<p>Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.</p>

<p>For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.</p>

<p>Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.</p>

<p>"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374893]</p>

<p>Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.</p>

<p>The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;</p>

<p>Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.</p>

<p>Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=269527]</p>

<p>Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.</p>

<p>"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."</p>

<p>The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.</p>

<p>"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374892]</p>

<p>Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.</p>

<p>Construction is underway with completion expected in mid-2027.</p>

<p>[smartcode_project_cta:default project_id=7354]</p>


Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

<p>Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.</p>

<p>The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.</p>

<p>The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.</p>

<p><a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.</p>

<p>The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359521]</p>

<p>The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359527]</p>

<p><a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.</p>

<p>"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.</p>

<p>"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.</p>

<p>"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.</p>

<p>"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359523]</p>

<p>The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.</p>

<p>Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.</p>

<p>EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.</p>

<p>WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.</p>

<p>"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.</p>

<p>"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."</p>

<p>Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>[smartcode_project_cta:default project_id=145590]</p>


Vitale breaks Byron Bay records with EADE sales flurry 

<p>When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.</p>

<p>But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.</p>

<p>As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.</p>

<p>For apartment residents, that can present a challenge.</p>

<p>If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.</p>

<p>That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.</p>

<p>It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.</p>

<p>As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.</p>

<p>Australia Post's Parcel Lockers provide one solution.</p>

<p><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/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe></p>

<p>Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.</p>

<p>The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.</p>

<p>For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.</p>

<p>For buyers, it's a reminder that the best apartment features aren't always the most obvious.</p>

<p>A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.</p>


The apartment feature many buyers don't think about, until their first missed delivery

<p><a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.</p>

<p>Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.</p>

<p>A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.</p>

<p><img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" /></p>

<p>"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.</p>

<p>"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."</p>

<p>The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.</p>

<p><img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" /></p>

<p>Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.</p>

<p>The architects say landscape is intended to be integral to the building rather than an applied element.</p>

<p>"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."</p>

<p>"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."</p>

<p>Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.</p>

<p>HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.</p>


HG Developments doubles down in Newstead with second Maud Street apartment development

<p>Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.</p>

<p>But in many cases, that's not actually what those sustainability ratings guarantee.</p>

<p>Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.</p>

<p>In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.</p>

<p>That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.</p>

<p>The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.</p>

<p>Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.</p>

<p>Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.</p>

<p>Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.</p>

<p>"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.</p>

<p>"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.</p>

<p>"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."</p>

<p>Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.</p>

<p>Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.</p>

<p>"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.</p>

<p>"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.</p>

<p>"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."</p>

<p>For apartment buyers, the shift is also changing the questions worth asking.</p>

<p>Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?</p>

<p>As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.</p>


What does it really mean for a building to be 'green'?

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>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;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>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.</p>

<p>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).</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<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>

<p>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.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

<p>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.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>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.</p>

<h2>What is NatHERS?</h2>

<p>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;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>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.</p>

<h2>How NatHERS Ratings Work</h2>

<p>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.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> 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.</p>

<p><strong>Cost Savings:</strong> 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.</p>

<p><strong>Environmental Impact:</strong> 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.</p>

<p><strong>Improved Comfort: </strong>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.</p>

<p><strong>Market Value and Desirability:</strong> 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.</p>

<p><strong>Compliance with Building Codes:</strong> 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.</p>


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?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>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.</p>

<h3>Convenience and accessibility</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>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.</p>

<h3>Vibrant lifestyle and community</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>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.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>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.</p>

<h3>Enhanced security and maintenance</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>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.</p>

<h3>Live-work-play balance</h3>

<p>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.</p>

<p>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.</p>


alisonwarters@gmail.com

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

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><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></p>

<h2>Who pays Stamp Duty?</h2>

<p>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.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>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.</p>

<p>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!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<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>

<p style="line-height:1.38">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.</p>


Ellen Walker

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

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>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.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><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" /></p>

<p>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</p>

<p>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.</p>

<p><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" /></p>

<p>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.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><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" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>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;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


