National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

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The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

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Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

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Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

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Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

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Joel Robinson

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 52-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

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Developer Bensons Property Group is behind the 52-storey tower, which has just shy of 250 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

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One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

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There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

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The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

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The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

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After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

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Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

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Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

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Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

The inflation result the property market was waiting for

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GUEST OBSERVER
The CoreLogic Home Value Index of capital city home prices rose by 1.4 percent in March and was up 12.9 percent over the year.
Prices rose in all eight capital cities with Canberra and Darwin up the most (up 3.1 percent). Regional house prices by 0.8 percent in February (latest available).
Manufacturing: The Performance of Manufacturing index eased from 15-year highs, down by 1.8 points to 57.5 in March. A reading above 50.0 indicates that the sector is expanding. This was the sixth consecutive month of expansion.
Home price data is important for retailers, especially those focussed on consumer durables. The manufacturing data provides guidance for companies in the Industrials sector.
What does it all mean?
The economic data has certainly started off the week on a healthy footing. Stronger home prices in March while manufacturing activity barely eased from 15 year highs.
It may be no surprise to see that home prices continue to lift across most capital cities. But what was clearly surprising was the magnitude of the lift in prices. Probably even more surprising was that home prices rose in all eight capital cities. Across the nation home prices rose by a substantial 1.4 per cent in March, matching a similar result in February and December 2016.
In fact over the four months to March home prices have accelerated by 4.9 percent – the strongest four-month period in 18 months.
Across the capital cities, it was encouraging that Darwin and Hobart featured heavily when it came to the strength in home prices as opposed to Sydney and Melbourne.
Interestingly the key resource states saw a rebound in home prices, although annual growth remained weak. The sustained lift in commodity prices may help to alleviate some of the weakness in home prices in coming months.
Overall policymakers will keep a close eye on the housing sector in the early part of 2017, and will prefer to see more balanced house price growth across the nation. In particular, a lift in regional house prices would be a positive outcome. Annual growth in home prices across regional centres was a healthier 4 per cent over the past 12 months.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/04/03/Screen%20Shot%202017-04-03%20at%2011.45.04%20AM.png" alt="">
What do the figures show?
Home prices
The CoreLogic Home Value Index of capital city home prices rose by 1.4 per cent in March and was up 12.9 per cent over the year.
In regional Australia, house prices rose by 0.8 per cent in February and were just 4 per cent higher than a year ago. (Regional prices cover just houses and data is up to the end of February). 
In capital cities, house prices rose by 1.5 per cent in March while apartment prices rose by 0.9 per cent. House prices were up 13.4 per cent on a year ago and apartments were up by 9.8 per cent.
The average Australian capital city house price (median price based on settled sales over quarter) was $613,000 and the average unit price was $512,200.
Dwelling prices rose in all eight capital cities in March: Hobart (up 3.1 per cent), Darwin (up 3.1 per cent), Melbourne (up 1.9 per cent), Canberra (up 1.4 per cent), Sydney (up 1.4 per cent), Perth (up 1 per cent), Adelaide (up 0.4 per cent) and Brisbane (up 0.2 per cent).
Home prices were higher than a year ago in six of the eight capital cities. Prices rose most in Sydney (up 18.9 per cent); followed by Melbourne (up 15.9 per cent), Canberra (up 12.8 per cent); Hobart (up 10.2 per cent); Adelaide (up 3.4 per cent); and Brisbane (up 3.7 per cent). Prices fell in Perth (down by 4.7 per cent) and Darwin (down 4.4 per cent)
Total returns on capital city dwellings rose by 16.7 per cent in the year to March with houses up 17.1 per cent on a year earlier and units up 14.3 per cent.
Performance of Manufacturing
The Performance of Manufacturing index fell from 15-year highs, down by 1.8 points to 57.5 in March. A reading above 50.0 indicates that the sector is expanding. This was the sixth consecutive month of expansion.
AIG notes “All seven activity sub-indexes in the Australian PMI® expanded in March (seasonally adjusted). Expansions in new orders (62.6 points) and sales (57.7 points) strengthened. Production expanded while slowing from more robust growth last month (57.6 points) as did employment (54.1 points). Deliveries (52.9 points) and exports (51.1 points) eased to more modest growth, while inventories turned up in March (55.5 points).”
<a href="https://www.propertyobserver.com.au/images/2017/04/03/Screen%20Shot%202017-04-03%20at%2011.45.46%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/03/Screen%20Shot%202017-04-03%20at%2011.45.46%20AM.png" alt="">
“Comments from manufacturers in March indicate that demand continues to recover. Positive factors for demand include: higher prices for coal and other commodities; large infrastructure projects; the NBN rollout; stronger defence spending and stronger activity in the agricultural sector. Energy prices (particularly electricity) continue to play havoc with manufacturers. Concerns about energy pricing and security of supply are eroding profitability and confidence. Other input prices are increasing (including steel prices), which is putting manufacturers’ margins under further pressure. Export growth appear to be easing off for some manufacturers, compared to the strong surge of exports seen in 2016.”
What is the importance of the economic data?
  The CoreLogic Hedonic Australian Home Value Index is based on Australia’s biggest property database. Unlike the ABS Index, which excludes terraces, semi-detached homes and apartments, the CoreLogic Hedonic Index includes all properties. Home prices are an important driver of wealth and spending.
  The Australian Industry Group compiles the Performance of Manufacturing Index (PMI) each month. The Australian PMI is the Australian equivalent of the US ISM manufacturing gauge. The PMI is one of the timeliest economic indicators released in Australia. The PMI is useful not just in showing how the manufacturing sector is performing but in providing some sense about where it is heading. The key ‘forward looking’ components are orders and employment.
What are the implications for interest rates and investors?
  Activity in the manufacturing sector is encouraging, especially the lift in new orders that has been identified in recent months. All the published data and anecdotes indicate that business conditions have markedly improved since the flat spot recorded for the economy in mid-2016.
  Investors are once again driving key housing markets such as Sydney and Melbourne. But there are more risks, with investors relying on expected capital appreciation for returns on their investment rather than rising rents. More apartments are being built, supply will catch up to demand and growth of home prices will ease over the next few years. Investors need to be aware of the risks including recent actions by regulators to slow housing demand.
  The broad-based health of Australian housing markets reduces the potential for further rate cuts. While fixed- term lending rates have lifted, it is still too early to canvas possible rate hikes from the Reserve Bank. 
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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jchancellor-FAypfDUnLy

