One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

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>

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First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

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A retail property in Richmond has been sold for $965,000 at auction.
The 140 square metre property at 432 Bridge Road is currently set up as a restaurant with a first floor three bedroom dwelling.
It is located between Hunter and Fraser streets and has nearly five metres frontage to Bridge Road.
According to marketing agents, Teska Carson’s Luke Bisset and Fergus Evans, the property is of interest to both owner-occupiers and investors.
“This is a sought after retail location which will continue to benefit from population growth and the demand for inner-city apartment living, indeed several new apartment buildings have been completed in close proximity with others under construction providing a rapidly expanding retail catchment,” Evans said.
“Properties such as this have been very popular with small investors and owner-occupiers alike with demand growing as an alternative investment as global economic conditions have negatively impacted share markets.”
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j.ballantyne1990-6AQqhLzZaK

Bridge Road, Richmond restaurant space sells for $965,000

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The Redesdale Hotel in central Victoria is on the market with a price of $850,000 plus GST.
It has been offered by Dominic Romeo from <a href="https://www.realcommercial.com.au/property-hotel+leisure-vic-redesdale-502918374" target="_blank">Jellis Craig</a> Macedon Ranges.
Situated on 9,020 square metres, the property includes a two-bedroom cottage, bluestone dairy and magnificent bluestone stables.
<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/2018/8/27/REDESDALE%202.jpg" alt="">
Built in the 1850s, it is a landmark historical blue stone hotel which operated as a Cobb &amp; Co coach changing station. 
Redesdale is just over an hour out of Melbourne and is situated in the award-winning Heathcote wine region and close to the Macedon Ranges. 
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Historic 1850s Redesdale Hotel in Heathcote wine region listed 

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Jeff Xu's Golden Age Group has put to market the freestanding McKillop House on one of Melbourne’s laneways.
CBRE has the listing of the 12-14 McKillop Street property, located between Little Collins Street and Bourke Street.
It comprises a freestanding, five level Manhattan-style building over 1706 square metres featuring bespoke floors of 250 square metres and large industrial style windows.
The 361 square metre corner site has 22 metres frontage ideal for a diversity of uses including retail, hospitality, office, hotel and/or residential.
The property will be auctioned October 12 at 12.30pm on site, next door to the ISPT-Brookfield Foundry project.
It last sold at $11.55 million in 2015.
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Jeff Xu lists Melbourne laneway holding McKillop House

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The Old Trading Store is a corner convenience store that has been a part of Tasmania for the past century.
Located at <a href="https://www.realcommercial.com.au/property-retail-tas-premaydena-502690694" target="_blank">1 Saltwater River Road, Premaydena</a>, the family who have owned the store for nine years is asking for $595,000 plus stock at valuation.
The 220 square metre store has 10 car spaces and is on a 1104 square metre block.
It also has its own gas pump.
<img src="https://www.urban.com.au/images/2018/8/29/The%20Older%20store.JPG" alt="">
It is situated along the heart of the northern side of the Tasman Peninsula.
This building was originally constructed around 1900 and many of its period features are still visible.
The current owners have invested in a 30KVA generator wired to the store and residence in the case of power outages.
According to the owners, the store was re-roofed roughly 24 months ago along with a plumbing upgrade.
The holding also contains three bedrooms and one bathroom.
It is an 80 minute drive from Hobart.
The property last sold in 2009 for $300,000.
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Century old corner store in Tasmania on the market

