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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One of the biggest challenges a self-managed super fund can face is when the tenant of a highly valuable, fund-owned commercial property fails to pay the rent.
Much of the fund’s financial wellbeing may depend upon regular payment of rent – particularly if a heavily geared property is the fund’s sole or dominant asset.
The fund, of course, would be expected to take all necessary action to try to recover the overdue rent and, if necessary, remove the financially troubled tenant from the premises.
But imagine how the difficulties for your fund could escalate if the wayward tenant were your family business.
Be warned, many family SMSFs and family businesses are at risk of becoming embroiled in such inter-family disputes.
“Many of the businesses we see now see are struggling,” says Martin Murden, a director of Partners Group, financial services provider to accountants. He is the author of How to Invest in Property Through your Self-Managed Super Fund, recently released by Major Street Publishing.
Before entering a landlord-and-tenant arrangement between your business and your super fund, Murden, an SMSF specialist, urges his clients to think about what could go wrong.
It is a common practice for a family SMSF to own the premises of the family business in order to gain a range of retirement, tax, business, and asset-protection advantages.
Your family business pays a commercial rent to your family SMSF. And your fund claims tax deductions for interest on the loan to buy a typically geared property.
Further, the property is generally out of the reach of creditors if individual fund members are declared bankrupt – subject to claw-back provisions in the Bankruptcy Act.
And if your SMSF sells the property once fund assets are backing the payment of a pension, no capital gains tax is payable on the sale.
It can, however, be a matter of conflicting loyalties and pressures if your business encounters financial problems and fails to pay its rent.
On one side, the family business may require those premises to keep operating in the hope that profits will return. (In a many cases, a business than cannot pay rent to its own SMSF will struggle to pay rent to another landlord – even for poorer-quality premises.)
Yet on the other side, the fund’s trustees – who are the same people as the business owners in these circumstances – are legally obliged to maintain the fund with the sole purpose of providing member retirement benefits.
In any case, Murden says SMSFs with commercial properties generally have to borrow to buy and require regular rent to meet their loan repayments.
Businesses experiencing financial difficulties usually become slower to pay their creditors. And Murden says a decision is sometimes made, consciously or unconsciously, that the last creditor to pay is their owner’s self-managed super fund.
He stresses that if a member’s business is not paying its rent to the family SMSF, the retirement savings of the members are being jeopardised.
Murden’s firm is currently advising an accountant regarding a business that cannot pay its rent to the business owners’ SMSF. He has raised such questions with the accountant as: How good is the business? Should the business move into cheaper premises to enable the SMSF to find another tenant?
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mlaurence-vhAHaLZT8y