Home prices accelerate: Savanth Sebastian

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A building in Sydney awaiting development approval has been temporarily donated by the TOGA property group to address youth homelessness.
TOGA, in partnership with joint owner Qualitas, announced the former Addison Hotel in Kensington had transformed into pop-up accommodation for vulnerable youth.
After making available the vacant building revenue-free, it is set to house more than 42 vulnerable youth. 
TOGA has made available the former hotel to My Foundations Youth Housing for a minimum of 12 months. 
The Addison Hotel forms part of a mixed-use development proposal lodged for the site at 147 Anzac Parade and adjoining property.
The Addison Project will be operated by community housing provider My Foundations Youth Housing.
TOGA Group of Companies managing director Allan Vidor said that constructive partnerships between the private and public sectors, and sensible planning reform, had the power to address the housing challenges facing vulnerable young people in Sydney. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/03/170331_AddisonProject_0155.jpg" alt="">
From left to right: Brendan O’Sullivan; Qualitas Executive Director – Principal Investments, Assoc. Professor David McKenzie; My Foundations Youth Housing Chair, the Hon. Pru Goward; Minister for Family and Community Services, Mark Fischer; Qualitas Managing Director – Principal Investments and Allan Vidor, Managing Director of the TOGA Group of Companies
“By making available our building we hope to make a difference in the lives of those who stay at The Addison Project as well as inspire other property owners to consider utilising their vacant assets,” said Mr Vidor.
“Together, the private and public sectors must work toward meaningful planning reform which has the potential to unlock many opportunities to make empty buildings across Sydney immediately available to those who are experiencing, or at risk of, homelessness.
No single level of government or service can tackle youth homelessness – innovative solutions must be borne from innovative collaborations between public and private sectors, Mr Vidor added.
<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/2017/04/03/170123_TL_AddisonHotel_0054.jpg" alt="">
The former hotel contains 42 fully-furnished rooms, each with a bathroom and kitchenette, set across three-storeys; creating an appropriate short-term accommodation option for youth.
My Foundations Youth Housing Chair, Assoc. Professor David McKenzie said The Addison Project would provide both crisis accommodation for those at risk of homelessness and young people with a safe space to live and study while they work to secure more permanent solutions and stabilise their circumstances.
<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/2017/04/03/170331_AddisonProject_0187.jpg" alt="">
“The Addison Project is an excellent example of seizing an opportunity to provide a bold and innovative solution.
"Whilst not intended as a solution to homelessness, it is a positive step in the right direction while we work towards addressing the provision of housing in a practical and immediate way,” Mr McKenzie said.
The Addison Project will target youth at risk of homelessness aged between 16 and 24; with young people holding less than 2 per cent of the 140,000 Social Housing tenancies across NSW.
Family and Community Services (FACS) will refer up to 14 rooms to those in-need of Temporary Accommodation.
The Addison Project also includes an anchoring retail space where OzHarvest will open Australia’s first ever rescued food supermarket – OzHarvest Market – next month.
Ronni Kahn, CEO and Founder of OzHarvest said the Australian first would be a pop-up marketplace providing rescued food sourced from its existing local donor network and available on a ‘take what you need, pay what you can’ basis.
“We are thrilled to be part of this ground-breaking project with TOGA and are excited to be transforming the donated space into Australia’s first rescued food supermarket,” said Ms Kahn.
“The OzHarvest Market will be opening its doors soon, making sure good food does not go to waste and is available to everyone, especially to those who need it most.”
This initiative will be jointly supported by leading innovators in social enterprise Orange Sky Laundry and Thread Together who will contribute by providing vital on-site services.
<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/2017/04/03/170331_AddisonProject_0347.jpg" alt="">
TOGA and Qualitas acquired the site in mid-2015.
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j.ballantyne1990-6AQqhLzZaK

