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.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[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>

&nbsp;

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

<html><body>
The Reserve Bank's announcement that it will leave interest rates unchanged in June at 4.75% and toned-down rhetoric on future rates has been greeted with relief.
A 25 basis points increase, as some economists were predicting, would have meant an increase of $50 per month for a homeowner with a typical $300,000 mortgage and basic variable rate of 7.17% (the average of the four major banks' basic variable rate mortgage).
The rhetoric in the statement following the decision by RBA governor Glenn Stevens suggests further rate rises could be further away than have been forecast.
Stevens pointed to a number of reasons why the bank’s “mildly restrictive stance of monetary policy remained appropriate”.
Most notably, he says that although CPI inflation has risen over the past year (currently at 3.3%), it reflects the effects of extreme weather and rises in utilities prices.
“The weather-affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the next 12 months,” Stevens says.
Bill Evans, chief economist at Westpac, says the RBA's rhetoric indicates that its commitment to an early rate hike has been significantly diluted.
“Indeed, even the May statement was more hawkish than this one today. Most importantly, a paragraph in the May statement that included the observation 'over the longer term inflation can be expected to increase somewhat if economic conditions evolve broadly as expected' was eliminated from this statement,” Evans says.
Aaron Gadiel, CEO of industry lobbying body the Urban Taskforce, draws a similar conclusion. 
According to Gadiel, fears that the RBA has an “itchy trigger finger on interest rates have already caused some building plans to be shelved or delayed".
“We hope the bank will be less keen to raise the spectre of new interest rate rises in future monetary policy statements.”
Real Estate Institute of Australia (REIA) president David Airey says the decision is the right one, given the state of housing affordability in Australia.
Airey says the RBA has “accurately assessed the property market”.
HIA senior economist Andrew Harvey says the decision “reflects a rare bit of good news amidst mounting pressure on home affordability and fast-declining activity in the residential building sector”.
“It just gives a touch of relief to those Australians paying off mortgages and also to those trying to enter the housing market, amidst the less predictable environment households face in the post-GFC era,” he says.
Laing+Simmons general manager Leanne Pilkington also welcomes what she called “the only option available” to the RBA but remains perplexed at “persistent talk of a rise in the next few months”.
“The recent March quarter contraction can be dismissed as being a result of the natural disasters, but the figures are more than just a blip on the radar. 
“Remembering that another consecutive quarter of negative growth places us in recession and the need to support struggling families becomes even more apparent,” Pilkington says.
“House prices are declining in value in some markets, many homeowners are finding themselves in a position of negative equity, and clearance rates are down.”
</body></html>

lschlesinger-FZcF9M3vE6

Relief greets interest rate decision and RBA’s softer position

<html><body>
The RBA has kept interest rates on hold in June at 4.75%, marking the seventh month that rates have remained unchanged.
Yesterday a poll of 28 economists by Bloomberg found that just five expected the Reserve Bank to move on rates. An increase in rates is expected over the next few months, with July or August the likely date.
Michael Yardney, director at Metropole Property Investment Strategists, says today’s decision is just a reprieve.
“It’s not a question of ‘if’ but ‘when’ rates go up. Borrowers should be budgeting for another interest rate rise or two later on this year,” Yardney tells Property Observer.
“Three weeks ago people were certain of a rate rise in June or July. Then the latest (March quarter) GDP figures came out. That’s the major thing holding back the RBA now,” he says.
Yardney says the RBA will not want to wait too long to raise rates. “If it leaves it too late, it will have to announce too many increases too quickly. Their approach has been to do things pre-emptively.”
He says future rate rises will depend on the next round of inflation and GDP figures. To date the RBA has managed to keep inflation within the 2% to 3% range.
According to Yardney, market fundamentals remain sound – the economy is good, wages are rising, there is an undersupply of property and a rising population. The issue is weak market sentiment. An increase in rates will only worsen this situation.
</body></html>

