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

Joel Robinson

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

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

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

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

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

Parcel delivery is joining the apartment amenity checklist

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

Townhome approvals across Melbourne softened over April, but are still higher than they were this time last year, according to&nbsp;according to Archistar&rsquo;s&nbsp;May National Townhouse and Unit Building Report.

There were 687 townhouses across the Victorian capital approved over April, down from the 895 approved in March.

Sydney went the other way however, with a spike from 699 to 923 approvals.

Since the impact of COVID in early 2020, there&#39;s been a strong shift in buyer preference toward townhouses.

[smartcode_project:default project_id=8082 project_image_fid=59639]

Over the last 12 months, only Adelaide and Perth saw less approvals for townhouses.&nbsp;

Brisbane reported the highest increase in townhouse building approvals over the year ending April 2021, up by 42.9 per cent,&nbsp;followed by Sydney up 14.6 per cent&nbsp;and Melbourne up by one per cent.

Townhouse building approvals however were down by 24.9 per cent&nbsp;for Adelaide and 10.6 per cent&nbsp;for Perth on the same year on year comparisons.

[smartcode_project:default project_id=102256 project_image_fid=163757]

Melbourne reported the highest average per townhouse building cost of $349,032 over April 2021, followed by Perth at $341,500, Brisbane at&nbsp;$282,123, Sydney at $277,494 and Adelaide at $238,286.

Nationally, 6669 higher-density dwellings were approved for building over April, which was the highest April total since 2018.

Since the impact of COVID in early 2020, there's been a strong shift in buyer preference toward townhouses

Melbourne townhouse approvals soften in April as Sydney spikes

EXPERT OBSERVER

It&rsquo;s long overdue for real estate consumers to let go of the notion that proximity to the CBD matters.

Long before the pandemic and its impact on the Central Business Districts of our major cities, the relevance of the CBD in choosing where to live or invest was diminishing year by year.

The fallacy persists that most people work in the CBD. The reality is that, in all our capital cities, the vast majority work in suburban employment nodes.

There are, for example, over 2.1 million people employed in the Greater Melbourne area, but only about 20% work in the City of Melbourne (the CBD and near-city suburbs).

[smartcode_project:default project_id=100322 project_image_fid=163036]

For most people, when it comes to choosing a place to live, the CBD is irrelevant.

They don&rsquo;t work there, they don&rsquo;t shop there and their kids don&rsquo;t go to school there.

The average person has little reason to ever visit a CBD, although they may occasionally go to a CBD for entertainment or leisure.

But I still have people regularly raising, as an objection to a particular location, that it&rsquo;s a long way from the CBD.

Like many myths in real estate, this one just refuses to die.

In Sydney, the suburbs closest to the CBD are greatly under-valued, with median house prices well under $2 million (which is miserable by Sydney standards), like Redfern ($1.45 million), Newtown ($1.42 million), Glebe ($1.7 million) and Camperdown ($1.6 million).

The most prestigious suburbs, the ones with median prices above $3 million, are in many cases a long way from the tall office buildings &ndash; suburbs like Cremorne, Killara, Lindfield and Manly.

The Sydney locations with the best long-term capital growth rates, those where price growth has averaged more than 8% per year over the past decade, include many which a great distance from the Sydney CBD.

They include humble suburbs a long, long way from the City, like &hellip;

<ul>
	<li>St Marys out at Penrith,</li>
	<li>Minto and Macquarie Fields in the far south-west,</li>
	<li>Parramatta and North Parramatta,</li>
	<li>Marsden Park out near Blacktown,</li>
	<li>Middleton Grange in the precinct around Liverpool,</li>
	<li>Smithfield in the Cumberland LGA,</li>
	<li>Canley Vale in the Fairfield LGA,</li>
	<li>Kogarah in the Georges River LGA</li>
</ul>

They also include Northern Beaches suburbs like Seaforth, Avalon Beach and Dee Why, as well as north-of-the-harbour locales like Cremorne, Lindfield, North Willoughby and West Ryde.

[smartcode_project:default project_id=32227 project_image_fid=93952]

In Melbourne, if you want to find superior capital growth over time, you need to head a long way from the City centre, in most cases.

The greatest concentration of suburbs with long-term growth averages above 7% per year in the Greater Melbourne area is the Mornington Peninsula, where Bittern, Mt Martha, Tootgarook and Sorrento all have outstanding growth records.

The distance between Sorrento and the Melbourne CBD is over 100km, around an hour and a half by car. The median house price for Sorrento has risen almost 30% in the past 12 months. Nearby Tootgarook is a lot less expensive, despite a 20% rise in the median price in the past year.

Only slightly closer to the tall buildings is the new development suburb of Clyde North in the City of Casey, with a long-term growth rate close to 9% per year.

The suburb of Williams Landing down in Wyndham City in the far south-west also has a long-term growth rate above 8% per year &ndash; as does the suburb of Mickleham in the City of Hume in the far north of the Melbourne metro area.

Middle-ring areas with great growth rates include Box Hill, Brunswick East and Derrimut.

