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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EXPERT OBSERVER
The three cities of Sydney, the Harbour City, the River City and the Parkland City will need a vision to have robust growth over the next 20 to 30 years.
With concerns being expressed across Sydney’s suburbs, that medium density could destroy the character of the detached house suburbs, it would seem that major development should occur inSydney’s three cities.
The Urban Taskforce has developed 20 to 30 year visions for the three cities of the Harbour City, the River City and the Parkland City at the Aerotropolis, to give a futuristic feel for how Sydney’s centres could look from 2040 onwards.
We were asked to produce these visions by the Sunday Telegraph and the Daily Telegraph so that their readers could get a glimpse of the future form of the three cities. 
To develop the visions, the Urban Taskforce has worked with Sydney 3D modelling firm Arterra Interactive, Sydney architects LAVA who provided futuristic building forms, and architects Bates Smart who provided a base form for growth aroundCircular Quay.
The Urban Taskforce supports the Greater Sydney Commission’s approach to the three cities, but we are concerned that there seems to be a very suburban approach to Sydney’s character that is beingpromoted particularly in relation to local character. 
The best way to preserve local character is to ensure that most new development occurs in more urban locations in city centres and around railway stations.
 Soour visions for Sydney’s three cities are deliberately robust with significant height and the incorporation of greenery within the urban cores.
It is good to see that the Lord Mayor of Parramatta, Andrew Wilson, is a supporter of a robust city for Parramatta, with building forms that are not just boxes. And that Sam Sangster, the CEO of the Aerotropolis Authority supports the futuristic vision for the Aerotropolis while expressing some concerns about the heights illustrated.
For the Harbour City, Sydney Lord Mayor, Clover Moore, supports more height but is concernedthat her plans are being held up by the state government.
An essential part of the Urban Taskforce vision for the three cities is that they are connected by fast rail and that they work as a connected economic system. 
Cities around the world are now becoming polycentric networks of economic power, where urban centres with quality jobs, retail and urban livingbecome cosmopolitan hubs for local communities.
Here are futuristic and current views of the three major cities for Sydney.
<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/2019/7/22/harbour%201.jpg" alt="">
<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/2019/7/22/harbour%202.jpg" alt="">
<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/2019/7/22/parkland%201.jpg" alt="">
<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/2019/7/22/parkland%202.jpg" alt="">
<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/2019/7/22/river%201.jpg" alt="">
<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/2019/7/22/river%202.jpg" alt="">
CHRIS JOHNSON is the Urban Taskforce CEO
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cjohnson-8xfqfuuCSq

Sydney's three city policy needs a vision for robust growth: Chris Johnson

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EXPERT OBSERVER
The business conditions index decreased 3pts to +1 in 2019 Q2 continuing the downtrend since early 2018 and is now just below average.
Business confidence rose sharply, lifting to +6 index points after a 0 index point reading in Q1. 
The down trend in conditions continued in Q2 2019, and for the first time since 2014 the quarterly survey has now shown a below average readying.
The decline in conditions suggests the business sector has lost significant momentum over the past year and that we are unlikely to see a substantial pickup in growth in the Q2 national accounts.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/nab%20table%20.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/2019/7/18/nab%20table%20.jpg" alt="">
 
Source: NAB
The strong lift in confidence appears to be related to the outcome of the Federal election, with the bulk of the survey conducted post election day and also around the time of firming expectations of rate cuts.
Based on the June Monthly Business survey we already know this effect was short-lived with confidence pulling back.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/nab%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/2019/7/18/nab%201.jpg" alt="">
 
Source: NAB
The decline in conditions has been broad-based over the past year, with all industries seeing a decline and the slowdown evident across all states. 
Mining continues to see the most favourable conditions, while retail and property are now weakest.
Across the states, NSW and VIC are only just positive, while the other mainland states are at the threshold of improving versus deteriorating.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/nab%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/2019/7/18/nab%202.jpg" alt="">
 
Source: NAB
Unfortunately, there is evidence of a softening in activity almost everywhere. All industries have weakened and the pull-back is evident in all states. 
Given the current focus on labour market developments for the future path of monetary policy, the slowing growth momentum and softness in leading indicators of employment warrant close watching.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/nab%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/2019/7/18/nab%203.jpg" alt="">
 