Interest rates hold steady at 4.75%

<html><body>
As a proportion of Australia's economy, manufacturing and mining contribute more or less the same output.
However, mining's investment spend is currently more than three times that being spent by the manufacturing sector.
All the media attention has mainly been focused upon this disparity. But that doesn't really tell you the complete story — as you can see from <a target="_blank" title="Chris Lang graph" href="/images/stories/langjune7chart.jpg">this graph</a>.
The combined service sector (which includes transport, retail, finance, utilities, communications and the like) creates 60% of Australia's employment opportunities, and almost half of the investment dollars.
Although mining has drawn labour and other resources away from both the manufacturing and service sectors, it is manufacturing that has suffered the most.
And because the service sector has only marginal exposure to overseas trade and currency movements, it actually enjoys a net benefit from any mining boom.
This would help to explain the relative economic stability of Victoria and NSW when compared with what has occurred with the more recent gyrations for WA and Queensland.
Furthermore, this is also being reflected in the level of office vacancies for each capital city — with Victoria having the greatest level of "definite" commitments for investment expenditure.
Bottom Line: While Australia may have been experiencing a two-speed economy between different sectors, you are also seeing a two-speed market geographically with commercial property:
<ul style="padding-top: 10px; padding-right: 0px; padding-bottom: 10px; padding-left: 50px; list-style-type: none; list-style-position: initial; list-style-image: initial; line-height: 18px; margin: 0px;">
<li style="padding-top: 3px; padding-right: 0px; padding-bottom: 3px; padding-left: 0px; list-style-type: circle; list-style-position: initial; list-style-image: initial; margin: 0px;">The action-packed (but unpredictable) rides you'll experience in Brisbane and Perth; and ...</li>
<li style="padding-top: 3px; padding-right: 0px; padding-bottom: 3px; padding-left: 0px; list-style-type: circle; list-style-position: initial; list-style-image: initial; margin: 0px;">The less-exciting (but more sustainable) growth you will be able to extract from the Melbourne and Sydney markets.</li>
</ul>
</body></html>

chrislang-EQKojcgJPV

Making sense of the mining boom

<html><body>
The tallest building in North America, Chicago's Willis Tower, formerly the Sears Tower, is on the block, with its owners searching for a buyer or investor.
The 108-storey building is 18% vacant, and a source told <a target="_blank" title="The Wall Street Journal" href="https://online.wsj.com/article/SB10001424052702304563104576360052007317060">The Wall Street Journal </a> that owners would be willing to consider either a sale or recapitalisation.
The 442-metre building is owned by a consortium including New York-based investors Joseph Moinian and Joseph Chetrit and American Landmark Properties, which bought the property for US$841 million in 2004.  It is one of the most popular tourist attractions in Chicago, drawing an average of 1.5 million people a year to its Skydeck.
The tower, with a total enclosed area of approximately 424,000 gross square metres, has a rentable area of 353,000 square metres. Its antennas soar to 527 metres.
Designed by architects Skidmore Owings and Merrill, the 1973 tower was originally the headquarters of Sears Roebuck and Co, which moved to Illinois in the early 1990s. 
Within the building, there are 45 kilometres of plumbing, 2,414 kilometres of electric wiring, 130 kilometres of elevator cable, and 145,000 light fixtures. The building cost more than US$175 million to build.
In 2009, the owners negotiated a naming rights deal with London-based Willis Group Holdings, which moved 500 employees into 13,000 square metres at US$156 per square metre.
It could be difficult to find a buyer for the landmark building, however, as the GFC hit the United States hard and the economy is struggling to recover. Last week's residential housing figures revealed that <a target="_blank" title="US housing hits new low" href="https://www.propertyobserver.com.au/news/in-brief-charter-hall-could-lose-15-of-earnings/2011060150363">residential prices in the United States have fallen further than they did during the Great Depression</a>.
It will not remain the tallest building in North America for long, however, as the partially completed Freedom Tower at One World Trade in New York will be 105 storeys and 541 metres tall. Freedom Tower, which <a href="https://www.propertyobserver.com.au/news/magazine-empire-to-rent-one-third-of-one-world-trade/2011053050347" title="Conde Nast signs lease for One World Trade" target="_blank">recently signed its first major tenant, magazine empire Conde Nast</a>, is expected to be completed by early 2014. 
</body></html>

