For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

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

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A two story Leichardt warehouse with rezoning development potential has been sold for $3.335 million.
The "Elements I Love” owners Brooke Crowle and Tim McGuigan who sold <a href="https://www.realcommercial.com.au/property-land+development-nsw-leichhardt-503276198" target="_blank" rel="noopener noreferrer">124 James Street</a> plan to relocate the business to Byron Bay. 
Currently surrounded by three street fronts and freestanding houses, the property’s zoning permits the construction of a house, but also the ability to build apartments, multi-dwelling housing, semi-detached dwellings and shop top housing up to 14m high if granted council approval.
It is currently surrounded by three street fronts and houses. 
Sydney City Fringe Principal Kristian Morris and Ray White Commercial NSW sold the listing after six of the 11 registered bidders participated in the auction.
Set on an 875 site, the holding is located close to the intersection of the City West Link Rd, James Street and Darley Rd, just 5kms to Sydney CBD and a 2 minute walk to the Light Rail stop. 
Last sold in 1998, the property transacted for $500,000.
The building was also listed in August 2018 but following an unsuccessful expressions of interest campaign it was taken off the market in January 2019.
It was bought by a local boutique developer.
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j.ballantyne1990-6AQqhLzZaK

Leichhardt warehouse with residential development potential sold for $3.335 million

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Hmlet, the Singapore headquartered co-living operator, has raised $55 million in a Series B round of funding.
It will allow the company to accelerate expansion across the Asia-Pacific.
The round was led by Burda Principal Investments, with participation from existing investor Sequoia India and new investors Mitsubishi Estate Co, Reinventure Group, and angel investors. 
It follows the company closing a Series A round of $9 million Series A in November 2018, and AU$2 million seed round in 2017.
The fresh capital from Series B will allow Hmlet to expand its presence across the company’s existing markets of Singapore, Hong Kong and Sydney, Australia. 
Plans for launch in Melbourne, Brisbane and Tokyo, Japan are also in the pipeline.
Since launching in Australia in February 2019, Hmlet has opened four co-living spaces in Sydney, with immediate plans to launch four new properties in Sydney and new locations in Melbourne and Brisbane shortly.
Founded in 2016, Hmlet's goal is to provide affordable and flexible housing solutions for a mobile workforce.
Today, Hmlet manages over 1,500 rooms and is looking to build a network that spans across 10 cities in 5 countries within the next two years. 
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Co-Living operator Hmlet secures AU$55 million funding for APAC expansion

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A three storey freehold in Camberwell, Victoria has been sold for $1.72 million.
It sold at a 4.3% yield. 
The property at 947 Burke Road was sold by Fitzroys agents Chris James, Jordan Ceppi and Chris Kombi. 
The ground floor of the 250 sqm building is leased to Classique Nail Spa, on a new 5+5-year lease.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/14/camberwell%202.jpg" alt="">
The upper level levels boast a three-level apartment with three bedrooms, two bathrooms and top floor open living area. 
Zoned commercial 1, the property features rear laneway access from Burwood Road.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/14/camberwell%203.jpg" alt="">
It is surrounded by retailers, eateries and corporate tenants with a number of completed high-density apartment developments nearby. 
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Three storey mixed use Camberwell freehold sold

