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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GUEST OBSERVATION
In the weeks after the 2019 federal election, the Sydney Morning Herald <a href="https://www.smh.com.au/federal-election-2019/voter-turnout-at-record-low-after-young-people-disengage-20190530-p51sol" target="_blank">reported</a> that the turn-out of voters was the lowest since the introduction of compulsory voting in 1925.
It also reported there had been high rates of absenteeism of young voters who, while willing to participate in the recent marriage equality survey, had “turned their back on democracy” in the federal election.
The article continues a narrative about a decline in voter participation, which the federal parliamentary Joint Standing Committee on Electoral Matters (JSCEM) review of the the 2016 election <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Electoral_Matters/2016Election/2016_election_report/section?id=committees%2freportjnt%2f024085%2f26059" target="_blank">described</a> it as a “concerning trend”.
But it turns out the SMH report – which was based on the actual vote count undertaken by the Australian Electoral Commission – got it wrong, because it reported on the 2019 result before the count had been completed. In fact, voter participation in 2019 was actually 0.88% <a href="https://tallyroom.aec.gov.au/HouseTurnoutByState-24310.htm" target="_blank">higher</a> than in 2016.
Despite this, the national participation rate hasn’t returned to the 95% rate achieved in 2007. So what’s behind the apparent decline in civic duty?
Political disengagement is one factor, but data show that low turn-out also happens in seats with a high proportion of Indigenous people, and seats with a high proportion of renters.
<h2>Electorates with the lowest participation</h2>
Looking at the participation performance of individual federal electorates can show what might be happening.
<iframe style="border: none;" src="https://datawrapper.dwcdn.net/TlxVN/1/" frameborder="0" width="100%" height="400"></iframe>
Among the litany of divisions with the lowest participation rates, two distinct electorate clusters emerge of what might be thought of as under-performing seats.
By far the most consistent under-performing seats are remote regional districts including Lingiari and Solomon (Northern Territory), Durack (Western Australia and previously known as Kalgoorlie) and Leichhardt (Queensland).
These are also the four federal seats with the highest proportion of voters who identify as Indigenous, according to the <a href="https://www.propertyobserver.com.au/https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/036" target="_blank">2016 Australian census</a>. In the case of Lingiari, 44.5% of residents identified as being Aboriginal or Torres Strait Islanders, 17.9% in Durack, 9% in Solomon and 6% in Leichhardt.
The next cluster of persistent under-performing seats are inner urban divisions whose residents are among the best educated and most affluent in the nation. This includes Sydney, Wentworth, Melbourne and Melbourne Ports (these days known as Macnamara).
They are also characterised by their comparative youthfulness. These are seats that have significantly larger proportions of citizens in the 19 to 39 year age groups than the national age distribution and, indeed, seats like Lingiari and Durack.
<a href="https://images.theconversation.com/files/286557/original/file-20190801-169676-ojlks.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/286557/original/file-20190801-169676-ojlks.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Based on data from the Australian Electoral Commission. Author provided
The relatively low turn-out rate and youthfulness of these inner urban electorates supports the argument that young people are enrolling, but not voting.
While this might be the case, it’s also true that the rate of participation in the inner urban cluster of seats is much stronger than for the remote rural cluster.
In short, lower election turn-out rates tend to be associated more with seats with comparatively higher proportions of Aboriginal and Torres Strait Islander voters than with youthful electoral districts.
This is an interesting aspect to electoral behaviour, especially when there is so much debate about how Aboriginal and Torres Strait Islanders could be given greater input to the political process by way of reforming the Australian constitution.
<h2>The role of renting</h2>
These two clusters of seats could not be more different from each other. And yet they do share a significant socioeconomic characteristic.
Both the inner urban and remote seat clusters are characterised by the comparatively large number of citizens with rented, rather than purchased, accommodation.
The 2016 census found that slightly more than 30% of Australians were renters. In contrast, 60% of residents in the seat of Sydney and 52.9% of residents in Lingiari were renting.
With renting comes the possibility of citizens changing their residential address and this, in turn, can make it difficult to maintain the electoral roll.
<iframe style="border: none;" src="https://datawrapper.dwcdn.net/oOJ8N/1/" frameborder="0" width="100%" height="400"></iframe>
<h2>A political crisis?</h2>
Are these trends a sign of a political crisis, or are they simply “concerning” (to borrow from the <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Electoral_Matters/2016Election/2016_election_report/section?id=committees%2freportjnt%2f024085%2f26059" target="_blank">JSCEM report</a>)?
If the data indicates disengagement, it’s doing so at a fairly minimal rate. And at the last election, attendance rates improved compared with the previous election.
What’s more, the correlation of renters to under-performing electoral districts might even indicate that the problem is administrative rather than the product of civil disobedience.
Having said that, if the government feels the need to address the turn-out rate, they can use coercive powers to reinforce compulsory voting. This would involve imposing bigger fines for those who do not turn up to vote.
The existing legislation allows for a significant fine to apply (one penalty unit) when a voter hasn’t turned up. But the law as it currently stands does allow a wide range of excuses to permit a much less <a href="http://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/cea1918233/s245">onerous sanction</a> of a A$20 fine.