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New research from Ray White Commercial shows the investment market continues to yield quality results across the 5,000 square metre plus industrial Brisbane sector.
High confidence coupled with an improvement in occupancy levels has ensured demand remains high.
Dan Costello from Ray White Commercial Queensland, says while the urgency seen in the investment market in 2017 may have subsided, capitalisation rates continue to remain compressed with prime average yields less than 7%.
“It’s encouraging to see high enquiry levels and an increase in sale of vacant sock to both investors wanting to reposition their assets, as well as owner occupiers,” Costello says.
Looking forward, findings concluded that across the Brisbane metropolitan area, there is over 575,000 square metres of potential industrial stock anticipated to enter the 5,000 square metre plus market in the next two years.
This is mostly demand led with little speculative supply expected to further hamper vacancy in the region.
The bulk of the development pipeline is located in ATC and the Southern precinct given its access to transport hubs.
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As financing is becoming problematic to obtain, there is a notable decrease in sentiment for the smaller private investor market. However, confidence remains high for quality, institutional grade investment stock, Costello said.
“We’ve seen limited quality stock available in the market over the last 12 months, which has shifted focus and grown volume of vacant stock transactions.
“We expect this may slow over the next year with a greater shift back to property fundamentals by investors, however as occupier demand continues to improve reducing vacancies, rental growth in the short term is anticipated.”
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Brisbane's industrial market continuing to yield good results

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<div>
The Hannah's Pies site in Ultimo has been sold for about $20 million.
The site, next to the Powerhouse Museum at 562-576 Harris Street, was sold with a leaseback to the pie shop. 
</div>
<div>
It was sold to Caper Property which owns two sites, both in inner-west Sydney. 
They are the Bald Face Stag Hotel and One Camperdown, Fairfax Media has reported.
Caper Property, which is seeking to capitalise in the build-to-rent and co-living sectors, is led by Chrsytan Paul formerly with boutique investment firm Aura Capital.
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Hannah's Pies, Ultimo site sold to Caper Property