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The restaurant and bar space currently tenanted by Streetcorner Jimmy in Teneriffe's converted London Woolstore has been listed for sale.
The ground floor commercial premises at <a href="https://www.commercialrealestate.com.au/property/i-36-vernon-terrace-teneriffe-qld-4005-2015488394" target="_blank">36i Vernon Terrace</a> has recently undergone an internal refurbishment paid for by Streetcorner Jimmy to create a rustic, urban space.
They restored the unique character features of the building, with complementing modern elements.
Streetcorner Jimmy have a five-year net lease until 2023 with a fixed four per cent annual increase.
They have options until 2034 and are currently paying $98,800 + GST per annum.
<img class="m_-2767445539486946443cbT-content-image m_-2767445539486946443cbT-upload-drop-target" src="https://f.datasrvr.com/f1/019/16410/36_Vernon_Terrace,_Teneriffe_-_(7)-2.jpg" alt="" width="640">
The property has a 215 sqm building area, made up of 140 sqm internal and 75 sqm undercover outdoor dining area.
There's a secure park in the building's parking facility.
Ray White Commercial Queensland agent Michael Feltoe has a September 6 auction.
"Fundamentally, this investment ticks all the boxes, an unrivalled corner location in a high traffic area and a landlord friendly lease to a high quality tenant who is performing exceptionally well," Feltoe said.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/19/36%20Vernon%20Terrace%202.jpg" alt="">
The original Woolstore was designed in the early 1910's by acclaimed architect Robin Dods.
Walls &amp; Juster built the heritage-listed Vernon Terrace warehouse for Australian Mercantile Land &amp; Finance (AML&amp;F) who had purchased the land in 1910.
The original Hall &amp; Dods architectural plans included a second store, which was built around a decade later.
The property was sold in 1980 to Pacific Fire Protection, which used level three for customer storage, while leasing level four to TL Tourrier &amp; Co. Pty Ltd Woolstore.
The Brisbane City Council's Teneriffe Development Plan suggested recycling the buildings as a wool exhibition and tourist centre, however, in 2004, the Australian Property Growth Fund purchased the building and refurbished it to create 89 apartments.<a href="https://en.wikipedia.org/wiki/Australian_Mercantile_Land_%26_Finance_Woolstores#cite_note-2"> </a>
Push Architecture designed the redevelopment.
The Federation era, four storey, brick and timber warehouse is capable of storing 14,000 wool bales.
 
 
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jrobinson-rf4aSBido9

Streetcorner Jimmy premises in Teneriffe's London Woolstore for sale

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EXPERT OBSERVER
There has been a turnaround in housing sentiment post-election. 
<div><a href="https://1.bp.blogspot.com/-2O6ydv5d_yc/XVni9mLphDI/AAAAAAAAxY4/Wqb10jHOMQ8QStGBIlxAYxOTafNm1xwugCLcBGAs/s1600/C8117FDD-B268-4C8B-A681-0065B5FC871E%2B%25282%2529.jpeg"><img src="https://1.bp.blogspot.com/-2O6ydv5d_yc/XVni9mLphDI/AAAAAAAAxY4/Wqb10jHOMQ8QStGBIlxAYxOTafNm1xwugCLcBGAs/s640/C8117FDD-B268-4C8B-A681-0065B5FC871E%2B%25282%2529.jpeg" width="640" height="468" data-original-height="607" data-original-width="828"></a></div>
Source: CoreLogic
<div>There have been other factors, of course, including two rate cuts.</div>
<div> </div>
<div>The second rate cut was only delivered six weeks or so ago, and there can be a long lag effect - the full impacts many not be felt for up to 18 months</div>
<div> </div>
<div>
<div>In addition, there were very strong auction results reported for the inner suburbs of Sydney and Melbourne by agents and media alike this weekend, especially for properties located within 15 minutes commute of the Central Business District. CoreLogic found that every single apartment in Sydney's city or inner south taken to auction this weekend sold under the hammer, which is remarkable. For freestanding inner-suburban houses, it was a bit of a frenzy. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>. 
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pwargent-M4siyDbqQY