[smartcode_project:default project_id=94542 project_image_fid=160729]

All those places out-perform Toorak, Elwood, Elsternwick, Glen Iris, Kew and Malvern on capital growth rates.

Upmarket near-city locations which have outstanding growth rates &ndash; these are the exceptions rather than the norms &ndash; include Hawthorn, South Yarra and South Melbourne.

The key message is that the elements that drive values higher, because they attract buyers in large numbers, include affordability, infrastructure and lifestyle. Proximity to the CBD doesn&rsquo;t feature prominently.

So, if you&rsquo;re a home buyer or investor with a budget that forces you to buy in middle or outer ring areas, don&rsquo;t worry about it. There are way bigger things it&rsquo;s good to be close to, other than the CBD.

It’s long overdue for real estate consumers to let go of the notion that proximity to the CBD matters.

terryryder

Nothing wrong with buying property away from the CBD: Hotspotting's Terry Ryder

EXPERT OBSERVER

The most predictable thing in real estate is the outrage that emerges from some sections of the community whenever dwelling prices rise. Equally predictable is the willingness of mainstream media to indulge the disaffected few 
who think politicians and bureaucrats should be taking action to stop the markets doing what they naturally do.

There was considerable media coverage last week of a &ldquo;report&rdquo; from the University of New South Wales which called for &ldquo;the immediate creation of a Royal Commission&rdquo; because rising prices constitute a national crisis and young Aussies are &ldquo;locked out of the market&rdquo;.

One headline based on this report declared: &ldquo;House prices a time bomb ready to erupt in the absence of immediate intervention&rdquo;.

The lead author was someone smart enough to attain the title of &ldquo;professor&rdquo; but not clever enough to understand the dynamics of real estate markets.

Here&rsquo;s one quote that demonstrates how little the report author knows:

&ldquo;Rampant price growth has&nbsp;returned to the&nbsp;larger cities&nbsp;and is now&nbsp;spreading to&nbsp;regional Australia. This&nbsp;is&nbsp;in&nbsp;part&nbsp;due to the pandemic-fueled work-from-home revolution&nbsp;but&nbsp;is&nbsp;also because so many younger Australians can no longer afford the life they want as homeowners in the larger cities.&rdquo;

There are several errors in that one short paragraph, which would tend to destroy the credibility of the commentator:

1. Price growth did not start with the big cities and spread to the regions &ndash; it&rsquo;s been the opposite. The regions have been leading on price growth for some time, alongside some of the smaller cities - and the big cities, notably Melbourne, have belatedly joined the party.

2. The work-from-home revolution is not an outcome of the pandemic. It&rsquo;s been under way for several years and has been fueled by technology and people&rsquo;s desire for a better lifestyle. Sydney has been losing population to internal migration for the past decade and Melbourne for the past four years. This is one reason why regional markets have been leading on price growth. The pandemic has provided further impetus to this trend but it certainly did not create it.

3. The statement that young people can&rsquo;t afford to live in the big cities has been plucked by the professor out of his fundamental orifice. First-home buyers have been in the market in record numbers of the past 12 months, boosted by federal and state stimulus measures, and have been buying in Sydney and Melbourne as much as anywhere else. They have been leading the market and have been prime instigators of the price rises.

But, in one sense, having a major parliamentary inquiry would be a great idea because it&rsquo;s a sure way to ensure that nothing fundamental will change. Royal Commissions can take years to produce a report and will provide photo opportunities for politicians, but real action is unlikely to result. Watch a few episodes of Yes Minister to see how it works.

We&rsquo;ve had inquiries into the housing market in the past. The most recent federal parliamentary shallow dive into housing affordability spent quite some time giving the appearance of being serious about solving the affordability issue, before taking the easy way out by scapegoating an unpopular minority, foreign investors.

This gave governments a licence to slug overseas buyers with new taxes and charges, providing a new revenue source, while changing nothing that mattered. Affordability did not improve because foreign investors would never the problem. Nor are negatively-geared Australian investors, the other popular choice by the disaffected minority to shoulder the blame for rising property prices.

The reality is that we&rsquo;ve had exceptional price growth over the past year or so, without any major involvement from investors, who collectively have been sitting on the fence for the past three or so years. They&rsquo;re only now starting to come into the market.

Investors never lead market cycles &ndash; they react to them, as they are right now. Those calling for a Royal Commission into the housing market are essentially demanding an inquiry into human behaviour.

If people behaved sensibly and rationally - and did real research to develop real knowledge of real estate - we wouldn&rsquo;t have the nationwide market upheavals we have every 15 or 20 years, including right now. Prices are rising at extraordinary speed because most people are essentially herd animals. They&rsquo;re diving feverishly into the market because everyone else is, not because their actions make sense.

But it&rsquo;s not supposed to make sense, any more than the startling highs and lows of the share market make any real sense. The smart people were buying 9-12 months ago, well ahead of the current frenzy, because they were informed and could see what was coming.