cknowlton-QnEa6ntUYP

Chicago's Willis Tower on the market

<html><body>
Ahead of the RBA’s June 7 meeting, economists says the case for an increase has not been made – but an increase is nevertheless likely in the coming months.
A Bloomberg survey of 28 economists found that just five expect rates to increase in June.
The cash rate has remained unchanged since November 2010, when the RBA lifted rates by 25bps to the current level of 4.75%.
HIA chief economist Harley Dale told Property Observer on June 1, following the release of March quarter GDP figures showing a 1.2% contraction in the economy, that he expected rates would nonetheless increase in the next few months.
However, this did not mean they should.
Dale says the presumption that a clinical, narrow focus on hiking interest rates is the right course of action is inappropriate in the post-GFC environment.
"Australia’s economic growth reflects a range of sectoral pulse rates at present, and the idea that Australia will somehow fall in a ditch if short-term action is not taken by the RBA to address potential pressures in one sector is nonsense," Dale says.
"The weather-distorted March quarter is well behind us, but partial indicators for the June quarter are so far weighted towards negative updates," Dale adds.
Westpac economist Bill Evans says the fall in GDP in the March quarter, the weakest since March 1991, along with the weaker data flow (an upswing in domestic demand of 1.3% for the March quarter offset by the savings rate rising from 9.5 to 11.7%), will make it very difficult for the RBA, “from a public relations perspective, to push up rates in June”.
ANZ economists Julie Toth, Riki Polygenis and Andrew McManus expect an interest rate rise in either July or August.
</body></html>

Economists say the RBA should not raise rates, but five think it will

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
In my first official article for Property Observer (you can see my archives here ), I thought it might be helpful to go back to basics and bust a few housing “myths”. I hope this will be a useful guide for anyone who is thinking about investing in property and who has stumbled across the many sensationalist allegations that exist out there in the ether. In the weeks and months ahead, I will try and explore these issues in more detail.
The first housing myth is that it is easy to understand. Almost all people writing about housing know very little about the facts of the subject. Since 70% of households own a home, they feel like they are instant experts. This gives rise to an “anchoring bias”, which I will come back to another time. In brief, we tend to extrapolate out from our immediate housing experience and assume the rest of the asset-class behaves the same way. This is why, for instance, many successful people have a visceral certainty that house prices collapsed during the 1991 recession when they did nothing of the sort. 1
It is true that house prices in affluent areas (e.g., the Point Pipers and Tooraks of the world) suffered substantial price falls. But across the eight to nine million homes that exist nationally, house prices barely budged, as the chart below shows.
<a href="/images/stories/JoyeJune6/joye1.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joye1thumb.jpg"></a>
A similar dynamic reasserted itself during the GFC, wherein national dwelling values retraced by a modest 3 to 4% on a peak-to-trough basis. The $1 million plus market, on the other hand, fell by 10 to 20%. But, in contrast to what you might be led to believe when reading newspapers, homes worth more than $1 million actually only account for about 5% of all transactions. That is, this segment is irrelevant to 95% of home owners.
The truth is that housing is much more complex than the popular media would have us believe. The “we-are-all-property-experts” syndrome is likely one reason why there are so many misconceptions that abound about the asset-class.
A second, all-too-common myth is that Aussie housing benefits from unusually generous tax breaks. As this Reserve Bank of <country-region>Australia</country-region> study <a href="https://www.rba.gov.au/publications/rdp/2006/pdf/rdp2006-12.pdf">shows</a>, the tax arrangements in <country-region><place>Australia</place></country-region> are not remarkable by international standards. CGT exemptions, negative gearing, investor depreciation allowances, and the like are found in many other countries around the world (see table below).
<a href="/images/stories/JoyeJune6/joye2.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joye2thumb.jpg"></a>
 