The post-election housing sentiment bounce: Pete Wargent

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EXPERT OBSERVER
The June quarter has brought a very modest lift in wage inflation.
In the quarter the Wage Price Index (WPI) lifted 0.6% vs market expectation for a 0.5% rise and up slightly from the 0.5% rise in the March quarter. This held the annual rate flat at 2.3%yr which is a modest lift from the low of 1.9% in 2017 but can hardly be described as a breakneck pace.
We still expect wage inflation to drift higher from here - our forecasts have it peaking around 2¾%yr in 2020 - but given how well contained wage inflation is across the nation, and between sectors, even this modest increase looks optimistic and the risks to this forecast remain more to the downside than upside.
<a href="https://www.propertyobserver.com.au/images/2019/8/14/wage%201.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/14/wage%201.jpg" alt="">
In the March quarter, total hourly wages ex bonuses rose 0.6% compared to a market median (and Westpac) expectation for 0.5%.
The print was 0.61% at two decimal places with a 0.54% rise in private sector wage rates and a very solid 0.82% rise in public sector wages, the largest quarterly rise in public sector wages since Q1 2014.
But it should be noted that this followed the smallest quarterly rise in public sector wages since March 2000 of 0.45% rise in the last quarter highlighting a bit more volatility in this series than what is normally the case. It appears that state governments have released the purse strings, a little, for wages.
In the quarter, the largest increase in public sector wages was in Victoria (1.5%) with a more average rise in Queensland (0.5%) and a below average rise in NSW (0.2%).
<a href="https://www.propertyobserver.com.au/images/2019/8/14/wage%202.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/14/wage%202.jpg" alt="">
Private sector wages printed 0.54% in the last two quarters. The annual pace eased back to 2.3% from 2.4% as the March 2018 quarter print of 0.55%, the fastest pace since December 2014, dropped out of the equation.
Public sector wage inflation lifted a little to 2.6% from 2.4% over the year to be back on par with the recent peak of 2.6% in September 2018.
So while an annual pace of wages growth of 2.3% is a modest lift from the 2.1% held from December 2017 to September 2018 which, in itself, was an improvement from the record low of 1.9% in the four quarters before 2017 Q3, it does not suggest any reason to suspect a “wages breakout” is hiding in the wings as wage inflation is well contained and remains under the historical average.
Since 2018, Westpac watched the rapid fall in the Victorian unemployment rate, and because of this, we have been looking an acceleration in Victorian wage inflation.
In the June quarter, Victorian wages lifted 0.7%, stronger than the 0.5% gain in March but a moderation from the 0.8% gain in both Q3 and Q4 of 2018.
The annual pace of Victorian wage inflation has lifted to 2.9% - the fastest pace by any state and the fastest pace in that state since September 2013.
<a href="https://www.propertyobserver.com.au/images/2019/8/14/wage%203.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/14/wage%203.jpg" alt="">
Contrast that with NSW, where wage inflation was flat at 2.3%yr. Here there has been a longer history of a tighter labour market and yet it has failed to generate wage inflation as it has in Victoria.
We are closely watching how far the lift in Victorian wages extends. If it continues into 2020, it should lead to modest wages pressures in other states (particularly in NSW) as employers start competing for labour.
But we would not overstate this as we expect the overall impact to be modest given that the improvement in the national labour market, as measured by the fall in underutilisation, has not been as significant as it is has been in Victoria.
<a href="https://www.propertyobserver.com.au/images/2019/8/14/wage%204.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/14/wage%204.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/8/14/wage%205.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/14/wage%205.jpg" alt="">
Private sector wages including bonuses continues to run at a faster pace than the measure excluding bonuses (2.4%yr vs 2.3%yr respectively) but the pace has slowed from a recent peak of 2.7% in Q4 2018.
The faster pace growth of growth in variable compensation, which tends to be positively correlated with the economic cycle, was pointing to some upside risk for wages.
However, as the pace of economic activity slows, this modest pressure is easing, suggesting the pressure on variable compensation is unlikely to be transferred to fixed compensation.
<a href="https://www.propertyobserver.com.au/images/2019/8/14/wage%206.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/14/wage%206.jpg" alt="">
By industry, the fastest gains in wages are still in what we consider to be non-cyclical sectors such as heath care (3.3%yr), arts &amp; recreation (2.8%yr), public administration (2.5%yr), education &amp; training, other services and professional &amp; scientific (last three all on 2.4%yr).
The slowest wage growth remains in the cyclical industries such as wholesale trade (1.7%yr), retail trade and construction (both 1.9%yr) with manufacturing at just 2.0%yr.
Even in mining, where there is talk of a modest recovery in investment and talk of emerging shortages of skilled labour, wages are growing just 2.2%yr.
<a href="https://www.propertyobserver.com.au/images/2019/8/14/wage%207.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/14/wage%207.jpg" alt="">
Overall, today’s WPI print is a disappointing update and one that will make us take a closer look at our forecast for wage inflation to get back to around 2¾%yr in 2020.
Click here to see the <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2019/August/Q2Wages-FI.pdf" target="_blank">full chart pack</a>.
JUSTIN SMIRK is ‎a senior economist for Westpac,
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Wage inflation modest, but upside surprise does not change weak fundamentals: Justin Smirk 