Were the parliament to be truly concerned about participation it could seek to alter the act and strengthen the hand of the AEC.<img src="https://counter.theconversation.com/content/120494/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Nick Economou, Senior Lecturer, School of Political and Social Inquiry, Monash University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/renters-hold-the-key-to-low-voter-turn-out-at-federal-elections-120494" target="_blank">original article</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Renters hold the key to low voter turn-out at federal elections

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GUEST OBSERVATION
Coalition minister Angus Taylor is under scrutiny for possibly intervening in the clearing of grasslands in the southern highlands of New South Wales. Leaving aside the political dimensions, it’s worth asking: why do these grasslands matter?
The grasslands in much of eastern Australia are the result of forests and woodlands cleared to “improve” the landscape (from a grazier’s point of view) to make it suitable for grazing livestock.
The “improvement” typically entails cutting trees, burning the felled timber and uprooting tree stumps, followed by ploughing, fertilising and sowing introduced grasses that are more palatable to livestock than many native grasses.
However, largely treeless native grasslands once occurred at high elevations across much of the Monaro tableland, in the area stretching between Canberra and Bombala.
The Monaro grasslands (or in scientific speak, the <a href="http://www.environment.gov.au/biodiversity/threatened/conservation-advices/natural-temperate-grassland-southern-tablelands" target="_blank">natural temperate grassland of the Southern Tablelands</a>) are in relatively dry and cold areas, particularly in upland valleys or frost hollows where cold air descends at night.
The combination of dry climate and cold restricts tree growth and instead has encouraged grasses and herbs. Native grasses such as kangaroo grass and poa tussock dominate the grasslands, but there are many other unique plants. A typical undisturbed grassland area will support 10-20 species of native grasses and 40 or more non-grass species.
The grassy plains are also home to unique cold-adapted reptiles such as the grass-land earless dragon, little whip snake, pink-tailed worm lizard and striped legless lizards. This combination of plants and animals create a unique ecological community.
<a href="https://images.theconversation.com/files/286192/original/file-20190730-43136-1v4usvm.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/286192/original/file-20190730-43136-1v4usvm.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Striped legless lizards may resemble a snake, but most of its body is actually tail. It has vestigial limbs and a non-forked tongue. Benjamint444/Wikipedia, <a href="http://creativecommons.org/licenses/by-nc-sa/4.0/" target="_blank">CC BY-NC-SA</a>
A fraction remain
It is estimated <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/j.1442-8903.2007.00363" target="_blank">only 0.5%</a> of the area that would once have been natural temperate grasslands in the Southern Tablelands remains. The rest has been gradually “improved” <a href="https://www.propertyobserver.com.au/https://trove.nla.gov.au/work/11035501?selectedversion=NBD25432907" target="_blank">since the mid-nineteenth century</a> to make them more productive for livestock grazing.
Livestock dramatically change the composition of grasslands, as animals remove palatable plants and compact the soil under their weight. Disturbed soil and the livestock also help to <a href="https://www.propertyobserver.com.au/https://trove.nla.gov.au/work/11035501?selectedversion=NBD25432907">spread non-native weeds</a>.
However, most native grasslands have not just been modified by grazing but completely replaced by man-made pastures. That is, the land has been ploughed, fertilised and the seeds of introduced grasses have been planted.
These changes to the landscape mean much of the landscape is dominated by introduced plants and is now unsuitable for many of the native plants and animals that once lived and grew there.
Because the Natural Temperate Grassland of the Southern Tablelands is now so rare it is <a href="https://www.environment.nsw.gov.au/threatenedSpeciesApp/profile.aspx?id=20260" target="_blank">classified as critically endangered and federally protected</a>. Furthermore, many of the <a href="http://www.environment.gov.au/biodiversity/threatened/conservation-advices/natural-temperate-grassland-southern-tablelands" target="_blank">distinct plants and animals</a> that still live in these grasslands are classified as vulnerable or endangered.
<a href="https://images.theconversation.com/files/286193/original/file-20190730-186833-i4fw9q.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/286193/original/file-20190730-186833-i4fw9q.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
The pink-tailed worm lizard is one of the rare species living in the native grasslands of the Southern Tablelands. <a href="https://commons.wikimedia.org/wiki/File:Pink-tailed_Worm-lizard_(Aprasia_parapulchella)_(9106371285).jpg" target="_blank">Matt Clancy/Wikimedia Commons</a>, <a href="http://creativecommons.org/licenses/by-sa/4.0/" target="_blank">CC BY-SA</a>
Some of the best remaining examples of the Monaro grasslands can be found in old cemeteries and in areas set aside as public livestock grazing areas. These areas of public land have often been spared from pasture improvement or only lightly grazed, and thus now support relatively intact native grassland ecosystems.
While, to the untrained eye the Monaro grasslands may seem unremarkable and difficult to distinguish from grazing pastures, they are deeply important. They show us what Australia once looked like, and act as a haven for native biodiversity.
Indeed, what remains of the natural grasslands is now so disturbed by agriculture there is a real threat this distinctive ecological community and many of the species it contains may disappear altogether, if they are not protected from excessive grazing, fertilisers and the plough.<img src="https://counter.theconversation.com/content/121181/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Mike Letnic, Professor, Centre for Ecosystem Science, UNSW
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-are-native-grasslands-and-why-do-they-matter-121181" target="_blank">original article</a>.
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What are native grasslands, and why do they matter?

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GUEST OBSERVATION
As the dramatic shutdown of major recycling company SKM this week has illustrated, recycling is not free.
Householders in Australia pay council rates for a recycling and garbage service. This fee is largely based on the costs of collecting, sorting and processing, and – importantly – what returns are likely from selling the end product.