<hr class="system-pagebreak">
 
The tax-break proponents are especially fond of “cherry-picking” their claims. They will tell you that it’s a travesty the family home is exempted from capital gains tax, for instance. Or that negatively gearing is a phenomenon unique to our country (the table above illustrates otherwise).
What they neglect to mention is that, firstly, there is a substantial cost, or trade-off, associated with the CGT exemption: any mortgage debt held against the family home is emphatically not tax-deductible, in contrast to all other forms of debt (including investment property debt). This makes owner-occupied home loans very expensive, and encourages Australians to use more equity and pay back whatever debt they have quickly, which is obviously a good thing.
Indeed, the exception here is, ironically, the <country-region><place>US</place></country-region>, which does levy capital gains tax on the owner-occupied home in exchange for allowing mortgage debt to be tax-deductible. The result has been, unsurprisingly, higher levels of gearing (or debt) held against <country-region><place>US</place></country-region> housing, and vastly higher mortgage default rates (refer to the next two charts below). In the <country-region><place>US</place></country-region>, households have had every incentive to take on significantly more debt because it is tax-effective to do so. Those willing the Gillard Government to levy CGT on the family home should be wary of what they wish for: the likely outcome will be the <country-region><place>US</place></country-region> approach, and all of the risks that this entails.
<a href="/images/stories/JoyeJune6/joye3.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joye3thumb.jpg"></a>
 
<a href="/images/stories/JoyeJune6/joye4.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joye4thumb.jpg"></a>
 
<hr class="system-pagebreak">
 
Perhaps most importantly, those arguing that Aussie housing gets atypical tax subsidies typically forget to account for the fact that it is burdened with a raft of additional levies, such as huge stamp duties, which can amount to more than 5% of the value of a property, land taxes, and local government duties, which sum to a de facto land tax equal to 1% or more per annum.
Indeed, the OECD estimates that the round-trip transaction costs associated with buying a home in Australia are the fourth highest in the developed world, and equal an extraordinary 13% of the value of home (see chart below). By way of comparison, the cost of buying and selling a home in the <country-region><place>UK</place></country-region> is less than half this princely sum.
If we look at just vendor costs, <country-region><place>Australia</place></country-region> has the highest housing expenses in the OECD. Contrast this, for example, with shares where the round-trip costs are less than 1%.
<a href="/images/stories/JoyeJune6/joye5.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joye5thumb.jpg"></a>
A third myth is the popular claim that luxury, or more expensive, properties outperform cheaper ones. This is just not supported by the empirical data. Analysis produced by Rismark proves that mid-priced homes have actually delivered stronger capital growth than their dearer counterparts. And this also comes with considerably lower risk.
The luxury end of the market is “illiquid” – that is to say, it only attracts, by definition, a small number of buyers and sellers – and is afflicted by far greater risk or volatility. This is highlighted by RP Data-Rismark’s luxury property index, which is denoted by the red line in the chart below. Observe how during 2009 and 2010 the most expensive homes outperformed the broader market. Yet during the recent soft-landing, it has been this same cohort that has tanked, relatively speaking.
<a href="/images/stories/JoyeJune6/joye6.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joye6thumb.jpg"></a>
 
<hr class="system-pagebreak">
 
My fourth favourite myth is the “safe as houses” aphorism. As with most matters, the truth is more complicated. First, house prices do fall, as we recently witnessed. Second, the individual home is actually a risky holding.
Rismark was the first Australian group to disclose empirical research that quantified precisely how risky a home is. We found that the capital gains generated by a single family home vary markedly over time, and exhibit annual volatility of around 15 to 18%, assuming that you hold on to it for a typical six- to seven-year period. That means that your home has similar risk to the overall sharemarket. In contrast, if you could invest in an “index” of housing, which represented, say, the national housing market (or about $3.5 trillion worth of homes), your annual risk would fall to just 3 to 5%. This is about half the risk of Australian government bonds, and about a quarter the risk of Australian shares.
 The difference between the volatility of an individual home compared with a nationally diversified portfolio of housing is similar to contrasting the risk of a micro-cap listed on the ASX with the volatility of the ASX All Ordinaries Index, which includes every company listed on the exchange. As Miguel de Cervantes’ saying goes, it makes sense to try and ensure that all your eggs are not in the one basket!
<a href="/images/stories/JoyeJune6/joye7.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joye7thumb.jpg"></a>
The good news is that there will shortly be new investment products available that allow you to take insurance out against the risk of house prices falling, or to invest in a nationally diversified index. More on that another time.
 