TOGA donates vacant Kensington hotel building to address youth homelessness

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March combined capital city dwelling values increased 1.4 percent over the month, according to CoreLogic, with the combined capital city annual growth rate at 12.9 percent -  the highest annual rate of growth since the twelve months ending May 2010. 
Tim Lawless, CoreLogic head of research said while Sydney and Melbourne recorded the strongest growth conditions, the annual rate of capital gains has also moved into double-digit growth in both Hobart (+10.2 percent) and Canberra (+12.8 percent).
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.48.11%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.48.11%20AM.png" alt="">
"On an annual basis, dwelling values in Perth fell by -4.7 percent and by -4.4 percent in Darwin where economic conditions and migration trends remain weak across both cities," he said.
"Adelaide and Brisbane also saw dwelling values continue to trend higher at a sustainable pace with increases of 3.4 percent and 3.7 percent respectively in these cities over the past twelve months.
"The March results highlight the continued resurgence in the pace of capital gains. 
“This became evident through the second half of 2016, fueled largely by lower mortgage rates and a rebound in investment activity. Since June last year, the CoreLogic capital city hedonic index has increased by 9.3 percent.”
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.50.08%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.50.08%20AM.png" alt="">
He said the diversity of performance between houses and units is also a current key feature of the housing market.
"Across the combined capitals index, house values were 13.4 percent higher over the past twelve months compared with a 9.8 percent rise in unit values," he said.
“The disparity in growth rates is more significant in those cities where high new unit supply is more apparent. In Melbourne, house values were 17.2 percent higher over the past twelve months compared with a 5.2 percent increase across the unit sector. Similarly, in Brisbane, house values were 4.0% higher over the past twelve months compared with a 0.2% rise in unit values over the same period.”
“The weaker growth conditions within the unit markets’ sector reflect heightened levels of new supply across specific inner city precincts and also suggests that consumer confidence has been negatively affected by the warnings of a potential unit oversupply.”
“Given the recent policy announcements from the Australian Prudential Regulation Authority (APRA) are aimed at dampening investment related credit demand, we can expect lending conditions for investment purposes will tighten, particularly for investors with small deposits or those applying for an interest only loan. Additionally, higher mortgage rates handed down by Australia’s major banks may contribute towards cooling some of the exuberance being seen in the largest capital city housing markets.”
“Furthermore, organic constraints in the market are becoming more pronounced. As examples, record-low rental yields, which imply dwelling values are out of balance with rents, and heighted affordability constraints are preventing some prospective buyers from participating in the market.
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.51.12%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.51.12%20AM.png" alt="">
“Record-high levels of apartment supply are also likely to act as a brake on capital gains in those precincts where supply levels are high.
“Stronger buyer demand can be attributed to the rising number of investors participating in the market compared with a year ago as well as the lower cash rate stimulus and population growth. However, overall transaction numbers remain approximately 15.5 percent lower than their recent 2013/14 peaks.”
 “A shortage of advertised stock can contribute to upwards pressure on prices, as prospective buyers experience FOMO (fear of missing out) which reduces a buyers ability or willingness to negotiate on prices and causes some urgency in the decision making process.” 
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Annual growth rate higher than 10 percent in half of Australian capital cities: Corelogic

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AMP Capital chief economist Shane Oliver has forecast a slowdown in property price gains in Sydney and Melbourne this year ahead of a 5-10 percent price fall starting next year.
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The call comes in the wake of the Australian Prudential Regulation Auth­or­ity’s announcement on Friday of tougher lending standards, including a crackdown on interest-only home lending.
Dr Oliver said it was no surprise to see APRA increase its focus on the investor lending market, but told The Australian the moves had come too late.
“The latest moves by APRA, coming on the back of bank mortgage rate hikes over the last two weeks, the likelihood of action to boost affordability in the May budget (including a cut to the capital gains tax discount), and the surge in unit supply at a time of silly prices, are all likely to result in a slowdown in property price gains in Sydney and Melbourne this year ahead of a 5-10 per cent price fall starting next year some time,” he said.
Based on the latest APRA data, CBA is the bank with the highest annual home loan growth of 7.6 per cent, compared to system growth of 7 per cent.
Westpac was up 6.4 per cent, ANZ 5.7 per cent and NAB 5.2 per cent.
CBA’s interest-only loans are growing at 42 per cent and account for 40 per cent of its book.
Home loans account for 62 per cent of all bank loans.
The tighter interest only slowdown measures from APRA came as the RBA’s latest quarterly spreadsheets on household ­finances, released on Friday, showed that average debts were now 89 per cent greater than ­incomes, up from 67 per cent greater just four years ago. 
While household debts have risen by 32 per cent in the past five years, the value of household assets­ have risen even faster, by 51 per cent. Household net worth has gained 57 per cent over that period, from $5.6 trillion to $8.8 trillion, translating to an increase from $666,864 per household to $954,550 in just five years.
The booming housing markets of Sydney and Melbourne are a large part of this increase, with the value of the housing stock rising by 47 per cent, from $4.2 trillion to $6.1 trillion. The size of the housing stock has increased by 8.5 per cent over that period, so the ­increase per house has been about 33 per cent.
Oliver has previously predicted 5 to 10 percent price falls.
Last October he noted the surge in prices and debt has led many to conclude a crash is imminent.
"But we have heard that lots of times over the last 10-15 years.
"Several considerations suggest a crash is unlikely.
"First, we have not seen a generalised oversupply and at the current rate we won’t go into oversupply until around 2017-18.
"Second, despite talk of mortgage stress the reality is that debt interest payments relative to income are around 2004 levels.
"Third, Australia has still not seen anything like the deterioration in lending standards seen in other countries prior to the GFC.
"In fact in recent years there has been a decline in low-doc loans and a reduction in loans with high loan to valuation ratios."
<a href="https://www.propertyobserver.com.au/images/2016/10/20/Tightening%20lending%20standards.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/10/20/Tightening%20lending%20standards.jpg" alt="">
Oliver noted it is dangerous to generalise before saying nationwide price falls are unlikely until the RBA starts to raise interest rates again.
"This is unlikely before 2018, at which point we are likely to see a 5 percent or so pullback in property prices as was seen in the 2009 and 2011 down cycles.
"Sydney and Melbourne having seen the biggest gains are more at risk and so could fall 5-10 percent around 2018."
 