However, since 2017 the price on the open market for mixed plastics has <a href="https://www.sustainability.vic.gov.au/Business/Investment-facilitation/Recovered-resources-market-bulletin" target="_blank">plummeted</a> from about A$325 per tonne to A$100 per tonne. Mixed glass actually dropped to a negative value, which meant that generators were potentially paying for it to be taken away.
On the other hand, prices for high-quality recycling (not mixed materials or items contaminated with food, for example) largely remained the same or <a href="https://www.sustainability.vic.gov.au/Business/Investment-facilitation/Recovered-resources-market-bulletin" target="_blank">slightly increased</a>.
This shows the market for low-quality, poorly sorted recycling, which Australia has <a href="https://theconversation.com/heres-what-happens-to-our-plastic-recycling-when-it-goes-offshore-110356" target="_blank">previously</a> offloaded to China and other Southeast Asian countries, is ending.
Unless we improve our recycling industry, we must start sending more recyclable material to landfill – as is <a href="https://www.standard.net.au/story/6301694/recycling-in-landfill-following-processor-shutdown-council-confirms/" target="_blank">happening now in some Victoria councils</a>.
So what can we do about it?
Reduce first
Reduction, fundamentally, comes before recycling. We <a href="https://theconversation.com/we-cant-recycle-our-way-to-zero-waste-78598" target="_blank">need to avoid waste to begin with</a>, in our homes and businesses.
As consumers, we should be vocal about seemingly contradictory practices by businesses. For example, supermarkets congratulate themselves on reducing plastic bags, but then use small plastic toys as marketing tools – not even making them out of recycled plastic. These toys are destined for disposal, potentially contaminating recycling streams, and <a href="https://www.sbs.com.au/news/coles-and-woolworths-in-plastic-toy-promo-wars" target="_blank">not all consumers are happy</a>.
Throw out recycling properly
It’s tempting, if you don’t know whether something is recyclable, to simply put it in the yellow bin and assume someone on the other end will “sort it out”. But in reality, incorrectly recycled material can contaminate entire loads of otherwise valuable and useful recyclables, diverting it to landfill.
Councils blame the recyclers for this, who blame the councils. Everyone blames state governments, and they in turn blame the recyclers.
Fundamentally though, we as the generators of waste must assume a high degree of responsibility. We are the ones putting contaminants into the recycling system that everyone else in the management structure must deal with.
It’s our job to familiarise ourselves with what can and cannot be recycled – although, to be fair, this can vary widely from council to council, and should be made easier to check.
If we can clean up the recycling streams, markets should increase and prices for these commodities will similarly rise. This encourages those in the sector to <a href="https://theconversation.com/australian-recycling-plants-have-no-incentive-to-improve-81336" target="_blank">improve their plant technology</a>, and for others to enter in what would then be a more competitive market.
Develop the industry
Clean recycling still requires an established market to be profitable. Governments, as the single largest purchasers in Australia, can play an important role here.
The Victorian government has already <a href="https://www.governmentnews.com.au/victorian-government-moves-on-green-procurement/" target="_blank">committed</a> to helping government agencies increase recycled content in their purchasing requirements. Other governments are doing <a href="https://www.governmentnews.com.au/governments-should-buy-recycled-material-inquiry/" target="_blank">likewise</a> and this is a very positive step.
At a minimum, contracts and tenders should specify a certain level of recycled materials used in products sold to the government, or prefer those suppliers who do have recycled content.
One innovative approach where governments can use their purchasing power is with the use of plastic and glass recyclables in roads. Trials have been extremely positive.
In fact, the Australian Council of Recycling has <a href="https://www.sbs.com.au/yourlanguage/italian/en/article/2019/05/09/call-government-use-recycled-content-build-infrastructure" target="_blank">suggested</a> that using recycled material in construction for the Snowy 2.0 scheme would consume all the recyclables generated in Australia.
We need to chew and walk gum
The most important message is, just as there’s no single person or sector to blame for Australia’s dismal recycling situation, there’s no single solution. We all need to take more care with what we put in the bin. Governments around Australia should incentivise local manufacturers to use domestic recycling.
Recycling companies should certainly improve their technology so they can produce higher-quality material, which can be sold at a profit.
And, as the current SKM debacle illustrates, governments need a plan B when the market breaks down.
Even with all of this, a sustainable domestic recycling industry is some way off. We urgently need to start doing the things we already know will work, rather than playing endless rounds of a pointless blame game.<img src="https://counter.theconversation.com/content/121241/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Trevor Thornton, Lecturer, School of Life and Environmental Sciences, Deakin University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/dont-just-blame-government-and-business-for-the-recycling-crisis-it-begins-with-us-121241" target="_blank">original article</a>.