<hr class="system-pagebreak">
 
A fifth myth is that because houses trade only irregularly, there is sparse data on the subject, and we cannot, therefore, truly know what is happening to prices. In actual fact, RP Data captures about 40,000 to 50,000 homes sales every month (or more than 1,000 per day), which means that we have a wealth of information on price movements. This allows us to create very sophisticated measures of house price changes, which directly control for the fact that we are observing different types of homes transacting over time. You can read more about RP Data-Rismark’s index methods <a href="https://www.rpdata.com/property_indices/overview_of_the_rp_data_rismark_home_value_index">here</a>.
My sixth myth is that Australian house prices are massively overvalued and set to fall by 20 to 40%. You may recall that my regular sparring partner, associate professor Steve Keen, famously predicted in 2008 that Aussie house prices were “going to fall by 40% or so in the next few years.” Well, he could not have been more wrong. Dwelling prices in <country-region><place>Australia</place></country-region>’s capital cities are currently 30% higher than their March 2008 peak, just prior to the GFC hitting our shores.
Put differently, dwelling prices are nearly 70% higher than where Dr Keen expected them to be. My other mate, the economist Rory Robertson, challenged Dr Keen to a bet on this note, which the latter lost. As a result, Dr Keen ended up walking from Canberra to Mount Kosciuszko wearing a T-shirt exclaiming “I was hopelessly wrong on house prices” (or something to that effect).
Related to this myth is the claim that national “median” prices of $500,000 to $600,000 are seven to eight times national disposable household incomes, and hence way above where they “should” be.
 Based on RP Data’s sales database, I can tell you that the national median dwelling price across all regions is today only $418,000. Median dwelling prices in the capital cities and non-capital city areas (where the latter account for about 40% of the population) are $468,000 and $325,000, respectively.
Rismark produces a quarterly average dwelling price-to-average disposable household income series. This analysis uses the ABS’s National Accounts measure of disposable incomes, which is the most timely series available. If we strip out a few non-cash items from these data, we find that <country-region><place>Australia</place></country-region>’s dwelling price-to-income ratio is 4.5 to five times. This is clearly far removed from the hysterical claims that dwelling prices are seven or eight times incomes (see chart below).
<a href="/images/stories/JoyeJune6/joye8.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joye8thumb.jpg"></a>
 
<hr class="system-pagebreak">
 
What the doomsayers ignore is the profound structural change that took place in the Australian economy over the 1980s and 1990s. Although many may have forgotten, inflation in <country-region><place>Australia</place></country-region> used to be much higher than the 2 to 3% pace that we have gotten used to seeing. 
Inflation averaged around 6% per annum between 1980 and the middle of the 1990s. Since 1995, inflation has averaged slightly less than 3% per annum. This is in large part attributable to the good work done by the RBA. 
It has also had deep ramifications for the housing market. In particular, the stability of inflation around the RBA’s 2 to 3% per annum band has permitted a structural downward shift in mortgage rates. This is illustrated in the next chart below. Observe how between 1980 and 1995 mortgage rates averaged 12.6%. Yet since that time they have averaged only 7.3%. If the cost of debt falls through the floor on a permanent basis, how do you think households react? They gear up, which is exactly what happened, with a structural upward shift in both household debt levels, and <country-region><place>Australia</place></country-region>’s house price-to-income ratio over the late 1990s and early 2000s. The key point to note is that this was a once-off event, and will not likely occur again.
<a href="/images/stories/JoyeJune6/joye9.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joye9thumb.jpg"></a>
A final myth is that housing is not a productive investment. Now this is just complete crap. 
In standard economics theory, the two most basic necessities for a functioning economy and, more precisely, productive labour, are: food and shelter. We can interpret “shelter” as covering both residential property, which is the accommodation required by a functional labour force, and commercial property, which is the accommodation needed for productive businesses.
You can either be a “producer” of food and shelter by investing in, and owning, the underlying assets that supply these services/products by owning farms, homes, or commercial buildings; or, alternatively, you can just “consume” these services/products and not invest in the assets by simply buying food from the supermarket, renting a home, or leasing space in a building.
There is a final option where you can both consume and invest by living on a farm (and eating its produce), owning and occupying your home, or owning and occupying the building in which your business operates, as some companies do.
As an investor in agriculture, housing or commercial property, you derive returns as you would with any other productive asset: via a mix of both growth in the capital value of the asset and income from the sale of the products/services (i.e., food, residential accommodation, and commercial accommodation).
The bottom line is that new or established housing is just as productive in the services that it furnishes to the wider economy as farms, factories or commercial property. More on that topic another time!
<div>Christopher Joye is a leading financial economist and works with <a target="_blank" title="Rismark International" href="https://www.rismark.com.au/">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.</div>
</body></html>