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EXPERT OBSERVER
Households are feeling the pinch from frozen wages feeds into slower economic growth, and policymakers need to find a solution. 
<a href="https://www.smh.com.au/business/the-economy/rbas-philip-lowe-says-australians-fear-foreigners-and-robots-20170619-gwtr20" target="_blank">The crisis really is in real wage growth.</a> – Reserve Bank Governor Philip Lowe, 2017
Increased inequality and low wage growth are constraining economic growth. But why is wage growth so low? And how should policymakers respond?
<a href="https://wir2018.wid.world/" target="_blank">Income inequality has increased significantly</a> in most advanced economies since the early 1980s. In particular, very low rates of wage increase are widely blamed for the weak growth in aggregate demand this century and <a href="http://larrysummers.com/2016/02/17/the-age-of-secular-stagnation/" target="_blank">secular stagnation</a> since the Global Financial Crisis. The GFC was itself brought on by the rise in consumer debt that was used at first to support demand in an attempt to offset the impact of weak wage growth.
Fairfax columnist Ross Gittins recently <a href="https://www.smh.com.au/business/the-economy/with-wage-growth-on-the-blink-it-s-time-to-restore-union-bargaining-power-20180727-p4ztym" target="_blank">noted</a> that “many economists were disappointed by this week’s news … that consumer prices rose only 2.1%”. That was because low inflation is “usually a symptom of weak growth in economic activity and, in particular, of weak growth in wages”.
<iframe style="border: none;" src="https://datawrapper.dwcdn.net/tJ5vC/2/" frameborder="0" width="100%" height="500"></iframe>
Thus, today it is widely agreed that wages need to increase faster. The <a href="http://www.oecd.org/social/in-it-together-why-less-inequality-benefits-all-9789264235120-en.htm" target="_blank">OECD</a>, the <a href="http://www.imf.org/external/pubs/ft/weo/2015/02/" target="_blank">IMF</a>, leading US scholars, former US Treasury Secretary <a href="https://www.foreignaffairs.com/articles/united-states/2016-02-15/age-secular-stagnation" target="_blank">Larry Summers</a>, Nobel prize winner <a href="http://evonomics.com/joseph-stiglitz-inequality-unearned-income/" target="_blank">Joseph Stiglitz</a> and most recently Stephen Bell and I in our book, <a href="https://www.mup.com.au/books/9780522872279-fair-share" target="_blank">Fair Share</a>, have all argued that increasing inequality is bad for economic growth.
To solve this problem, the critical issue for policymakers is what is causing this rising inequality and weak wage growth? Unless we better understand the causes, we are unlikely to achieve an effective policy solution.
First, we can quickly dismiss the <a href="https://www.propertyobserver.com.au/http://www.abc.net.au/radio/programs/am/treasurer-says-tax-cuts-for-big-business-will-boost-wages/9399324" target="_blank">explanation offered</a> by federal Treasurer Scott Morrison, whose so-called “economic plan” assumes present low wage growth will respond positively to higher company profits. According to Morrison, a company tax cut will lead to more investment and thus more jobs, so eventually the benefits will trickle down and increase wages.
Unfortunately, this logic is the reverse of reality. It ignores the evidence that slow wage growth across all the developed economies has been a problem over a couple of decades now.
<a href="https://images.theconversation.com/files/232195/original/file-20180816-2924-1yqkxof.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/232195/original/file-20180816-2924-1yqkxof.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Slow wage growth is a continuing long-term problem in the developed economies.<a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/"> </a>
In fact, the evidence strongly suggests higher profits will not drive higher wages. The benefits of a company tax cut will largely be returned to shareholders, while the only wages that increase will be those of senior management.
Instead, higher investment will require increased consumer demand. And that in turn depends on stronger wage growth. In short, aggregate demand in a flat economy, like ours, is wages-led. Wages drive investment, not the other way around.
Broadly speaking, there are two serious schools of thought about what is causing weak wage growth and rising inequality.
One explanation puts most of the blame on a weakening of trade-union power.
The other explanation emphasises the impacts of technological change and, to a lesser extent, globalisation on the labour market. Together technology and globalisation are said to have changed job structures and demands for skills. They have reduced the share of middle-level jobs, which has directly increased income inequality, and they can depress the demand for labour more generally and thus wages in developed countries, but especially for less skilled labour.
These two explanations are not mutually exclusive – both may have played a role. However, I want to consider their relative significance as the basis for arguing which policy responses should be given priority.
Trade union power in Australia and its impact
A very distinguished professor of labour economics and former Industrial Relations Commission deputy president, Joe Isaac, <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1467-8462.12270" target="_blank">recently argued</a> persuasively that an important explanation of slow wage growth is “to be found in the change in the balance of power in favour of employers and against workers and unions”.