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Don’t just blame government and business for the recycling crisis – it begins with us

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<div class="column">EXPERT OBSERVATION</div>
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<div class="column">The CPI was 0.6% in the June quarter compared to the market median (and Westpac’s) forecast for 0.5%. The annual rate lifted to 1.6% from 1.3%.</div>
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<div class="column">The average of the core measures, which are seasonally adjusted and exclude extreme moves, rose 0.4% in the June quarter/1.4% over the year. In the quarter, the trimmed mean gained 0.42% while the weighted median lifted 0.37%.</div>
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 Incorporating revisions, the six month annualised growth in core inflation was flat at 1.3% over the year well below the bottom of the RBA target band and the slowest pace since March 1999.</div>
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 Standouts in the quarter were: on the positive or high side of expectations, clothing &amp; footwear which suggests we are starting see some impact from the AUD depreciation, stronger transports cost which was not just due to a jump in fuel prices but also a surprising 1.4% bump in automotive prices while the seasonal fall in pharmaceuticals was smaller than the historical norm.</div>
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<a href="https://www.propertyobserver.com.au/images/2019/8/1/CPI.jpg" target="_blank">Click here</a> to enlarge: </div>
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<div class="column">Source: Westpac</div>
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 Prices that fell or where on the low side of expectations – tobacco prices surprised with a fall, housing was flat on falling house purchases and utilities, household contents fell more than expected while health rose less than expected and recreation fell more than expected.</div>
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 Food prices fell as expected, with falling fruit &amp; vegetable prices more than offsetting rising prices elsewhere. For now, the impact of the drought has been limited but we are watching this space closely as it extends in length and depth.</div>
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 It is worth noting the lack of inflationary pulse in housing. Overall housing costs fell a little more than expected as falling dwelling prices combined with falling electricity prices and flat rents. This moderation in housing costs is central to our outlook for low non- tradable and core inflation.</div>
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 In nine of the ten quarters to the 2019 Q1, inflation forecasters overestimated the quarterly rise in the CPI by 0.12ppts. Including Q2 analysts’ have now underestimated the quarterly print for the CPI in two quarters of the last three quarters. This suggests that the disinflationary pulse may be fading, if not coming to an end.</div>
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<a href="https://www.propertyobserver.com.au/images/2019/8/1/CPI%202.jpg" target="_blank">Click here</a> to enlarge:</div>
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<div class="column">Source: Westpac</div>
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 There are still some embryonic indicators that retail, in particularly clothing &amp; footwear, furniture &amp; appliances as well as motor vehicles, are turning modestly inflationary due to the AUD depreciation.</div>
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 However, housing has a significant weight in the CPI (22%) so it has a meaningful impact on both headline and core inflation. As such, it is hard to find any near- term risk of a meaningful acceleration in inflation.</div>
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 Our preliminary estimate for Q3 CPI is 0.4% in the quarter/1.6% over the year for headline and 0.3% in the quarter/1.5% over the year for the trimmed mean.</div>
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Waiting for Godot has ended its long run
In the December quarter 2018, for the first time in two year the quarterly rise in the CPI exceeded market expectations. However, the first quarter of 2019 saw a return of a disinflationary pulse with the CPI print coming in under expectations with a flat print. 
Then it was reversed again in the June quarter with the CPI rising 0.6% vs. a median expectation for 0.5%.
 Including Q2 analysts’ have now underestimated the quarterly print for the CPI in two quarters of the last three quarters. This suggests that the disinflationary pulse may be fading, if not coming to an end.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/contributions.jpg" target="_blank">Click here</a> to enlarge:
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ABS confirms June quarter negative seasonality
As noted in our preview the June quarter 2019 was expected to be a seasonally soft quarter. 
However, on the estimates from the March quarter the estimated seasonal adjustment was +0.2ppt. 
In the June quarter release the seasonally adjusted CPI rose 0.7% so the seasonal adjustment factor was a smaller 0.1ppt. 
Revisions to the seasonal factors are a regular occurrence with the ABS conducting concurrent seasonal reanalysis.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/seasonality.jpg" target="_blank">Click here</a> to enlarge:
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For core inflation, the trimmed mean lifted 0.4% in the quarter
The average of the core measures, which are seasonally adjusted and exclude extreme moves, rose 0.4% in the June quarter. 
In the quarter, the trimmed mean gained 0.28%/1.6%yr while the weighted median lifted 0.37%/1.2%yr. 
The annual pace of the average of the core measures printed 1.4%, a very modest deceleration from the 1.5% pace in the March quarter.
Incorporating revisions, the six month annualised growth in core inflation was flat at 1.2% over the year, holding well below the bottom of the RBA target band and the slowest pace of core inflation since March 1999.
For a broader core inflation measure, more in line with some international measures, market sector goods and services excluding volatile items rose 0.5% in the quarter with the annual pace lifting to 1.8% from 1.6%.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/core%20inflation.jpg" target="_blank">Click here</a> to enlarge:
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We are yet to see the full inflationary impact of the drought
Food prices came as expected at 0.4% decline. Fruit &amp; vegetables fell slightly more than expected (2.8% vs 2.1%). 
Alcohol &amp; tobacco was slightly stronger (1.1% vs. 1.0%) with tobacco having a robust 2.4% rise following a surprising 0.7% in Q1.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/durables.jpg" target="_blank">Click here</a> to enlarge:
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A surprising bump up in car prices
Transportation rose 3.4% vs. 2.9% expected as car prices lifted 1.4% vs. our expectation for a 1.0% fall. 
Car prices are now up 3.4%yr, the fastest pace of growth since June 2020 and another sector we would expect to see the impact of the weaker AUD. 
However, the rise in car prices is more than what you would expect given the weakness of the AUD in either TWI terms or against the Japanese Yen.
Clothing has a larger than expected bump highlighting AUD pass-through...
Clothing &amp; footwear was stronger than expected rising 1.6% vs. our 0.5% expected. We are now seeing some pass through of the weaker AUD but the impact has not been uniform across this sector. 
Male garments are up 4.8% over the year while garments for women are down 0.2%. Footwear is down 1.1% over the year while accessories are down 1.0%.
...as does the rise in household contents &amp; services.