The pitfalls of renting from your self-managed super

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By April 2008, the focus seemed to be on the market of Melbourne, which was starting to come out of doldrums after the overstocked Docklands area had been absorbed by immigration, migration and investors.
It seemed to me that although I couldn’t afford absolute beachfront near Melbourne itself, maybe if I looked down the peninsula town by town, I would find something suitable. So that’s exactly what I did with my research: seaside suburb by seaside suburb, I scanned the listings.
Eventually I came across the suburb of Seaford. I found a newly constructed townhouse and encouraged my husband, John, to fly down for a look. We had bought all of our other properties (apart from Harris Park) sight unseen. This time, I can’t really explain why, I just didn’t have the confidence to buy without viewing the townhouse and surrounding areas first.
The townhouse turned out to be quite small compared with the pictures on the internet, and John wasn’t keen to buy it. As he was staying overnight, he had some time to expand his search and he drove a little further down to the main hub of beachside Frankston. He thought this was probably better suited for investment.
After many weeks of searching and chatting with agents, putting in offers and not really getting anywhere, I was becoming obsessed with buying something in Frankston. All the talk suggested it was good to buy with the infrastructure and freeway plans.
I would surf realestate.com.au and domain.com.au every half hour to see if a new listing had come up. Finally, one Saturday afternoon, I decided to look one last time before I went off to have a nanna nap.
A new listing! The property looked fairly new and not that bad looking, located near Monash University and reasonably priced at $285,000.
I quickly called out to John and with the amazing power of Google Earth, we looked at the positioning of the property and were just amazed. It was directly across the road from Monash – and I mean, you literally walk out of the driveway and across the road and presto, you are at the university.   The next block over from the university was the hospital and one street away was a train station, which was only one stop from Frankston train station.
We called the agent, who happened to be in the car on his way to the vendor’s house to pick up the paperwork to list the property. The listing was so brand-new that the vendor hadn’t even officially signed the paperwork with the agent yet.
As we sat on the phone with the laptop in front us, with Google Earth showing us the highlights of Frankston, we probed the agent as to what that building was, what that large parcel of land was, asking how far away this and that was. John had a vague idea of some of the area, but looking from the heavens above gave a whole new perspective.
It turned out that this four-year-old, three-bedroom townhouse-style unit had been recently fully furnished with student desks, new mattresses, outdoor furniture and all that three young students could want or need. They were renting it on three separate leases, meaning the rent was great at $375 per week.
We looked at each other and covered the phone. “What do you think?” I asked John, “Should we put in an offer?” We shrugged and thought what the heck, so we offered $275,000. The agent couldn’t believe it – he was literally pulling into the driveway of the vendor’s house and wasn’t convinced we were serious. An hour-old listing and a 15-minute conversation with a buyer in another state and he had an offer on the table and was five feet away from the vendor’s front door.
I couldn’t stand it, it was so exciting and nerve-wracking at the same time. A few minutes later, the agent came back, our offer declined, so we raised our offer to $280,000.   After that I had to go next door for the comfort of neighbours and left the phone with John. Ten minutes later he came in and said it was ours at $282,500. It wasn’t much off the sale price, but it seemed like an opportunity and there was no time like the present to buy.
We were flying down in a few weeks’ time for a property conference in Melbourne, so we used this opportunity to complete a pre-settlement inspection. We met our lovely Chinese students, all studying to be accountants. They could barely utter a word of English, but I’m sure their studies are more important than partying.
The only downfall with student accommodation can be the potential lengthy vacancy periods at the end of a school year. In our second year of ownership, this has proved to be the case as we had two out of the three rooms vacant. It took nearly 10 weeks to have all three rooms tenanted, ready for the new school year.
 
The Facts
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="131">
Purchase Price 2008
</td>
<td valign="top" width="131">
Current Value 2010
</td>
<td valign="top" width="131">
Rental Start
</td>
<td valign="top" width="131">
Rental Current
</td>
<td valign="top" width="131">
Yield Current
</td>
</tr>
<tr>
<td valign="top" width="131">
$282,500
</td>
<td valign="top" width="131">
$320,000
</td>
<td valign="top" width="131">
$375
</td>
<td valign="top" width="131">
$405
</td>
<td valign="top" width="131">
7.45%
</td>
</tr>
</tbody></table>
 
This is an exerpt from  <a target="_blank" title="Journeys Along the Property Path" href="https://www.ipip.com.au" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Journeys Along the Property Path: 12 real life stories of 12 property investors</a>, published by Inspirational People in Property. Two of the authors are fighting against breast cancer, and IPIP has aligned with the McGrath Foundation to raise money to fund McGrath breast care nurses in communities across Australia and raise awareness of breast cancer, particulary among young women. The <a target="_blank" title="Keep up with the campaign" href="https://www.facebook.com/inspirationalpeopleinproperties" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">initiative </a>aims to sell 9,000 books in nine days to raise $90,000 to support the McGrath Foundation.
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swarniecondon-aTY2bgqmPh