But most just follow the pack and right now the herd is stampeding. Prices are rising rapidly, but for many of our major markets it&rsquo;s the first real growth they&rsquo;ve shown in 5-10 years. Perth and Darwin last had a market peak in 2013 and have been in decline ever since. Now, at last, those cities are delivering some value growth to the long-suffering majority who own their homes &ndash; but self-absorbed Sydney academics would like to rob them of their long-overdue time in the sun.

Similarly, cities like Brisbane and Adelaide have been stagnating for much of the past decade. It&rsquo;s not a crisis for home-owners, including those who had the foresight to buy recently, that values are at last showing some growth. The real crisis in the housing market, and the one that truly does need government action, is the chronic shortage of rental properties.

The solution to this problem is to encourage property investors to do what property investors essentially do, which is create a pool of homes available for rental. That means we want them to be out there buying properties in large numbers.

The New Zealand Government recently had a major brain explosion and essentially wiped investors out of the market by scrapping tax benefits. This compounded the earlier decision to ban foreign investors. The outcome has been a shortage of rental properties even worse than Australia&rsquo;s. Australia risks making the same mistakes, if the politicians listen to misinformed academics.

Those calling for a Royal Commission into the housing market are essentially demanding an inquiry into human behaviour.

Why we don't need a Royal Commission in to surging house prices: Hotspotting's Terry Ryder

EXPERT OBSERVER

This week, the NSW government announced almost A$500 million towards boosting the uptake of electric vehicles. In its new <a href="https://www.nsw.gov.au/initiative/nsw-governments-electric-vehicle-strategy">electric vehicle strategy</a>, the government will waive stamp duty for cars under $78,000, develop more charging infrastructure, offer rebates to 25,000 drivers, and more.

Given the transport sector is Australia&rsquo;s <a href="https://www.environment.gov.au/system/files/resources/6686d48f-3f9c-448d-a1b7-7e410fe4f376/files/nggi-quarterly-update-mar-2019.pdf">second-largest polluter</a>, it&rsquo;s a good thing Australian governments are starting to plan for a transition to electric vehicles (EVs).

But transitioning from cities full of petrol-guzzling vehicles to cities full of electric ones won&rsquo;t address all of the environmental and social problems associated with car dependence and mass manufacturing.

So, let&rsquo;s look at these problems in more detail, and why public transport really is the best way forward.

[smartcode_project:default project_id=7633 project_image_fid=32168]

<h2>Mounting disadvantage and health issues</h2>

EVs do have environmental advantages over conventional vehicles. In particular, they generate less carbon emissions during their lifetime. Of course, much of the emissions reductions will depend on how much electricity <a href="https://theconversation.com/climate-explained-the-environmental-footprint-of-electric-versus-fossil-cars-124762">comes from renewable sources</a>.

But carbon emissions are only one of the many problems associated with the dominance of private cars as a form of mobility in cities.

Let&rsquo;s start with a few of the social issues. This includes the huge amount of <a href="https://apo.org.au/sites/default/files/resource-files/2013-11/apo-nid59916.pdf">space devoted to car driving</a> and <a href="https://doi.org/10.1016/j.landusepol.2016.10.044">parking</a> in our neighbourhoods. This can <a href="https://theconversation.com/reclaiming-the-streets-we-all-can-have-a-say-in-the-new-normal-after-coronavirus-137703">crowd out other forms of land use</a>, including other more sustainable forms of mobility such as walking and cycling.

There are the financial and mental health costs of <a href="https://theconversation.com/australian-city-workers-average-commute-has-blown-out-to-66-minutes-a-day-how-does-yours-compare-120598">congestion</a>, as well, with Australian city workers spending, on average, 66 minutes getting to and from work each day. <a href="https://www.bitre.gov.au/statistics/safety">Injuries and fatalities on roads</a> are also increasing, and <a href="https://link.springer.com/article/10.1007/s11524-009-9433-9">inactivity and isolation</a> associated with driving can impact our physical health.

Car-dependent cities also contribute to <a href="https://trid.trb.org/view/1154961">disadvantage for people who don&rsquo;t have access to cars</a>, and uneven <a href="https://apo.org.au/node/449">financial vulnerability</a> associated with the high costs of car ownership and use.

Indeed, some of these problems could be made worse &mdash; for instance, subsidies for EVs could end up favouring wealthier people who can afford new cars.

<h2>Mining for resources</h2>

A mass global uptake of EVs will generate major environmental problems, too. Most concerning of these is the use of finite mineral resources required for their construction, and the environmental and labour conditions of their extraction.

This was recently highlighted in a <a href="https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions">recent report by the International Energy Agency</a>. As the agency&rsquo;s executive director Fatih Birol said, there&rsquo;s a

<blockquote>
looming mismatch between the world&rsquo;s strengthened climate ambitions and the availability of critical minerals that are essential to realising those ambitions.
</blockquote>

Minerals such as lithium, cobalt, nickel and copper are key ingredients required to make EVs.

As the report noted, EVs use double the amount of copper than conventional vehicles. EVs also require considerable amounts of lithium, cobalt and graphite that are hardly required at all for conventional vehicles. And it expects demand for lithium to grow 40-fold between 2020 and 2040, driven by EV production to meet climate targets.