An area where the downside pressure on prices has been significant was household contents &amp; services. 
In the June quarter they rose 0.7% vs. our expectation for a 0.5%. There has been a turnaround in the trade exposed components with furniture prices up 2.8% over the year and household appliances up 5.1%.
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However, it is not all one way with textiles down 0.5% over the year and glassware down 4.1%. All up household furnishings are down just 0.4%, the softest deflationary pace since March 2018.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/inflaction%20pressure.jpg" target="_blank">Click here</a> to enlarge:
 
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Housing reveals signs of the housing correction in Vic and Qld, not so strong in NSW
The slightly softer than expected housing print reflected the fall in dwelling prices (0.2% vs. our forecast for a flat print – this reflected a further fall in Victorian dwelling prices of 0.4% in the quarter,  a larger 0.6% fall in Brisbane and a more modest 0.1% fall in NSW).
Rents were flat as expected while utilities fell more than expected (1.0% vs. 0.4% forecast) due to a 1.7% fall in electricity prices.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/dwelling.jpg" target="_blank">Click here</a> to enlarge:
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There remains a significant near term negative risk around dwelling purchases prices in NSW.
 Prices are already falling in Victoria while rents have flattened in NSW. Given that rents and dwelling purchases together are worth around 15% of the CPI, this is a significant risk for headline inflation, and even more so for the core measures where the weight is somewhat higher.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/narrow%20turnaround.png" target="_blank">Click here</a> to enlarge:
<img src="https://www.urban.com.au/images/2019/8/1/narrow%20turnaround.png" alt="">
Tradables stronger while non-tradables had a modest rise
Tradables rose 1.2% in the June quarter. Tradable goods rose 1.2% due to automotive fuel (10.2%). Tradable services rose 2.5% due to international holiday, travel and accommodation (2.7%).
Non-tradables rose 0.2% in the June quarter. Non-tradable goods rose 0.2% due to tobacco (2.4%). Non-tradable services rose 0.3% due to medical and hospital services (2.6%).
Looking forward inflation holds below the band
There are signs that we are getting some AUD deprecation pass-through to inflation in clothing &amp; footwear (for some selected groups) and in automotive vehicles. But it is harder to find any broader impact or wider inflationary pulse.
As housing has a significant group weighting in the CPI (22%) it has a meaningful impact on estimates of both headline and core inflation. As such, with core inflation below the bottom of the RBA’s target band we can find little to suggest any risk of a meaningful acceleration.
With crude oil prices easing there has been a turnaround in fuel prices which are expected to be a drag in Q3. Our preliminary estimate for the June quarter 2019 CPI is 0.4% which would see the annual pace steady at 1.6%.
Our preliminary estimate for the trimmed mean in the September quarter CPI is 0.3% seeing the annual pace ease a touch to 1.5%.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/inflaction%202.jpg" target="_blank">Click here</a> to enlarge: 
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Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
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Q2 CPI: Some AUD pass-through but housing is the anchor on inflation - Justin Smirk

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EXPERT OBSERVATION
Australian shares back to their 2007 high...at last!
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After nearly 12 years the Australian share market is above its November 2007 pre-Global Financial Crisis (GFC) high. 
The All Ords index surpassed it last week and the ASX 200 has done so this week. 
Basically, the Australian share market is looking through short-term uncertainties around the economy and focussing on lower interest rates and bond yields making shares relatively cheap, the likelihood that policy stimulus will ultimately boost growth, high iron ore prices boosting mining companies and a positive global lead. 
But why has it taken so long? Is the break out sustainable? And is the relative underperformance of Australian versus global shares over?
Why has it taken so long?
12 years is a long time to make a new high. US shares made it back to their 2007 high in 2013 and global shares did so in 2014. 
See the next chart. Since the March 2009 GFC low, Australian shares are up 118%, versus a 222% gain in global shares in local currency terms and a 347% gain in US shares.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%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/2019/8/1/share%20market%201.jpg" alt="">
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So why has the Australian share market underperformed global shares since the GFC such that it’s taken far longer to regain its 2007 high? There are basically five reasons:
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• Payback for its huge outperformance last decade –Australian shares go through periods of relative out performance and underperformance versus global shares. 
This can be seen in the next chart that shows the value of Australian shares relative to global shares. After underperforming global shares through the 1990s tech boom during which Australia was seen as “old economy” itcame roaring back during the resources boom last decade resulting in a huge outperformance. 
This is also evident in the previous chart – whereas global and US shares just made it back to their 2000 tech boom high by 2007 Australian shares more than doubled in value. 
This meant that the 2007 high for Australian shares was a much higher high than for global shares which really just spun their wheels last decade. 
So, the poor relative performance of Australian shares this decade is payback for their huge outperformance last decade. So, it’s naturally taken longer for Australian shares to get back to their pre-GFC high.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%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/2019/8/1/share%20market%202.jpg" alt="">
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• Tighter monetary policy for much of the post GFC period –whereas the US, Europe and Japan had near zero interest rates and quantitative easing, Australia has had much higher interest rates (until just recently) and no money printing.
 In fact, the relative underperformance really started in October 2009 when the RBA started to raise interest rates post GFC which was not followed by other major developed countries. See the previous chart.
• The surge in the $A to $US1.10 in 2011 – this reduced the competitiveness of Australian companies from which the damage can take a long time to reverse even though the $A has fallen to around $US0.70 in the last four years.