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One of few institutional grade heritage assets in Brisbane’s CBD has hit the market. 
The property at 308 Queen Street and 88 Creek Street has been listed for sale via expressions of interest campaign. 
 JLL’s Seb Turnbull and Luke Billiau have been appointed sell the property. 
“Demand for quality CBD assets remains at an all-time high in Brisbane. Sub $100 million opportunities are rare in the Golden Triangle and assets on the most prominent corner in the Golden Triangle are even rarer,” JLL’s Seb Turnbull said. 
“Brisbane has been the most active commercial market in 2019, primarily due to its relative value proposition compared to the southern states, as well as the strong leasing market outlook underpinned by the $12.7 billion infrastructure spend in the CBD alone.”
The building was built in 1885.
It underwent a major repositioning in 2008, which included the addition of the boutique A-Grade tower at 88 Creek Street, bringing the asset’s total NLA to 4,501 square metres. 
The property has only been offered to the market once before.
JLL’s Luke Billiau noted that the asset is underpinned by a diverse mix of income from a number of quality tenants in both the retail and office accommodation.  
The building is close to the Queen Street Mall. 
308 Queen Street has the benefit of the integrated 88 Creek Street that offers modern A-Grade standard of accommodation.
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Brisbane CBD heritage building listed for sale  

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EXPERT OBSERVATION
Labour force
Employment rose for the 33rd time in 34 months, up by 41,100 jobs in July after a revised 2,400 fall in jobs in June (previously reported as an increase of 500 jobs).
Full-time jobs rose by 34,500 with part-time jobs up by 6,700. Economists had tipped an increase in total jobs of around 14,000.
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<div class="column">Hours worked rose 0.5 per cent in July to be up 2.0 per cent over the year. In trend terms, hours worked were up 1.8 per cent on the year.</div>
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<div class="column">The unemployment rate was steady at 5.2 per cent in seasonally adjusted terms. In trend terms the jobless rate rose by less than 0.1 percent to 5.3 per cent.</div>
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<div class="column">The participation rate rose to a record-high 66.1 per cent in July. In trend terms, the participation rate rose from 66.0 per cent in June to a record high of 66.1 per cent in July.</div>
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<div class="column">Unemployment across states in July: NSW 4.4 per cent (June 4.6 per cent); Victoria 4.8 per cent (4.8 per cent); Queensland 6.4 per cent (6.5 per cent); South Australia 6.9 per cent (6.0 per cent); Western Australia 5.9 per cent (5.7 per cent); Tasmania 6.0 per cent (6.8 per cent). In trend terms, Northern Territory 4.9 per cent (4.8 per cent); ACT 3.5 per cent (3.5 per cent).</div>
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<div class="column">Average weekly earnings: Average weekly earnings rose by 3.1 per cent in the year to May 2019 – the fastest rate in six years. The average annual wage stands at $85,009.60.</div>
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<div class="column">Overseas arrivals: Tourist arrivals fell by 3.0 per cent in June while departures fell by 2.3 per cent.</div>
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<div class="column">A raft of companies is affected by the employment data but especially those dependent on consumer spending. Amongst stocks affected are Nine Entertainment, West Australian Newspapers, Seek Limited and McMillan Shakespeare.</div>
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<div class="column">What does it all mean?</div>
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What is the definition of a strong job market? We would contend that it is one where employment is rising, more people are participating in the job market and where the jobless rate remains historically low. Australia has a strong job market.
While the jobless rate in Australia is higher than the US, UK and New Zealand, in Australia job growth remains strong and more people are drawing down a wage.
Retailers want to see more people with jobs because that converts to more opportunities to sell their goods and services. 
</div>
<div>
It is always important to remember that indicators like employment and the unemployment rate reflect decisions made by businesses as much as six months ago.
Simply, the hiring process takes time – from the decision to hire, the advertising and interview process, and then the time it takes for the successful candidate to start work.
And the environment 5-6 months ago – before the Federal Election – was far different to today – a lot softer.
In the past two months, job ads have lifted, pointing to even stronger employment ahead.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/commsec%201.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/commsec%201.jpg" alt="">
The Reserve Bank doesn’t expect much improvement in the jobless rate over the remainder of 2019. So it will take falls in the jobless rate to prompt the RBA to back off rate cuts.
Reserve Bank forecasts assume a quarter per cent rate cut to be delivered late in 2019 and another cut of same size earlier in 2020.  