Isaac starts by noting that union membership in Australia has fallen from about 50% of all employees in the 1970s to the present 15%. This is one of the lowest rates in the OECD.
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Isaac also finds some correlation between income inequality (measured by the Gini coefficient) and trade union density for 11 OECD countries. More relevant, though, would be the change in inequality relative to the change in union membership, especially as Australia has always had a relatively high Gini coefficient.
Isaac argues that this loss of membership and the reduced authority of the Fair Work Commission has weakened the bargaining power of organised labour in Australia. Employers are now able “to determine no wage increase or an increase less than their profits would warrant, with less resistance from workers and unions”. Although Isaac admits that “this conclusion is based on the association over time of union power decline and slow wages growth”, he concludes that “it seems reasonable to claim, at least prima facie, a causal connection between them”.
I am more sceptical. While I wouldn’t rule out any impact on wages and employee conditions from a decline in trade union membership and the possibly associated changes in the power of the Fair Work Commission, I question Isaac’s analysis for the following reasons.
First, it is uncertain how much trade union power has declined as a result of loss of membership. Another test of trade union power is the proportion of wages determined by awards and collective agreements – as Isaac shows, this proportion has largely remained the same in Australia. Indeed, in some countries, such as France, trade union membership has always been very low, but they have a highly centralised system of wage determination, which allows the unions a lot of influence.
Second, other countries have also experienced increases in inequality – much greater than in Australia in most cases – but don’t seem to have experienced any notable loss of union power. For example, some of the biggest increases in inequality over the last 30 years, as measured by the Gini coefficient for final disposable income, have <a href="https://data.oecd.org/inequality/income-inequality.htm" target="_blank">occurred in countries like Sweden, Finland and Germany</a>, which are not associated with any loss of trade union power.
Third, Isaac’s analysis of wage inequality focuses entirely on a decline in the wage share of total <a href="https://www.investopedia.com/terms/f/factor-income.asp" target="_blank">factor income</a>. This ignores changes within the distribution of earnings. These latter changes are more important in many countries, and certainly for Australia.
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While the wage share in Australia has declined since the 1970s and early 1980s, this was at least partly a result of deliberate policy under the Hawke/Keating governments’ Accord with the trade unions, when it was accepted that the wage share had been too high. Even today the <a href="http://ace2017.org.au/wp-content/uploads/2017/07/Declan-Trott-Full-Paper.pdf" target="_blank">wage share is still higher than in 1960</a>, when the economy was generally considered to be performing exceptionally well.
Fourth, the changes in the distribution of earnings largely reflect changes in the structure of occupations rather than changes in relative wage rates. But trade unions seek to influence wage rates, and it is difficult to see how they can exert much direct influence over the structure of jobs.
For these various reasons, I don’t think the loss, if any, of trade union power can explain much of the increase in inequality in most countries over the last 30 years. It is necessary to look elsewhere for the explanation, and the main driver seems to have been the impact of technological change.
Impacts of technology and globalisation
In <a href="https://www.mup.com.au/books/9780522872279-fair-share" target="_blank">Fair Share</a>, Stephen Bell and I examine the causes of increased inequality over the last 30 years in most of the advanced economies. A critical starting point is to distinguish between changes in the job structure and changes in relative wage rates. As we <a href="https://books.google.com.au/books?id=CwtNDwAAQBAJ&amp;pg=PT135&amp;dq=%22no+change+in+relative+wage+rates,+but+employment+increased+faster%22&amp;hl=en&amp;sa=X&amp;ved=0ahUKEwjo7u3o7evcAhUI7bwKHTz_AO4Q6AEIJzAA#v=onepage&amp;q=%22no%20change%20in%20relative%20wage%20rates%2C%20but%20employment%20increased%20faster%22&amp;f=false" target="_blank">note</a>:
Even if there were no change in relative wage rates, but employment increased faster for both high-paid and low-paid jobs, the earnings distribution would show up as more unequal. What would have happened is that the composition of the top and lowest deciles of earnings would have altered, which would increase the median income of the top decile and reduce the median income of the lowest decile, which would in turn be reported as an increase in the inequality of earnings.
The consensus in the studies we reviewed is that increased inequality of earnings largely reflects the impact of technological change. Globalisation and increased participation in global value chains may also have played a role, but less so in Australia, which we attribute to Australia having a more flexible labour market than, say, America.
We also surmise that <a href="https://theconversation.com/finance-drives-everything-including-your-insecurity-at-work-101107" target="_blank">increased financialisation</a> and the capture of rents generated by technological change may help explain the very large increase in remuneration for the top 1%.