• The slump in commodity prices from 2011 – this weighed heavily on resources shares into 2006. US, European and Japanese shares have a lower exposure to resources.
• Property crash phobia – foreign investor fear of a crash inAustralia’s relatively expensive housing market has been a constant theme. Therefore, many stayed away.
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Are high dividends holding Australian shares back?
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An often heard view is that Australian companies are not investing because shareholders are demanding high dividends, and this is causing poor earnings growth and share market returns. This is unlikely. 
The dividend payout ratio (ie dividends relative to earnings) is in line with its historic norm. And it’smainly resources stocks that have boosted payouts since the GFC – but it’s been hard to argue they should ramp up investment so soon after the mining investment boom.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%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/2019/8/1/share%20market%203.jpg" alt="">
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The real reasons for the lack of investment by non-mining companies are likely to be post-GFC caution, wariness after getting smashed through the mining boom by the high $A, spare capacity &amp; competitive pressures, uncertainty about demand and too-high investment hurdle rates.
More fundamentally, Australia’s high dividend payouts arehealthy from a long-term perspective: high dividend payouts mean less risk of poor investment decisions from retained earnings, they are indicative of corporate confidence about future earnings and they indicate earnings are real.
2007 high was reached in 2013 with dividends
In fact, because Australian shares pay relatively high dividend yields (around 4.1%) compared to global shares (2.5%) they should be included in comparisons of Australian with global share market returns. 
Once dividends are allowed for (ie looking at the accumulation index, or total returns) the Australian share market surpassed its 2007 high in 2013.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%204.j">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/2019/8/1/share%20market%204.jpg" alt="">
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The next chart compares the relative performance of Australian to global shares since 1970 in terms of: relative share price performance in local currency terms (green line); relative total returns ie with dividends added in (blue line); and relative total returns with global shares in Australian dollars (red line). 
A rising ratio means Australian outperformance and vice versa. Several things stand out. First over long periods of time and when dividends are allowed for Australian shares have had better returns than global shares. 
Since 1970 Australian shares have returned (capital growth plus dividends) 10.4% per annum compared to 8.3% pa for global shares in local currency terms. 
The falling $A over this period has enhanced the return from global shares to 9.9% pa but they still slightly underperformed Australian shares.
Second, the swings in the relative performance of Australian shares are apparent if dividends and currency movements are allowed for or not - in particular in the big outperformance last decade and underperformance this decade.
Since October 2009 Australian shares have returned 8.4% pa compared to 10.4% pa from global shares in local currencies or 12.5% in Australian dollar terms (as the $A fell).
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%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/2019/8/1/share%20market%205.jpg" alt="">
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What’s the outlook?
Is the break out by the All Ords and ASX 200 to new highs sustainable? Going through past bull market highs after a long period below can attract investors into the market so it could push on for a bit. 
But after such a huge run – the market is now up 21% year to date – its vulnerable to a short-term correction: we are coming into a seasonally weak part of the year; the August earnings reporting season could result in volatility; and there are various risks in relation to trade wars, tensions with Iran and soft economic data. 
However, the combination of low bond yields which means that the share market is comparatively cheap, monetary easing by the RBA and other central banks and a likely pick up in global growth by year end and Australian growth next year point to even higher share prices on a six to 12 month horizon.
In terms of the Australian share market’s valuation, its price to 12 month ahead consensus earnings multiple of 16.5 times is above its long-term average, but shares are known to trade on higher PEs when inflation and interest rates are low. 
In fact, the gap between the forward earnings yield of 6.1% and the 10 year bond yield of just 1.2% is well above average making shares relatively cheap.
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Is the secular underperformance of Australian shares versus global shares over? So far this year Australian shares have outperformed global shares and the various comparisons in the last chart have hooked higher. 
Several of the factors that drove the relative underperformance this decade are fading:
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Much of last decade’s outperformance has been reversed. Payback has happened albeit it could still go further.
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The RBA is easing more aggressively.
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The surge in the $A to $US1.10 of 2011 has reversed making Australian companies more competitive.
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The commodity price slump from their 2008-2011 highs (depending on the commodity) looks to be over.
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Finally, the risks of a property crash dragging banks and the economy into recession may be receding.
The Australian dollar is still likely to fall a bit and it makes sense to maintain a decent exposure to global shares for portfolio diversification reasons. But with many of the negatives for the Australian share market fading it’s hard to maintain a strong case against it versus global shares.
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Key points
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The long time taken for Australian shares to regain their 2007 high and their underperformance compared to global shares this decade reflects a combination of payback after their strong performance last decade, tighter monetary policy, the strong $A into 2011, the slump in commodity prices and property crash phobia.
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High dividend payouts are not to blame.
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While the Australian share market is at risk of a short-term pull back it’s likely to be higher on a 6-12 month horizon and its period of relative underperformance compared to global shares is likely at or close to an end.
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DR SHANE OLIVER is the Head of Investment Strategy and Chief Economist at AMP Capital.
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Australian shares hit record highs - is the decade long underperformance versus global shares over? Shane Oliver

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Bundaleer Retreat, a Broken Head property located just 10 minutes south of Byron Bay on the Coast Road has hit the market with $2.75 million to $2.95 million hopes.
Sam Tancred of Byron Bay Property Sales has the listing.
Situated over five and a half hectares, the property at 1 Bundaleer Road comprises a main residence or manager's quarters, five private cabins, a large shed or workshop, covered BBQ area and 17 metre resort style pool with waterfall.