Unfortunately for the Reserve Bank, the jobs data is a ‘lagging indicator’. So it will need to be confident that more timely data, like the monthly business survey, is pointing to firmer employment ahead.
Another key question is how far away is the peak in the workforce participation rate.
If solid employment continues and the participation rate doesn’t rise in turn, the jobless rate has a chance of falling, meaning that spare capacity in the economy is being reduced. 
The ‘problem’ – if we can call it that – is that more people are getting jobs and more people are coming into the workforce to take up the new positions.
So spare capacity remains. But the employment pie continues to get bigger, and that is important for retailers and government tax coffers.
In NSW, Victoria, Northern Territory and the ACT, jobless rates are below 5 per cent. In other states, jobless rates are around 6.0-7.0 per cent.
In-roads need to occur outside the main states if the Reserve Bank is to achieve the goal of a jobless rate near 4.5 per cent. And arguably this means greater use of fiscal policy, not monetary policy.
What do the figures show? 
Employment rose for the 33rd time in 34 months, up by 41,100 jobs in July after a revised 2,400 fall in jobs in June (previously reported as an increase of 500 jobs). Full-time jobs rose by 34,500 with part-time jobs up by 6,700. Economists had tipped an increase in total jobs of around 14,000. 
Annual job growth rose from 2.4 per cent to 2.6 per cent in July (decade average 1.7 per cent).
Hours worked rose 0.5 per cent in July to be up 2.0 per cent over the year. In trend terms, hours worked were up 1.8 per cent on the year.
The unemployment rate was steady at 5.2 per cent in seasonally adjusted terms. In trend terms the jobless rate rose by less than 0.1 percent to 5.3 per cent. 
The participation rate rose to a record-high 66.1 per cent in July. In trend terms, the participation rate rose from 66.0 per cent in June to a record high of 66.1 per cent in July. 
Unemployment across states in July: NSW 4.4 per cent (June 4.6 per cent); Victoria 4.8 per cent (4.8 per cent); Queensland 6.4 per cent (6.5 per cent); South Australia 6.9 per cent (6.0 per cent); Western Australia 5.9 per cent (5.7 per cent); Tasmania 6.0 per cent (6.8 per cent). In trend terms, Northern Territory 4.9 per cent (4.8 per cent); ACT 3.5 per cent (3.5 per cent).
In seasonally adjusted terms, the largest increases in employment were in Queensland (up 19,900 persons), New South Wales (up 13,000 persons), and Victoria (up 3,600 persons). The largest decrease was in Western Australia (down 4,200 persons).
The working age population rose by 34,400 in July to 20.62 million. Over the year, the working age population rose by 360,900 – a near decade high – or 1.78 per cent. But this is still down from the record 2.36 per cent annual growth in December 2008.
The monthly trend underemployment rate remained steady at 8.4 per cent. The monthly underutilisation rate remained steady at 13.6 per cent.
The monthly seasonally adjusted underemployment rate increased 0.2 pts to 8.4 per cent. The monthly underutilisation rate increased 0.2 pts to 13.6 per cent.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/commsec%202.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/commsec%202.jpg" alt=""> 
<a href="https://www.propertyobserver.com.au/images/2019/8/15/commsec%203.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/commsec%203.jpg" alt="">
Why is the data important?
The Labour Force estimates are derived from a monthly survey conducted by the Bureau of Statistics. 
The population survey is based on a multi-stage area sample of private dwellings (currently about 22,800 houses, flats, etc.) and a sample of non-private dwellings (hotels, motels, etc.). 
The survey covers about 0.24 per cent of the population of Australia and includes all people over 15 years of age, except defence personnel.
If more people are employed, then there is greater spending power in the economy. But at the same time companies may adjust the work hours of employees.
 If employees work less hours, and therefore get paid less, then spending power in the economy is reduced.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/commsec%205.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/commsec%205.jpg" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2019/8/15/commsec%206.jpg" target="_blank">Click here </a>to enlarge:  
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/commsec%206.jpg" alt="">
What are the implications?
Employment growth again exceeded implications in July. ‘Normal’ annual job growth is around 1.7 per cent. In July, job growth was 2.6 per cent. That means more people with money to spend. And that benefits a raft of businesses. 
In the past decade, 4.9 per cent was the lowest jobless rate recorded. So a jobless rate of 5.2 per cent is clearly a “good” outcome.
The Reserve Bank believes that we can do even better. So rates can fall again to speed the economy up and create more jobs.
Commonwealth Bank Group economists tip a quarter of a per cent rate cut in both November and February 2020.
The lift in job creation is important for business sales and profitability. So the latest outcome is positive for the sharemarket.
Not only are jobs being created, wages continue to outpace inflation. Average weekly earnings grew by 3.1 per cent over the past year – the fastest rate in six years.
Female wages are up 3.6 per cent over the year with male wages up 3.0 per cent. Female wages have exceeded male wages over the past five years.
 
