area; - Know whether the suburb has a high rental demand; - Know what the vacancy rate is and what the median sales price is; - Understand the relevant council’s Local Environment Plan (LEP) and Development Control Plans (DCPs) so you know what the council will and won’t allow in your area.
You need all this information to determine if the land you are assessing has good development potential. The next step is to find the right property within your chosen suburb. This is called site selection.
Site selection criteria is based on factors including:
-          Location
-          Aspect
-          Slope
-          Frontage
-          Depth
-          What’s on top of the land
-          What’s underneath the land
 The location of your development site is obviously important. We all know being close to community amenities is a top priority whether you are planning to keep your new dwellings or sell them. Being close to schools and universities, shops, transport and medical facilities is very important. You should check out the neighbours on all sides of the land to make sure there are no dog breeding kennels, chicken coops, car workshops or noisy businesses that may make the location undesirable for tenants. Ask the locals about crime rates and go for a drive around the streets to get a feel for the area. Trust your gut feel or intuition: we will often get an instant negative feeling if something is not quite right.
Jo Chivers is director of <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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jochivers-wq5Bp59R5a

Choosing an awesome development site

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Name: Kathy MacDermott Company/organisation: Property Council of Australia Position: Executive director, Queensland branch City of residence: Brisbane No. of years in the industry: 25 years
Kathy MacDermott has traded in a career as a property journalist for one executive director of the Queensland branch of the Property Council of Australia. She is currently lobbying for help for the Queensland market, which is recovering from the devastating floods in early 2011.
 
What sparked your initial interest in property? 
I joined a public relations firm which specialised in property communications. It was the height of the late ’80s boom, and we were working on major projects from Cairns to the Gold Coast, across all sectors. It was interesting, rewarding, and I soon discovered what a dynamic sector property is.
 What was the first property you bought?
A post-war home in 1992
 
Are you a trader or holder of property? 
Holder
So far, who or what has been your biggest influence in your life or career? 
In my life, my husband, who has been the primary carer to our three children and ran our household for the past 14 years. Career wise, Queensland businesswoman Christine Lohman, who introduced me to the world of property and taught me the joy of work! She remains an important friend and mentor to me.
What are the ingredients you need to be successful in the property market? 
 Research and relationships. You need to test out trends and statistics with trusted sources who have worked through a variety of cycles and operate in the market you are investing in.
You worked as a property journalist for 11 years before moving into communication roles and now your role at the Property Council – do you think the media provides fair commentary on the property market? 
Absolutely. We are fortunate in Australia to have extensive, dedicated coverage of the property sector by specialist journalists.
What’s more interesting – writing about property or lobbying on behalf of the industry? 
They both present extremely interesting opportunities. Writing about property was particularly fascinating because of the people you get to meet and interview, and I loved my 11 years in journalism. Now with the Property Council I have the opportunity – and privilege – to advocate on behalf of the industry in Queensland. Our sector is the largest employer and contributor to state revenue, so we play a critical role in the economic wellbeing of the community.
What is your reaction to the recent Queensland state budget? Is enough being done to assist the property market? 
The state budget included a series of initiatives identified by the Property Council. We particularly welcome the stimulus to the new-home market and the creation of the Major Projects Office, which will help attract investment to the state. We continue to advocate for a cut in property taxes and charges – in particular the removal of the “temporary” 0.5% land tax surcharge introduced in December 2008.
Are you bullish or bearish about house prices in Queensland? Why? 
The current market in Queensland reminds me of 1992 when I bought my first home. At this time price growth was slow, but it was a good time to enter the sector. If you buy with a medium- to long-term investment horizon, there are opportunities in all cycles.
If you had a $500,000 to invest right now, where would you invest it? 
A unit in Brisbane’s West End to secure a foothold in this vibrant, inner-city suburb.
Was there ever a dud investment in your property portfolio? And why? 
No, all sound.
What would be your advice to someone buying their first investment property?
Buy in a suburb you know well, as you have a good understanding of values as well as how long it is taking for properties to sell and rent. Take your time. Buy near public transport, shops and primary schools.
What are you reading at the moment? 
Jasper Jones by Craig Silvey
What are you listening to at the moment?
 Bunny (my sister’s band)
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Kathy MacDermott: Property research and relationships the key