Interestingly, the OECD specifically rejected the hypothesis that regulatory changes have helped drive any significant increase in inequality. It <a href="http://www.oecd.org/els/soc/dividedwestandwhyinequalitykeepsrising.htm" target="_blank">found</a> that “the net effect of regulatory reforms on trends in ‘overall earnings inequality’ remains indeterminant in most cases”.
The principal impact of technological change, and globalisation to a lesser extent, has been to reduce the share of middle-level jobs. In particular, new <a href="https://www.propertyobserver.com.au/https://www.oxfordmartin.ox.ac.uk/publications/view/1314" target="_blank">information</a> and <a href="http://ceda.com.au/Research-and-policy/All-CEDA-research/Research-catalogue/Australia-s-future-workforce" target="_blank">communications technology</a> has had its <a href="http://www.urbanvillageworld.com/resource_center/Offshoring%20Article%20-%20Foreign%20Affairs1.pdf" target="_blank">greatest impact</a> on <a href="http://www.imf.org/en/Publications/WEO/Issues/2017/04/04/world-economic-outlook-april-2017" target="_blank">relatively routine tasks</a> <a href="https://www.propertyobserver.com.au/https://ideas.repec.org/p/mlb/wpaper/1192" target="_blank">involving middle-level jobs</a>, such as clerical occupations and the operation of basic machinery.
Technological change has also driven the fall in the relative price of capital goods. This has led to some substitution of capital for labour. Again, this is “particularly pronounced in industries with a high predominance of routine tasks”, as the <a href="http://www.oecd.org/els/oecd-employment-outlook-19991266.htm" target="_blank">OECD notes</a>.
These changes in job structure and the relative decline in the middle-level jobs have been the most important cause of increasing inequality in many countries, including Australia. Technological progress has also led to an increase in the demand for skills. In some countries that has increased the premium paid for skilled labour, but the extent of this depends upon the policy response affecting the supply of skills.
In Australia’s case, Bell and I <a href="https://www.mup.com.au/books/9780522872279-fair-share">find</a> that the premium for skills, and consequently relative wage rates, did not change much because of the increase in education and training effort. Accordingly, much of the increase in earnings inequality in Australia reflects changes in the job structure rather than changes in relative wage rates (see also <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-8462.2003.00296.x" target="_blank">Keating</a> and <a href="https://www.propertyobserver.com.au/https://ideas.repec.org/p/mlb/wpaper/1192" target="_blank">Coelli &amp; Borland</a>).
<iframe style="border: none;" src="https://datawrapper.dwcdn.net/ivRs4/1/" frameborder="0" width="100%" height="550"></iframe>
So what does this mean for policy?
Consistent with his view that a weakening of trade union power has driven the increase in inequality, Isaac <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1467-8462.12270">recommends</a> changing the Fair Work Act to rectify “the unbalanced industrial power in the labour market”. I can support most of Isaac’s recommended changes, and especially greater rights of union entry, which should help better police adherence to awards and wage agreements.
I also agree that Isaac’s recommended legislative changes are unlikely to result in unions abusing their increased power. This is because, as he puts it, “there are now prevailing forces, such as global competition and structural changes, which will continue to keep union power in check”.
However, these “prevailing forces” are what really caused most of the increase in inequality, as discussed above. I therefore doubt that these legislative changes will do much to reverse the increase in earnings inequality.
Instead, the best way to respond to the impact of technological change on the job structure and possible associated changes in wage premiums is to improve education and training. Enhanced education, training and labour market policies will help workers adjust to the challenges posed by new technologies and will also spur the adoption of those technologies.
In addition, if the supply of skills thereby increases in line with the increase in their demand, there should not need to be any change in relative wage rates. Although these types of reforms take time, in the end they can boost both aggregate demand and potential output, with benefits all round.
In short, as Thomas Piketty, in his <a href="http://www.hup.harvard.edu/catalog.php?isbn=9780674430006" target="_blank">major study on inequality</a>, <a href="https://books.google.com.au/books?id=T8zuAgAAQBAJ&amp;pg=PA313&amp;dq=%22the+best+way+to+increase+wages+and+reduce+wage+inequalities%22&amp;hl=en&amp;sa=X&amp;ved=0ahUKEwiepIuH--vcAhVEVLwKHa5_D6EQ6AEIJzAA#v=onepage&amp;q=%22the%20best%20way%20to%20increase%20wages%20and%20reduce%20wage%20inequalities%22&amp;f=false" target="_blank">concluded</a>:
To sum up: the best way to increase wages and reduce wage inequalities in the long run is to invest in education and skills.
Michael Keating<a href="https://theconversation.com/profiles/michael-keating-528224"></a>, Visiting Fellow, College of Business &amp; Economics, Australian National University
This article was originally published on The Conversation. 
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This is what policymakers can and can't do about low wage growth: Michael Keating