Buying a student investment property in 10 minutes

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New housing construction in Sydney is moving in the right direction in meeting buyer desire, albeit very slowly. But Melbourne’s new housing simply mirrors its current stock mix and not current demand, according to research by the Grattan Institute.
Both capital cities have a clear mismatch between the current housing stock and the mix of housing that home buyers say they would choose, according to the Grattan report, The Housing We’d Choose, which surveyed 700 residents from Melbourne and Sydney.
It noted residents wanted more apartment-style housing but that the housing stock in the two capitals was dominated by detached houses.
In 1976, the share of detached housing was 78%, while in 2006 this was at 74%, according to the report’s author, Jane-Frances Kelly.
Some 7.4% of all Sydney’s households say that, given current prices and their budget, they would choose a semi-detached house in Sydney’s municipalities, including Sutherland Shire, Bankstown, Liverpool, Warringah, Fairfield and Auburn.
However only 2.8% of the total housing stock is made up of semi-detached dwellings in the area.
“This leaves 4.6% of Sydney’s households, or about 70,000 households, whose preferred trade-offs can’t be accommodated,” the report notes.
<img src="/images/stories/grattanjune20.gif">
The report notes many factors have triggered the mismatch between a city’s housing stock and the trade-offs residents say they would choose at a given point in time.
While noting Australians are highly mobile, the report says that the apparent mobility is driven largely by renters and younger Australians.
“Owner-occupiers are much less likely to move,” the report says.
“Indeed the difference in mobility between owners and renters in Australia is the highest in the OECD.
“People stay in the same house for a long time Relatively few houses are available at any one time, which combined with time constraints and search costs, leads movers to choose a second-best option.”
The main barrier cited by survey participants who had not recently moved and were not happy with their current homes was “the hassle and cost of finding and moving into a new house is prohibitive,” the report says.
The second most commonly cited barrier was that it would not make financial sense due to government charges.
Research has found that Australia has one of the highest transaction costs of moving house in the OECD.
The number of bedrooms was listed as the most important factor in housing choice, according to the report.
“Unsurprisingly in choosing dwellings, people give priority to the number of bedrooms, having a detached house with a garage, and ample living space.
“In short, bigger is better,” Kelly says.
In terms of location, respondents said they preferred to live in a safe neighbourhood, close to family, friends, shopping and public transport.
“Notably, closeness to work did not rank highly,” Kelly says.
Given real-world budget constraints, there is inevitably tension in satisfying preferences for both, she says.
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jchancellor-FAypfDUnLy

Housing stock not giving people what they want: Report

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Self-managed super funds are increasingly turning to commercial property investments.
ATO statistics for March 2011 show that after listed shares (32%) and cash (27%), non-residential property (12%) is the third most-held asset by self-managed super funds.
Changes to rules governing superannuation that allow SMSFs to borrow money to buy commercial property assets, provided they structure their investments correctly, as well as attractive tax incentives, have also added to the appeal of this asset class.
Furthermore, NAB forecasts all sectors of commercial property to return to positive rental growth by March 2013, with capital values tipped to rise as well.
The June Herron Todd White Month in Review report points out retail property markets that have either just entered growth phases or are on the verge of doing so – suggesting there may be opportunities for astute investments.
According to the report, retail property values on the Gold Coast and Gippsland have already bottomed out and are starting to recover.
A little further behind in the cycle are 12 other markets that have all bottomed out, suggesting a recovery could be on the cards in the medium term.
These include the capital cities retail markets of Canberra and Brisbane; NSW regional markets of Griffith, Mudgee, the Far North Coast and Wollongong; Victorian regional markets of Warrnambool and Mildura, and the smaller Queensland markets of Cairns, Townville, Gladstone and Bundaberg.
Retail markets that have bottomed out/started recovering
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="97" valign="top">
 