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" src="https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" /></a>

<figcaption>There are better ways to cut transport emissions than greater uptake of electric vehicles. Shutterstock</figcaption>
</figure>

There is <a href="https://www.afr.com/policy/energy-and-climate/speed-of-green-energy-shift-triggers-supply-alarm-20210506-p57pi5">considerable discussion</a> of Australia&rsquo;s natural advantage as a supplier of some of these minerals, as we have large reserves of lithium and rare-earth metals beneath parts of the continent.

But before governments and mining bodies rush to exploit these reserves, they need to ensure much more is done to avoid the injustices perpetrated against Traditional Owners and their lands and heritage. The recent appalling <a href="https://theconversation.com/rio-tinto-just-blasted-away-an-ancient-aboriginal-site-heres-why-that-was-allowed-139466">destruction at Juukan Gorge</a> by Rio Tinto&rsquo;s iron ore operation is just one example of this.

<a href="https://theconversation.com/critical-minerals-are-vital-for-renewable-energy-we-must-learn-to-mine-them-responsibly-131547">Mining also has its own environmental problems</a>, such as land clearing and associated biodiversity loss, the pollution and contaminants it produces, and <a href="https://theconversation.com/arent-we-in-a-drought-the-australian-black-coal-industry-uses-enough-water-for-over-5-million-people-137591">intensive water use</a>.

The conditions of extracting these critical minerals in other parts of the world are dire. There&rsquo;s the oppressive working conditions <a href="https://www.theguardian.com/global-development/2019/dec/18/how-the-race-for-cobalt-risks-turning-it-from-miracle-metal-to-deadly-chemical">in cobalt mining in the Democratic Republic of the Congo</a>, the conflict over <a href="https://www.theguardian.com/commentisfree/2021/jun/14/electric-cost-lithium-mining-decarbonasation-salt-flats-chile">Indigenous rights in Chile&rsquo;s lithium mining areas</a>, and environmental destruction associated with <a href="https://www.theguardian.com/environment/gallery/2015/apr/15/rare-earthenware-a-journey-to-the-toxic-source-of-luxury-goods">mining rare earth minerals in China</a>.

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="Lithium mine with brine pools" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" src="https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=565&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=565&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=565&amp;fit=crop&amp;dpr=3 2262w" /></a>

<figcaption>Mining for rare-earth metals such as lithium comes with enormous environmental impacts. Shutterstock</figcaption>
</figure>

<h2>Broadening ideas about transport</h2>

To focus on these problems is not to suggest the new policies on electric vehicles are unimportant, or that they don&rsquo;t stand to have some positive environmental impact.

The point is private EVs are not a solution to the combined challenges of reducing our urban environmental footprints and making better cities for all, and that they have their own problems.

Instead, we should develop a good mass public transport system with extensive and frequent coverage. Alongside urban development with a more even distribution of jobs, services and opportunities, investing in better public transport could reduce car dependence in our cities.

This would have a range of environmental and social benefits: making more space available for people instead of machines, extending the benefits of mobility to people who can&rsquo;t or don&rsquo;t drive, and reducing demand for finite minerals.

Even fossil-fuelled public transport has fewer emissions than conventional car travel. Data from the <a href="https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_chapter8.pdf">Intergovernmental Panel on Climate Change</a> shows the most fuel-efficient buses and trains generate less than half the carbon emissions per passenger kilometre of fuel-efficient cars. Of course, public transport powered by renewables will be even better.

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="Trams on Swanston Street" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" src="https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=566&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=566&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=566&amp;fit=crop&amp;dpr=3 2262w" /></a>

<figcaption>Melbourne&rsquo;s tram network is the biggest in the world. Shutterstock</figcaption>
</figure>

But as things stand, we are far from having such a city. The benefits of good public transport and public services are <a href="https://journals.sagepub.com/doi/pdf/10.1068/a140008g">unevenly distributed across our cities</a>.

In Sydney, for example, there are significant investments in new public transport infrastructure in some parts of the city, such as <a href="https://www.sydneymetro.info/west/project-overview">Metro West</a> and the recently completed North West Metro. There are <a href="https://www.smh.com.au/national/nsw/entire-nsw-rail-network-to-go-green-by-2025-smaller-ferries-to-go-electric-20210610-p58013.html">welcome commitments to reduce emissions</a> in that sector, too.

But we&rsquo;re a long way from planning new developments and redevelopments to make public transport a viable alternative to cars. The <a href="https://www.abc.net.au/news/2021-04-18/western-sydney-urban-sprawl-lesson-for-other-australian-cities/100072140">lack of public transport infrastructure in newly constructed, master-planned</a> estates on Sydney&rsquo;s urban fringe is the most glaring example.

Ultimately, it&rsquo;s important that a transition to electric vehicles doesn&rsquo;t dominate the discussion we need to have about urban transport.

Our challenge is to simultaneously reduce the carbon footprint of different forms of transport, while also thinking much more broadly about the sustainability and justice of the system of mobility that&rsquo;s so central to daily life in our cities.<img alt="The Conversation" height="1" src="https://counter.theconversation.com/content/163247/count.gif?distributor=republish-lightbox-basic" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" width="1" />

&nbsp;

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/cramming-cities-full-of-electric-vehicles-means-were-still-depending-on-cars-and-thats-a-huge-problem-163247">original article</a>.