chrisjoye-JYhJsTrNRC

Busting big housing myths

<html><body>
Investors looking for the next retail property hotspots should keep a close eye on which markets are attracting migrants and growing employment, experts say.
According to Leigh Warner, national retail analyst at Jones Lang LaSalle, Melbourne’s retail property market has outperformed most other parts of the country, as reflected in current retail vacancy rates.
“At the end of 2010, Melbourne had just 0.2% specialty store vacancy in regional centres, 1% vacancy in sub-regional centres and 1.3% in CBD centres, which were all substantially below national averages” Warner told Property Observer.
He says this performance has been “consistent with a robust Victorian economy over the past few years and with particularly strong state population growth”.
<img src="/images/stories/vacancy%20rates.jpg" style="display: block; margin-left: auto; margin-right: auto;">
According to the Australian Bureau of Statistics, from June 2009 to June 2010 the Victorian population grew by 99,300 people, or 1.8%. Melbourne, which has been the fastest-growing capital city in Australia for nine years running, added 79,000 people, or 80% of the total. In comparison, NSW’s population grew by 105,400, or 1.5%, during the same time period. As of June 2010, Sydney’s population was 4.58 million, with Melbourne rapidly catching up at 4.08 million.
Victoria currently attracts 30% of all migrants into Australia and accounts for 58% of growth in migrant numbers.
The arrival of new migrants has translated into rising building approvals and increased household spending: in the first quarter of 2011 Victoria accounted for 37% of building approvals nationally, and spending on household goods grew by 7.4% in Victoria for the year to March 2011.
Population growth and confidence
Earlier this year CBRE negotiated the sale of the Bundoora Square Shopping Centre in Melbourne for $20.9 million.
 Justin Dowers, who along with Mark Wizel negotiated the sale as part of CBRE’s Victorian retail investments team, says there appears to be a lot more confidence in the Victorian retail market than in other states, “primarily due to economic influences such as the city’s continued population and job growth”.
Dan White from Ray White Invest agrees with this line of thinking
“Australian capitals have similar amounts of retail floor space per capita, so new retail development will be driven by population growth and from changes to city dynamics,” he says.
 Since Melbourne is the fastest-growing city in percentage terms (though not in gross population), White says it will be the most active market in terms of new retail developments.
 Furthermore, he says Melbourne has “probably the best planned urban expansion strategy – planning for and establishing growth corridors and new suburbs – thereby creating the demand for new shopping centres”.
 He also notes the impact of the residential market on retail spending: “Melbourne also has, by quite a margin now, Australia's strongest residential property market, generating household wealth and confidence to support consumer retail spend.”
 As to why people are coming to Melbourne, the respected Economist Intelligence Unit ranks Melbourne as the world’s second most liveable city (behind Vancouver), with strong employment prospects and relatively affordable housing. Sydney managed eighth place.
 State market forecast
As in the general economy, the resource-rich states of Western Australian and Queensland have the best retail prospects over the next few years.
 Western Australia
WA is undoubtedly the state hotspot when it comes to retail growth over the next few years. NAB expects the market to rise strongly as business confidence grows in line with the mining bonanza. It is expected to be the top-performing state over the next two years, and the longer-term view is also favourable, with undersupply to be most prevalent in WA over the next three to five years. Capital values are expected to rise by 5.6% cent over the next two years, and rents are predicted to increase by 5% over this time.
 Queensland
Although the Queensland market is currently subdued, the NAB forecast is for “significant gains” over next two years. However, the Queensland CBD retail market and the market for shops that sell bulky goods, such as whitegoods, furniture and automotive parts, are considered the weakest in Australia. Over the next two years, capital values are expected to rise by 1.7% while rents climb by 1.5%.
 NSW/ACT
The outlook is subdued, with NAB reporting declining long-term business expectations. The CBD and regional retail property have the brightest prospects, and bulky goods retailers the gloomiest. Over the next two years, capital values are expected to decline by 0.5% and rental growth by 0.6%. Sydney is the exception, with CBRE forecasting a revival in its prime shopping strips.
Victoria/Tasmania
Outside of Melbourne, the sentiment and outlook is similar to that of NSW/ACT. The CBD is the best place for retail property, following by retail strips. Bulky goods is the poorest sub-sector. A small increase in capital values (1.7%) and rents (1%) is expected over the next two years.
South Australia
According to CBRE, the forecast is for a year of consolidation in Adelaide. Several shopping centre projects are due for completion or to commence construction in 2011, and yields in this sector are forecast to be steady. Yields are also expected to remain steady in the bulky goods sector. Retail rentals in the Adelaide CBD are expected to come under pressure.
</body></html>