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

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<p>A Victorian developer has paid $5.4 million for two adjoining residential properties netting the vendors a total of $2.7 million apiece and a possible windfall each of $800,000.</p>
<p>Teska Carson Director, George Takis said the owners of the 2 and 4 Littlewood Street Hampton properties could have expected circa $1.9 million each for their properties as individual sales.</p>
<p>"We are seeing more and more of these developments which have been very popular with residents looking to cash in on their good fortune whilst also increasing catchment for nearby retail centres, and providing councils with both increased revenue and maximisation of the use of local infrastructure. It makes a lot of planning "sense and has been widely accepted by communities,’’ Mr Takis said.</p>
<p>At just under $3,900 a square metre – a record for the area - for the land this is an extraordinary result driven by a robust housing and apartment market, low interest rates, Melbourne’s surging population and the relatively new planning regulations which have given the green light to multi-storey residential development within close proximity of activity centres."</p>
<p>Permission is being sought to develop a multi-level apartment building on the site.</p>
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mick.cee-iDmgDDAmu8

Developer pays premium for dual residential sites

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<p>South Gippsland's Welshpool Hotel Motel is on the market with expressions of interest open until August 17.</p>
<p>Complete with<span style="line-height: 1.3em;"> bar, bistro, open fireplace, beer garden and nine motel rooms, the venue was purchased five years ago and has been a finalist in the AHA’s ‘Best Country Bistro’ award for the past four years. </span></p>
<p><span style="line-height: 1.3em;">It is on the market through </span><span style="font-size: 12.1599998474121px; line-height: 1.3em;">Will Connolly from </span><span style="line-height: 1.3em;">Colliers International who said</span><span style="line-height: 1.3em;"> the Welshpool Hotel Motel is extremely well regarded within its industry.</span></p>
<p>“The South Gippsland area has always been a highly competitive buying zone for leasehold hotels.</p>
<p>"They are tightly held in this region which can only be a positive in terms of trade enjoyed by their operators," Mr Connolly said<span style="line-height: 1.3em;">.</span></p>
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Gippsland's Welshpool Hotel listed

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<p>A 12,000 square metre industrial site located a stone's throw from the proposed Perth Freight Link upgrade has been sold to a private investor for $4.8 million with no immediate plans for development.</p>
<p>The property, an industrial site at 30-36 Stockdale Road, O'Conner, <span style="line-height: 1.3em;">has two street frontages, heavy vehicle access and is close to Fremantle Port.</span></p>
<p><span style="line-height: 1.3em;">I<span>t </span>includes eight leased units </span>and a<span style="line-height: 1.3em;"> further 7,000 square metres of land.</span></p>
<p><span style="line-height: 1.3em;">Greg O’Meara from Colliers International said strong demand had seen numerous smaller sites in the O’Connor and Bibra Lakes area snapped up.</span></p>
<p>"As Perth Freight Link plans progress, there would likely be more movement in adjacent areas as landholders and investors sought to take advantage of the long-awaited transport corridor upgrade," Mr O'Meara said.</p>
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WA development site sells as land bank

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<p>Office leasing levels nationally have increased 13% when compared to the same time last year with overall square meter space up 22%.</p>
<p>Demand for office space is highest in New South Wales with <span style="line-height: 1.3em;">112,937 sqm leased so far this year, up from 64,629 sqm recorded in the first half of 2014. </span></p>
<p><span style="line-height: 1.3em;">Figures from Colliers International show interest in office space sized between 1,000sqm and 3,000sqm around Australia increased 31% from Q2 2004 to Q2 2015, with demand up 25% from Q1 2005 to Q2 2015.</span></p>
<p>Colliers International national director of office leasing, Cameron Williams, said larger firms are driving demand for office accommodation in 2015 compared to 2014. when smaller space was in strong demand.</p>
<p>“Core premium remains the most challenged market however, as we had anticipated, a flight to quality is occurring that will result in significant commitment within the core premium market during the second half of 2015," Mr Williams said.</p>
<p>“In 2014, we saw the government sector dominating as they put large requirements into the market. However, as we move into the second half of 2015 we are seeing business services, communications and finance catching up and dominating both in enquiry levels and leasing deals being negotiated.</p>
<p><span style="line-height: 1.3em;"> “At the smaller end of the market there has been a lot of activity from Asian investment companies that have a preference to be located in Sydney’s midtown. </span><span style="line-height: 1.3em;">This growth is naturally having a positive impact on net absorption and lessors are becoming more confident."</span></p>
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Sydney surges into second half as office leasing deals spike