For more real estate traps and tips visit <a href="https://realestatetraps.com.au/">realestatetraps.com.au</a>
</div>
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Shane Oliver again tips 5 to 10 percent property price falls for Sydney and Melbourne

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An inner city warehouse conversion that featured in the television drama series, Offspring sold at weekend auction in Melbourne's Clifton Hill for $1.805 million. 
A 195 sq m space styled by architect Grant Cheyne in the former 1890s Pitman Shoe Factory sold $305,000 above its reserve price given three keen bidders.
The <a href="https://www.realestate.com.au/sold/property-house-vic-clifton+hill-124932798" target="_blank">6/37 Groom Street warehouse</a> (above) space included a 50 sqm outdoor terrace with district views.
The vendor - who paid $700,000 in 2004 - even threw in some furniture.
The Herald Sun reported the opening $1.505 million bid meant the property with exposed bricks, ceiling trusses and old original timber was on the market straight away. 
The apartment was the Offspring location where Geraldine, Dr Nina’s mother, hid out from her children and met her new beau.
Falling auction volumes have contributed to the early April clearance rate remaining very strong.
This weekend Adelaide joined Sydney and Melbourne's hot housing markets as the three cities notched up auction success clearance rates of over 80 per cent. 
The last time Sydney, Melbourne and Adelaide all cleared the 80 per cent level was the Easter weekend of April 2015, when lower volumes boosted clearance rates.
According to CoreLogic’s latest report, the national capital city preliminary clearance rate remains in the mid-high 70 per cent range for another week.
The preliminary results this week showed 78.1 per cent of the 2,121 reported auctions were successful, up from 74.5 per cent last weekend and higher than the corresponding week last year when a 66.6 per cent clearance rate.
House price growth in March picked up to 19 per cent in Sydney and 16 per cent in Melbourne, CoreLogic said on Friday.
There were 2,646 properties taken to auction, down from 3,171 last week, when auction volumes reached their second highest level so far this year.
Melbourne's preliminary 80.6 per cent came from the 1,007 reported auctions sold this week. 
A <a href="https://www.realestate.com.au/sold/property-house-vic-canterbury-124912402" target="_blank">1912 five bedroom Canterbury offering</a> (below) topped weekend auction results selling for more than $500,000 over reserve at auction at $5.81 million, the top result across the nation.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.12.30%20AM.png" alt="">
The house on 1222 sq m sold to a Balwyn family with two children through Marshall White who were advising $4.7 million plus. 
Three buyers battled it out for 31 Mangarra Road, which last sold for $860,000 in 1998, Domain advised.
Around $4 million was secured in Fitzroy in post-auction negotiations when Graeme Simsion, author of international bestseller The Rosie Project, and wife Anne Buist sold their <a href="https://www.realestate.com.au/sold/property-house-vic-fitzroy-124932386" target="_blank">home on Gore Street</a> (below).
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.13.32%20AM.png" alt="">
The couple transformed the derelict property into a five-bedroom, three-bathroom house with an internal tranquility pool, along with a striking spiral staircase leading to a ship's prow library and a roof garden.
Agent Arch Staver passed the home in on a $4 million vendor bid and sold it post-auction for an undisclosed price.
There were 1,139 properties taken to auction across the city, decreasing from 1,607 last week when the final clearance rate was recorded at 78.9 per cent.
The Inner region of Melbourne had a clearance rate of 79.7 per cent with the strongest rate recorded across the North West region where 86.3 per cent of auctions were successful.
One not selling was the Hampton childhood home of cricket legend Shane Warne which was passed in on a single vendor bid of $1.5 million.
The spin king's parents, Keith and Brigitte Warne owned the now much renovated home at <a href="https://www.realestate.com.au/property-house-vic-hampton-124924250" target="_blank">229 Thomas Street</a> (below) in the late 1960s.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.14.24%20AM.png" alt="">
The Herald Sun wrote the family owned the California bungalow until 1976 when it sold for $41,000.
The vendors are selling because they’d just had their fourth child and needed more space.
In Sydney, the preliminary clearance rate of 80.7 per cent is up from 75.8 per cent last weekend, and also higher than the corresponding week last year, when a clearance rate of 69.8 per cent was recorded.
There were 1,098 auctions held this week, down from 1,098 last week.
A house at McMahons Point was sold for $4.425 million making it Sydney’s most expensive auction sale over the weekend.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.15.09%20AM.png" alt="">
Located at <a href="https://www.realestate.com.au/sold/property-house-nsw-mcmahons+point-124937958" target="_blank">13 Victoria Street</a>, (above) the north facing, freestanding terrace style property has an elevated setting with views of the city and harbour.
It was sold by Colin Morgan, insurer Zurich's former Asia Pacific global life chief executive and his wife Louise.
The final sale price was $625,000 above the $3.8 million reserve after the bidding opened at $3.4 million.
Of the Sydney sub-regions, Inner West region recorded the strongest clearance rate of 93.7 per cent across 76 auctions.
The preliminary clearance rate in Brisbane this week rose to 56.8 per cent, from 42.0 per cent last week.
Auction volumes were lower this week with 173 auctions held, down from 196 last week.  
A two bedroom house at Riverview, near Ipswich sold for $222,250, the cheapest weekend result across the nation.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.16.15%20AM.png" alt="">
The <a href="https://www.realestate.com.au/property-house-qld-riverview-124866926" target="_blank">15 Station Road</a> (above) was a dual title 971 sqm property.
A house at Coorparoo sold for $1.565 million making it Brisbane's most expensive sale.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.20.31%20AM.png" alt="">
Located at <a href="https://www.realestate.com.au/property-house-qld-coorparoo-124941710" target="_blank">79 Buena Vista Avenue</a> (above), the 809 sqm property was offered for the first time in 40 years.
This week, Adelaide saw a preliminary clearance rate of 80.6 per cent, with 67 reported results across a total of 113 scheduled auctions.
In comparison, over the previous week Adelaide’s clearance rate was 66.4 per cent and 71.2 per cent one year ago.
A charming Leabrook bungalow sold for $1.6 million making it Adelaide’s most expensive weekend sale.
<img src="https://www.urban.com.au/images/2017/04/Screen%20Shot%202017-04-03%20at%209.21.18%20AM.png" alt="">
Located at <a href="https://www.realestate.com.au/property-house-sa-leabrook-124944822" target="_blank">3 Godfrey Terrace</a> (above), the three-bedroom sandstone family house sold at between 10 per cent and 15 per cent above reserve, according to Toop &amp; Toop agent Tim Thredgold.
It sold to a downsizing couple.
Perth’s clearance rate of 35.7 per cent across 43 auctions is up slightly from last week, when 33 auctions were held and a clearance rate of 35.3 per cent was recorded.
Over the same week last year, the clearance rate was a higher 46.9 per cent, and 40 auctions were held.
Canberra’s clearance rate was 76.3 per cent this week across 66 auctions, down from 77.4 per cent last week across 103 auctions.
A besser block built house set against a bushland backdrop at Deakin sold for $1.455 million making it Canberra’s most expensive.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.22.22%20AM.png" alt="">
Located at <a href="https://www.realestate.com.au/property-house-act-deakin-124881626" target="_blank">22 Galway Place</a> (above), the 1073 sqm property was designed by architect John Scollay and sold in its original condition.
Jonathan Chancellor is editor at large at <a href="https://www.propertyobserver.com.au/">Property Observer</a>.
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Adelaide joins Sydney and Melbourne's hot housing markets 