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Astute property buyers should be looking to buy now rather than wait for the market “herd” to change its outlook, prominent agent John McGrath has argued in his latest blog post.
Quoting investment guru Warren Buffett’s aphorism “Be fearful when others are greedy. Be greedy when others are fearful”, the McGrath Real Estate CEO urges buyers take “the umbrella view” and buy while the rest of the market is holding off.
“If you’re looking to purchase for the long term, which I always recommend, then a 2.1% decline in prices in the March quarter of 2011 is not going to matter in 2021 when property prices may have, once again, doubled,” he wrote on switzer.com.au.
“If you wait for the herd, there’s one thing I can guarantee. When the herd starts buying again, prices will go up, and you’ll be kicking yourself you didn’t grab this current window of opportunity,” he says.
McGrath also argues that current market weakness – 30% more properties available for sale across Australia than at this time last year, according to RP Data – will not prevail.
“I can tell you with confidence that the weakness we are seeing now is not the beginning of a downward stretch. The fundamentals of our property market are still very good, but right now, we have a little uncertainty going on.
“This relates to volatile global economies especially in Europe, uncertainty relating to interest rates, a more conservative approach to debt and recent natural disasters. From a property market perspective, these are circumstances that are temporary and will resolve themselves,” he says.
McGrath concludes by saying that overall, the market is still heading up and that the market fundamentals (strong population growth, a massive undersupply, increasing rents and a stable economy) will keep property prices strong in the long term.
In previous blogs, McGrath has argued that the climate remains positive for investors.
“Property prices are slightly softer and rental yields just keep on rising,” he says ahead of the winter season.
He lists the top 10 municipalities for rental growth over the year to March Quarter 2011 as:
<ul>
<li>Woollahra, Sydney – Houses – 22.2% to $1100 per week </li>
<li>Nedlands, Perth – Houses – 20.4% to $825 per week </li>
<li>Burwood, Sydney – Houses – 19.6% to $550 per week </li>
<li>Sorell, Hobart – Apartments – 18.2% to $260 per week </li>
<li>Claremont, Perth – Houses – 17.2% to $850 per week </li>
<li>Cottesloe, Perth – Houses – 16.7% to $875 per week </li>
<li>East Fremantle, Perth – Houses – 16.4% to $675 per week </li>
<li>Ashfield, Sydney – Houses – 15.6% to $520 per week </li>
<li>North Sydney, Sydney – Houses – 15.3% to $828 per week </li>
<li>Lane Cove, Sydney – Apartments – 15% to $460 per week</li>
</ul>
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Property buyers should avoid the herd, says John McGrath

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At first glance, an independent observer might think that the behavior of Australia’s housing market right now is a bit odd. Let’s reflect on the facts.
First, the unemployment rate has remained very low at around 4.9% since late last year. This is well below what we used to believe to be the so-called “non-accelerating inflation rate of unemployment” (or NAIRU), which in the 1990s was assumed to be 6% to 7%. Any falls in the unemployment rate beyond this point are typically accompanied by inflation breakouts. And while jobs growth has, to be sure, slowed considerably from its scorching 2010 pace, the leading indicators imply that the economy will continue to create new employment opportunities.
Second, wages growth is very firm, to say the least. Indeed, private-sector wages including bonuses are stomping along at a circa 4% plus pace, which, as the governor of the RBA recently observed, is above the average rate since the middle of the 1990s. If we then cast our eyes over disposable household income growth, which is reported by the ABS on a quarterly basis, we find an even rosier picture. Disposable incomes in Australia expanded at a remarkable 8.4% clip over the 12 months to March 2011 (see chart).
<a href="/images/stories/Joyejune23/joyejune231.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/Joyejune23/joyejune231thumb.jpg"></a>
Source: RP Data-Rismark
Third, the cost of debt is still relatively modest. The headline mortgage rate in Australia today is 7.8%, which is only a smidgen higher than the average rate of 7.6% since the start of 1995 (see chart). Recall that in August 2008, the headline mortgage rate rose to a gut-wrenching 9.6%. Way back in January 1990 it was 17%. So, in terms of the interest rates households are paying on their loans, there is nothing really to complain about.
 