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The main residence comes with three large bedrooms, two separate living areas, well-equipped kitchen and covered deck.
Four of the cabins are open plan with a queen bed and single bed.
The fifth cabin features a separate bedroom and two single beds. 
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All cabins are fully self-contained and include a timber deck.
There are council approved plans for an additional five bungalows.  
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Bundaleer Retreat at Broken Head listed with $2.95 million hopes

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The Canberra industrial market had been stable prior to the election in May 2019, however there are glimpses of increased activity which suggest the start of a recovery cycle, according to the latest report from Herron Todd White (HTW).
The property valuation firm found commercial agents are reporting increased activity on the back of a stabilising residential market and improved consumer confidence.
The ACT government’s Four Year Indicative Industrial Land Release Program is based on the current level of demand for industrial land.
The program is intended to achieve a number of objectives, but in essence it is to increase the ACT government’s responsiveness to market changes by developing an inventory of land stock, where serviced industrial sites are available for immediate release.
Land will be available across new estates in Symonston (2020-21), Fyshwick and Majura Valley (Pialigo, 2021-22) as well as Hume.
The program aims to release 110,000 square metres over the next four years.
"Queanbeyan continues to provide a desirable option for owner-occupiers in the market, as increasing municipal rates in the ACT continue to discourage activity," the report said. 
"A Legislative Assembly committee is currently conducting a formal inquiry into the commercial rating system and has made numerous recommendations; the long-term effects from this are yet to be determined.
"Investors and owner occupiers are currently attracted to the small scale industrial market, particularly for superannuation purposes and also to have an asset that has potentially appreciating value and the ability to provide collateral for borrowing power.
"The outlook for the remainder of 2019 is for much of the same, namely growth and increasing activity on the back of a stable residential market and political climate.
"Industrial leasing demand is improving, however rents remain stable generally with a continued need for incentives.
"Further proposed rate cuts will have an impact on the market in the long term and some rental growth may be observed when tenant demand levels increase and sales activity begins to soften.
"The outlook for the Canberra and Queanbeyan industrial market is for increasing take-up levels over the next 12 months."
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Glimpse of recovery in Canberra's industrial property market: HTW Industrial

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The industrial property market across South Australia is expected to continue its recovery throughout 2019 as the market continues to be sustained by government investment in both the healthcare and renewable energy industries, according to the latest report from Herron Todd White (HTW).
The property valuation firm found investor sentiment has recently shifted from the retail to the industrial sector, mainly due to slowing trade growth within specific retail markets as retailers continue the fight against online shopping.
In contrast, warehousing and manufacturing benefits from the increase in online shopping, as companies require more warehousing space to facilitate the transport, manufacture and storage of goods.
Investors and major real estate investment trusts are looking to industrial property, as retail sectors such as department stores and clothing outlets recorded negative retail trade growth through the latter part of 2018 and early 2019.
HTW's property valuation experts stated: "Within the South Australian market, property remains tightly held in the sought-after northwest and inner-west industrial precincts.
"Limited sales of industrial properties occurred in these areas over the first half of 2019, making it hard for investors and owner-occupiers to enter the market.
"The majority of current industrial investment opportunities are available in outer suburbs such as Lonsdale and Edinburgh, which are 26 kilometres south and 35 kilometres north of the CBD respectively.
"Property remains tightly held in the north and western industrial sectors, with 14 sales of industrial use land in the first half of 2019 according to current sales data.
"The current low interest rate environment and recent cut in rates has resulted in further compression in property rents and yields."
Premium industrial space across the nation is currently fetching yields of 6.5%, while secondary space is generating yields of roughly 7.5%.
The Adelaide market is slightly better, with premium space measuring yields of 8% and secondary space nine%.
There has been no significant change in these figures since HTW's previous update in April.
Looking to affordable investments within the Adelaide industrial market, current offerings remain scarce amidst the shortage of recently completed industrial developments.
"Entry level stand-alone sheds within the north and innernorth industrial precinct are roughly $320,000 to $350,000, which would net the owner 305 square metres of industrial floor space in the northern suburb of Edinburgh and 180 square metres in the inner-northern suburb of Wingfield.
"Similarly, industrial investors can acquire a warehouse in the southern suburb of Lonsdale for $335,000.
"For the investor looking to enter the more popular west or inner-west industrial precincts, a warehouse and office in Marleston is currently on the market for $575,000.
"An industrial investor however can acquire a unit or a shed in these areas for almost half the price; sheds in Lonsdale are on the market for $175,000 for around 140 square metres of space, while a higher quality and larger unit (175 square metres) in the northern suburb of Mawson Lakes would set the purchaser back $275,000."
There have been no major shifts in industrial rents throughout the first half of 2019
Net rental levels for premium industrial space in the north are currently between $60 and $90 per square metre, $70 to $110 in the inner-north, $90 to $140 in the inner-west precinct and $60 to $80 in the south.
Slight upward pressure on rental growth is forecast throughout the latter half of 2019, as infrastructure investment and a decline in unemployment are expected to buoy the rental market for industrial property.
"The property market as a whole is predicted to stabilise throughout the remainder of 2019 as a Liberal government settles in for a new term.
"Investment in healthcare and renewable energy should fuel the demand for industrial space in South Australia as the market looks to recover from recent lows.
"Both the Darlington upgrade and the Northern Connector are expected to finish late this year, providing an upgrade to major freight and transport routes in the north and south of South Australia."
