The first partnership between national developer <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> and Adelaide-based developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> has made a strong start, with the pair securing $21 million in unconditional sales at <a href="https://www.apartments.com.au/new-apartments/one-four-four-hutt-adelaide-144-hutt-street-adelaide-sa-5000">One Four Four Hutt</a>&nbsp;on the edge of the Adelaide CBD.

Over a third of apartments have been snapped up in the boutique 44-apartment project on the corner of Hutt Stret and Wakefield Road. Local downsizers and owner-occupiers wanting to remain in Adelaide's tightly-held southeast quarter have been the most prominent purchasers.

The DKO-designed, mixed-use development is one of the few new apartment projects in the precinct, an area where new housing supply has remained limited despite continued demand from buyers wanting to stay close to the CBD, Victoria Park and Adelaide's established east-end amenities.

[smartcode_project:default project_id=151233 project_image_fid=375378]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

"The level of early commitment reflects the confidence local buyers have in the Hutt Street precinct," Dendrinos said.

"Many purchasers are long-term east-end residents who love the area and want to stay connected to the neighbourhood. They recognise the value of a well-designed, well-located development.

"Our partnership with Otello has been central to this success, and the number of unconditional sales at this stage only strengthens our confidence in the South Australian market."

&nbsp;

[smartcode_project:default project_id=151233 project_image_fid=375379]

Otello Director Daniel Harris said the sales result also highlighted the lack of new apartment opportunities within the Hutt Street precinct.

"One Four Four Hutt has clearly resonated with buyers, with strong early sales reflecting both the appeal of the Hutt Street corridor and the lifestyle on offer," Harris said.

"The activated ground-floor retail has also been a key drawcard, with purchasers responding to the vision of a more vibrant and connected streetscape, not just the residences themselves."

One Four Four Hutt will deliver 44 one, two and three-bedroom apartments, alongside a collection of penthouses, above a ground-floor retail offering designed to further activate the Hutt Street precinct.

Construction is scheduled to commence in the third quarter of this year, with completion anticipated in 2028.

[smartcode_project_cta:default project_id=151233]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

Joel Robinson

Fortis makes Adelaide debut with Otello as One Four Four Hutt records strong early sales

For all its prestige, Roseville hasn't seen many new apartment developments that genuinely cater to the suburb's owner-occupier market.

Most new projects on Sydney's North Shore have focused on increasing supply, but Aqualand Prestige's <a href="https://www.apartments.com.au/new-apartments/boronia-by-aqualand-roseville-2-4-larkin-street-roseville-nsw-2069">Boronia</a> is taking a different approach.

The 111-apartment project on Larkin Street has been designed around a buyer who already knows the area, whether they're downsizing from a nearby family home, upgrading from an older apartment, or moving into the suburb to be closer to schools and transport.

[smartcode_project:default project_id=152095 project_image_fid=372391]

Boronia is the first project from Aqualand Prestige, the boutique residential division of Aqualand, the developer behind projects including AURA in North Sydney and Blue at Lavender Bay. The project is being delivered in partnership with Phoenix Property Investors.

Rather than trying to maximise density, the focus has been on creating apartments that feel much closer to a house. There's a strong weighting towards larger three-bedroom residences, alongside a limited collection of four-bedroom duplex-style sky homes, a product that's rarely delivered in apartment projects on the Upper North Shore.

[smartcode_project:default project_id=152095 project_image_fid=373694]

Architecture firm Woods Bagot has designed the building to sit within Roseville's established tree canopy rather than dominate it. The building steps down the site with deep balconies, generous setbacks and a material palette of masonry and natural stone that reflects the suburb's established character.

"The forms float among the canopies along the Larkin Street ridge to maximise the outlook across the green sea of the treetops," Woods Bagot Principal Jason Fraser said.

"The architecture is deliberately simple and understated, so that the detail, the craftsmanship and, above all, the landscape can be the hero."

[smartcode_project:default project_id=152095 project_image_fid=373685]

The same approach continues inside.

Interiors by COX take inspiration from the surrounding bushland of Lane Cove National Park, using natural stone, timber and handcrafted finishes throughout the residences. Kitchens feature Gaggenau and Bosch appliances, while the penthouse collection includes upgraded stone finishes and bespoke detailing.