Source: NAB
In the quarter, current and expected employment measures all deteriorated – though all remain above average.
The share of firms reporting difficulty in finding suitable labour as a constraint on output ticked up in the quarter, and is elevated, but below pre-GFC levels. Over the past year, this measure has tracked broadly side-ways.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/nab%204.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/7/18/nab%204.jpg" alt="">
Source: NAB
Overall, it appears that while there is some tightness in some sectoral labour markets (e.g. mining) it is not yet tight enough nor broadly enough based to see significant nationwide wage rises. 
For now, the survey suggests ongoing employment growth but given the recent trends in the forward-looking measures, we will continue to watch closely. Our worry is that the slowdown in activity may translate into a more substantial weakening in labour demand.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/nab%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/2019/7/18/nab%205.jpg" alt="">
Source: NAB
Overall, price and wage measures in the survey continued to suggest weak inflationary pressures in the economy.
Output prices growth edged lower in the quarter and input prices growth and the wage bill tracked sideways – all at a low level.
Declining capacity utilisation and weak surveyed price measures suggest that inflation outcomes are likely to be meek for some time.
The impact of labour demand on wage growth will remain an important dynamic in this sense – with slack already evident in the labour market, any weakening in labour demand could well see further action from the RBA on rates to bolster the economy.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/nab%206.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/7/18/nab%206.jpg" alt="">
 
Source: NAB
ALAN OSTER is NAB's Chief Economist.
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j.ballantyne1990-6AQqhLzZaK

Business sector losing momentum with quick turnaround unlikely: NAB's Alan Oster

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St Joseph's Convent, a 1890s brick two-storey building in Bungendore, New South Wales is still on the market. 
Doug Merriman of Ray White Bungendore has the listing. 
Opened in 1891, St Joseph's Convent at 54 Turallo Terrace was once the home of Saint Mary MacKillop during her trips to Bungendore.
The original features of the building include fireplaces, skirting boards, cedar doors, plaster cornices, ceiling roses and stained glass window.
It currently comprises four guests with bathrooms, three additional bedrooms, two kitchens, scullery, dining room, lounge room and two additional bathrooms.
<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/2019/7/16/bungendore%202.jpg" alt="">
There is a Chapel to the eastern side of the Convent comes with stained glass windows and mezzanine area where madrigal singers once preformed.
Other features of the property include large Catalpa tree, rose covered arbour, lavender hedges, flowering bulbs, large walled courtyard and terrace.
Approved as a dual occupancy residence, St Joseph Convent could be converted to accommodate various uses such as retail, medical centre, four individual apartments, wedding venue, restaurant or educational facility with council permission. 
<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/2019/7/16/bungendore%203.jpg" alt="">
It is close to local amenities including schools, restaurants, shopping centre and train station, a short 20 minutes drive to Queanbeyan and an easy 30 minutes from Canberra. 
It was previously offered by expression of interest with a March closing date. 
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Historic St Joseph's Convent in Bungendore, NSW listed

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EXPERT OBSERVER
An expected soft update but a robust trend in participation is making it very hard to see unemployment getting below 5% any time soon, let alone getting down the RBA’s natural rate of 4.5%. Westpac is forecasting the unemployment rate to rise from here.
The June Labour Force Survey reported a 500 gain in employment. So far this year employment has been quite robust with a three month average gain of 29.2k in June from 35.8k in May and 24.45k in April.
The trend in employment remains on par with the three month average gain of 31.2k in January.
The May survey reported a strong 45.3k gain in employment (revised from 42.3k) with participation surging to a new record high of 66.0% boosting the labour force and lifting unemployment to 5.2%.
As such, we had thought there was a high risk of a statistical correction this month which is why we forecast a modest 10k rise in employment. The market median was 9k.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/unemployment%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/2019/7/18/unemployment%201.jpg" alt="">
 