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<div>
APRA announced further measures to cool certain sectors of the housing market last week.
Every man and his dog has written about this already, with a few excellent insights and some interpretations that were just plain weird - so let's keep this post as short as possible, shall we? 
OK, here we go...
APRA wants lenders to place strict internal limits on the volume of interest-only lending at loan-to-value ratios (LVRs) above 80 percent, so firstly some lenders will immediately require a 20 per cent deposit for this type of loan. A shift in this direction has already taken place to some extent, so the impact of this may be marginal.
Lenders must now also ensure there is "strong scrutiny and justification of any instances of interest-only lending at an LVR above 90 percent", so interest-only loans with a deposit of less than 10 per cent will generally go the way of the dodo and the lo-doc loan. 
Again, this has by and large already happened, but will have the ongoing effect of knocking a few more first-time buyers out of the market, while having no impact on incumbent owners with existing equity.
<a href="https://www.propertyobserver.com.au/images/2017/04/02/C2.jpg" target="_blank">Click to enlarge </a>
</div>
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<div> </div>
<div>Speed limit</div>
<div> </div>
<div>The existing 10 per cent cap on growth for investment mortgage books will remain in place. I've spoken to branch managers and bank owners, and their view is generally that this won't have too much impact since new loans can always be pushed back a month.</div>
<div> </div>
<div>But a third impact may be that some lenders have to wind their necks in just a little bit further. </div>
<a href="https://www.propertyobserver.com.au/images/2017/04/02/C4.jpg" target="_blank">Click to enlarge</a> 
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<div>Fourthly, there will likely be a shift in the investor loan segment of the market towards private financiers or non-bank lenders, perhaps some of whom may offer commercial-style rates. </div>
<div> </div>
<div>Fifthly, banks have been presented with an open goal here for raising the rates on their investor loans, so rates will inevitably be ratcheted higher in due course. </div>
<div> </div>
<div>Switch...</div>
<div> </div>
<div>Between July 2015 and February 2017 some $50 billion of loans were switched from investor to owner-occupier mortgages following the introduction of an interest rate differential between the two types of loan. A sixth impact will therefore be yet further switching of loan purpose. </div>
<a href="https://www.propertyobserver.com.au/images/2017/04/02/C3.jpg" target="_blank"> Click to enlarge</a>
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Why worry?
<div>
So far, so unremarkable. But there's more...
</div>
<div> </div>
<div>By far the most important impact will be a new 'speed limit' on interest-only loans in Australia, with APRA now aiming to limit the flow of new interest-only lending to 30 per cent of total new residential mortgage lending.</div>
<div> At the heady peak more than 45 per cent of new loans were interest-only in nature, with investors in particular favouring this type of product in order to maximise their tax deductible expenses.  </div>
<div> </div>
<div>A seventh impact will be that new owner-occupiers wanting to use this type of product in future may be given their marching orders, and possibly some aged borrowers too. </div>
<a href="https://www.propertyobserver.com.au/images/2017/04/02/C1.jpg" target="_blank">Click to enlarge</a>
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<div class="separator"> </div>
<div>Eighthly, if that is even a real word, two of Australia's major banks have been rolling over interest-only loans more or less automatically at the end of the interest-only period, and these lenders will almost certainly now require a far more stringent assessment. </div>
<div> </div>
<div>Of course, few borrowers will default on a loan when they've seen the value of their Sydney property double over the preceding five years, though they might choose to sell off their investment if the repayments become too arduous. The impact in markets where dwelling prices have declined might prove to be an altogether more dramatic story.</div>
<div> </div>
<div>The ninth impact - perhaps an over-arching point really - is that far too many investors have simply assumed they will continue rolling interest-only debt ad infinitum, and they may now have to get it into their heads that they will be paying back principal sooner or later.</div>
<div> </div>
<div>Seemingly every other week an article surfaces featuring 'young gun investors' with a dozen interest-only loans having been used to buy high-yielding properties in far-flung areas. </div>
<div> </div>
<div>Credit markets tend to move in cycles, so APRA's changes may or may not be permanent, but in the prevailing market conditions some borrowers could get caught short if they've simply planned to continue rolling interest-only debt on an endless loop. </div>
<div> </div>
<div>Oh, and there may be further macroprudential measures to come!</div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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">Four Green Houses and a Red Hotel</a>.
</div>
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pwargent-M4siyDbqQY