<a href="/images/stories/Joyejune23/joyejune232.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/Joyejune23/joyejune232thumb.jpg"></a>
Source: RP Data-Rismark
Sure, the level of household debt held by households is much higher than it was 20 years ago. But even when we inspect debt-servicing costs, we find that things look fine. According to the RBA’s latest estimates, the median “debt servicing ratio” —that is, the share of disposable income used to service all repayments due on home loans — is just 21%. Indeed, the RBA finds that about 58% of all Australian borrowers are actually “ahead of schedule”, which means that they are paying down their debt more quickly than they have to. The chart below, which is excised from the RBA’s Financial Stability Review, shows the proportion of households that are ahead of schedule, and the median DSR, ranked by income “quintile” (which is fancy language for the five buckets of income, each representing 20% of the population, ranked from low to high).
<img src="/images/stories/Joyejune23/joyejune233.jpg">
Notwithstanding these encouraging facts, capital city and regional house prices in Australia have actually tapered in recent times. In the year to end April, capital city prices are off 1.5% while their regional counterparts are down by 1.8%, according to RP Data-Rismark.
The combination of healthy income growth and skinnier house prices has meant that Australia’s dwelling price-to-income ratio has fallen back to its lowest level since June 2003, as I previously reported <a href="https://www.propertyobserver.com.au/residential/aussie-housing-stock-is-not-too-expensive/2011060850447">here</a>.
The question remains, though, if household incomes are rising rapidly, if the labour market is comparatively tight, and if interest rates are only slightly above average, what gives with lower dwelling prices?
The answer, I believe, is not something that has really been explained before: the phantom interest rate hikes. That is, the rate hikes we never had. Jonathon Chancellor alludes to this in a news report <a href="https://www.propertyobserver.com.au/consumers-and-investors-more-hawkish-than-economists/2011062250566">yesterday</a>.
During 2011 Australian households have been very “hawkish” indeed. By hawkish we mean that they have expected a large number of interest rate hikes. We know this from a fascinating Westpac survey, which asks households every quarter where they think mortgage rates will be in a year’s time.
When Westpac carried out this survey in February, households said they were, on average, budgeting for more than three further rate increases. That suggests households were expecting to be paying 8.6% mortgage rates. Since that time, we have had no rate hikes despite a very high inflation outcome in the first quarter, which the RBA has thus far ignored, to the surprise of many.
In an update of the survey carried out in June, Westpac found that Australians remained exceedingly hawkish, forecasting more than two rate hikes in the coming year, albeit down from the three plus they anticipated in February. According to Westpac, households now, on average, believe that they will be paying an 8.4% mortgage rate by June next year.
<a href="/images/stories/Joyejune23/joyejune234.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/Joyejune23/joyejune234thumb.jpg"></a>
Source: Westpac Red Book
Why are households seemingly so convinced that they are about to get whacked by the interest rate stick? Almost certainly because of the RBA’s and certain economists’ (including, notably, yours truly), sabre-rattling about the spectre of higher rates. Of course, this pain has yet to materialise, which is almost exclusively due to the impact of an unprecedented sequence of disasters.
The latter started with the east coast floods, followed by NZ’s earthquake, then the oil price shock induced by the rolling Middle Eastern political turmoil (which continues to this day), the extraordinary earthquake-cum-nuclear calamity in our second-largest trading partner, Japan, and now a resurgence of European sovereign debt woes.
The natural and man-made turbulence in 2011 has conspired to disrupt both Australian and global growth and pushed the RBA to the sidelines. Some, such as Macquarie Bank, take a harder line, and contend that the RBA is starting to sound like “the boy who cried wolf”.
For the time being, however, the RBA’s jawboning has paid off (a subtle pun in this sentence for the central bank enthusiasts). That is, its so-called “open-mouth operations” have had the effect of de facto rate hikes.
Notwithstanding robust income growth, households are saving more than they have in 25 years, and they are avoiding taking out new debt. This is reflected in another intriguing suite of statistics published by Westpac and the Melbourne Institute, which document where households believe they should be putting their hard-earned savings. The chart below tells the story. There has been a structural shift away from shares and real estate towards cash, super and paying back debt.
 