 
 
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cjames-5S2v74qSNK

Australia's strong jobless rate is a good outcome: Craig James 

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EXPERT OBSERVATION
A robust update but participation hit a new record high at the same time. So while the employment growth continues to outperform expectations the unemployment rate is very sticky around 5.2%.  As such, it is hard to see unemployment getting below 5% any time soon, let alone getting down the RBA’s natural rate of 4.5%.
Westpac is forecasting the unemployment rate to rise from here on the back of a soft patch in employment.
In the past year the largest share of employment gains have been for full-time females, male full-time employment has grown slower than total employment, suggesting employment gains remain focused in the services industries that are rich in female employment.
This update gives us comfort that the RBA will opt to wait-and-see at the September Board meeting and leave the cash rate unchanged.
The July Labour Force Survey reported a 41.1k gain in employment. As we head into the second half of the year, employment remains quite robust with a three month average gain of 28k in July, unchanged from June and slightly down from 35k in May.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/westpac%201.jpg" target="_blank">Click here</a> to enlarge: 
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/westpac%201.jpg" alt="">
The May survey reported a strong +45.2k gain in employment with participation surging to a new record high of 66.1%, boosting the labour force and therefore holding unemployment flat at 5.2% despite the strong gain in employment. 
Since then, while the month to month employment gains have been volatile, the trend remains robust and unemployment has been flat at 5.2%.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/westpac%202.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/westpac%202.jpg" alt=""> 
In the year to July, employment has grown 333k or 2.6%. The pace of employment growth has eased back from 2.9%yr in May but it is still stronger than the 2.2%yr at the end of 2018, while the six month annualised pace has was flat at 2.4%yr. 
Our Jobs Index suggests employment should be growing around 2.4%yr currently before slowing to 2.1%yr through Q4.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/westpac%203.jpg" target="_blank">Click here </a>to enlarge: 
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/westpac%203.jpg" alt="">
We think it is worth noting that June employment was revised to –2.3k from +0.5k with June now recording the first negative print on employment in three years. 
In July, unemployment was flat at 5.2% (5.23% at two decimal places - it was 5.24% in June) with participation rising to a new record high of 66.1% (66.06% at two decimal places from 65.96% in June) the labour force grew a very solid 41.9k.
We had expected that a soft employment print would have been associated with a moderation in participation so we are not surprised that a robust employment gain is matched by a lift in participation.
Today’s update is further confirmation of a robust upward trend in participation, but there was a shift on which state is in the driving seat.
NSW hit a record high of participation of 66.2% in May and has since eased back a bit as has Victoria, which leaves Qld supporting the more recent gains in participation.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/westpac%204.jpg" target="_blank">Click here </a>to enlarge:
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/westpac%204.jpg" alt="">
In June we were surprised by the drop in underemployment (those employed who are willing and able to work more hours) which fell 0.4ppts to 8.2%. 
Underemployment did not improve as much as unemployment through 2018 and had recently been trending higher compared to the unemployment rate. But in July, underemployment bumped back up to 8.4%, still down on the 8.6% in May but it did help to lock in a stronger trend.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/westpac%205.jpg" target="_blank">Click here</a> to enlarge: 
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/westpac%205.jpg" alt="">
Underemployment lifted in both NSW and Victoria (from 7.5% to 7.9% and 7.9% to 8.5% respectively) while it fell in Queensland and WA (from 8.6% to 8.5% and 9.6% to 9.4% respectively).
We note how high underemployment is in Victoria compared to unemployment — unemployment is well below the national average (4.8% vs. 5.2% nationally) whereas the underemployment rate of 8.5% is higher than the national average of 8.2%.
In the last year to July, the gains in employment have mostly been full-time (255.6k/3.0%yr) and with females gaining slightly more than males (153.8k/4.9%yr for females, 101.8k/1.9%yr for males).
The mix is interesting as female full-time employment has lifted 153.8k (4.9%yr) in the year while male fulltime rose 101.8k (1.9%yr).
In contrast male part-time employment has lifted 59.2k in the year (4.8%) while female part-time grew just 17.8k (0.6%yr).
It does appear that employment gains continued to be focused in the services sectors that are rich in female full-time employment positions.  
<a href="https://www.propertyobserver.com.au/images/2019/8/15/westpac%206.jpg" target="_blank">Click here </a>to enlarge: 
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/westpac%206.jpg" alt="">
Employment growth has held together and has been quite robust so far in 2019 with the July update suggesting the pace of growth may be picking up — somewhat unexpectedly given the softening leading indicators.
Unemployment is flat around 5.2% but underemployment is drifting higher as the employment to population ratio has held around 62.5% to 62.6% since April highlighting that the gains in employment have only been pacing the gains in working age population.
In the year to July, employment has grown 161.4/4.0%yr in NSW compared to 97.8k/3.0%yr gain in Victoria. Employment grew more modestly in Queensland (57.8k/2.3%yr) and just 6.9k/0.8%yr in SA and slight better in WA with 19.5k/1.5%yr in WA.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/westpac%207.jpg" target="_blank">Click here </a>to enlarge: 
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/15/westpac%207.jpg" alt="">
Since December the unemployment rate has risen 0.1ppt in NSW to 4.4% (the national low), +0.6ppt in Victoria to 4.8% with a smaller 0.3ppt in Queensland at 6.4% but a solid 0.9ppt lift in SA to 6.9%, the highest unemployment rate in Australia.
The only state to record a decline in unemployment from December is WA where it fell –0.4ppt to 5.9% which is still above the national average.
For complete chart pack <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2019/August/JulyLabour-FI_chart_pack.pdf" target="_blank">July Labour Force Chart Pack (pdf 334kb)</a>
JUSTIN SMIRK is ‎a senior economist for Westpac
 