</td>
<td width="67" valign="top">
Stage of property cycle
</td>
<td width="88" valign="top">
Rental vacancy situation
</td>
<td width="95" valign="top">
Volume of property sales
</td>
<td width="113" valign="top">
Local economic situation
</td>
</tr>
<tr>
<td width="97" valign="top">
Gold Coast
</td>
<td width="67" valign="top">
Start of recovery
</td>
<td width="88" valign="top">
Large over-supply relative to demand
</td>
<td width="95" valign="top">
Declining significantly
</td>
<td width="113" valign="top">
Flat/contracting
</td>
</tr>
<tr>
<td width="97" valign="top">
Gippsland
</td>
<td width="67" valign="top">
Start of recovery
</td>
<td width="88" valign="top">
Balanced market
</td>
<td width="95" valign="top">
Declining
</td>
<td width="113" valign="top">
Contraction
</td>
</tr>
<tr>
<td width="97" valign="top">
Canberra
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Balanced market
</td>
<td width="95" valign="top">
Steady
</td>
<td width="113" valign="top">
Flat
</td>
</tr>
<tr>
<td width="97" valign="top">
Brisbane
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Over-supply relative to demand
</td>
<td width="95" valign="top">
Steady
</td>
<td width="113" valign="top">
Flat
</td>
</tr>
<tr>
<td width="97" valign="top">
Griffith
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Over-supply relative to demand
</td>
<td width="95" valign="top">
Declining significantly
</td>
<td width="113" valign="top">
Flat
</td>
</tr>
<tr>
<td width="97" valign="top">
Mudgee
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Over-supply relative to demand
</td>
<td width="95" valign="top">
Steady
</td>
<td width="113" valign="top">
Flat
</td>
</tr>
<tr>
<td width="97" valign="top">
NSW Far North Coast
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Balanced market
</td>
<td width="95" valign="top">
Steady
</td>
<td width="113" valign="top">
Flat
</td>
</tr>
<tr>
<td width="97" valign="top">
Wollongong
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Over-supply relative to demand
</td>
<td width="95" valign="top">
Steady
</td>
<td width="113" valign="top">
Flat
</td>
</tr>
<tr>
<td width="97" valign="top">
Warrnambool
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Over-supply relative to demand
</td>
<td width="95" valign="top">
Declining
</td>
<td width="113" valign="top">
Flat
</td>
</tr>
<tr>
<td width="97" valign="top">
Mildura
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Over-supply relative to demand
</td>
<td width="95" valign="top">
Declining
</td>
<td width="113" valign="top">
Severe contraction
</td>
</tr>
<tr>
<td width="97" valign="top">
Cairns
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Balanced to oversupply relative to demand
</td>
<td width="95" valign="top">
Steady/declining
</td>
<td width="113" valign="top">
Flat
</td>
</tr>
<tr>
<td width="97" valign="top">
Townville
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Balanced
</td>
<td width="95" valign="top">
Steady
</td>
<td width="113" valign="top">
Flat
</td>
</tr>
<tr>
<td width="97" valign="top">
Gladstone
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Balanced
</td>
<td width="95" valign="top">
Steady
</td>
<td width="113" valign="top">
Steady growth
</td>
</tr>
<tr>
<td width="97" valign="top">
Bundaberg
</td>
<td width="67" valign="top">
Bottom
</td>
<td width="88" valign="top">
Over-supply relative to demand
</td>
<td width="95" valign="top">
Declining
</td>
<td width="113" valign="top">
Steady growth/flat
</td>
</tr>
</tbody></table>
Source: Herron Todd White
 
Growing appeal of property
Any decision that SMSF trustees make about purchasing retail property or any other commercial property must have the sole purpose test in mind, says Peter Burgess, technical director at SMSF Professionals' Association of Australia. 
 
“There must be some potential for capital appreciation and/or income being generated from the asset,” he tells Property Observer.
“You should seek professional advice from a specialist in this area as there are various ways you can transfer property into your fund, depending on your personal situations
“Commercial property is an investment like everything else – you need to do capital appreciation research,” he says.
Tax breaks
In addition to the possibility of increasing the value of your super fund, there are huge tax advantages in investing in commercial property.
“Once you transfer the asset into your fund you are in a lower tax environment,” Burgess says.
If you’re under 55 years, the maximum tax rate on rental income is 15% and 10% on capital gains once it is sold.
Once the SMSF moves into the pension phase, the tax rate drops to zero.
According to Dixon Advisory executive director Nerida Cole, investing in commercial property that has a high yield can be very beneficial if the member of the superannuation fund is approaching retirement and is relying on super to provide a regular income stream.
The key, though, is choosing the right commercial asset.
“You have to get the right property to start with otherwise you won’t achieve the capital growth you are after and the steady income you are after,” Cole says in a video blog.
She says you also need to consider what you need from this investment. “Do you need the property to boost your income or for capital growth to grow your super?”
Buying your own premises
Rules governing the purchasing of property via a SMSF are complex.
While the caveat remains that investors should always seek financial advice before making any decision, the general rule is that a commercial asset cannot by acquired by SMSF for personal use by a related party to the fund.
“You cannot own a property in your super fund and then allow your extended family or business associates to rent that property out,” Cole explains.
However, a retailer may be in a position to transfer property he or she owns into his or her own super fund (changing from a renter to an owner of the property) and take advantage of the low tax benefits so long as the property is used wholly for commercial purposes, in which case it would be deemed “business real property”.
“Business real property is property you are using in the running of a business in a day-to-day basis, and that can have a related party using the property,” Cole says.
In this case, business owners need to be aware of contribution caps.
If you’re under 65 years, you can contribute up to $150,000, but this can be brought forward by two years, taking the total contribution to $450,000.
“If that’s you and your wife, you can contribute up to $900,000 and still not breach the cap,” Burgess says.
In all cases, it is recommended that you seek specialist advice to ensure you get the structure right, particurlarly if you’re thinking about borrowing to invest in a commercial asset.
“The SMSF needs to establish a borrowing trust within the fund, since it cannot borrow itself. You pay the loan down, and SMSF takes ownership of the property,” Cole says.
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lschlesinger-FZcF9M3vE6