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<p class="x_MsoNormal">A prime Adelaide CBD multi-deck car park with development potential in central Adelaide has sold <span>for $27,001,000. </span></p>
<p class="x_MsoNormal"><span>The sale price represents a rate per bay of almost $47,000.</span></p>
<p class="x_MsoNormal"><span>Colliers International’s Ian Thomas, Alastair Mackie and Paul Van Reesema sold the Union Street car park located at 52-70 Frome Street in Adelaide.</span></p>
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jchancellor-FAypfDUnLy

Adelaide CBD car spaces fetching $47,000

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<p>A speaker at a seminar in Melbourne told the audience they should buy in a particular suburb because the median unit price had jumped 20%-plus in the previous 12 months.</p>
<p>I’m not sure I’ve heard worse advice in a public forum.</p>
<p>But it’s a common syndrome in real estate - one that defies all logic, but common nevertheless.</p>
<p>For many years I have observed investors getting excited about buying in a location because they read/heard that it had shown exponential price growth in the recent past. </p>
<p>There are multiple reasons why this is a mistake. </p>
<p>The first is that they would be buying in a location <span>after</span> the big growth has happened. Publicity-hungry research firms that publish lists of the highest annual growth are telling you where you should have bought a year ago – maybe. </p>
<p>The second reason is that the figures show the rise in the median price, which doesn’t mean values have risen to the same degree. Given the way median prices work, it’s not uncommon for the median price to rise in an area where values have fallen.</p>
<p>The third reason is that the figures are often nonsense, wildly distorted by a small sales sample or a short time frame. </p>
<p>Here’s a recent example. RP Data, a persistent source of worthless information on real estate prices, recently spat a list out of its computer of the five locations in each state/territory which had shown the highest price growth in the most recent quarter. </p>
<p>Numerous locations on these lists had (allegedly) recorded median price growth between 25% and 35% in three months. </p>
<p>If this represented actual growth in values at those levels, this would be the greatest real estate boom in the history of the planet. But it did not mean anything of the sort. <span style="line-height: 1.3em;"> </span></p>
<p>In each case, it was a statistical aberration. There was not a single instance among those 40 locations where values were rising at the levels suggested. </p>
<p>In most cases, the statistical glitch was caused by a small sales sample. More than half of the 40 locations had fewer than 30 sales in the previous 12 months, which meant the quarterly data was based on only six or eight sales. </p>
<p>Some had only 10 or 12 sales in the year, providing a quarterly sales sample was just two or three sales. To publish median price results on samples so small is irresponsible as well as misleading. </p>
<p>In every case – i.e. in all 40 locations – the RP Data growth figures were contradicted by figures from other research sources. </p>
<p>RP Data claimed Harlaxton in Queensland had grown 28% in three months, but Domain recorded zero growth for the same location. RP Data said Cape Schanck in Victoria (a tiny market with only 14 annual sales) had grown 29% in one quarter, but Domain said its median price had actually dropped 1.3%. RP Data said Manjimup in WA had jumped 29% in three months, but Domain said it had declined 3% for the quarter and 1% for the previous 12 months.</p>
<p>The problem is that some media organisations, especially the online magazines, publish these furphies as if they’re nuggets of gold for information-starved investors. </p>
<p>“Australia’s top property markets revealed!” shout the headlines. </p>
<p>How can they be so careless?</p>
<p>A more accurate headline would: “Australia’s worst misinformation exposed!”</p>
<p><em>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> </em></p>
<p class="Normal"><span>Terry was recently joined by </span><em>Property Observer</em><span> editor at large Jonathan Chancellor for a webinar on why research is the key to successful property investing in 2015. You can download slides and audio from the webinar </span>here<span>.</span></p>
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terryryder-YECXbqmri2