APRA offers further measures to cool certain housing market sectors

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Despite falling auction volumes the preliminary clearance rate remains strong, according to CoreLogic’s latest report.
The property data firm says that the combined capital city preliminary clearance rate remains in the mid-high 70 percent range for another week, while auction volumes decrease week-on-week.
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.19%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.19%20am.jpg" alt="">
There were 2,646 properties taken to auction this week, down from 3,171 last week, when auction volumes reached their second highest level so far this year.
Despite auction volumes shifting generally higher over the last few weeks, the weighted average clearance rate has remained relatively consistent, with preliminary results this week showing 78.1 percent of the 2,121 reported auctions were successful.
This is an increase from 74.5 per cent last week and also higher than the corresponding week last year when a 66.6 percent clearance rate was recorded across a significantly lower volume of auctions coming out of the Easter period (1,582).
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.28%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.28%20am.jpg" alt="">
Across Melbourne, preliminary results show that 80.6 percent of the 1,007 reported auctions sold this week.
There were 1,139 properties taken to auction across the city, decreasing from 1,607 last week when the final clearance rate was recorded at 78.9 percent.
This is also higher than the same time last year, when a 69.2 percent clearance rate was recorded across a much lower volume of auctions (584).
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.37%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.37%20am.jpg" alt="">
The Inner region of Melbourne had the highest number of auctions this week (234), with a preliminary clearance rate of 79.7 percent.
However, the strongest rate of clearance was recorded across the North West region and West region, where 86.3 percent and 86.2 percent of auctions were successful.
In Sydney, the preliminary clearance rate of 80.7 percent is up from 75.8 percent last week, and also higher than the corresponding week last year, when a clearance rate of 69.8 percent was recorded across a much lower 664 auctions.
There were 1,098 auctions held this week, down from 1,098 last week.
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.45%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.45%20am.jpg" alt="">
Of the Sydney sub-regions, Inner West region recorded the strongest clearance rate of 93.7 percent across 76 auctions, while the North Sydney and Hornsby region had the highest volume of auctions (183).
The preliminary clearance rate in Brisbane this week rose to 56.8 percent, from 42.0 percent last week.
Auction volumes were lower this week with 173 auctions held, down from 196 last week.
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.54%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.34.54%20am.jpg" alt="">
Meanwhile, across the Gold Coast, 57.1 percent of the 14 reported auctions were successful.
This week, Adelaide saw a preliminary clearance rate of 80.6 percent, with 67 reported results across a total of 113 scheduled auctions.
In comparison, over the previous week Adelaide’s clearance rate was 66.4 percent and 71.2 percent one year ago.
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.35.05%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/Screen%20Shot%202017-04-02%20at%2010.35.05%20am.jpg" alt="">
Perth’s clearance rate of 35.7 percent across 43 auctions is up slightly from last week, when 33 auctions were held and a clearance rate of 35.3 percent was recorded.
Over the same week last year, the clearance rate was a higher 46.9 percent, and 40 auctions were held.
Canberra’s clearance rate was 76.3 percent this week across 66 auctions, down from 77.4 percent last week across 103 auctions.
There were 14 Tasmanian auctions held this week. 3 were reported as sold.
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Preliminary clearance rate strong as auction volumes fall: CoreLogic