Retail could provide a good investment for self-managed super

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Newsagents are at the mercy of their landlords when it comes to negotiating rents and leasing terms, the Australian Newsagents Federation claims. 
“Newsagents have inadequate laws to protect them against some landlords’ misuse of turnover figures in rent deliberations,” the ANF, which represents 1,500 members, says in its submission to the Productivity Commission’s inquiry into the retailing industry.
Common unfair trading practices encountered by newsagents include “harsh terms and onerous lease obligations”, the submission says.
Furthermore, the ANF says specialist tenants such as newsagencies pay significantly higher rents per square metre than the major supermarkets “but still have to compete with these stores for sales”.
As a result, “rent increases can only erode an efficiently run newsagent’s net profit,” the ANF says.
The ANF argues newsagents are constrained because the prices of the majority of their products (e.g. newspapers, magazines, greeting cards and lottery tickets) are fixed, meaning they cannot increase prices to cover increase in costs.
The organisation is demanding the Federal Government establish a national leasing ombudsman and a national registration of retail leases to ensure fairer rental rates and better tenancy rights.
The ANF believes an ombudsman could ensure that newsagents whose leases are up for renewal in shopping centres are provided the first and last right of refusal for a new lease so landlords cannot threaten existing tenants with take-it-or-leave-it type negotiations.
The emergence of an unfair playing field is also identified in the Council of Small Business Organisations of Australia’s submission to the Productivity Commission.
It highlights the control of retail leasing by “the large landlords” and the inability of bricks-and-mortar retailers to compete will online sellers on price due to the major overheads associated with rental costs.
Continued increases in lease and rents will make bricks-and-mortar retailers, a category that includes newsagents, “even less profitable and less sustainable,” the organisation argues.
“In the end there can only be so many coffee shops and food outlets – the cost of rent must drop, or shops will be empty. The cost of change must be managed or compliance problems will grow,” COSBOA says in its submission.
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Newsagents say retail rents are unfair