This week, the NSW government announced almost A$500 million towards boosting the uptake of electric vehicles

max.kwok_55688

Cramming cities full of electric vehicles means we’re still depending on cars — and that’s a huge problem

Homophobia, bullying and harassment continues in the construction industry despite improving attitudes towards LGBTQ+ employees, according to new research from the Australian Human Rights Institute at UNSW released Tuesday.

The report, which looked into the experiences of LGBTQ+ people working in construction and the effectiveness of current diversity and inclusion strategies, was undertaken in conjunction with InterBuild&rsquo;s People Engagement working group and sponsored by the Lendlease Foundation.

Researchers Dr Natalie Galea and Dr Melissa Jardine found that while LGBTQ+ inclusion has improved, there is a &ldquo;significant variation across the industry&rdquo; and many people still don&rsquo;t feel safe bringing their authentic selves to work.

<img alt="" height="667" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/shutterstock_1396952330.jpg" width="1000" />

Participants in the study ranged from tradespeople to senior executives of multinational companies, and gave detailed accounts about coming out at work, the experience of transitioning gender in the workplace, and the effectiveness of existing diversity and inclusion strategies.

Another study published by <a href="https://www.pwc.com.au/publications/pdf/pwc-workplace-inclusion-report-sep17.pdf" target="_blank">PwC&rsquo;s GLEE team</a> showed that homophobia was more present within the construction industry than on average.

75 per cent of respondents from the construction sector, Australia&rsquo;s most male-dominated industry and the third-largest national employer, indicated&nbsp;they had observed homophobia, compared to 56 per cent in other sectors.&nbsp;

[smartcode_project:default project_id=3459 project_image_fid=147569]

Lead author of the UNSW report Dr Galea said that while most participants felt there was a positive trajectory in workplace attitudes, many noted the sector was coming off a very low base.

&ldquo;The research found it was particularly challenging for those in junior positions, apprentices and FIFO workers to navigate the construction sector as an LGBTQ+ worker due to a lack of power and a desire to &lsquo;fit in&rsquo; to avoid anticipated negative responses,&rdquo; Dr Galea said.

One of the participants, who is in their 40s and identifies as queer, said: &ldquo;I&rsquo;m going to wait until I finish my apprenticeship and get a permanent position [before being more open about my identity] even though my role is considered permanent... I feel like I need people to see that I do a good job and I&rsquo;m an okay person.&rdquo;

<img alt="" height="423" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/lgbtq_construction_thumb_0.jpeg" width="740" />

Co-author Dr Jardine said the research found that industry leaders often lacked awareness of inclusive LGBT+ practices and in some cases failed to act on homophobic or discriminatory behaviours.

&ldquo;Despite many examples of good leadership, participants expressed frustration that some leaders turned a blind eye and failed to act or challenge homophobic behaviour and attitudes, especially from &lsquo;old school&rsquo; men,&rdquo; Dr Jardine said.

The report, which included recommendations for government and businesses, noted that this&nbsp;risks entrenching current behaviours and may lead to the loss of new talent.

Other recommendations to recalibrate industry behaviours and value the engagement of all workers included sexism, homophobia and transphobia education, publicly available inclusion policies, and a mental health service for LGBTQ+ tradies with qualified counsellors who understand the construction sector.

The full report, titled Building an LGBTQ+ inclusive workplace: A blueprint for Australia&rsquo;s construction industry is available to read <a href="https://www.humanrights.unsw.edu.au/research/lgbtq-workers-australian-construction-sector" target="_blank">here</a>.

Australian Human Rights Institute at UNSW released a new report, 'Building an LGBTQ+ inclusive workplace: A blueprint for Australia’s construction industry', on Tuesday

New UNSW research reveals barriers to LGBTQ+ inclusion in the construction industry

The Commonwealth Bank&rsquo;s head of Australian economics, Gareth Aird has forecast the RBA will lift cash rate in 2022, about two years earlier than the central bank has itself suggested.

&ldquo;Our central scenario has the RBA delivering the first hike in the cash rate in November 2022,&rdquo; Aird advised in a note to clients.

&ldquo;We have pencilled in an increase of 15 basis points, which would take the cash rate to 0.25 per cent.

&ldquo;We expect that to be followed by an increase of 25 basis points in December 2022.&nbsp;

[smartcode_project:default project_id=5490 project_image_fid=78492]

&quot;We have three further 25-basis-point hikes in Q1 23, Q2 23 and Q3 23 [the first, second and third quarters of 2023].&rdquo;

It would take the cash rate to 1.25 per cent, where it was in June 2019.

But it depends on fiscal policy remaining expansionary and the border opening to immigrants in mid-2022, Aird added.

Variable mortgage rates after a 1.15-percentage-point rise would move from 3.1 percent to 4.25 per cent for owner occupiers and from 3.44 to 4.59 per cent for investors.