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It’s hard to read a paper at the moment without finding an array of negative headlines about Sydney’s declining property market.  While media reports paint an overwhelming gloomy picture for the market, a closer look at the data tells a more nuanced story.
<h2>Sydney’s top end dragging down the averages</h2>
The Sydney residential property market as a whole recorded negative growth in the first quarter and for the year to April 2018.
However, the latest data from CoreLogic shows this result was largely driven by the premium end of the market.
The most affordable 20% of dwelling values recorded gains in these periods.
In fact, the more affordable half of Sydney dwelling values recorded an uptick in prices when averaged out over the year to April 2018. However, a pullback at the more expensive end caused the overall average to be weighed down.
<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/2017/08/08/shutterstock_343792502.jpg" alt="">
The top end of Sydney dwelling values ($1.4m-$1.8m+) experienced the most significant decline. These properties suffered a substantial 7.2% decline over the 12 months to April 2018 which dragged the average down to -3.4% for the market overall.
Affordable property at the medium-low price ranges (under $875K) has been far more resilient.
“We often tell our investors to read the numbers, and understand the data, not the sensational headlines, and this is a typical case in point,” said Ironfish Head of Property, William Mitchell.
“Sydney has been an incredibly hot market so we do expect the overall market to trend sideways for a period. However, as the data demonstrates, there are sub-markets which can outperform the wider market, and these are the markets that we are looking for when it comes to selecting property to recommend to our investors.
“Though there will be a pullback in prices in pockets of Sydney, owners need to remember the market has increased significantly since the boom began in 2011, so a small adjustment is not a ‘bust’.”
<h2>Melbourne property market continues to perform</h2>
Like Sydney, the headlines for Melbourne property have focussed on the negative; specifically, Melbourne’s marginal decline (-0.7%) in residential property values for the first quarter of 2018.
Yet the data reveals that the Melbourne market has continued to perform, with the vast majority of price points recording positive growth over the 12 months to April 2018.
The affordable end of the market again recorded the largest gains. Properties priced $803K and under recorded an average gain of 9.87% in the year to April 2018 – a very strong result.
Only the most expensive dwellings (i.e. the top 10% of prices) recorded a negative gain in Q1.
<h4>The return of first home buyers </h4>
<div id="ig-8773e3f7-dd3f-1231-f65f-9208c80a9c5b" class="infogram-embed" data-id="8d184527-937a-4799-b7df-1c93ee767c42" data-type="interactive" data-title="First Home Buyers, All States " data-processed="1"> <iframe title="First Home Buyers, All States " src="https://e.infogram.com/8d184527-937a-4799-b7df-1c93ee767c42?src=embed#async_embed" frameborder="0" scrolling="no" width="320" height="240"></iframe>
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The outperformance of more affordable product has been much attributed to more first home buyers returning to the market. This is a trend we’ve seen not just in Sydney and Melbourne, but also across all the 5 major capital cities.
<h4>First Home Buyer mortgages on the rise</h4>
In Melbourne, strong population growth coupled with the increasing appeal of apartment living has further underpinned demand for the affordable end of the market.
Melbourne apartments recorded the strongest capital growth (6.8%) compared to apartments in any of the other 5 major capital cities for the year to April 2018.
Given Melbourne house prices have increased up to 70% since mid-2013, apartments continue to offer a significantly more affordable alternative to buyers.  At current median values, a Melbourne apartment is about 33.9% cheaper than purchasing a standalone house – providing a very strong incentive.
“With the tighter lending environment at the moment, affordability is definitely the flavour of the month. As a result, we are seeing more buyers turning to apartments and this market is expected to perform well in the medium term,” Mr Mitchell said.
 