In the year to June, employment has grown 296.3k or 2.4%.
The pace of employment growth has eased back from 2.9% in May but it is still stronger than the 2.2% at the end of 2018.
Our Jobs Index suggests employment should be growing around 2.4%yr currently before slowing to 2.1% through Q4.
In June, unemployment was flat at 5.2% (5.24% at two decimal places so just a whisker from 5.3% - it was 5.19% in May) and with the participation holding a record high of 66.0% (65.98% at two decimal places from 66.03% in May) the labour force grew just 700.
We had expected that a statistical decline in participation would have seen the unemployment rate fall to 5.1%.
Today’s update is further confirmation of a robust upwards trend in participation particularly in NSW which hit a record high of 66.2% in May.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/unemployment%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/2019/7/18/unemployment%202.jpg" alt="">
The big surprise in June was the drop in underemployment (those employed who are willing and able to work more hours) which fell 0.4ppts to 8.2%.
Underemployment did not improve as much as unemployment through 2018 and had recently been trending higher compared to the unemployment rate.
The correction in June has mostly reversed the surprising 0.3ppt jump in April.
In Victoria, the underemployment rate fell 1.5ppt taking that state’s underemployment rate back to 7.9%, more in line with 7.5% in NSW.
We had been surprised by just how high underemployment has been in Vic over the last few months.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/unemployment%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/2019/7/18/unemployment%203.jpg" alt="">
In the last year to June, most of the gains in employment have been full-time (246.5k/2.9%) and the share has been split evenly between males (121k/2.2%) and females (125.5k/4.0%).
As females are growing from a lower base they have a much faster growth rate but it is somewhat surprising that in the year to June, part-time female employment has been broadly flat while male part-time employment has grown at a 4.2% pace over the year. 
<a href="https://www.propertyobserver.com.au/images/2019/7/18/unemployment%204.jpg" target="_blank">Click here</a> to enlarge: 
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/7/18/unemployment%204.jpg" alt="">
Employment growth has held together so far in 2019 even if it is on a softening trend.
Unemployment and underemployment are drifting higher but the employment to population ratio has held around 62.4% since the end of 2019 highlighting that the rise in unemployment is more about rising participation than weak employment.
<a href="https://www.propertyobserver.com.au/images/2019/7/18/unemployment%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/2019/7/18/unemployment%205.jpg" alt="">
In the year to June, employment has grown 121.9k/3.5% in NSW compared to 126.5k/3.8% gain in Victoria.
Employment grew more modestly in Queensland (27.9k/1.8%) and just 11k/1.7% in South Australia and 20.5k/0.9%yr in Western Australian.
In the year to April unemployment has fallen 0.1ppt in NSW to 4.6% (the national low), –0.8ppt in Victoria to 4.8% and rose 0.6ppt in Queensland at 6.5%.
In which case, Queensland rose to 6.5% from 6.2% in May or 5.8% in June 2018. But this trend is shifting with unemployment up 0.3ppt in the last six months in NSW, 0.6ppt in Victoria with a 0.4ppt rise in Queensland.
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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Unemployment rate set to rise: Westpac's Justin Smirk

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GUEST OBSERVATION
The agreement by Building Ministers to establish a national approach to the implementation of the Shergold-Weir Report will assist the building industry, governments and the community to move forward with greater certainty and provides a significant recognition that a nationally consistent approach to improve community confidence in the building system is needed.
Whilst each state needs to take on board the recommendations of the Shergold-Weir report in a way that suits their existing regulatory frameworks, it is important that the end result after implementation will essentially be to deliver a consistent approach to the way buildings are approved, to the way building professionals are held responsible and to providing greater certainty for building owners.
HIA called on Ministers to include in this approach consideration of the current disjointed professional indemnity insurance arrangements with a view to ensuring that once implemented building professionals can move back to a situation where they can obtain affordable and appropriate insurance coverage.
National guidance is needed to limit the introduction of exclusions which go beyond combustible cladding.
HIA was pleased to once again be part of the Industry Forum with the Building Ministers, and we look forward to the Ministers releasing more details on the national approach and an ongoing dialogue.
Kristin Brookfield is HIA Chief Executive Industry Policy.
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Agreement on national approach to combustible cladding building reforms an important step: HIA