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Adelaide industrial property market recovering: HTW Industrial

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EXPERT OBSERVER
The Consumer Price Index – the main measure of inflation in Australia – rose by 0.6 per cent in the June quarter, above expectations.
In seasonally adjusted terms the CPI rose by 0.7 per cent. The annual rate of headline inflation lifted from 1.3 per cent to 1.6 per cent. The Aussie dollar rose by almost a quarter of a cent against the greenback in response.
The Reserve Bank monitors three measures to derive the underlying inflation rate. The trimmed mean rose by 0.4 per cent in the June quarter (1.6 per cent annual); the weighted median rose by 0.4 per cent (1.2 per cent annual) and the CPI less volatile items rose by 0.3 per cent (1.5 per cent annual). Overall, underlying inflation rose by around 0.4 per cent in the quarter and by around 1.5 per cent over the year. Market goods and services less volatile items rose by 0.5 per cent in the quarter to be up 1.6 per cent on the year.
Automotive fuel (+10.2 per cent), medical and hospital services (+2.6 per cent) and international holiday travel (+2.7%) recorded the most significant price gains. The most significant offsetting price falls this quarter are fruit (-4.1 per cent), electricity (-1.7 per cent) and domestic travel (-1.5 per cent).
<h1>What does it all mean?</h1>
- Inflation remains contained. But we can never claim that the inflation dragon is dead, rather resting. Higher fuel prices can be passed through in terms of higher taxi and public transport fares as well as freight and courier prices. Weather events like the current drought in eastern Australia can push up prices of supermarket goods as well as café, restaurant and takeaway food prices. The high activity in infrastructure building can put upward pressure on construction sector wages, in turn lifting prices of newly-built dwellings.   
- Clearly fuel and food prices are volatile. Fuel lifted 10.2 per cent in the June quarter, but over the past month, petrol is down by 3 per cent.
- If we are looking where future inflation pulses can come from, fuel prices, weather events, administered prices (such as utilities and child care), the exchange rate, construction and wages are the things to watch.
- Headline inflation has averaged 1.7 per cent over the past five years and averaged 2.1 per cent over the past decade. So clearly inflation remains below ‘normal’ levels and certainly still below the Reserve Bank’s 2-3 per cent target band.
- The key underlying measures of inflation rose 0.3-0.5 per cent in the June quarter. Even if the latest results were annualised, inflation would be below the Reserve Bank’s 2-3 per cent inflation target.
- Wages are still growing at a slower pace than in the past. But wages are outpacing prices and have lifted from lows. And businesses can’t absorb higher costs forever. The next wage price index data is released on August 14. 
- The Reserve Bank has cut rates in quick succession. At the same time there are indications that economic momentum has improved since the election. The US Federal Reserve is poised to cut rates. So it is opportune that the RBA stays on the interest rate sidelines for now. But with inflation below the target band and likely to remain low, the Reserve Bank can cut rates further if it believed it would be successful in generating faster economic growth, higher wages and lower unemployment. 
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CRAIG JAMES is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
 
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Inflation dragon still dozing: CommSec

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Australia's Consumer Price Index has risen 0.6 percent over the June quarter, slightly higher than expectations. 
The biggest drivers in the uptick of prices was fuel, up 10 percent.
International holiday travel and accomodation was up 2.7 percent, medical and hospital services was up 2.6 percent and tobacco was up 2.4 percent.
On the flip side, prices for fruit and vegetables were down 2.8 percent), domestic holiday travel and accommodation was down 1.5 per cent and electricity was down -1.7 per cent over the quarter.
"Inflation remains contained," noted CommSec chief economist Craig James.
"But we can never claim that the inflation dragon is dead, rather resting. 
"Higher fuel prices can be passed through in terms of higher taxi and public transport fares as well as freight and courier prices. 
"Weather events like the current drought in eastern Australia can push up prices of supermarket goods as well as café, restaurant and takeaway food prices. 
"The high activity in infrastructure building can put upward pressure on construction sector wages, in turn lifting prices of newly-built dwellings,' James advised.   
ABS chief economist Bruce Hockman said automotive fuel price rise of 10.2 per cent in the June quarter 2019 contributed to half of the 0.6 per cent rise this quarter.
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"Automotive fuel prices returned to levels recorded in late 2018 after falling 8.7 per cent in the March quarter 2019." The CPI rose 1.6 per cent through the year to the June quarter 2019, after increasing 1.3 per cent through the year to the March quarter. 
"Annual growth in the CPI continues to be subdued due to falls in a number of administered prices. Through the year, utility prices have fallen 0.2 per cent and child care has fallen 7.9 per cent following the introduction of the Child Care Subsidy package in July 2018."
Westpac had been <a href="/expert-insights/investing/cpi-forecast-to-rise-for-june-quarter-westpacs-justin-smirk">forecasting a 0.5% rise</a> in the June quarter CPI, taking the annual pace to a 1.5% rise from 1.3%.
"The June quarter tends to be a seasonally soft quarter with the ABS projecting a seasonal factor of 0.2ppt increase," Westpac's Justin Smirk said.
IFM economist Alex Joiner says the figures were a slight upside surprise, however it is inline with expectations on core measures.
ANU professor Ben Phillips says CPI for child care shows that since 2002 prices after subsidies up 69% or 14% (real terms). About -6% relative to incomes.
Darwin saw the biggest increase in inflation, up 0.8 percent, driven by a 14 percent rise in domestic holiday, travel and accomodation prices.
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