[smartcode_project:default project_id=97810 project_image_fid=160635]

On a $500,000 mortgage it would result in a $324 per month increase in repayments.

Aird is the latest economist to bring forward their timing forecast as ANZ&#39;s economists recently advised their forecast was for the first rate rise to come in late 2023.

Westpac shifted its first rate rise forecast to March 2023 after the recent job numbers.

The Commonwealth Bank’s head of Australian economics, Gareth Aird forecasts the cash rate will take place within 18 months

jchancellor

CBA forecast RBA will lift cash rate in late 2022 

McGrath Estate Agents has entered into a referral agreement with Newground Capital Partners.

The alliance expects to broaden its sales capability across its apartment projects business, McGrath chief Eddie Law said.

ICG-Newground is a company headed by London listed alternative asset manager Intermediate Capital Group (&ldquo;ICG&rdquo;).

Law said McGrath was often the first point of contact for developers to determine site availability and market sentiment and to formulate product type, format and price.

&ldquo;The intent is to leverage of our proven core capabilities of agency project marketing, property management and buyer mortgage provision, by acting as a conduit to the delivery of development capital, to assist the developer both acquire and develop the site.&quot;

[smartcode_project:default project_id=7758 project_image_fid=150461]

He said McGrath want to be a &ldquo;one stop shop&rdquo; to deliver capital, agency and management services on a market competitive basis with ICG-Newground having an entrepreneurial approach to doing business not necessarily seen by traditional banking institutions.&nbsp;

&quot;We are already engaging and quoting actively on several residential property development opportunities in both Sydney, Melbourne and Brisbane.&quot;

Daniel Erez, head of real estate Australia &amp; New Zealand for ICG-Newground said in a strong residential market, developers need to act quickly and decisively knowing that their financier can move with them.&nbsp;

ICG Plc, which manages $74.5 billion in private debt, credit, and equity, will launched a new real estate credit fund targeting a $1 billion raise.

McGrath Estate Agents has entered into a referral agreement with Newground Capital Partners

McGrath and ICG-Newground form alliance to boost finance access for development projects

EXPERT OBSERVER

It didn&rsquo;t seem possible that the extraordinary national property boom I recorded in the Autumn edition of the Price Predictor Index three months ago could get any bigger. But it has.

The new Winter 2021 edition of The Price Predictor Index records further uplift in sales activity and growing numbers of suburbs and towns with increases.

Other markets have matched or almost matched the very high levels we recorded three months ago.

The biggest improver is Melbourne, where the number of suburbs with rising sales activity has been 32 25 127 196 in the past four quarters (NOTE: the data in this report pre-dates the latest lockdown of late May/early June).

[smartcode_project:default project_id=5502 project_image_fid=155342]

Brisbane has continued the exponential rise in its market: over the past 12 months, the number of suburbs with rising sales volumes quarter by quarter has been 28, 56, 124, 141.

Adelaide is another notable improver, with quarterly results of 52, 62, 93, 104 suburbs with upwardly-mobile markets.

Regional markets continue to be buoyant, with further improvement in Regional Victoria (27, 35, 86, 88) and Regional WA (15, 27, 34, 37).

[smartcode_project:default project_id=7864 project_image_fid=142655]

The national leader in terms of the percentage of locations with rising sales activity is Regional South Australia - 79% of its towns are rising. It&rsquo;s surprising that a market that few Australian investors would ever consider is actually a national leader.

Next best in the nation is Melbourne (72%), followed by Regional WA (69%), Regional Queensland (65%), Brisbane (64%), Regional Victoria (64%) and Regional NSW (61%).

This data confirms just how strong regional market jurisdictions have been &ndash; and will continue to be, in most cases.

But it&rsquo;s not all a story of relentless growth - some markets are showing signs of tapering off.

The Sunshine Coast, which we named as our National Growth Star in the Autumn edition of the Price Predictor Index three months ago, has plateau-ed a little. It remains a very strong market with many growth suburbs and towns, and prices continuing to soar.

It&rsquo;s a similar scenario for the Central Coast of NSW and also Newcastle. Both remain busy markets with notable price uplift, but the number of locations with rising sales activity has tapered a little in this latest survey.

Canberra appears to have reached a peak in its market - in this survey I have found that only 24% of its suburbs have rising momentum in sales.

However, I have observed in the recent past that markets which appeared to have peaked have had resurgences. Examples include Geelong and Ballarat in Regional Victoria, where markets had faded somewhat after several years of growth, but experienced a second wave of demand out of Melbourne in the past six months.

[smartcode_project:default project_id=5559 project_image_fid=88244]

The most startling data revealed in this report, at a time when incredible figures are the norm, is the major increase in median prices in the latest quarter in so many locations across Australia.

Hundreds of towns and suburbs have seen median price rises of more than 10%, uplift that would be impressive over 12 months, but this is the increase in just three months.

There are examples pretty much everywhere around Australia, across all price ranges and for apartments as well as houses. Millionaire enclaves, middle-ring areas, affordable suburbs, major regional centres and small country towns - they&rsquo;re all part of the trend of ridiculous rises in prices.