Retail sector looks strong in Melbourne

<html><body>
Retailers are soon to be in a better position to negotiate rental terms, according to consultant Business Development Company.
BDC director Vaughn McGuinness says the closure of book chain Borders and some Angus &amp; Robertson stores means “quality sites are becoming available in quality centres”.
Borders stores to close this year include those in Sydney’s Bondi Junction shopping mall, the Jam Factory on Chapel Street in Melbourne, Chadstone Shopping Centre in Melbourne’s suburbs and a shop on Pitt Street Mall in Sydney’s CBD.
McGuinness expects further retail chain closures over the next 12 months, increasing the pool of quality sites available to the market.
“A correction is occurring in the rental market now that we have access to those kinds of sites,” he says. “Couple this with the planned extension and redevelopment of many existing shopping centres, we will start seeing more sites available, easing up the demand and leading to better rents.”
A report put out by Jones Lang LaSalle in April broadly agrees with this sentiment, but expects rental growth to pick up in 2012 and 2013 as retailers’ confidence picks up throughout the year and turnover growth recovers.
Jones Lang LaSalle reports that retail property demand “is still very patchy and is likely to remain so over most of 2012”.
According to the report, the potential entry of several international retailers could assist centre owners in maintaining high occupancy, but will further add to competitive pressure in the sector and may dampen rental growth potential since many international retailers are used to paying lower occupancy costs.
Overall, due to a “two-speed retail environment persisting through much of 2011”, Jones Lang LaSalle expects relatively moderate speciality rental growth of near or slightly below the rate of inflation to continue.
In addition to the closure of all the Borders book stores, the Colorado fashion group also collapsed earlier this year.
McGuinness says the closures won’t translate automatically into favourable conditions. He says retailers will need to educate themselves about market conditions and have enough options available to be able to negotiate.
He says business owners will always be at a disadvantage in terms of market knowledge, as shopping centre owners have access to tenancy schedules detailing what deals have been done with which retailers and with what incentives.
“This is why it is so important to make sure you give yourself enough options when negotiating to be able to walk away from a site if you are not getting a good enough deal,” McGuinness says. “You should have four or five alternative sites as a backup and make sure you are in a financial position to be able to relocate if necessary.”</body></html>