<a href="/images/stories/Joyejune23/joyejune235.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/Joyejune23/joyejune235thumb.jpg"></a>
Source: Westpac-Melbourne Institute
As I predicted many years ago, this means credit growth will move in lock-step with incomes, not the double-digit rates that persisted during the 1990s and 2000s. Contrary to what the notorious doomsayer, Dr Steve Keen, would have us believe, it does not portend a cataclysmic, 40% fall in house prices, or a precipitous drop in the rate at which credit is extended.
It does, however, mean that the handful of institutions that dominate our banking sector will have to get used to much lower returns on equity, given that they have now effectively become the system, and cannot, by definition, grow faster than it (a point well-made in this <a href="https://www.joehockey.com/mediahub/speechDetail.aspx?prID=1078">landmark speech on the subject</a> late last year).
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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chrisjoye-JYhJsTrNRC

The interest rate hike we never had

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The queen of Australian fashion Collette Dinnigan has given Woollahra's burgeoning fashion precinct a fillip since the opening of her store on the Queen Street retail strip.
With her many dress lines and an ever-growing bridal business, Dinnigan took the retail space late last year – paying $195,000 a year in rent for the 130-square-metre  ground-floor premises.
The Sydney suburb of Woollahra’s prestige shopping precinct’s most recent sale was in this week, mid-June 2011, when the Howell and Howell antique premises fetched $4.25 million post auction through Richardson and Wrench agent Ben Vaughan in conjunction with Laing and Simmons agent John Knott.
<img src="/images/stories/howell.jpg">
The Howell shop has been bought by Alasdair MacLeod and his wife, Prudence, the eldest child of Rupert and Anna Murdoch, who beat off two other parties who had sought extended settlement terms.
Tenants are now being sought.
The Howells, Frank and Georgina, are off to the United States to be closer to family members.
It had last traded at $2,001,000 in 2000.  The 320-square- metre premises sits on a 203-square-metre block. Its estimated rental was given as between $200,000 and $240,000 a year.
Their departure heightens the strip’s shift away from antiques.
Once replete with regency furniture, Louis XV commodes and long-case clocks, Woollahra now has a who's-who of fashion within a two-kilometre radius: Sass &amp; Bide, Ksubi, Zimmermann, Camilla and Marc, Willow, Lisa Ho, Robby Ingham, Herringbone, Mother Baby Child, Saba, Quincy, John Cavill, Brunello Cucinelli, M.J. Bale, Scanlan &amp; Theodore, Ginger &amp; Smart and Kate Sylvester.
Few are like Akira Isogawa, who has been on Queen Street since 1994. It was 1986 when he arrived in Sydney from Japan, speaking no English, on a working holiday visa, and one of his first jobs was as a kitchen hand in a nearby Queen Street brasserie. He then studied at the Dress Design Studio of East Sydney Tech.
Dinnigan’s rental space became available following the departure to Redfern of Martyn Cook, the street's most ubiquitous antique dealer for the past 20 years. The premises sold at $4.6 million (exclusive of GST) to the discretionary investment trust Wyelba Pty Ltd, which is associated with the MacLeods, last year.
It was sold by the Roche family of Adelaide, who paid $1.02 million in 1990.
The nearby Queen Street shop of the late antiques dealer William Bradshaw was tenanted to Jacadi, the children's clothing store from Paris, following its $2.7 million sale.
Queen Street’s current listings include a retail showroom and private residence combined in a semi-attached mixed use through Ben Collier and James Dack at McGrath Estate Agents. Set to the north of Ocean Avenue, the property comes with approval for additional floor space and a double garage.
The street’s yields mostly range between 3% and 5%.
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Fashion royalty boosts Queen Street's leasing pedigree