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jrobinson-rf4aSBido9

Is the property market crashing? 

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“There’s lots of companies that are just wanting to make money. They basically just tell you whatever’s on their books is the right thing to buy. So, it’s hard to find someone you can trust. 
“What we liked about Ironfish is that they’re a company that educates and takes on board your whole financial situation and goals, not just your ability to access funds to purchase property. There’s heaps of events and education sessions that help improve your general financial IQ as well.” 
<h4>
<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/2017/chris-cindy-5-e1531102841752-300x244.jpg" alt=""> </h4>
<h4>CASE IN PROFILE</h4>
<ul>
<li>Brisbane based medical specialists</li>
<li>Experienced investors who were lacking a clear goal</li>
<li>Purchased 3 properties with Ironfish</li>
<li>9 investment properties in total</li>
</ul>
<h2>Not really ‘property investors’</h2>
Chris and Cindy Aubrey are Surgical Assistants working in multiple private hospitals in Brisbane. Originally from far north Queensland, Chris and Cindy moved to Brisbane for work, and have a young family of 2 kids, aged 2 and 4. Prior to investing with Ironfish, they already owned 4 investment properties which are scattered around Queensland, Western Australia and New South Wales, along with a Victorian property in their SMSF.
“We wouldn’t have called ourselves ‘property investors’ though. We had a couple of investment properties because we didn’t know what else to do with our money and we thought property was a good vehicle!
“After investing with Ironfish we really started to look into financial education, and at that point get into property investment a little bit more as a passion and with a clear goal.”
<h2>Finding someone you can trust</h2>
Apart from 2 out of their 9 properties, Chris and Cindy’s investments were purchased through a company. Chris and Cindy’s main challenge before investing with us, was<a href="http://www.ironfish.com.au/blog/2018/02/07/cancelled-contract-another-property-investment-company-went-ironfish-instead/" target="_blank"> finding a company they could trust</a>.
“We’ve had experiences with other property companies where they’ve sold us a property and left us. With Ironfish, we don’t feel like we’ve just been ‘sold to’. We hear from our strategist Linna regularly, not only to help us review our current portfolio but also to invite us to <a href="http://www.ironfish.com.au/seminars/" target="_blank">events and education sessions</a>. There’s always lots to learn.”
<h2>Knowing what you want</h2>
Chris and Cindy had a chat with our Brisbane based strategist, Linna Reakes, who listened to what they wanted to achieve and also invited them to come along to some Ironfish events and property investment seminars.
“We’ve been to a few events and they’re really good, especially Joseph. He’s a great speaker. What we got out of those events was that it <a href="http://www.ironfish.com.au/blog/2018/02/23/secret-success-everybody-overlooks/" target="_blank">starts with the mindset</a>, it starts with goal setting – which is not what we did initially in our property journey. We leapt into it without knowing what we wanted out of it. Now we have a clear goal; we are aiming to replace enough of our income so we don’t have to work so hard and can spend more time with the kids while they’re still young.”
<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/2017/chris-cindy-2-1024x683.jpg" alt="">
<h2>Property selection</h2>
Chris and Cindy were very specific about what types of property they were targeting when they talked to Linna.
“We told Linna we were looking for house &amp; land, and she helped us acquire a package located in <a href="http://www.ironfish.com.au/blog/2018/07/04/record-numbers-looking-for-homes-in-queensland/" target="_blank">South East Queensland</a> which met our criteria. We also purchased 2 other units in Brisbane, which provide good cash flow and are good quality builds that are going to hold their value. Credit to Linna to understanding what we wanted and showing us what she thought was suitable.”
<h2>The importance of follow up</h2>
While the performance of the property is important, Chris and Cindy agree that ongoing service and support is what makes a real difference.
“We’ve had good and bad experiences with different companies. We can look back and see which properties have done well and which haven’t; that weighs in on deciding if we’re going to invest with them again.
“But it’s also about communication and follow up. Companies mostly make their money on the event of a sale, but if they have good after-sale service we’re more likely to go with them again. And that’s what we appreciate about Ironfish. There’s good follow up; Linna is great, and the property management service has been good, no problems at all. We’re very happy with the care we’re getting as customers and in our portfolio management. And now that we’ve built a decent portfolio, we’re looking at managing that over the long term.”
<h2>Chris and Cindy’s property investment tips:</h2>
<ol>
<li>
Focus on your own education. We go to seminars, we have mentors and ask lots of questions. Don’t pay attention to mainstream media, look for reports from reputable sources.</li>
<li>
Get yourself a good team of people. We have a financial planner, accountant and mortgage broker – this is something we picked up from Ironfish. In the past 5 years, we’ve changed our accountant and planner to find people who understand and help us achieve our goals. That’s made a huge difference. For example, from an accounting perspective in structuring your properties: you may pay for advice upfront, but it could save you thousands down the track.</li>
<li>
Start with ‘why?’ Set a goal for why you’re investing in property and what you want to achieve out of it before you leap in.</li>
<li>
Consider the benefits of investing in new or off-the-plan property. We initially just fell into this type of investment, but we’ve since learned about the tax depreciation advantages. And also, depending on the area, new home starts are a sign of potential growth in an area. We now have 9 properties, half house &amp; land, half apartment. Most are new properties.</li>
<li>
Look at each of your properties as a business. We haven’t even set foot in any of our investment properties. We’ve got friends who’ve not bought based on a property having a colour of paint they didn’t like. Don’t let emotion sway your decision making. Let the numbers make the decision.</li>
</ol>
 