"We wanted the homes to feel like an urban retreat, where the boundary between inside and out simply dissolves," COX Director Brooke Lloyd said.

Landscape architecture by Ground iNK extends that connection outdoors, with mature tree planting, deep soil landscaping and retained established street trees helping the development blend into one of Sydney's leafiest suburbs.

Residents will also have access to landscaped communal gardens, a wellness centre and outdoor spaces designed more as an extension of their own homes than traditional apartment amenities.

[smartcode_project:default project_id=152095 project_image_fid=373687]

The location is another reason Aqualand Prestige believes Boronia will resonate with buyers.

Roseville Station is around a five-minute walk away, placing Chatswood just one stop down the line, while the Sydney CBD remains within easy commuting distance. The suburb also sits within the NSW Government's Transport Oriented Development precinct, where planning changes are encouraging more housing around existing rail infrastructure.

Despite those planning reforms, opportunities to secure a new apartment in Roseville remain relatively limited, particularly developments aimed at owner-occupiers rather than investors.

Aqualand Prestige Executive Director Wayne Xiong said Boronia was designed for buyers intending to stay for the long term.

"These are homes built for decades of living rather than for the moment," Xiong said.

"Whether buyers are downsizing, raising a family or simply seeking more space, they're choosing the scale and craftsmanship of a fine house in a suburb they love, with the ease and connectivity modern life calls for."

Boronia's two-bedroom apartments are priced from $1.79 million, three-bedrooms from $2.49 million, penthouses from $2.85 million, and four-bedroom duplex-style Sky Homes from $4.5 million.

[smartcode_project_cta:default project_id=152095]

Aqualand Prestige launches Boronia to undersupplied Roseville apartment market

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]

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

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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MG Motor Australia has announced 93 O’Riordan Street, Alexandra as the location for the marque’s flagship Sydney metro dealership and office space.
Leasing 1,100 sqm across two levels, the new Alexandria showroom is the first retail space operated directly by MG Motor Australia.'
MG Motor headquarters will remain at their 100 William Street location. 
The new 93 O’Riordan Street MG Motor flagship is leased through Colliers International, with global design retail consultant, Greater Group, delivering the interior design fit-out.  
Kim Nguyen, Sydney City MG Dealer Principal, said, “this new showroom allows us to be a part of the customer journey, while also offering a prime retail position for positive brand exposure – we’re looking forward to opening our new space here, with launch anticipated for Q3 2019.”
MG Motor Australia was recently honoured by parent company, SAIC Motor, as the number one market for sales growth in 2018 globally. Additionally, Werribee MG was recognised as the leading five-star dealership within Australia.
This news follows recent product news from MG Motor, who earlier this year confirmed the marque’s first all-electric vehicle, the eZS, will arrive in Australia in 2020.
MG Motor Australia now has 32 dealerships opened across the country, plus Q1 sales results are 501% up year-to-date, according to VFACTS.
Recently MG Motor expanded into New Zealand, opening four dealers.
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j.ballantyne1990-6AQqhLzZaK

MG Motor Australia reveals flagship Alexandria location

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The historic host of Brunswick East's Carbone Custom Made Clothiers has changed hands for the first time in 40 years.
Fitzroys agents Mark Talbot, Tom Fisher and Ervin Niyaz sold the prominent 297 Lygon Street building under the hammer on behalf of the New South Wales-based Richardson family.
Talbot said the sale price reflected a remarkably tight 2.0% yield, and a land rate of $4,352 per sqm.
Eclipsing that of the recent sale of 368 Lygon Street, which had a height allowance of seven levels, while the Carbone site has a height limit of five levels and is subject to heritage overlay controls
Set on a 618 sqm site, 297 Lygon Street has a single-level interwar Greek Revival brick showroom and warehouse building of 596 sqm, with the front portion utilised as a retail space and the rear for handcrafting and tailoring.
It has 16.85m of frontage to Lygon Street with rear access from Ann, Albert. and Trafford Streets.
Talbot said, “we received more than 60 serious enquiries during the campaign from all buyer groups, leading to competition between several bidders at auction."
Carbone has a short-term lease until September 2020 that returns $75,712 per annum.
According to Talbot, the new owner is a land banker.
Constructed through the late 1920s, the building was once home to Perfection Knitting Mills and from 1949 until 1970, 297 Lygon Street was occupied by shirt manufacturer Dorrens.
Fisher said the property was offered with an attractive Commercial 1 zoning, and a design and development overlay that encourages development of up to 17m in height.
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Historic Brunswick East retail freehold competed for under the hammer