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Labour force data will leave the RBA on the sidelines next month: Justin Smirk

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German shop fixtures and shelving manufacturing giant Wanzl is moving its Australian headquarters to the Hawthorn East.
Fitzroys agent Chris James negotiated the five-year lease with options at 1 Hall Street at $128,750 per annum with 3% annual increases, on behalf of Cadence Property Group.
Wanzl’s local arm will move into a 540 square metre office and warehouse facility that is part of a 1,625 square metre industrial building, on a 1,650 square metre site at 1-5 Hall Street with three frontages.
Headquartered in the Bavarian town of Leipheim, Wanzl is the world’s largest manufacturer of shopping trolleys.
It also produces shop and supermarket fittings, shelving and entrance gates.
James said Wanzl Australia will be moving from their current premises on Highbury Road, Burwood to Hall Street, a short distance from the headquarters of major supermarket Coles.
“Growth in online shopping has brought with it demand for broader product ranges and more efficient delivery times, increasing requirements for logistics systems and facilities,” he said.
“This has prompted a surge in new warehousing developments, and existing facilities are being refitted for efficiencies and expanded capacities to cater for the evolving requirements of logistics and distribution centres.”
James said Wanzl’s move to the area adds to a roll call of major retail names in the area including Kookai, Bunnings Warehouse, Gazman, and Kennards Self Storage, as well as Coles.
“Melbourne’s inner-east offers close proximity to CityLink and the Monash Freeway, which has become a necessity for logistics and warehousing.”
James and Fitzroys colleagues Jordan Ceppi and David Bourke negotiated the $6.5 million sale of the entire facility at 1-5 Hall Street to Cadence Property Group in May.
The developer and fund manager will use the balance for its new headquarters.
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