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A medical facility in Melbourne’s west is set to hit the healthcare investment market, representing the second day hospital offering in Melbourne this year. 
The Sunshine facility is currently leased to the largest gastroenterology and hepatology practices in Melbourne’s west, Dr Gastroenterology and Dr Scope, on two 10-year terms, both with further 10-year options. 
The 493 Ballarat Road property earns a passing income of $520,000 per annum with a fixed rental increase of 3% from April 2020. 
It is being marketed by CBRE’s specialist Healthcare team of Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto.
It follows the recent $5.52 million sale of Chesterville Day Hospital in Cheltenham on a yield of 5.1%.  
<img src="https://www.urban.com.au/images/2019/7/18/493%20Ballarat%20Rd-82.JPG" alt="">
“The recent Chesterville Day Hospital campaign generated strong interest from high-net-worth investors and national medical funds, highlighting a growing demand for premium hospital investments,” Peluso said.
The 2,130 square metre site is activity centre zoned, features 21 car parks and is surrounded by a range of retail and lifestyle amenity, including Sunshine Plaza and Sunshine Marketplace.  
“Located within a major activity centre, the property will benefit from the Brimbank City Council’s intentions to make Ballarat Road the gateway to Sunshine’s town centre,” Twelftree commented. 
 The expressions of interest campaign for the property ends August 21.
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Sunshine day hospital hits the market

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The retirement of the longtime owners of Elaine’s The Railway Hotel has prompted its listing.
It has an asking price of $749,000
Dean Wilson of Stockade &amp; Leggo Bannockburn is marketing the property.
Wilson says the pub benefits from being on the main road between Ballarat and Geelong.
“There’s no footy club here, so the pub’s the place to meet," he told The Herald Sun.
Situated at 5280 Midland Highway the hotel sits on a 1.23 acre plot.
With 5,000 square metres of internal space has a bar and meal trade, multiple accommodation and is also set up for functions.
Fully featured with main bar, bistro, mens and ladies W.C's, appointed kitchen, store room/cool room, warming wood fires, large undercover beer garden and five bedrooms with two bathrooms and two separate toilets.
Located between Buninyong and Meredith on Midland Highway, it is only 25 minutes to Ballarat and 40 minutes to Geelong.
Last sold in 2006, the property traded for $250,000.
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The Railway Hotel in Elaine, Victoria listed

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The unemployment rate has remained unchanged at 5.2% according to the recent figures from the ABS.
The figure is in line with market expectations.
The RBA are trying to drive the unemployment rate down to 4.5%, however the RBA believe it needs to below 5% in order for the economy to see adequate wage growth.
The number of unemployed persons edged higher, from 697,000 to 701,700.
The unemployment rate crept up slightly from 5.19% in May to 5.24% in June. It is now at its highest level in 10 months.
The unemployment rate dropped in Perth, however saw a rise in Victoria, Queensland, South Australia and Tasmania.
To see the state by state breakdown, <a href="https://www.propertyobserver.com.au/images/2019/7/18/ABS%20Unemployment%20figures.jpg" target="_blank">click here</a>.
<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/2019/7/18/ABS%20Unemployment%20figures.jpg" alt="">
There were forecasts from economists that there would be around another 9,000 jobs added, following on from the increase of 45,300 jobs in May. 
There were only 500 jobs added.
Full time jobs rose by 21,100, but part-time jobs fell by 20,600.
The trend participation rate increased to 66 percent over the month.
ABS Chief Economist Bruce Hockman said, "Australia's participation rate was at 66 per cent in June 2019, which means nearly two of every three people are currently participating in the labour market. " "The participation rate for 15 to 64 year olds was even higher and closer to four out of every five people, " Hockman said.
CommSec economist Ryan Felsman said the Reserve Bank is expected to hold for now.
"The Reserve Bank is expected to ‘sit pat’ for now, assessing incoming economic data over the coming months before deciding the next move for the cash rate," Felsman said.
"But the Board stands ready to act, “if needed” to support the economy and job market. 
"The end-of-month June quarter inflation data release is the next test."
 