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McGrath Estate Agency intends to depart its long-time Edgecliff head office in Sydney's east and take space in inner-city Pyrmont.
But there is some muted internal backlash since staff were advised of the move last friday.
It could see the agency set up a small Double Bay office.
For its head office, McGrath has taken the lease of a refurbished 1500 sqm ground floor space at 100 Harris Street, Pyrmont from late October. 
One insider reportedly suggested the new digs enabled McGrath to "continue its brand renewal."
The gross annual market rent in the former 1890s wool store sits was $600 to $700 a square metre, giving McGrath savings in lease expenses, according to the Nine Entertainment website.
McGrath will share the building with Domain and WeWork.
The agency had reduced the Edgecliff office size required on <a href="https://www.raywhite.com/nsw/edgecliff/1718420/" target="_blank">New South Head Road</a> last year with its executive suite advertised for lease.  
It moved to the current New South Head Road premises around 2002.
Its previously had its office at Goodhope Street, Paddington terrace and then Juniper Hall on Oxford Street, Paddington.
<div> </div>
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Pyrmont headquartered McGrath likely to open small Double Bay office

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EXPERT OBSERVER
The Australian economy grew by just 0.4% in the March quarter. It was a pick up from 0.2% in the December quarter, but over the year the four quarters taken together amounted to only 1.8%.
It’s the first time Australia’s annual economic growth rate has had a “1” in front of it since 2013, and the lowest annual growth rate since the global financial crisis.
<h2>Economic growth begins with ‘1’</h2>
1.8% is a big step down from the decade average of 2.6% displayed by Treasurer Josh Frydenberg on a chart prepared by his office, and below most estimates of the potential growth rate of the economy.
<hr>
Real GDP growth
<a href="https://images.theconversation.com/files/278058/original/file-20190605-40731-1tfy7tz.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/278058/original/file-20190605-40731-1tfy7tz.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Commonwealth Treasury
<hr>
And most of the 1.8% was the result of population growth.
GDP per capita fell marginally in the March quarter after slipping by 0.1% and 0.2% in the previous two quarters.
<h2>Growth per person is weak</h2>
It means GDP per capita has fallen for three consecutive quarters – the first time that has happened in almost four decades, since the early 1980s recession.
Over the year to March, GDP per person grew just 0.1%, a result that suggests living standards barely grew.
But actual living standards grew by more. The Bureau of Statistics says the best guide is “real net national disposable income per capita,” a measure that takes better account of prices paid and income received.
It grew by a more impressive 1% and 0.5% in the December and March quarters on the back of sharply higher commodity prices, suggesting that, for the moment at least, living standards are not going backwards.
<h2>Household spending growth is weak</h2>
Household spending climbed only 1.7% over the year, barely more than population growth. The treasurer’s graph shows it was and well below recent average growth of 2.7%.
Household consumption growth accounted for just 0.1 points of the 0.4 points of economic growth over the quarter, which is well down on its usual substantial contribution as it is the largest component of output - around 60%.
<hr>
Growth in household consumption
<a href="https://images.theconversation.com/files/278059/original/file-20190605-40731-1txzoz5.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/278059/original/file-20190605-40731-1txzoz5.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Commonwealth Treasury
<hr>
Consumption of discretionary items such as restaurant meals and entertainment, fell while consumption of essentials such as electricity, health services and rent, continued to climb.
The treasurer’s chart showed that most of the items on which we cut spending were discretionary.
<hr>
Growth in consumption by category
<a href="https://images.theconversation.com/files/278102/original/file-20190605-40723-1gbqj8d.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/278102/original/file-20190605-40723-1gbqj8d.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> March quarter. Commonwealth Treasury
<hr>
<h2>Home building is falling</h2>
Low wages growth and falling housing prices are factors dampening consumption growth. The downturn in the housing market is also weighing on output growth through falling construction. In the March quarter it declined 2.5%, and was 3.1% lower over the year, a far cry from 10% plus annual growth rates achieved as recently as three years ago.
<hr>
Growth in dwelling investment
<a href="https://images.theconversation.com/files/278081/original/file-20190605-40731-jaxr75.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/278081/original/file-20190605-40731-jaxr75.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Commonwealth Treasury
<hr>
<h2>Government spending has surged</h2>
By itself the government sector was responsible for half of the economic growth in the quarter, contributing 0.2 of the 0.4 percentage points.
Government spending surged more than 5% over year reflecting growth in spending on the National Disability Insurance Scheme and infrastructure.
<hr>
Growth in new public final demand
<a href="https://images.theconversation.com/files/278083/original/file-20190605-40758-y551n1.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/278083/original/file-20190605-40758-y551n1.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Commonwealth Treasury
<hr>
<h2>Exports supported growth</h2>
Net exports contributed another 0.2 points to the 0.4 points of economic growth, with exports of rural goods, ores and minerals and services increasing.