Real estate advice syndrome a common problem: Terry Ryder

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<div>The ABS released its Lending Finance data for May 2015 which showed that low interest rates are encouraging greater borrowing across the economy.</div>
<div> </div>
<div>While total lending was a little lower than in April on a seasonally adjusted basis, over the past year the data has strengthened considerably.</div>
<div> </div>
<div>Owner-occupied housing finance has increased to a record high level, while personal finance borrowing is also now tracking at its highest benchmark on record.</div>
<div> </div>
<div>Total lending finance for the month of $74 billion was an increase of 10% on the prior year figure, sending total finance commitments for the past 12 months surging 11% to $846 billion - the highest ever figure on this survey.</div>
<p><a href="https://1.bp.blogspot.com/-r7zMiNP0hrE/VaMqbW5y3nI/AAAAAAAAW2g/Hv0pU7OKztM/s640/LF3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://1.bp.blogspot.com/-r7zMiNP0hrE/VaMqbW5y3nI/AAAAAAAAW2g/Hv0pU7OKztM/s640/LF3.jpg" width="640" height="282"><br><br><strong><span style="text-decoration: underline;">Sydney property investors running riot</span></strong><br><br></p>
<div>While property investor loans have evidently passed their peak for this cycle in Western Australia and the Northern Territory, elsewhere investor loans are trending upwards.</div>
<div> </div>
<div>Indeed in New South Wales investor lending is exploding off the top of the chart, with the May 2015 result of $6.07 billion again comfortably the greatest ever<em> </em>month of investment lending in any state or territory.</div>
<div> </div>
<div>Summarily, Sydney now has the highest ever level of investment lending in concert with the lowest stock on market levels we have seen. </div>
<div> </div>
<div>Egg on face for many of the property experts once again, though it should be noted here that the market regulator "should" now be targeting Sydney loans with a vengeance in order to dial back this exuberant level of demand.</div>
<p><a href="https://3.bp.blogspot.com/-y4pNm4gMQPI/VaMufvQ20hI/AAAAAAAAW3U/saA0sZZ_hR4/s640/LF1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://3.bp.blogspot.com/-y4pNm4gMQPI/VaMufvQ20hI/AAAAAAAAW3U/saA0sZZ_hR4/s640/LF1.jpg" width="640" height="280"></div>
<p> </p>
<div>Charted below is the raw data for New South Wales, which shows that investor lending has increased by an extraordinary 137% over the three years since May 2012.</div>
<div> </div>
<div>On a rolling annual basis, investor lending has increased by more than 30% over the past year - yet another monster increase.</div>
<p><a href="https://2.bp.blogspot.com/-rtCPwmPXV_w/VaMqbhX32AI/AAAAAAAAW24/QkPXvKGPAiE/s640/LF2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://2.bp.blogspot.com/-rtCPwmPXV_w/VaMqbhX32AI/AAAAAAAAW24/QkPXvKGPAiE/s640/LF2.jpg" width="640" height="272"></div>
<p> </p>
<div>Although not charted here mainly due to laziness, May was also by a whisker the strongest ever month for investment lending in Victoria at $3.27 billion, taking rolling annual lending to $34 billion, a 22 per cent year-on-year increase.</div>
<div> </div>
<div>May was another strong month for Queensland investor lending at $1.73 million. which takes the rolling annual figure 13.3 per cent higher than one year ago.</div>
<div> </div>
<div>It has been a long yet steady recovery for Queensland investors since the financing nadir related to the 2011 floods.</div>
<p><a href="https://1.bp.blogspot.com/-j1D_B7ZhPsI/VaMqcokjPwI/AAAAAAAAW2o/jADYFHRqXGY/s640/LF4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://1.bp.blogspot.com/-j1D_B7ZhPsI/VaMqcokjPwI/AAAAAAAAW2o/jADYFHRqXGY/s640/LF4.jpg" width="640" height="268"></div>
<div class="separator"> </div>
<div>Investor lending was lower in the month of May in South Australia, but nevertheless on a rolling annual basis has moved 11% higher over the past year.</div>
<p><a href="https://2.bp.blogspot.com/-U43UWz-Cr3s/VaMuJcbQtBI/AAAAAAAAW3I/YsmK5om-rqg/s640/SA.jpg" target="_blank">Click to enlarge </a></p>
<div class="separator"><img src="https://2.bp.blogspot.com/-U43UWz-Cr3s/VaMuJcbQtBI/AAAAAAAAW3I/YsmK5om-rqg/s640/SA.jpg" width="640" height="278"></div>
<p> </p>
<div>Investor lending is now declining in Western Australia, albeit fairly moderately, with low borrowing rates sustaining borrowing for property investment at a historically high level.</div>
<div> </div>
<div><a href="https://2.bp.blogspot.com/-z_r-c3Tek1w/VaMuJO7v2TI/AAAAAAAAW3E/AhROalONWVw/s640/Wa.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></div>
<div><span style="line-height: 1.3em;"> </span></div>
<div class="separator"><img src="https://2.bp.blogspot.com/-z_r-c3Tek1w/VaMuJO7v2TI/AAAAAAAAW3E/AhROalONWVw/s640/Wa.jpg" width="640" height="278"></div>
<div class="separator"> </div>
<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div class="separator"> </div>
<div class="separator">Overall, a strong result which suggests that total lending finance on an annualised basis may be heading towards $900 billion in due course, suggesting that easier monetary policy is taking effect.</div>
<div class="separator"> </div>
<div class="separator">Property investor lending continues to be exceptionally strong, particularly in Sydney and Melbourne.</div>
<div class="separator"> </div>
<div class="separator">And indeed the data suggests that this dynamic is now spreading to Hobart, Brisbane, and to a somewhat lesser extent, Adelaide.</div>
<div class="separator"> </div>
<div class="separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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pwargent-M4siyDbqQY