  
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wdavis-8cCN98p7xp

Unemployment rate meets forecasts and remains at 5.2%

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EXPERT OBSERVER
CoreLogic estimates of monthly settled sales data points to a levelling in housing market activity, following several years of falling home sales.
Despite signs that market activity is leveling out, annual transaction numbers remain lower year on year across every capital city region of the country.
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Annually, transaction volumes continued to decline, however, recent monthly data indicates that transaction volumes may have stabilised. 
The decline in home sales has taken market activity to similar levels as what was recorded during the previous downturns in 2008-09 and 2011- 12.
Nationally, an estimated 412,154 settled dwelling sales occurred over the past 12 months which was - 17.5% fewer than the previous year. 
Although sales volumes are lower on an annual basis, monthly sales volumes have risen from recent lows and although market activity is lower than a year ago, the number of sales is relatively unchanged over recent months.
<img src="https://www.urban.com.au/images/2019/7/18/CL%201.png" alt="">
Sydney recorded an estimated 82,427 settled sales over the 12 months to June 2019; -21.9% fewer than the previous year and well down on the decade average.
 While annual sales are significantly lower, the chart highlights that on a six-month trend basis, sales volumes have started to increase slightly but are sitting at a level close to what was recorded in the 2008-09 downturn. 
With an unprecedented volume of off-the-plan unit stock under construction and already under contract, there will inevitably be some revision to these figures over coming years.
<img src="https://www.urban.com.au/images/2019/7/18/CL%202.png" alt="">
The six-month trend for Melbourne shows that the estimated number of sales trended slightly higher over recent months. 
Notwithstanding the recent improvement in transaction volumes, market activity has fallen to levels similar to those during the 2011-12 housing downturn.
Annually there were an estimated 64,546 settled sales over the past year which was -27.0% lower than over the previous year.
<img src="https://www.urban.com.au/images/2019/7/18/CL%203.png" alt="">
Unlike Sydney and Melbourne, there is little evidence as yet to indicate that transaction volumes in Brisbane may be stabilising. 
Transaction volumes continue to trend lower on a monthly basis and, although they are similar levels to those in 2008-09 they are not yet as low as volumes were during 2011- 12 downturn. 
Over the past year there were an estimated 39,641 settled sales across Brisbane which was -13.4% lower than annual sales over the previous year.
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The estimate of monthly sales across Adelaide have been trending higher over recent months and market activity has recently trended above the decade average.
Although there has been a recent uptick in sales volumes, over the past 12 months there were an estimated 22,650 settled sales which was -4.1% previous than the previous year.
<img src="https://www.urban.com.au/images/2019/7/18/CL%205.png" alt="">
Perth sales transactions slumped over recent years as the housing market downturn has carried on. 
Transaction volumes have recently stabilised, albeit at a level below previous housing market downturns. 
Over the past 12 months there were an estimated 29,263 settled sales which is -7.3% lower than the previous year. 
Although sales are lower on an annual basis monthly data suggests market activity has been steady of late.
<img src="https://www.urban.com.au/images/2019/7/18/CL%206.png" alt="">
Hobart is one of the few capital cities where sales have been above the decade average over recent years.
 Monthly transaction volumes have been declining for two years and are now sitting at around the decade average levels and likely to fall further. 
Over the past 12 months there were an estimated 4,691 settled sales which was down -11.4% compared to the previous year.
<img src="https://www.urban.com.au/images/2019/7/18/CL%207.png" alt="">
Transaction volumes in Darwin fell on an annual basis over the past year, down -9.2%. 
With ongoing market weakness, monthly data indicates that housing market activity has continued to slide, with the decline mirroring the ongoing decline in dwelling values. 
With the NT seeing a population loss and negative jobs growth, it seems as if demand for housing is continuing to shrink which is a major contributor to the ongoing slide in sales activity.
<img src="https://www.urban.com.au/images/2019/7/18/CL%208.png" alt="">
Although the monthly sales estimates are below the decade average in Canberra, market activity has begun to steady over recent months. 
On an annual basis, there was an estimated 7,386 transactions over the past year which was -8.6% lower than sales volumes over the previous year.
<img src="https://www.urban.com.au/images/2019/7/18/CL%209.png" alt="">
Across most cities there are some tentative signs that sales volumes may have bottomed. With two 25 basis point cuts to interest rates and lenders now lowering their serviceability buffers, access to finance is easing somewhat and borrowing power is increasing which should support a further increase in transaction volumes. 
One of the challenges for the market at the moment is historically low volumes of new properties entering the market for sale which is contributing to the low volume of sales. We anticipate that come Spring, new listings will increase which should lead to more transaction activity.
The challenge for vendors will be whether or not a potential pick-up in listings is accompanied by a commensurate pick-up in buyers in the market. While some restrictions on credit have been removed, accessing finance is still much more difficult than it has been in the past so demand could still be fickle over the coming months. 
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CAMERON KUSHER is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
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Home sales and housing market stabilising: CoreLogic's Cameron Kusher