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The Melbourne office market will be the strongest office market in 2011, according to commercial property experts.
Six out of eight experts polled by the Property Council of Australia say Melbourne will offer investors the greatest total return, with only one selecting Perth and another picking Sydney.
The most bullish prediction comes from Frank Gelber, chief economist at research group BIS Shrapnel, who forecasts Melbourne office demand at 98,000 square metres, rental growth at 15% and capital growth of 15% for a total annual return of 21%.
“This is just the beginning of what will be a boom,” Gelber says.
“Demand recovery is on track. Net absorption will increase. Supply is constrained for the next three years at least. Vacancy rates will tighten and rents will start driving values, and yields will start to firm.”
Opteon Property Group research manager Richard Jenkins forecasts a total return of 18% in Melbourne, and he says 75,000 square metres of office space will be needed in 2011.
Jenkins expects strong rental growth (12%) to be aided by the “limited amount of uncommitted new supply currently under construction and growing business confidence”.
The Melbourne market is set to offer total returns of up to 15.5% with rental growth of 5% and capital growth of 8.2%, according to Frank Allen, director of property markets at Westpac.
“Continued healthy economy and limited new supply will drive vacancy lower and rents up over 2011,” says Allen, who forecasts total office space demand of 75,000 square metres.
The two experts who disagree about Melbourne’s bullish chances are David Green-Morgan, head of Australian research at DTZ, and Jatin Chand, senior forecasting consultant at CB Richard Ellis. Green-Morgan says Perth will be the best-performing office market, thanks to a turnaround in commodity markets, and Chand tips Sydney to outperform other capital cities.
“The Sydney CBD is forecast to bounce back strongly in the second half of 2011 as the banking and finance sector is expected to rebound strongly from June 2011 onwards,” Chand says.
Australia’s hottest office market in 2011
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="117">
Expert
</td>
<td valign="top" width="98">
Prediction
</td>
<td valign="top" width="78">
Demand
(sqm)
</td>
<td valign="top" width="81">
Total return
</td>
<td valign="top" width="84">
Rental growth
</td>
<td valign="top" width="75">
Incentives
</td>
<td valign="top" width="84">
Capital growth
</td>
</tr>
<tr>
<td valign="top" width="117">
Frank Allen, Westpac
</td>
<td valign="top" width="98">
Melbourne
</td>
<td valign="top" width="78">
75,000
</td>
<td valign="top" width="81">
15.5%
</td>
<td valign="top" width="84">
5%
</td>
<td valign="top" width="75">
-3%
</td>
<td valign="top" width="84">
8.2%
</td>
</tr>
<tr>
<td valign="top" width="117">
Nerida Conisbee, Colliers
</td>
<td valign="top" width="98">
Melbourne
</td>
<td valign="top" width="78">
46,000
</td>
<td valign="top" width="81">
7%
</td>
<td valign="top" width="84">
12%
</td>
<td valign="top" width="75">
0%
</td>
<td valign="top" width="84">
7.7%
</td>
</tr>
<tr>
<td valign="top" width="117">
Frank Gelber, BIS Shrapnel
</td>
<td valign="top" width="98">
Melbourne
</td>
<td valign="top" width="78">
98,000
</td>
<td valign="top" width="81">
21%
</td>
<td valign="top" width="84">
15%
</td>
<td valign="top" width="75">
-6%
</td>
<td valign="top" width="84">
15%
</td>
</tr>
<tr>
<td valign="top" width="117">
Matt Whitby, Knight Frank
 
</td>
<td valign="top" width="98">
Melbourne
</td>
<td valign="top" width="78">
70,000
</td>
<td valign="top" width="81">
16%
</td>
<td valign="top" width="84">
7%
</td>
<td valign="top" width="75">
-2%
</td>
<td valign="top" width="84">
9%
</td>
</tr>
<tr>
<td valign="top" width="117">
Richard Jenkins, Opteon
</td>
<td valign="top" width="98">
Melbourne
</td>
<td valign="top" width="78">
75,000
</td>
<td valign="top" width="81">
18%
</td>
<td valign="top" width="84">
12%
</td>
<td valign="top" width="75">
-2%
</td>
<td valign="top" width="84">
11%
</td>
</tr>
<tr>
<td valign="top" width="117">
Martin Pepper, Property Intelligence
</td>
<td valign="top" width="98">
Melbourne
</td>
<td valign="top" width="78">
80,00
</td>
<td valign="top" width="81">
12%
</td>
<td valign="top" width="84">
7.5%
</td>
<td valign="top" width="75">
-5%
</td>
<td valign="top" width="84">
8%
</td>
</tr>
<tr>
<td valign="top" width="117">
David Green-Morgan, DTZ
</td>
<td valign="top" width="98">
Perth
</td>
<td valign="top" width="78">
17,000
</td>
<td valign="top" width="81">
14.9%
</td>
<td valign="top" width="84">
3.7%
</td>
<td valign="top" width="75">
-5%
</td>
<td valign="top" width="84">
7.1%
</td>
</tr>
<tr>
<td valign="top" width="117">
Jatin Chand, CB Richard Ellis
</td>
<td valign="top" width="98">
Sydney
</td>
<td valign="top" width="78">
103.000
</td>
<td valign="top" width="81">
15.7%
</td>
<td valign="top" width="84">
7%
</td>
<td valign="top" width="75">
-7.2%
</td>
<td valign="top" width="84">
9.6%
</td>
</tr>
</tbody></table>
Source: Office market forecast, Property Council of Australia
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Majority of experts polled tip Melbourne office market to boom