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GUEST OBSERVER
Private sector credit rose by 0.3 percent in February after a 0.2 percent gain in January. Annual credit growth of 5.0 percent is near 3-year lows.  
Investor housing: Investor housing finance lifted by 0.6 per cent in February to stand 6.7 per cent higher over the year – the fastest growth in 12 months.  
China data: The National Bureau of Statistics manufacturing purchasing managers’ index rose from 51.6 to 51.8 in March while the services gauge rose from 54.2 to 55.1 – a near 3-year high.  
What does it all mean?
The latest lending (private sector credit) figures suggest a subdued borrowing environment. But it is important to point out that lending recorded the biggest lift in 15 months in December and only partially gave back some of that out-sized growth over January and February. The subdued February reading was largely due to a modest slide in business credit which would be expected given the out-sized gain in December. The key will be how business borrowing performs in coming months.  
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%208.47.27%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%208.47.27%20AM.png" alt="">
Interestingly home lending continues to lift, dominated by investor credit growth. In fact annual growth in investor finance is now at a 12-month high. The measures taken over the last couple of year by regulators to curb investment lending had a temporary impact that has faded. And as such it is no surprise that the regulators have today looked at other avenues to tighten lending standards.  
The measures announced by APRA today are designed to keep modest pressure on the brakes of investor home lending rather than represent a slamming on the brakes. Annual growth of investor lending still remains comfortably below the 10 per cent annual growth limit although new lending has been lifting in recent months. Anecdotally the lift in interest rates on investor housing loans is already acting to slow interest in home buying.  
The stronger Chinese manufacturing and services data bodes well for the broader global economy. And given the strong trade links between Australia and China, policymakers would be encouraged by a strengthening Chinese economy.  
No doubt policymakers will continue to discuss key issues like housing affordability, but overall the central bank seems upbeat on the medium-term outlook for the Australian economy. CommSec expects no change to interest rates over the rest of 2017.  
What do the figures show?  
Private sector credit  
Private sector credit (lending) rose by 0.3 per cent in February after a 0.2 per cent gain in January. Annual credit growth eased from 5.4 per cent to a near 3-year   low of 5.0 per cent.
Housing credit grew by 0.6 per cent in February to be up 6.4 per cent on a year ago – annual growth is lifting of the lowest levels in 30 months.  
Owner occupier housing credit rose by 0.5 per cent in February to stand 6.2 per cent higher than a year ago – the slowest growth in 17 months. Investor housing finance lifted 0.6 per cent in February to stand 6.7 per cent higher over the year – the fastest growth in 12 months.  
Personal credit fell by 0.1 per cent in February to be down 1.3 per cent over the year – just up from the 1.4 per cent annual decline in January, which was the biggest annual decline in 41⁄2 years.  
Business credit fell by 0.1 per cent in February after a 0.4 per cent fall in January and 1.1 per cent rise in December. Business credit is 3.7 per cent higher than a year ago – slowest growth in 21⁄2 years.  What is the importance of the economic data?  
Private sector credit figures are released by the Reserve Bank on the last working day of the month. Credit is separated into three categories – housing, other personal and business. Private sector credit is effectively the amount of loans outstanding in the economy. If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive.
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%208.46.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%208.46.29%20AM.png" alt="">
What are the implications for interest rates and investors?
The Chinese economic data remains encouraging, showing that the transition from the industrial sector to household sector remains on track. The manufacturing sector is expanding, while the services sector is clearly the driver taking up any slack.  
Interest rates are super-low but credit growth is slowing rather than rising. Excluding investor housing, demand for loans is modest. Consumers and businesses are still keen to pay down debt rather than take up new credit.  
 Interest rates will remain on hold over the rest of 2017.  
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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Investor lending dominates borrowings: CommSec's Savanth Sebastian