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EXPERT OBSERVER
Westpac is forecasting a 0.5% rise in the June quarter consumer price index (CPI) lifting the annual pace to a 1.5% rise from a 1.3% rise.
The June quarter tends to be a seasonally soft quarter with the ABS projecting a seasonal factor of 0.2ppt increase. The seasonally adjusted CPI is forecast to rise 0.7%.
The trimmed mean is forecast to rise 0.33% in the June quarter or 1.5% over the year and the weighted median is forecast to rise 0.30% in the June quarter/1.1% over the year.
The average of the core inflation measures is forecast to print 0.31% in the June quarter with the annual pace easing back to a 1.3% rise from a 1.4% rise.
In June, we forecast that fresh fruit and vegetable prices drag food prices down 0.4% in the quarter.
<a href="https://www.propertyobserver.com.au/images/2019/7/16/CPI%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/2019/7/16/CPI%201.jpg" alt="">
Source: Westpac 
Housing costs are down slightly due to falling utilities and there is the usual seasonal fall in pharmaceuticals while car prices fall again.
Auto fuel is forecast to make the single largest contribution rising 11%.
Alcohol and tobacco rose modestly while clothing and footwear had a positive quarter.
Health costs continue to rise solidly (as rising medical and hospital services more than offset falling pharmaceuticals) and there was an unseasonal gain in domestic holiday travel.
Traded prices are forecast to rise 0.8% in the June quarter while non- traded prices are forecast to rise 0.4% in the June quarter.
Outside of fuel, there is very little inflationary pressure in the Australian economy.
<a href="https://www.propertyobserver.com.au/images/2019/7/16/CPI%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/2019/7/16/CPI%202.jpg" alt="">
 