Imports fell slightly, reflecting a weak economy.
Australia’s terms of trade – the ratio of export to import prices – jumped 3.1% as supply disruptions – including a dam burst in Brazil – boosted the spot price of iron ore.
<h2>Investment has flatlined</h2>
Although business investment was 1.3% lower over the year, it climbed 0.3% and 0.6% in the December and March quarters, suggesting that the worst of the slide might be over.
Treasurer Frydenberg said it was a tale of two sectors - investment in mining fell 1.8% over the quarter and was down 10.6% over the year as part of the transition from the investment in new facilities to production.
More encouragingly, non-mining investment grew by 2% in the quarter, reflecting commercial construction.
<hr>
Growth in new business investment
<a href="https://images.theconversation.com/files/278100/original/file-20190605-40715-dnkuex.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/278100/original/file-20190605-40715-dnkuex.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Commonwealth Treasury
<hr>
<h2>Inflation is weak</h2>
Inflation is determined by productivity-adjusted wages (unit labour costs) and import prices.
Unit labour cost growth moderated to be up just 0.3% in the quarter. Labour productivity (GDP per hour) declined 0.5% in the quarter to be down 1% over the year.
Import prices fell slightly, although given the recent depreciation in the Australian dollar means they are likely to increase in the near term. For the moment it adds up to little inflationary pressure.
<h2>Households are less optimistic</h2>
Consumers’ expectations, as measured by the Westpac-Melbourne Institute Consumer Sentiment Expectations Index, have softened slightly this year, but remain well above the lows reached during the global financial crisis and early 1990s recession.
The index is made up of answers to questions about expectations for family finances over the next 12 months, economic conditions over the next 12 months, and economic conditions over the next five years.
They are presented on a scale where 100 means expectations of improving conditions balance those of worsening conditions and greater than 100 means optimistic responses outweigh the pessimistic.
<hr>
Westpac Melbourne Institute Consumer Sentiment Expectations Index
<a href="https://images.theconversation.com/files/278616/original/file-20190610-52753-1jdb9gq.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/278616/original/file-20190610-52753-1jdb9gq.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Trend, 100 means positive expectations balance negative expectations. Melbourne Institute
<hr>
<h2>Further ahead, the signs aren’t good</h2>
Subdued economic growth may well continue for some time. This is suggested by the Westpac Melbourne Institute Leading Index for April which points to below-trend growth for the next 3 to 9 months.
The index combines a selection of economic variables whose movements typically point to movements in gross domestic product, including the S&amp;P/ASX 200 stock index, dwelling approvals, US industrial production, the Reserve Bank Commodity Prices Index, aggregate monthly hours worked, the consumer sentiment expectations index the Westpac-Melbourne Institute Unemployment Expectations Index, and a financial market yield spread.
<hr>
Westpac Melbourne Institute Leading Index
<a href="https://images.theconversation.com/files/278098/original/file-20190605-40731-1r4yvtt.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/278098/original/file-20190605-40731-1r4yvtt.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Percentage deviation from trend growth, smoothed. Melbourne Institute
<hr>
This week’s Reserve Bank rate cut and those that follow will provide some support. The important question is how much will be needed.
More sluggish world growth due to increased trade tensions is likely to weigh on export growth in the near term. The depreciation in the Australian dollar, however, will provide a buffer.
A positive aspect for the consumption outlook is that there are tentative signs that the pace in decline in house prices is moderating, although what will happen is highly uncertain.
Overall, consumption growth is likely to continue to be soft, with at best only modest improvements in the near term. The downturn in residential construction clearly has further to run, with dwelling approvals in April down 24% on a year ago.
The government sector will have to continue to be an important source of growth in the near term. Whether non-mining investment growth will maintain its recent momentum is uncertain, as subdued consumption growth and the downturn in residential construction might dampen firms’ demand.
A problem faced by the Reserve Bank is that inflation has now undershot its target for so long that may be feeding into inflation expectations, making achieving the target more difficult.
Given the relative health of its budget, and Australia’s infrastructure needs, the government itself is in a position to step up and do more to boost the economy.
Look further ahead, the national accounts make clear that the government will have address Australia’s lacklustre productivity growth. It has been given a lot to work through.<img src="https://counter.theconversation.com/content/118273/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;">
<a href="https://theconversation.com/profiles/tim-robinson-138270" target="_blank">Tim Robinson</a>, Senior Research Fellow (Macroeconomics), Melbourne Institute, <a href="http://theconversation.com/institutions/university-of-melbourne-722" target="_blank">University of Melbourne</a>
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/expect-weak-economic-growth-for-quite-some-time-what-wednesdays-national-accounts-tell-us-118273" target="_blank">original article</a>.
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Expect weak economic growth for quite some time. What the national accounts tell us