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There will likely be no office space left in the western Sydney suburb of Homebush in just over a year, according to the Property Council of Australia's Office Market Forecasts for July 2011.
The report forecasts available office space declining in Homebush to 0.5% by July 2011 and to totally dry up a year later.
Another market that will tighten considerably is East Melbourne, where the vacancy rate is tipped to fall to 2.3% by July 2012.
The report forecasts commercial rents in Sydney to reach $833 per square metre by July 2011, $837 per square metre in Perth and $700 per square metre in Brisbane, the three most expensive office markets in Australia. 
According to serviced office provider Servcorp, high rents and tighter office markets are driving small businesses and micro-businesses out of the Sydney, Perth and Brisbane CBDs.
Taine Moufarrige, executive director of Servcorp, says the problem is a medium-term one and will take “more than a few years before the supply of premium space will even begin to meet demand”.
"Vacancy rates are getting lower and rents are going up," Moufarrige says. "There will be very limited affordable, well-located space available for small businesses, even in the fringe areas of the CBD."
Earlier this year, property group Knight Frank forecast “robust” nationwide growth in new CBD office space to taper off by 37% over the next two years.
According to Servcorp, the issue is exacerbated by the limited amount of construction to create more commercial space occurring in these high-demand areas.
“Brisbane in particular has focused on repair and reconstruction in the CBD following the January floods, without adding capacity,” Servcorp says.
Servcorp has noticed an increase in demand for serviced offices, “a clear symptom of the trend”.
“We’ve seen our mature floor occupancy across the country rising steadily since October 2010. Sydney and Perth have been showing particularly high rates of occupancy ­– consistently hovering above 90% during the past year,” Moufarrige says.
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Likely to be no office space left in Homebush in a year: Report

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Tasmanian Premier and Treasurer Lara Giddings has culled a long-running stamp duty concession for first-home buyers, just as housing in the state is becoming more affordable and buying conditions are improving.
From June 17 2011, first-home buyers will no longer be eligible for stamp duty concessions of up to $4,000, announced in the Tasmanian budget on June 16.
The concessions had been in place since May 20, 2004.
Under the First Home Owners Duty Concession for Vacant and Established Dwelling, concessions of up to $4,000 were available for purchase of established dwellings up to a value of $350,000.
The maximum concession available in relation to the purchase of vacant land was $2,400, provided the land did not exceed $175,000.
The removal of the concession comes at a time when Tasmanian houses are becoming more affordable and buying conditions improve, but also as first-home buyers desert the market.
The proportion of income required to meet home loan repayments in Tasmania decreased 1% to 28.2% in the March quarter according to the latest REIA/Deposit Power Housing Affordability report.
At the same time, the number of new loans to first-home buyers decreased 8.3% in the March 2011 quarter to 343 loans. The number of loans to first-home buyers decreased 23.1% over the past year, according to the same report.
The CBA Home Buyers Index rates Hobart as a buyer’s market, as it has “some of the best buying conditions in recent times” with median house prices decreasing 5.6% over the March quarter to $361,250.
The removal of the concession will save the state $9 million and is part of a drive to compensate for $1.5 billion that is has been wiped from expected revenues.
The first-home owners grant scheme remains in place.
Other housing incentives to suffer under cost-saving measures include:
<ul>
<li>limiting land tax concessions for pensioners to principle places of residence and primary production land, which will save the Government $1.6 million; and</li>
<li>removing the land tax exemption on holiday home land, which will save Tasmania $3.2 million.</li>
</ul>
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Tasmania drops stamp duty concession for first-home buyers