Sydney property investors running riot: Pete Wargent

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<p>An investor paid $425,000 for the pre-auction purchase of the weekend's cheapest sale which was 4/11-17 Davidson Street, Greenacre.</p>
<p>It was a three bedroom, one bathroom unit, sold well ahead of auction through Town and Country agent Hui Zhu.</p>
<p>One of just 10 under $500,000 sales across Sydney, it was snapped up within seven days. </p>
<p><span style="font-size: 12.1599998474121px; line-height: 1.3em;"><img src="https://i1.au.reastatic.net/456x342/7a62134dab3905114af1d20f2c291663d35a4b512ad37c6130435a56b70bd540/main.jpg" alt="4/11-17 DAVIDSON STREET, Greenacre" title="4/11-17 DAVIDSON STREET, Greenacre" data-index="0"></span></p>
<p>It last sold at $175,000 in 2001.</p>
<p>It now is for rent at $450 a week, reflecting 5.5% gross yield.</p>
<p>Eagle Vale was the suburb with the cheapest house sale - $442,000 for a three bedroom on Crozier Street.</p>
<p><span style="font-size: 12.1599998474121px; line-height: 1.3em;"> </span></p>
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$425,000 Greenacre sale the cheapest Sydney weekend sale

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<p><span>New South Wales (read: Sydney), Queensland (marginally), and Western Australia (ditto).</span></p>
<p><a href="/images/2015/07/13/alsts.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/07/13/alsts.jpg" alt=""></span></p>
<p> </p>
<p><span style="line-height: 1.3em;">Declining elsewhere.</span></p>
<p><span>No contribution to Q2 GDP to be found here.</span></p>
<p><span><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Where is renovation activity increasing? Pete Wargent