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GUEST OBSERVATION
The facts are not in dispute.
Annual GDP growth has fallen to <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/5206.0" target="_blank">1.8%</a>. On a per-capita basis we have had three consecutive quarters of negative growth. The last time that happened was during the drought and recession of <a href="https://theconversation.com/expect-weak-economic-growth-for-quite-some-time-what-wednesdays-national-accounts-tell-us-118273" target="_blank">1982</a>, almost four decades years ago.
The most recent inflation reading was literally <a href="https://theconversation.com/vital-signs-zero-inflation-means-the-reserve-bank-should-cut-rates-as-soon-as-it-can-on-tuesday-week-115931" target="_blank">zero</a>. Real wage growth has been stagnant <a href="https://theconversation.com/this-is-what-policymakers-can-and-cant-do-about-low-wage-growth-101025" target="_blank">for six years</a>. Household debt is nearly <a href="https://bit.ly/2K0KbIZ" target="_blank">double</a> disposable income. And underemployment is <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0" target="_blank">more than 8%</a>, on top of a 5.2% rate of unemployment.
What is in dispute is what to do about it.
We’ve entered secular stagnation
After being been told for years that the economy is in good shape and that we are <a href="https://www.businessinsider.com.au/video-prime-minister-malcolm-turnbull-on-his-1-billion-ideas-boom-2015-12" target="_blank">“transitioning away from the mining boom”</a>, it’s time to face the reality that, like most advanced economies, we are in a low-growth, low-interest rate, low-inflation trap.
Former US Treasury Secretary Larry Summers has argued for some time that advanced economies, almost universally, are suffering from what he calls “<a href="https://theconversation.com/secular-stagnation-its-time-to-admit-that-larry-summers-was-right-about-this-global-economic-growth-trap-112977" target="_blank">secular stagnation</a>” — a protracted period of low growth caused by too much savings chasing too few productive investment opportunities.
If the description applies to us, and it does, there are only two ways to escape it.
We’ve two options
One is unconventional monetary policy: measures that have the effect that pushing interest rates below zero would have.
The other is aggressive fiscal policy: either big (and if necessary, repeated) tax cuts or a big (and if necessary, repeated) boost in government spending, each of which would put the <a href="https://theconversation.com/vital-signs-when-it-came-to-the-surplus-both-bill-and-scott-were-having-a-lend-116806" target="_blank">surplus</a> at risk.
What would an aggressive-enough monetary policy look like?
The starting point is a concept known as the “equilibrium real interest rate”. It’s the real (inflation-adjusted) rate of interest consistent with stable macroeconomic performance (which means full employment without financial bubbles).
1: Aggressive monetary policy
There is <a href="https://www.brookings.edu/wp-content/uploads/2019/03/On-Falling-Neutral-Real-Rates-Fiscal-Policy-and-the-Risk-of-Secular-Stagnation.pdf" target="_blank">compelling evidence</a> that in advanced economies such as Australia the equilibrium real interest rate is negative.
But getting there in a low-inflation environment is hard. The Reserve Bank can, if it chooses, set the cash rate as low as 0% (<a href="https://theconversation.com/the-reserve-bank-will-cut-rates-again-and-again-until-we-lift-spending-and-push-up-prices-118263" target="_blank">this week it cut it to 1.25%</a>) but it can’t safely move it much lower than zero. If it did, if people and firms found themselves having to pay money in order to keep money in banks, they might simply take their money out, giving the Reserve Bank even less control.
This problem is known as the “zero lower bound”. It means that if the bank needs to cut rates beyond than zero it’ll probably have to do something else that has a similar effect.
The most likely candidate is “<a href="https://theconversation.com/now-is-the-time-to-plan-how-to-fight-the-next-recession-111497" target="_blank">quantitative easing</a>” (QE), whereby the central bank buys long-term government bonds and other securities from investors that have them, effectively forcing cash into their hands, which the zero interest rate means they have little choice but to spend.
It shows up in lower longer-term interest rates (rates for borrowing 5, 10 or even 30 years into the future) and should boost spending and borrowing just as much as cutting short-term rates.
There are at least three difficulties with QE in Australia.
The first is that because the Reserve Bank has never done it before, there are questions about how it would mechanically execute on it. The United States and European experience is helpful in providing a template.
The second difficulty is getting out. Nobody, including the US Federal Reserve, really knows what happens when QE is unwound.
Third, if secular stagnation persists, then QE needs to be a long-term strategy. But is it possible for a central bank to expand its balance sheet buying bonds and securities indefinitely, even if it was buying them at a modest pace? Again, nobody knows.
2: Aggressive fiscal policy
If nothing else, the headaches with monetary policy suggest that fiscal policy might be an attractive alternative. It might also be more effective.
As Reserve Bank governor Philip Lowe noted <a href="https://www.rba.gov.au/speeches/2019/sp-gov-2019-06-04" target="_blank">in a speech on Tuesday</a>, done in a good way government spending on infrastructure could both boost the economy and boost longer term productivity, giving a double benefit. It could be complemented by “structural policies that support firms expanding, investing, innovating and employing people”.
It’s hard to argue with Lowe’s logic. So hard in fact that some of us have been saying <a href="https://www.afr.com/opinion/big-project-spending-a-good-way-to-kickstart-stagnant-economy-20150819-gj2i7v" target="_blank">exactly what he just said for some time</a>.
A quicker way to boost the economy would be to splash cash, either as Kevin Rudd did in the form of cash payments during the global financial crisis, or in the form of <a href="https://theconversation.com/its-the-budget-cash-splash-that-reaches-back-in-time-114188" target="_blank">tax offsets</a> of the kind the Morrison government announced in the 2018 and 2019 budgets.
Delivered straight into bank accounts, both have <a href="https://theconversation.com/election-tip-23-9-is-a-meaningless-figure-ignore-the-tax-to-gdp-ratio-115432" target="_blank">much the same effect</a>, even though one is classified as spending and the other as cutting tax.
The obstacle to doing such things is this government’s – make that this country’s – obsession with balanced budgets.
The surplus can wait
I have <a href="https://theconversation.com/vital-signs-do-deficits-matter-any-more-112680" target="_blank">argued strongly</a> and still believe that debt and deficits do matter, but at the moment we are in serious danger of falling into recession. That makes it imperative to act.
Given the politics of budget deficits and the narratives around economic management, it might be that the burden of action falls on the organisation the least able to pull it off in the present circumstances. That’s the Reserve Bank.
If Australia does dip into recession in the next year or two it will be an unforced error.
Not only would the government be responsible for it by not having taken strong enough action on spending when it could, the bank would also be responsible by taking action too late and letting things get to the stage where it had to act while interest rates were near zero.
Richard Holden, Professor of Economics, 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/vital-signs-if-we-fall-into-a-recession-and-we-might-well-have-ourselves-to-blame-118387" target="_blank">original article</a>.
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If we fall into a recession (and we might) we’ll have ourselves to blame