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Dr Chris and Cindy Aubrey - surgical assistants and Ironfish customers

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Australians are feeling much happier about their general health and wellbeing than they are about their finances, a new study has revealed – with home ownership being a key stress point.
A national Colmar Brunton survey has found that only 35% of Australians are satisfied with their financial wellbeing, while 59% are satisfied with their mental wellbeing, 50% with their social wellbeing and 45% with their health and physical wellbeing.
<h2>Renters more financially stressed than property owners</h2>
Owning a property versus renting a property has a direct effect on financial wellbeing, the study revealed, with renters (45%) much more likely to be dissatisfied.
According to social researcher Mark McCrindle, owning your own home or property is a perceived milestone that often affects people’s sense of satisfaction.
“Individuals compare themselves to their peer group and home ownership has been the wealth vehicle they have used,” Mr McCrindle told News.com.au. “Costs of living are going up and if they are still renting, rather than owning a house, it can add to their insecurities.”
<h2>Australians feeling unprepared for the future</h2>
One in three survey respondents said they did not have the financial freedom to make choices that would allow them to enjoy their lives.
A further 29% do not feel prepared for any potential financial setbacks or emergency events.
Funding retirement was top of mind for many respondents with 43% feeling their superannuation is not on track to allow them to maintain their standard of living into retirement.
The data also revealed that 36% of Australians believe they will need to keep working past the age of retirement.
<h2>A taboo topic</h2>
<a href="http://www.ironfish.com.au/blog/2018/05/31/advocating-financial-literacy-wellbeing-workplace/" target="_blank">Experts agree</a> that the journey to financial wellbeing starts with education. And yet financial education is notably lacking – it is not commonly taught in schools, or the workplace – and therefore an individual’s financial education is completely dependent on social, familial or community structures and resources.
“Wealth is a taboo topic,” says Ironfish CEO &amp; Founder, Joseph Chou. “It’s not taught in school, we don’t talk about it amongst ourselves, or with friends or colleagues, generally speaking. And yet, we know from experience that wealth can be learned.
“That’s why it’s so important to us at Ironfish to inspire people to take ownership of their finances and achieve the financial freedom they need to enjoy life now and feel more confident about their future.”
<h2>From renter to owner</h2>
In our experience, most people already believe that property is a great investment and has a strong link to their sense of financial wellbeing.
Most people probably also wished they’d bought property years ago but lacked the confidence to make a decision about which particular property to purchase or felt it was too far out of reach.
At Ironfish, our aim is to simplify investment concepts, provide quality education, investor tools, service and properties – and share our collective investment experience to help you achieve your property goals.
Over 86% of our staff are property investors<a name="_ftnref1" href="http://www.ironfish.com.au/blog/2018/07/13/aussies-feeling-fit-well-just-not-financially-new-research-finds/#_ftn1">[1]</a> including first home buyers and <a href="http://www.ironfish.com.au/blog/2017/10/16/thinking-beyond-sydney-rent-vesting-works/" target="_blank">rent-vestors</a> – so we have walked the path before.  
 
<div> </div>
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