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At the same time as Melbourne leads the nation in falling house prices, a two-level apartment in the inner-city suburb of Southbank has been included among the list of the 10 most heavily discounted properties in Australia, the first time in 12 months a Victorian property has made the list.
The property, apartment 2506, 83 Queensbridge Street, is the nation’s ninth most heavily discounted property, according to the <a target="_blank" title="Louis Christopher's top 10 most discounted properties" href="https://www.propertyobserver.com.au/the-10-most-discounted-properties-in-australia-at-june-16/2011061550503">June 16 weekly top 10 list compiled by SQM Research</a>.
The property was listed on October 31 and has been on the market for 217 days. It was last passed in at auction on May 21, but is now being sold privately by Robert Mitchelson from Icon Property, who has only held the listing for a few weeks.
SQM has been compiling the list of discounted properties for a year, and managing director Louis Christopher told Property Observer he believed it was the first time a Melbourne property has made it on to the list.
“What is particularly noteworthy about this week's list is that we have finally been graced with the addition of a discounted property in Victoria,” Christopher says.
“Bear in mind we are cautious on it given it is going to auction and the property could be underquoted,” he says.
The three-bedroom, two-bathroom apartment was originally up for sale at a price of $2.15 million, but is currently being marketed by with a price range of $1.5 million to $1.65 million.
It has panoramic views looking south down Port Phillip Bay over Albert Park Lake, St Kilda Marina and all the way to M. Martha and the other side over the Yarra River, Crown Casino and the city. Other features include a powder room, parquet floors and a dining area that joins two large balconies.
Figures released by Real Estate Institute of Australia reveal that Melbourne has led a nationwide fall in house prices, with the average median price in the Victorian capital falling down 6% to $565,000 over the first three months of the year.
Sydney and Adelaide are the only capital cities to record house price increases, with Sydney median prices up 1.1% to $637,258 and Adelaide prices up 0.2% to $410,000.
Nationwide, the median price of a house in Australia’s capital cities has fallen 2.5% to $532,695 in the first three months of the year, according to the REIA’s Real Estate Market Facts report.
REIA president David Airey says the reductions represent a “deceleration in property prices after a period of solid growth in previous quarters”.
“We are witnessing the impact on prices of increases in cash rates during the second half of last year. Rises in the cost of living have restrained household spending and the natural disasters in Queensland have also significantly affected the property market,” he says.
However, Airey calls the latest results a “softening of the housing market explained by economic factors, not a bubble starting to burst”.
The decrease in property prices was accompanied by a decline in the value of owner-occupation and investment loans, which declined 17.6% and 18.2% during the March quarter respectively, one of the largest quarterly declines observed since the September 2002 quarter.
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Melbourne apartment among most discounted properties for first time in a year

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The Westfield Group has defended the rents it charges retailers, saying they are a product of market forces.
“Rents in Australian shopping centres are a function of a free market. Westfield and other shopping centre managers are able only to charge rents at a level that retailers are willing to pay,” Westfield has said in its submission to the Productivity Commission inquiry into retailing.
Westfield is also opposed to implementing any legislative limits on occupancy costs, quoting a 2008 Productivity Commission inquiry that concluded that “there appears to be little evidence that the current process of negotiating occupancy costs is constraining the efficient operation of the market for retail tenancies” 
The group admits that major tenants such as supermarkets and department stores have a strong negotiating position and pay lower rents per square metre than smaller retailers, but says they contribute more capital to the construction of the store, “take longer-term leases, up to 30 years in some cases, and take much larger stores”.
“Major stores bring foot traffic from which specialty stores benefit,” the group says.
In it submission, collapsed retailer REDgroup says high rents were a major factor in the failure of its book chains Borders and Angus and Robertson, labelling Australian rents among the highest in the world.
Myer also identifies high rents as a major cost in its submission to the commission, saying “in Australia we have higher rental and occupancy costs as a proportion of sales than our overseas counterparts”.
In its submission Westfield provides a table comparing average rent costs per square metre in its Australian, US and UK shopping centres, which shows that the rise in value of the Australian dollar in the last six months means Australian retailers ($1,428 per square metre) are paying significantly higher rents per square metre than retailers in the UK ($1,270) and US ($586).
<img src="/images/stories/westfieldjune17.gif">
However, Westfield says such comparisons are misleading given the current high value of the Australian dollar and says using the 10-year long-term average Australian dollar exchange rate ($A1 = US$0.75) shows that rents per square metre in Australia are higher than the US ($830) but lower than the United Kingdom ($1,857).
Using the long-term average to draw comparisons, Westfield says rents are a function of the availability of retail floor space in each market.
“The United States has lower rents but approximately double the floor space per capita of Australia. The United Kingdom has higher rents than Australia but about 40% less floor space per capita than Australia.
Australia, it says, “has taken the middle ground between the US and the UK in providing neither too much nor too little floor space”.
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