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Centuria and BlackRock have today announced the sale of their jointly-owned Zenith office towers in Chatswood.
It sold for $438.2 million, a record price for an office building outside of the Sydney CBD.
Knight Frank’s Tyler Talbot and Ben Schubert, in conjunction with CBRE’s Michael Andrews and Scott Gray-Spencer, brokered the deal.
The Zenith is A-Grade office complex comprising twin 21 level towers and basement parking.
The 821 Pacific Highway office building, 12 kms North of Sydney CBD property, attracted 10 offers after it was listed earlier this year <a href="/expert-insights/investing/the-zenith-chatswood-listed-with-400-million-price-expectations">with $400 million price expectations</a>.
Set on a 7,990 sqm site, it has a net lettable area of 44,102 sqm, with 785 parking spaces.
Centuria’s Head of Real Estate and Funds Management, Jason Huljich said, the sale price was "an outstanding result," reflecting the general strength of the market and Centuria and BlackRock's asset management strategy in enhancing the yield on the property.
Mr Huljich said income returns from the Centuria Zenith Fund have been excellent, "on average 7.7% p.a., which is very attractive in the current low interest rate environment.”
“The strong sale price achieved from The Zenith offers more proof of our ability to identify opportunities in strengthening markets, which allows us to implement our active asset management strategy to make our properties more attractive workplaces for both our existing and prospective tenants.”
“In the time we have owned The Zenith with BlackRock, our asset management teams have worked extremely hard on the property – they have closed 58 leasing deals to take the occupancy to 100% and increase the WALE from 2.5 to 4.3 years.”
“The success of our active management strategy is clear in the significantly increased rents.
"When we bought The Zenith in 2016, market rents were on average $490 per sqm net p.a. and we have recently completed a deal at $685 per sqm net p.a., which is the highest rate ever recorded in Chatswood. This is because tenants recognise the quality of the property and its position as the premier building in its market," he concluded.
<img src="https://www.urban.com.au/images/2019/6/7/Zenith%202.JPG" alt="">
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Zenith towers in Chatswood sold for $440 million