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<div>Total ABS Housing Finance for the month of May 2015 came it at a seasonally adjusted print of above $31 billion for the third time on record, with all three of the strongest months taking place consecutively over the three months to May.</div>
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<div>On a trend basis, therefore, monthly total housing finance surged to its highest ever level at $31.9 billion.<br><br>This was in spite a seasonally adjusted dip in the month of May after lending in April had threatened to explode off the top of the chart.</div>
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<div><a href="/images/2015/07/13/HF1.jpg" target="_blank">Click to enlarge</a></div>
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<div>On a rolling annual basis total owner-occupier lending has blazed upwards by 9 per cent over the past year to a record $212 billion.</div>
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<div>Meanwhile investor lending has screamed 22 per cent to $148 billion, obliterating all previous records by an enormous margin.</div>
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<div><a href="/images/2015/07/13/HF3.jpg" target="_blank">Click to enlarge</a></div>
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<div>That said, total housing finance on a seasonally adjusted basis had been higher in April at a downwardly revised $32.5 billion, and therefore the less exuberant May result of $31.1 billion represented a decline of 5.3 per cent for owner-occupier lending and 3.2 per cent for investment loans.</div>
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<div>This suggests that initial action taken to tighten lending standards may have been taking some effect by the end of May.</div>
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<div>Overall this should be healthy news for the housing market over the medium term - rampant lending growth had been becoming far too skewed towards investors, and therefore it is doubly important for Australia that robust lending standards are maintained.</div>
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<div>The May figures showed investor lending as being "only" 19 per cent higher than in the prior year corresponding period following a blistering 23 per cent year-on-year increase in April - which suggests that APRA will have more work to do over the near term.<br><br>
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<strong><span style="text-decoration: underline;">Premature extrapolation?</span></strong><br><br>This will doubtless result in the regulation "housing gloom" headlines, with commentators choosing to highlight the lower seasonally adjusted monthly figure rather than the trend hitting the highest level in history (the opposite of what they recommend we do when observing surprisingly strong <a href="https://petewargent.blogspot.com.au/2015/07/economy-adds-225000-jobs-in-year" target="_blank">Labour Force </a>data). </div>
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<div>You can make your own "captain's call" on this.<br><br>Below is the raw "Original" data - not seasonally adjusted - which shows May 2015 to be the third highest result on record for Housing Finance at $32.6 billion, with total lending actually well up on April, but a little below the $33.1 billion level seen back in March.<br><br>Westpac has already noted that the seasonal adjustment may be suffering from a technical glitch this month.</div>
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<div><a href="/images/2015/07/13/hf4.jpg" target="_blank">Click to enlarge</a></div>
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<div>Note that the May figures naturally would not have been affected by the latest interest rate cut, with market activity through June and July having suggested something of a lift.<br><br>Whether or not mortgage approvals and in turn property markets begin to tee off again around October/November time remains to be seen.</div>
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<div><strong><span style="text-decoration: underline;">4 observations</span></strong></div>
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<div>A few points to make here. </div>
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<div>Firstly, commentators have been calling a housing market slowdown for years now, yet over the three years from May 2012 the "Original" data shows owner-occupier lending has steadily increased to be 24 per cent higher, while investor lending has roared upwards by a whopping 73 per cent.</div>
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<div>Given the above it would be prudent to digest more than one month of near-record high figures before coming to too many hard conclusions.</div>
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<div>Secondly, a number of media observers seem to be labouring under the misapprehension that regulators would like to see dwelling prices declining, which is patently not the case.</div>
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<div>APRA sees its role at the present time as weeding out riskier lending and slowing the rate of investor credit growth down to a more sustainable pace.<br><br>One suspects that even at the first inkling of significantly falling prices the regulator will once again take a back seat.</div>
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<div>Thirdly, the cost of mortgage debt remains almost absurdly cheap - it's possible to obtain mortgage rates with a "3 handle" right now - so if credit is not unduly restricted there is plentiful untapped demand for mortgage credit with a strongly expanding population and around 225,000 new jobs created in the past 12 months.<br><br>The market hasn't run out of willing buyers and nor has underlying demand mysteriously dried up overnight; rather it has been temporarily curbed by regulatory intervention.<br><br>Recall that the latest ABS Finance &amp; Wealth data showed that in aggregate currency and deposits, superannuation balances and housing equity are all at new record highs, with total household wealth surging past a record $8 trillion<a href="https://petewargent.blogspot.com.au/2015/06/household-wealth-surges-past-8-trillion" target="_blank">.</a><br><br>
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<div>Fourthly, if anything the softer result for May increases the likelihood of a further interest rate cut by November 2015.</div>
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<div><strong><span style="text-decoration: underline;">Generalisation trap</span></strong></div>
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<div>By far the most important point, though, is that there is no "property market" (singular) in Australia, so it would be unwise to generalise too broadly, although due to necessity all of us do so at times.</div>
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<div>We already know that many resources regions are moving the process of experiencing very sharp corrections, particularly in Western Australian and Queensland.</div>
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<div>Owner-occupier lending has now been sliding lower in aggregate in Western Australia for 12 months, albeit fairly moderately, implying that some sectors of Perth property markets are set to lose ground.<br><br>Owner-occupier lending has also now been slipping lower in aggregate in the Northern Territory for the past seven months, so the outlook for Darwin looks to be soft too.</div>
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<br>As for the Sydney market commentary - where pundits have been calling the peak every month for at the past two years - well, it's been pretty bad, hasn't it?</div>