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<img src="https://counter.theconversation.edu.au/content/75539/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Australian Prudential Regulatory Authority (APRA) and the Reserve Bank (RBA) are locked into a strange game of tweaking with economic levers to try and reduce the risk of a rapidly growing property market.
But past cycles of rate rises and rules to try and curb lending to investors show the effectiveness of these measures is running out.
It also underscores the problems arising from a government unwilling to tackle the problem at source – the perverse incentives in the tax system. 
Looking back to December 2014, the RBA voiced its mounting concerns about the rapid growth in lending to property investors and the steep increases in property prices it was fuelling. But rather than address these concerns by raising interest rates, as the RBA had done in somewhat similar circumstances in the early 2000s, it was instead left to the banking system regulator APRA to tackle this by writing a letter to banks and other mortgage lenders about the need for more cautious mortgage lending practices.
This letter laid down new rules capping the annual growth in lending to investors at a benchmark of 10%. APRA also set stricter criteria for determining whether borrowers could repay their loans if interest rates were to change. 
This warning from the regulator had its desired effect. The share of new housing loans made to investors fell from over 40% during the 2014-15 financial year to less than 30% by the December quarter of 2015.
And this in turn saw the annual growth rate of loans to property investors slow from a peak of 10.8% in the June quarter of 2015 to less than 8% by the end of 2015. It fell again to less than 5% by the September quarter of last year. 
The banks also fell into line with the new rules, cutting back on other more risky types of lending, such as interest-only loans, and loans with initial loan-to-valuation ratios in excess of 90%.
The RBA was especially pleased with these developments, thinking that the risk was easing. So when it met again in May last year, the RBA Board was persuaded to cut the cash rate to a new record low of 1.75%,in response to a much-lower-than-expected inflation result for the March quarter. 
The RBA still seemed content at its August 2016 meeting, seeing the easing conditions in the housing market as being consistent with APRA tightening the lending standard screws. It decided on another cut in the cash rate, to 1.5%.
But now investors have come back into the property market with a vengeance. These two reductions in interest rates have in effect overwhelmed the tightening in lending standards enforced by APRA during the first half of 2015.
This resurgence in lending to property investors has pushed up property prices once again, especially in Sydney and Melbourne. Dwelling values rose by 18.4% in Sydney and 13.1% Melbourne respectively, over the year to February.
The share of new loans going to investors has picked up from less than 30% in the December quarter 2015, to over 35% in the December quarter 2016, according to APRA statistics. This is from less than 44% of new housing finance commitments (excluding refinancings) in November 2015 to more than 50% in January 2017 according to ABS housing finance statistics. 
The annual growth rate of loans outstanding to housing investors, as published by the RBA, has accelerated from 4.6% last August to 6.7% in February this year: over the last four months, lending to property investors has risen at an annualised rate of 8.0%. 
Now the RBA is back to being concerned about a build up of risks associated with the housing market. 
The RBA’s Assistant Governor (Financial System), Michele Bullock, acknowledges that although APRA’s 2015 actions “did address some of the risks” that had been mounting during 2014, “the initial effects on credit…may fade over time”. She added that APRA and the RBA “are prepared to do more if needed”. But since the RBA clearly has no appetite to reverse last year’s rate cuts any time soon, the only feasible option in the short term option is for APRA to do something about the Sydney and Melbourne markets. 
So APRA has today take another another bite at the cherry, requiring banks to restrict new interest-only lending to 30% of all new loans (a lower proportion than at any time since early 2009) and to ensure that growth in lending to investors is “comfortably below” the 10% cap.
What all of this highlights is the limited effectiveness of so-called “macro-prudential” measures in countering the very strong incentives to invest in residential property. These incentives are created by the combination of record low interest rates and the unusually generous treatment which the Australian taxation system gives to the costs of and returns from debt-funded property investment. 
While some commentators have urged the Reserve Bank to lift interest rates in order to dampen the latest surge in borrowing to invest in residential property, this seems unlikely. The RBA continues to expect inflation to remain below its 2-3% target range until at least the middle of next year, and unemployment to remain closer to 6% than to 5%.
It would be far better if the federal government were to tackle the problem at source. He could do this either by limiting the scope for negative gearing or reducing the capital gains tax discount, as Malcolm Turnbull once advocated (in a 2005 paper co-authored with the ANU’s Jeromey Temple). Even the Property Council of Australia has conceded should be lowered to 40%, and denied altogether on investments held for less than two years. 
However, given the government’s unwillingness to consider such measures, it seems more likely that APRA may have to become even more prescriptive with its lending criteria. And, as we have seen, in the current interest rate environment that is merely a bandaid solution – and bandaids eventually wear off.
Saul Eslake is vice-chancellor’s Fellow, University of Tasmania and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/saul-eslake-665" target="_blank">here</a>.
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The APRA bandaid for the housing market is wearing off: Saul Eslake

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Malvern’s iconic Angel Tavern, together with eight adjoining retail and commercial properties, has been listed for sale with price expectations of more than $45 million. 
The properties are for sale via an international expressions of interest closing May 11.
The tavern is located on the corner of Glenferrie Road and Dandenong Road, Malvern, close to Malvern train station. It has a gaming licence and a drive-through bottleshop.
The total underlying land area is about 4,720 sqm. 
The listing agents are Colliers International’s Matt Stagg and Jeremy Gruzewski, and Gross Waddell’s Jonathan McCormack and Andrew Waddell.
“Holdings of this scale in prime eastern-suburb locations are scarce, especially directly adjoining a major train station,” Stagg said. “It provides the opportunity to secure an Urban Renewal Precinct and transportation hub in a bluechip suburb.”
The offering comes at a time when the Victoria government is encouraging strategic development of Urban Renewal Precincts and Metropolitan Activity Centres throughout metropolitan Melbourne to accommodate the city’s growing population, which is anticipated to reach eight million people by 2050.
The government initiative includes increasing the supply of affordable housing around activity centres that provide residents easy access to jobs, retail, education and healthcare services. 
Building near public transport networks that link with the $10 billion Melbourne Metro Rail Project is also vital in order to reduce traffic congestion and minimise Melbourne’s environmental footprint, according to a media release.
Stagg said there was excellent potential to activate the streetscape and create a  safe pedestrian thoroughfare linking Dandenong and Glenferrie roads with Malvern station.  
The Angel Tavern Urban Renewal Precinct has flexible zoning and valuable air-rights,  that allow for a variety of mixed uses, such as residential apartments, commercial, hotel and student accommodation (subject to town planning approval).
“Malvern is one of Melbourne’s most exclusive suburbs with a median house price of $2,300,000,” McCormack said. 
“However, there is a dramatic shortage of premium owner-occupier apartments and townhouses for affluent down-sizers who wish to continue living in Malvern once they have sold the family home.” 
He said projects such as Lend Lease’s successful Toorak Park at 590 Orrong Road in Armadale, which directly adjoins Toorak station, was an indication of the possibilities in store for the Angel Tavern and the block of properties on sale. 
The Angel Tavern plus the eight properties generate a solid holding income, said the listing agents. Vacant possession is readily available via aligned lease expiries and termination clauses.  
 
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