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Centuria and BlackRock sold their jointly-owned Zenith office towers in Chatswood to US giant fund manager Starwood.
It sold for $438.2 million, a record price for an office building outside of the Sydney CBD.
The Connecticut based Starwood Capital made the acquisition with New South Wales' Arrow Capital Partners.
Knight Frank’s Tyler Talbot and Ben Schubert, in conjunction with CBRE’s Michael Andrews and Scott Gray-Spencer, brokered the deal.
The deal was struck at a yield in the range of 6 percent and 6.5 percent. 
Early last year, Starwood Capital, Arrow Property Investments and Pindan Capital completed a $160 million purchase of the seven-level, 17,792 sqm St Leonards building at 29-57 Christie Street. 
The Zenith is A-Grade office complex comprising twin 21 level towers and basement parking.
The 821 Pacific Highway office building, 12 kms North of Sydney CBD property, attracted 10 offers after it was listed earlier this year <a href="/expert-insights/investing/the-zenith-chatswood-listed-with-400-million-price-expectations">with $400 million price expectations</a>.
Set on a 7,990 sqm site, it has a net lettable area of 44,102 sqm, with 785 parking spaces.
Allen's advised on the sale of two office buildings with lead partner Victoria Holthouse.
In 2016, Allens had advised BlackRock and Centuria on their joint acquisition.
"Having previously advised on the acquisition of The Zenith in 2016, we were delighted to again assist BlackRock and Centuria on the asset's sale," she said.
Centuria’s Head of Real Estate and Funds Management, Jason Huljich said, the sale price was "an outstanding result," reflecting the general strength of the market and Centuria and BlackRock's asset management strategy in enhancing the yield on the property.
Mr Huljich said income returns from the Centuria Zenith Fund have been excellent, "on average 7.7% p.a., which is very attractive in the current low interest rate environment.”
“The strong sale price achieved from The Zenith offers more proof of our ability to identify opportunities in strengthening markets, which allows us to implement our active asset management strategy to make our properties more attractive workplaces for both our existing and prospective tenants.”
“In the time we have owned The Zenith with BlackRock, our asset management teams have worked extremely hard on the property – they have closed 58 leasing deals to take the occupancy to 100% and increase the WALE from 2.5 to 4.3 years.”
“The success of our active management strategy is clear in the significantly increased rents.
"When we bought The Zenith in 2016, market rents were on average $490 per sqm net p.a. and we have recently completed a deal at $685 per sqm net p.a., which is the highest rate ever recorded in Chatswood. This is because tenants recognise the quality of the property and its position as the premier building in its market," he concluded.
<img src="https://www.urban.com.au/images/2019/6/7/Zenith%202.JPG" alt="">
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US giant fund manager Starwood buys Zenith Chatswood for $440 million