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<div>There have been i<span>ndicators of the market mania waning for a little while now, yet auction clearance rates are still tracking at <span>~</span>80 </span>per cent or a little above, and the warmer months will be rolling around once again before we know it.<br><br>Meanwhile stock on market in Sydney remains at remarkably low levels.<br><br>Charted below is the rolling annual owner-occupier lending data at the state level.</div>
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<div><a href="/images/2015/07/13/HF2.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/07/13/HF2.jpg" alt=""></div>
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<div><strong><span style="text-decoration: underline;">Lending standards tightened</span></strong></div>
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<div>On a seasonally adjusted basis owner-occupier lending declined in all states and territories in May, and fairly sharply in some cases.</div>
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<div>The question now is largely one of whether the regulator APRA continues to apply further pressure to outlying lenders, and if so, for how long.</div>
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<div class="separator">This is all somewhat reminiscent of what we saw in England back in 2014, when the Mortgage Market Review (MMR) gummed up lending processes for several months, often with seemingly aimless box-ticking exercises and paper shuffling.</div>
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<div class="separator">The pen-pushing and the SOX-style administrative obstacles certainly had the desired effect, taking the speculative heat out of the market for a fair period of time.</div>
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<div class="separator">Yet borrowing rates remain remarkably cheap in Britain and average UK house prices have risen again to new record highs this month while quarterly mortgage approvals are up by 6 per cent according to the latest Bank of England data. </div>
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<div class="separator">I expect that any material slowdown in Australian mortgage lending will be temporary and this housing market cycle will have a long way to run yet in Brisbane, Hobart, Canberra, and even Adelaide, despite its desperately weak full time employment trends.</div>
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<div class="separator">Sydney's property markets are still gravitating higher for now, but must necessarily be closer to the end of their growth phase of the cycle than the beginning.</div>
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<div class="separator">Greater Melbourne is also still humming along, but is waving through for approval extraordinary volumes of unit and apartments, which should stall rents and growth in that sector in time.</div>
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<div class="separator"><a href="/images/2015/07/13/BA2.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator">Rhetoric has long suggested that the Reserve Bank needs lending finance and the housing market to be strong in order to drive consumption, particularly given the parlous state of other sectors of the economy.</div>
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<div class="separator"><strong><span style="text-decoration: underline;">Supply of homebuyers</span></strong></div>
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<div>An interesting aspect of this market cycle has been that the number of owner-occupier mortgage commitments has been considerably lower than we have seen in previous cycles.</div>
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<div><a href="/images/2015/07/13/hf6.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/07/13/hf6.jpg" alt=""></div>
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<span>One key driver of this has been the sheer number of first time buyers who are opting to buy an investment property as their first step onto the housing ladder.</span><br><br><span>Surveys indicate that the first time investor figures are very much material, a trend which has long been evident to anyone who works in capital city real estate, especially in Sydney.</span><br><br><div>Given the high transaction costs of buying and selling property - and with young people changing jobs and even careers more frequently than ever before - it makes a great deal of sense for many young buyers to rent where they live and invest elsewhere (provided they do so sensibly and with a long term time horizon).</div>
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<div>As for fading demand from homebuyers? Again, it's wrong to generalise too broadly, but here are the rolling annual <strong>numbers</strong> of mortgage commitments written by state.</div>
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<div><a href="/images/2015/07/13/hf5.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/07/13/hf5.jpg" alt=""></div>
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<div>I know that in some inner Brisbane suburbs where house prices are now rising resolutely, only today in mid-2015 after years of stagnant prices since 2007/08 are many homeowners able to contemplate selling to downsize or move elsewhere.</div>
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<div>Some have been effectively trapped having paid top dollar at a preceding market peak - after stamps and holding costs only now are some vendors able to justify selling in order to move on. </div>
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<div>At the same time there increasingly appears to be a surge of interest from interstate investors, from New South Wales in particular.<br><br>In rolling annual terms the number of owner-occupier commitments has continued to increase in the three most populous states plus the Australian Capital Territory, but on the other hand has been declining moderately in Western Australia, South Australia, Tasmania and the Northern Territory.</div>
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<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
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<br>It's worth remembering that most market commentary which looks for trends over the short to medium term is little better than educated guesswork.<br><br>After all, how many commentators were predicting Sydney prices would be up by close to 50 per cent since 2012? Not many!<br><br>The fundamentals haven't changed too much and demand for property remains close to its highest ever level.<br><br>Unemployment has declined steadily from 6.3 per cent to 6 per cent following 225,000 new jobs created over the past 12 months. Population growth has slowed to around 330,000 per annum, with the declines to be felt most keenly in the resources states. Mortgage rates are as cheap as we have ever seen.<br><br>X-factors may include heavy pressure on lenders from APRA, an implosion in China, or a black swan event.</div>
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<div>Finally for today, without properly dissecting the allocation of investor credit by state it is impossible to draw too many firm conclusions given that more than 40 per cent of credit is presently being written to investors.</div>
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<br>I'll be back to analyse the Lending Finance figures in more detail - including investor loans by state.</div>
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<div>Recall that the April 2015 figures showed Lending Finance leaping to a 7 year high.</div>
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<div><span><em> </em></span></div>
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<span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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