Gerringong NSW from $890,000 to $995,000; Noosa Heads QLD from $1,150,000 to $1,400,000; Bronte NSW from $3,400,000 to $3,890,000; Rye VIC from $720,000 to $810,000; Brighton VIC from $2,800,000 to $2,985,000; Cable Beach WA from $465,000 to $540,000; Port Elliot SA from $495,000 to $565,000; Fullarton SA from $945,000 to $1,105,000 - these are among myriad examples of median house price rises in just three months.

One of greatest drivers of this phenomenon is big-city residents buying in the small cities and in regional areas. Sydney and Melbourne people are looking online, observing how cheap the prices are compared to their neighbourhoods and making a phone call to buy sight-unseen.

[smartcode_project:default project_id=7758 project_image_fid=79424]

In some cases, buyers are behaving foolishly, paying too much and/or buying in the wrong places. They think they&rsquo;re getting a bargain but often they are paying well above local values - or they&rsquo;re buying in places which lack the intrinsic drivers for long-term capital growth.

Even in a raging boom, buyers need to be sensible, choosing their locations well and paying prices in line with local market values.

The new Winter 2021 edition of The Price Predictor Index records further uplift in sales activity and growing numbers of suburbs and towns with increases

The property boom has got bigger: Hotspotting's Terry Ryder

EXPERT OBSERVER

The latest Australian Bureau of Statistics (ABS) data shows that new lending in South Australia is at record levels as South Australian Senators look set to be the vital votes to save safe lending laws.

Home lending is booming in South Australia. We haven&rsquo;t seen such startling levels of lending since records began in 2003.

The ABS figures show:&nbsp;

- Lending for new South Australian owner-occupier loans is at the highest level since records began in 2003. Lending for new homes is 41% higher than in April 2020.

- Lending for South Australian first home buyers in April 2021 is 48% higher than April 2020.

- New lending for investor housing has increased 41% since April 2020.

<img alt="" height="1026" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2021-06-10_at_1.22.43_pm.png" width="1358" />

The general signs of economic recovery mask the strong risks for borrowers in a booming housing market.

The state faces the perfect storm of rising levels of household debt, ultra-cheap credit, flatlining wages, hidden underemployment and key government support tapering off.

Housing unaffordability is also reaching a crisis point in South Australia. Median house prices in Adelaide have ticked over half a million dollars. Families are having to take on increasingly larger debts to simply enter the market.&nbsp;&nbsp;

[smartcode_project:default project_id=6082 project_image_fid=37154]

The ABS data comes as the government struggles to garner enough support in the Senate to axe safe lending laws.

The laws were put in place in 2009 after the Global Financial Crisis to prevent reckless lending observed in the lead up and during the crisis.

The legislation has been slammed by key crossbench Senators, including Senator Jacqui Lambie and Senator Pauline Hanson.

[smartcode_project:default project_id=9286 project_image_fid=82295]

Safe lending laws are a critical consumer protection to ensure that banks do not lend recklessly to Australians.

Now more than ever, when credit is cheap and home lending is booming, we need strong safe lending laws to ensure banks don&#39;t sell people into loans they won&rsquo;t be able to afford down the track.

The Banking Royal Commission heard shocking stories of banks lending money to people who the lender knew would never be able to repay the loan, including people with disabilities, pensioners, and problem gamblers.

[smartcode_project:default project_id=22077 project_image_fid=72525]

If safe lending laws are axed, there won&rsquo;t be any penalties for this kind of behaviour. Banks won&rsquo;t be fined, and they won&rsquo;t have to pay compensation.

Rebekha Sharkie from Centre Alliance spoke out against the government&rsquo;s changes in the lower house, and independent Senator Rex Patrick has expressed strong concerns.

We encourage Senators Stirling Griff and Rex Patrick to continue to stand up to the banks and government, and vote down the government&rsquo;s changes when they hit the Senate.

People need protection from unsafe lending, as Senate vote imminent

Home lending in SA at record levels: CHOICE

EXPERT INSIGHT

So you think it&rsquo;s the right time to dive in and buy a home.

I can&rsquo;t tell you you&rsquo;re wrong. I can tell you it would have been better to do it before prices began soaring, and that if they keep soaring it will get worse still.

When the year began, the typical Sydney price was <a href="https://www.corelogic.com.au/news/corelogic-december-home-value-indices">$872,000</a>. Five months later at the start of June it is <a href="https://www.corelogic.com.au/news/australias-housing-boom-rolls-national-home-values-lifting-another-22-may">$970,000</a>.

That&rsquo;s a jump of almost $100,000 in a matter of months &mdash; an awfully big price for procrastinating.

In Melbourne the typical price has climbed from $682,000 to $740,500. In Perth it has climbed from $471,000 to $521,500, and so on.

And banks are beginning to withdraw the cheapest of their still-very-cheap mortgage rates, at this stage mainly the fixed four-year rates which had been below <a href="https://www.domain.com.au/news/house-hunters-facing-rising-fixed-mortgage-rates-with-further-hikes-expected-1054965/">2%</a>.