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Glenfield, the Georgian colonial residence at Casula, NSW, deemed to be the most important house surviving from the Macquarie era, has been sold by the Historic Houses Trust for close to $2 million.
Dr Charles Throsby, the naval surgeon on the Coromandel, magistrate member of the Legislative Council and explorer, built the house in 1817, naming it after his birthplace near Leicester in England.
On his death in 1828, the convict-built residence was left to his nephew Charles Throsby, who built the 1834 Throsby Park residence in the Southern Highlands.
It remained in the family until the 1920s, when it was sold to the Leacock family.
The restored 14-room residence with lawn tennis court, orchard, privy, two-storey stables and a former dairy, is on 1.3 hectares on Leacock Lane.
It's something of a miracle that it has survived at all, let alone with most of its original features and outbuildings intact.
Before its acquisition by the HHT the vacant house was under threat from damage, vandalism, theft and termites.
It has been restored at a cost of about $1.8 million. It sits on a reduced holding since being bought in 2002 for $1.8 million from the Leacocks, when it was on 5.5 hectares.
It sold as a freehold holding through Garry Dunn at Dunn &amp; Horne Hammondville in conjunction with Darren Curtis and Ken Jacobs from Christie's International.
It was previously listed in 2008 on a variable long-term lease basis with a single up-front payment and a lease that can be assigned. There will be a requirement that the property be opened to the public on a number of days each year. The sale proceeds will be spent on saving other threatened buildings.
The restoration was undertaken by Clive Lucas, Stapleton &amp; Partners Pty Ltd.
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Heritage Georgian homestead finds 21st-century freeholder

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Some 83% of consumers expect rates to rise over the next year, but that’s down on the 91% recorded in February, according to the latest Westpac Melbourne Institute index of Consumer Sentiment.
Notably, just 26% in June (versus 38% in February) expect rates to rise by more than 1%, according to the Westpac Red Book, edited by Westpac senior economist Matthew Hassan.
Just over 12% of consumers now expect rates to stay unchanged over the next year (versus 7% in February), and 4% expect rate cuts, against 2% in February.
Average mortgage rates were unchanged between the two surveys.
The detail shows a broad softening in rate rise expectations but a particularly big mark-down in Queensland, which went from having the most hawkish consumers in February to the most dovish in June.
Younger age groups also cut rate expectations more aggressively and are notably less hawkish.
Consumers appear more hawkish on rates than markets and most economic forecasters. The spread of responses in June points to an average expected rise of 58 base points by June next year, well down on the 77 base points expected in February. That implies a standard variable mortgage rate of 8.4% by June 2012.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/wesstpacjune22big.jpg"><img src="/images/stories/wesstpacjune22.jpg"></a>
Source: Westpac Red Book
The overall Westpac–Melbourne Institute Index of Consumer Sentiment slipped 2.6% in June, from 103.9 in May to 101.2. Although the move was small and the index is still in optimistic territory, the index is now at its lowest level since June 2009, when Australian households were realising the local economy had ducked the worst of the “great recession” that had engulfed the major developed economies but were still fearful of the near-term outlook, according to Hassan.
Consumer views on whether now is a “good time to buy a dwelling” are less upbeat than responses to the other “time to buy” questions but still showing notable resilience. At 115.4, the index tracking responses is about seven points below its long-run average but a touch above the average since 2001, comfortably in optimistic territory (i.e. above 100), and well above the lows seen in previous market “corrections”.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/westpac2big.jpg"><img src="/images/stories/westpac2.jpg"></a>
Source: Westpac Red Book
However, Hassan notes market conditions are soft. Prices are slipping lower in most markets at about a 2% annual pace over the last six months. Auction clearance rates are also down sharply and near previous lows in Sydney and Melbourne.
"Conditions are notably weaker in Queensland, where Brisbane house prices are falling faster (at a 6% annualised pace) and have experienced a bigger correction to date (-6.9% versus -5.4% in 2008-09). The floods in early 2011 hit building activity, although they also reduced dwelling stock. The Queensland “time to buy a dwelling” index jumped sharply in June but has been very erratic this year. The Queensland Government’s latest decision to remove some stamp duty concessions will be a hit in the near term," the Red Book says. 
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