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Active first home buyers; investors on strike: Craig James

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CWP Renewables and Partners Group are pioneering Australia’s first, large-scale, public, community investment into a utility-scale wind farm. 
The Sapphire Wind Farm Community Co-investment allows investment in the Sapphire Wind Farm in the New England district.
At 270MW it is the largest wind farm in New South Wales. The energy generated by the Sapphire Wind Farm is enough to power around 115,000 homes and to displace 700,000 tonnes of carbon dioxide each year.
DomaCom, who has partnered with developers CWP Renewables and Partners Group, are closing applications for the co-investment initiative of Sapphire Wind Farm in rural New South Wales at the end of the month.
The Sapphire Wind Farm, in Kingsland is an Australian first for its community co-investment.
Initially the opportunity, closing June 30 was only made available for those in the local community, however building on the success of the campaign, the developers extended the initiative to all residents from NSW and the ACT.
Over $7.4 million of pledges were made by community members interested in investing throughout 2017/2018.
DomaCom's <a href="https://domacom.com.au/" target="_blank">fractional property platform</a> allows small investors alongside institutional investors.
The platform allows multiple investors to aggregate their investments into an asset, typically a real estate asset, but now also renewable energy projects.
Andrew Dickson at CWP Renewables, the company behind constructing the wind farm, said DomaCom is a great fit for the community co-investment initiative.
"Their online platform makes it very easy for people to establish and manage their investment," Dickson said, adding that after testing the community's interest late last year, he was surprised with the level of interest."
The project is projected to have a return of 6% which Andrew said, "represents a good investment... better than the bank."
A minimum investment of $1,250 is required (maximum investment of $200,000).
The latest fund raising seeks $3 million of pledges.
Ross Laidlaw from DomaCom said, "the Sapphire Wind Farm Community Fund is a clear demonstration of the vision of DomaCom taking large institutional assets and breaking them down into fractional components to allow retail investors to obtain exposure to an asset class not previously available.”
Construction of the wind farm began in January, and the final turbine was installed in October. 
100MW of the wind farm's capacity has been contracted to the ACT government, as part of the Territory’s 100 per cent renewable target for 2020.
Another 50MW of the project’s capacity was contracted to renewable energy retailer Flow Power, which has now sealed a deal with the Sydney Opera House.
Under that deal, the Opera House will buy 16 gigawatt hours of wind and solar output a year from both Sapphire and the Bomen solar farm, also located in NSW.
For more information on DomaCom <a href="https://domacom.com.au/" target="_blank">click here.</a>
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DomaCom Sapphire Wind Farm co-investment opportunity closes this month

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Allens has advised ASX-listed Mirvac Group (Mirvac) on its fully underwritten institutional placement to raise A$750 million.
They also offered counsel on a non-underwritten security purchase plan to raise up to A$75 million. 
Combined they make up one of the largest equity raisings in Australia this year.
The Mirvac equity raising follows a series of equity raisings by real estate groups.
"We're seeing several real estate groups move to capitalise on strong equity market conditions to embark on acquisitions or raise funds for future opportunities," said Partner Julian Donnan, who led the Allens team alongside Partner Kate Towey.
"Mirvac is one of Allens' long-standing clients and we were pleased to advise them on this landmark capital raising that will strategically position it for future growth," Kate said.
Approximately A$2.1 billion of capital has been raised by Australian Retail Estate Investment Trusts in 2019. Allens has acted on a number of these transactions, including:
- Acting for the underwriters on Dexus' A$900 million fully underwritten institutional placement; - Acting for Charter Hall Education Trust on its A$120 million fully underwritten institutional placement and follow on unit purchase plan; and - Acting for the underwriters on VIVA Energy REIT's A$100 million fully underwritten institutional placement.
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