So why on earth wouldn&rsquo;t you dive in, cut your living expenses to the bare minimum and try and buy a home while it&rsquo;s the least bit possible?

One (slight) reason to relax is mortgage rates. Despite the increases in fixed four-year rates, three-year rates have barely moved. That&rsquo;s because the Reserve Bank has promised to hold the three-year bond rate <a href="https://www.rba.gov.au/media-releases/2021/mr-21-09.html">constant</a> at 0.1%.

Buying has become a bigger commitment

The three-year bond rate determines the cost to banks of their three-year fixed rate mortgages.

The Reserve Bank has said it does not expect to lift its 0.1% cash rate until &ldquo;2024 at the earliest&rdquo;. Movements in the cash rate determine movements in variable mortgage rates.

But there is another reason for proceeding with caution and taking stock.

For our parents, buying a home was an exceptionally good deal, not only because homes were cheaper &mdash; until the end of the 1990s homes typically cost between two and three times household after-tax income, they now cost closer to five &mdash; but also because over time the loan became easier to pay off.

That isn&rsquo;t because mortgage rates were coming down &mdash; at times they were going up &mdash; it&rsquo;s because during our parents&rsquo; times wages (and prices) were climbing.

It meant that even if someone of our parents&rsquo; generation just squeaked through one of the bank&rsquo;s tests about their ability to make payments on a mortgage, a few years and lots of inflation and several big wage rises down the track those mortgage payments shrank compared to everything else.

Once, wage rises took care of repayments

Many of our parents paid off their mortgages early.

One way to look at this is that the bank&rsquo;s ability-to-repay calculators were set too harshly. They failed to account for future hefty wage rises and inflation.

It&rsquo;s probably also true that they were set more generously than they might have been in an implicit acknowledgement of what the assistant governor in charge of the Reserve Bank&rsquo;s economic branch Luci Ellis calls &ldquo;<a href="https://www.rba.gov.au/publications/rdp/2006/2006-12/global-trends.html">mortgage tilt</a>&rdquo;.

The former governor, Glenn Stevens, used another term, &ldquo;<a href="https://www.rba.gov.au/speeches/1997/sp-ag-081097.html">front-end loading</a>&rdquo;.

Mortgages were &lsquo;front-end loaded&rsquo;

When inflation was high, and as a consequence interest rates were high, wages that climbed rapidly with high inflation made the servicing burden &ldquo;most acute in the very early phase of a loan, falling over time&rdquo;.

On a graph (and the former governor presented a graph) the line showing payments as a portion of income tilts down over time.

In a world of lower inflation and interest rates, the tilt becomes flatter.

By now (Stevens published the graph in 1997) the line must be near horizontal.

If wage growth remains near the <a href="https://twitter.com/1petermartin/status/1399520798734389250/photo/1">record lows</a> the treasury is forecasting it will become scarcely any easier to make payments on a home loan over time.

Yet the banks are still handing out loans using the sort of formulas they used to.

If you get a loan you&rsquo;ll be assessed as being able to (just) make the payments as always, but you&rsquo;ll be denied the near certainty of being able to more easily meet the payments as time goes on.

Now, we retire mortgaged

This is a different from the risk you&rsquo;ll also run of today&rsquo;s ultra-low mortgage rates climbing (which banks do take into account in deciding whether to give you a loan).

The proportion of homeowners reaching retirement age while still paying off their mortgage has doubled in 20 years. Which might be why some banks ask for details of your super before granting you a loan. It isn&rsquo;t an idle inquiry.

Might things get better? Maybe, if we can get wages moving again.

Evidence given to Tuesday&rsquo;s post-budget Senate estimate hearing provides cause for hope, and despair.

Super hikes will make things worse

The budget forecasts for wage growth over the next four financial years are incredibly low &mdash; 1.5%, 2.25%, 2.5% and 2.75%

On Tuesday Treasury Secretary Steven Kennedy revealed that each would have been higher &mdash; 0.4 points higher &mdash; had the government not persisted with the five scheduled annual increases in compulsory superannuation contributions of 0.5% of salary starting in July.

The treasury believes each increase will slice 0.4 percentage points from wage growth, on the basis that employers, who are legally required to pay the contributions, will have to find the money somewhere.

It&rsquo;s the same conclusion reached by the government&rsquo;s <a href="https://theconversation.com/that-extra-youre-about-to-get-in-super-most-of-it-will-come-from-you-but-dont-expect-the-ads-to-tell-you-that-154723">retirement incomes review</a>.

It&rsquo;s cause for hope because it means that when those five increases stop (in mid-2026, or sooner if the government stops them mid-track) wages might be able to grow more strongly.

It&rsquo;s cause for despair because if the treasury is right, we are denying ourselves wage rises we could use in return for super we will increasingly use to pay down our mortgages.<img alt="The Conversation" height="1" src="https://counter.theconversation.com/content/161873/count.gif?distributor=republish-lightbox-basic" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" width="1" z5zyoz6tp="" />

<a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a>

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/paying-off-a-home-loan-used-to-be-easier-than-it-looked-its-now-harder-heres-why-161873">original article</a>.

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