Retail rents expected to fall as chains collapse

<html><body>
Residential tenancy legislation Residential tenancies in ACT are governed by the <a target="_blank" href="https://www.legislation.act.gov.au/a/1997-84/default.asp" title="Residential Tenancies Act">Residential Tenancies Act 1997</a>, and the ACT government has produced a <a target="_blank" href="https://www.courts.act.gov.au/magistrates/tribunals/rtt/renting%20book%20text.pdf" title="Guide for tenants and landlords">useful guide for tenants and landlords</a>.
Further information for residential landlords The ACT government has produced a<a target="_blank" href="https://www.ors.act.gov.au/FairTrading/pdfs/Industries/Guides/Renting_book_2007.pdf" title="Guide to renting"> guide to renting</a>.
Dispute resolution for residential tenancies The <a target="_blank" href="https://www.acat.act.gov.au/" title="ACT Civil and Administrative Tribunal">ACT Civil and Administrative Tribunal</a> handles disputes relating to residential tenancy.
Further resources The <a target="_blank" href="https://www.reiact.com.au/custom.asp" title="Real Estate Institute of ACT">Real Estate Institute of the Australian Capital Territory</a>, <a target="_blank" href="https://www.poaa.asn.au/act/index.htm" title="Property Owners Association of ACT">Property Owners Association of Australian Capital Territory</a> and <a target="_blank" href="https://www.ntd.net.au" title="National Tenancy Database">National Tenancy Database</a> are also resources available to landlords.
Commercial tenancy legislation Commercial leases in ACT are subject to the <a target="_blank" href="https://www.legislation.act.gov.au/a/2001-18/current/pdf/2001-18.pdf" title="Commercial Leases Act">Leases (Commercial and Retail) Act of 2001</a> and are regulated by the <a target="_blank" href="https://www.ors.act.gov.au/fairtrading/index" title="Department of Regulatory Services">Office of Regulatory Services</a> within the Department of Justice &amp; Community Safety. The ACT government has produced a g<a target="_blank" href="https://www.ors.act.gov.au/bil/pdfs/Industries/Guides/Leases_Handbook.pdf" title="Guide to retail tenancy">uide to retail tenancy</a>.
Dispute resolution for commercial tenancies Disputes regarding commercial tenancy in ACT should be taken to the <a target="_blank" href="https://www.courts.act.gov.au/magistrates/index" title="ACT Magistrates Court">ACT Magistrates Court</a>.
</body></html>

Useful links for landlords in the Australian Capital Territory

<html><body>
Residential tenancy legislation The <a target="_blank" href="https://notes.nt.gov.au/dcm/legislat/legislat.nsf/d989974724db65b1482561cf0017cbd2/d51f653aa04ebbfc6925784d00004c80?OpenDocument" title="Residential Tenancies Act">Residential Tenancies Act 1999</a> and <a target="_blank" href="https://notes.nt.gov.au/dcm/legislat/legislat.nsf/linkreference/residential%20tenancies%20regulations?opendocument" title="Residential Tenancies Regulations" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Residential Tenancies Regulation 1999</a> relate to residential tenancies in Northern Territory.
Further information for residential landlords The Northern Territory government’s <a target="_blank" href="https://www.nt.gov.au/justice/consaffairs/documents/GuideToRentingFeb2011.pdf" title="Guide to renting">guide to renting</a> is a useful guide for information about residential tenancy, and the government’s <a target="_blank" href="https://www.nt.gov.au/justice/consaffairs/res_tenancies.shtml" title="NT government website">residential tenancy website</a> can also be helpful.
Dispute resolution for residential tenancies The <a target="_blank" href="https://www.nt.gov.au/justice/consaffairs/res_tenancies.shtml" title="Residential Tenancies Department">Residential Tenancies Department</a> within the Department of Consumer and Business Affairs  handles disputes relating to residential tenancies.
Further resources The <a target="_blank" href="https://www.reint.com.au/" title="Real Estate Institute of Northern Territory">Real Estate Institute of Northern Territory</a>  and the <a target="_blank" href="https://www.ntd.net.au" title="National Tenancy Database">National Tenancy Database</a> are further resources.
Commercial tenancy legislation Commercial tenancies in Northern Territory are regulated by the <a target="_blank" href="https://www.retaildevelopment.com.au/pdf/NT.pdf" title="Commercial Tenancies (Fair Dealings) Act">Commercial Tenancies (Fair Dealings) Act 2007</a>.
Dispute resolution for commercial tenancies The <a target="_blank" href="https://www.nt.gov.au/justice/consaffairs/business_tenancies.shtml" title="Department of Consumer Affairs">Department of Consumer Affairs</a> handles disputes relating to commercial tenancies.
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News