Core inflation remains well below the bottom of the RBA target band as moderating housing costs hold back modest inflationary pressure elsewhere.
Competitive deflationary pressure in consumer goods is limiting the pass through of the weaker AUD though it is having an impact.
As such, we find it hard to see how core inflation could break higher any time soon.
<a href="https://www.propertyobserver.com.au/images/2019/7/16/2019%20Q2.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/2019/7/16/2019%20Q2.jpg" alt="">
Recap March quarter CPI - above expectations
The CPI was flat in the March quarter compared to a market median expectation of 0.2% and Westpac’s 0.1%.
The annual rate eased back to 1.3% from 1.8% in Q4.
Of note, housing costs were flat in the quarter as falling dwelling prices offset modest gains in rents and other housing costs which is key to low non-tradable and core inflation prints.
<a href="https://www.propertyobserver.com.au/images/2019/7/16/dwelling%20inflation.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/2019/7/16/dwelling%20inflation.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/7/16/dwelling%20prices.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/2019/7/16/dwelling%20prices.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/7/16/weaker%20AUD.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/2019/7/16/weaker%20AUD.jpg" alt="">
Drought is a surprising negative for food prices in Q2
The continuing dry conditions on the east coast have, for now, suppressed wholesale prices for agricultural goods as growers sell stock they can no longer support increasing supply. 
This is particularly so for meat (beef and lamb) but we have to be careful not to take this too far due to significant variation in the quality of stressed stock plus, for now, anecdotally many growers are choosing to bear the costs of feeding stock rather than selling.
<a href="https://www.propertyobserver.com.au/images/2019/7/16/lamb%20price%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/2019/7/16/lamb%20price%201.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/7/16/beef%20price.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/2019/7/16/beef%20price.jpg" alt="">
Beef and veal prices are expected to rise modestly as are lamb and goat prices.
Pork should have a seasonal fall in price but we are closely watching the rise in global pork prices as a large proportion of the Chinese pork herd is slaughtered to control an outbreak of African swine flu. This should be boosting the price of imported pork and has been boosting the demand for alternative meats including chicken.
<a href="https://www.propertyobserver.com.au/images/2019/7/16/veggie%20price.png" target="_blank">Click here</a> to enlarge:
<img src="https://www.urban.com.au/images/2019/7/16/veggie%20price.png" alt="">
Wholesale prices are pointing to meaningful fall in fresh fruit and vegetable prices. All up we are looking for a –0.4% fall in food prices (–0.07ppt contribution).
Alcohol and tobacco remains a source of inflation
Tobacco in particular remains a key source of inflationary pressure.
Even without excise indexing, tobacco prices are expected to rise 2% in Q2 contributing 0.06ppt to the CPI.
By comparison alcohol is expected to rise 0.4% contributing 0.02ppt to the CPI.
Clothing and footwear has a small seasonal rise
In recent years clothing and footwear prices have tended to rise in the June quarter due to the repricing post the New Year sales and before the start of the end of financial year sales.
We also expect to see some pass-through from the weaker AUD that has given a small boost to imported goods prices.
However, the trend has been for the Q2 rise to be softer than historically hence Westpac is forecasting a very modest 0.5% gain in the quarter contributing 0.02ppt.
Housing set to be flat in the quarter
We are looking for rents to be flat in Q2. Industry data suggests that with vacancy rates rising, particularly in Sydney, the pressure remains on rents.
But this series measures all rents being paid, including public sector rents, and not just the new contracts being signed (which is what is reported in most industry data).
As such, we caution against forecasting ongoing falls in rental prices, at least for now.
Dwelling purchase price changes in Sydney and Melbourne have been quite volatile on a quarterly basis but there has been a moderation in the annual pace consistent with industry data.
Price changes have eased in Brisbane and Adelaide while the correction in Perth was having a second wind through the second half of 2018 but stabilised in 2019 Q1.
For utilities we are also looking for the usual June quarter rebound in gas prices while the wholesale prices suggest some further correction in electricity prices is likely.
Our forecast a 0.1% fall in housing costs will contribute –0.01ppt to the CPI.
Household contents and services to have a seasonal bump
Furniture and carpets, household textiles and appliances are set to have a seasonal bump but we have muted it a bit for appliances as the price competition here has been limiting this rise.
Our estimate is 0.5% (contributing 0.04ppts) does include an allowance for some modest pass through from the impact of the weaker AUD on import goods prices.
Health has a seasonal bump despite falling pharmaceuticals
The June quarter is the first quarter for many households where the PBS (Pharmaceutical Benefits Scheme) kicks in as they have spent over the threshold limit on healthcare and thus can access government assistance.
But the rise in other health costs more than offsets this price fall and Westpac is forecasting 2.1% rise in health costs contributing 0.12ppt.
Automotive fuels will be the main boost to prices
For transport, pump prices of automotive fuels lifted 11% in the June quarter.
However, allowing for a seasonal fall in vehicle prices, and modest gains elsewhere, transport costs are likely to rise 2.9% in the June quarter contributing 0.29ppt.
<a href="https://www.propertyobserver.com.au/images/2019/7/16/auto%20fuel.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/2019/7/16/auto%20fuel.jpg" alt="">
Airfare data suggests domestic holiday travel prices are rising rather than the seasonal norm for a fall.
Normally domestic holiday travel costs fall in the June quarter as it is the offseason for the Australian travel/holiday industry. But BITRE airfare data suggests there were some modest gains in the quarter.
In addition, the weaker AUD is pointing to some price gains for international holidays.
When you add in the ongoing falls in the price of audio visual and computer equipment, recreation and culture is forecast to rise 0.7% in the June quarter contributing 0.07ppt.
<a href="https://www.propertyobserver.com.au/images/2019/7/16/domestic%20travel.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/2019/7/16/domestic%20travel.jpg" alt="">
Core inflation remains below the bottom of the band.
The trimmed mean is forecast to rise 0.3% with the annual pace easing back to 1.5% from 1.6% over the year.
Our forecast for the average of the RBA core measures of inflation is a modest 0.3% in the June quarter with the annual rate easing back to 1.3% from 1.4% over the year.
This will see the two quarter annualised pace of the average of the core measures ease back to 1.0% from 1.2% over the year.
Traded goods and services are forecast to rise 0.8% in the June quarter/0.7% over the year and non–traded prices are forecast to rise 0.4% in the June quarter /1.9% over the year.
<a href="https://www.propertyobserver.com.au/images/2019/7/16/indicator%20of%20cpi.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/2019/7/16/indicator%20of%20cpi.jpg" alt="">
JUSTIN SMIRK is ‎a 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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