For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

The inflation result the property market was waiting for

<html><body>
Government grants and current low interest rates are helping first home buyers get into the Brisbane property market.
Alex Veal, Mint Residential Principal said more than 60 percent of the recent buyers at Vantage Lutwyche, have been new to the market.
"The increased First Home Owner Grant to $20,000 and stamp duty concession under $500,000 means they can purchase a new property with minimal savings and lock in an interest rate at circa four percent to give them certainty in payments at the front end of their mortgage," he said.
"When you add all those factors together, there really has not been a better time for purchasers to enter the market for some time - and they are increasingly recognising this."
Vantage Lutwyche fetures 55 one and two bedroom apartments across six residential levels, a 160sqm roof terrace and pavilion.
Buyers also get  a year's supply of coffee at local cafe Coddle and Co., an annual gym membership and quality blinds.
One bedroom apartments at Vantage Lutwyche start from $324,000 and two bedroom apartments from $439,000.
Loretta Reinke, and Hasitha Samaratunga, each purchased an apartment off-the-plan in Vantage Lutwyche
Ms Reinke said she was looking at apartments that were up to 10 years old, and they were no cheaper and offered a similar level of space.
"So I figured why not buy new, where I did not have to worry about how other people had treated the apartment," she said.
"The extra $20,000 I would receive for buying new was certainly very handy."
An on-site display is now open at the corner of Isedale Street and Lutwyche Road, Lutwyche between 4.30pm and 5.30pm on Wednesday, 10.30am to 12.30pm on Saturday or by appointment.  For further information call 1300 789 959 or visit <a href="https://www.vantagelutwyche.com.au" target="_blank">vantagelutwyche.com.au</a>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Market conditions in Brisbane give first home buyers advantage

<html><body>
Kilmore is ranked the Victorian location with a highest number of distressed house offerings, according to Investar’s latest market report. 
Around half its listings are being offered at a discount or distressed price.
Curlewis and Cranbourne also had high discount levels among its listings.
The median house price at Kilmore is $333,000. Houses are being typically rented at a $340 median weekly rent.
Houses are averaging 110 days on the market before being sold.
<div align="center">
<table style="width: 546px;" border="0" cellpadding="0" align="left"><tbody>
<tr>
<td>
Suburb
</td>
<td>
Postcode
</td>
<td>
Dwelling type
</td>
<td>
Bedrooms
</td>
<td>
% of listings
</td>
</tr>
<tr>
<td>
Kilmore
</td>
<td>
3764
</td>
<td>
House
</td>
<td>
4
</td>
<td>
51%
</td>
</tr>
<tr>
<td>
Curlewis
</td>
<td>
3222
</td>
<td>
House
</td>
<td>
4
</td>
<td>
43%
</td>
</tr>
<tr>
<td>
Cranbourne
</td>
<td>
3977
</td>
<td>
House
</td>
<td>
2
</td>
<td>
41%
</td>
</tr>
<tr>
<td>
Wallan
</td>
<td>
3756
</td>
<td>
House
</td>
<td>
4
</td>
<td>
40%
</td>
</tr>
<tr>
<td>
Coronet Bay
</td>
<td>
3984
</td>
<td>
House
</td>
<td>
3
</td>
<td>
31%
</td>
</tr>
</tbody></table>
</div>
 
 
 
 
The list was produced using sales listing data including distressed sale condition keyword analysis.
It identified listings with one or more keywords that would indicate an increased level of seller motivation and calculated this as a percentage of total listings on the market.
It is designed to identify suburbs with the highest percentage of potentially distressed price stock based on the descriptions used by agents and vendors.
The category also included price reduction activity.
A currently tenanted house at <a href="https://www.realestate.com.au/property-house-vic-kilmore-121845038" target="_blank">4 Blackduck Crossing</a> (above) had its price reduced several time until its recent $290,000 sale. 
It had been dropped to a $300,000 asking price from $310,000 having been listed in February at $335,000.
It last sold in 2010 at $293,000. 
 
</body></html>

Kilmore takes top spot for distressed house offerings in Victoria: Investar

<html><body>
<img src="https://counter.theconversation.edu.au/content/68984/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVERS
Cities are the epicentres of human activity. They cover less than 2 percent of the earth’s land surface but generate about 70 percent of GDP and house more than half the human population. The importance of cities is only going to increase in coming decades as another 2.5 billion people move to urban centres. 
This intense production and consumption requires huge quantities of natural resources. Cities account for more than 60 percent of global energy use, 70 percent of greenhouse gas emissions and 70 percent of global waste. Current practices are depleting the Earth’s finite resources, changing its climate and damaging its natural ecosystems. With our planetary life support system in the red, we need to put cities on a serious resource diet.
<h2>Resources efficiency in the New Urban Agenda</h2>
The New Urban Agenda adopted at the Habitat III conference outlines a vision for sustainable urban development. These global guidelines, along with the related UN Sustainable Development Goals, recognise the need to use resources more efficiently. 
Habitat III included a number of sessions on resource efficiency and associated tools and initiatives. Organisations such as UNEP, UN-Habitat and the European Commission and its research centres typically led these events. The New Urban Agenda includes many references to efficiency and reduced consumption in cities. 
We must now act urgently to translate words into actions. This will ease pressure on ecosystems and produce a range of co-benefits, including health, wellbeing and resilience. 
<h2>How do we create more resource-efficient cities?</h2>
Cities use resources directly, such as burning fossil fuels for electricity and transport. However, indirect uses, such as water for growing food crops, are much wider-reaching. 
It can be overwhelming to consider the resources used for all goods, processes and infrastructure in cities. Yet it is possible to measure this using a systems approach. Instead of considering components in isolation, the entire city is considered as an open system, connected to others. 
This perspective ensures a much broader understanding of complex relationships between scales, resource flows, the built environment, socio-economic factors and ecological outcomes.
There are tools that embrace a systems perspective. For example, the urban metabolism approach considers cities as ecosystems, across which flows of resources (such as energy or water) are measured. Life cycle assessment measures resource use through the entire production, consumption and degradation process of a good or service.
These approaches have been successfully applied at various scales such as cities, neighbourhoods and buildings. This reveals that we are using more resources than shown by traditional assessment techniques (see this example on building energy efficiency regulations). 
But measurement without action has no impact on the ground. How can these tools be used to transform our cities?
Many initiatives are targeting urban resource efficiency. The circular economy paradigm is a good example, where materials are reused, upcycled and recycled. It demonstrates that waste is a human concept and not an inherent property of cities. Waste does not exist in natural systems. 
A range of projects by UNEP, the European Commission and other organisations support local resource efficiency initiatives and encourage local governments to implement related regulations. Blogging, data visualisation and disseminating research all help promote the adoption of resource efficiency concepts. In addition to the pioneering work of groups such as metabolism of cities, the uptake of open data is helping with this.
<h2>Learning from those who already live on less</h2>
Informal settlements provide interesting lessons in resource efficiency. Construction materials in these settlements are typically not very durable. However, because they are in short supply, they are constantly reused or repurposed, almost never discarded. 
Other residents often reuse replaced materials, such as metal sheets, or store them for later use. This practice avoids additional resource use to produce new materials.
Although informal slum areas are often the focus of “upgrading” and improvement, lessons learnt in these settings can enhance material flow management and reduce waste elsewhere in cities.
<h2>Co-benefits of resource efficiency</h2>
More resource-efficient cities tend to result in better health outcomes. For instance, encouraging walking, cycling and public transport instead of car use can reduce fossil fuel consumption and greenhouse gas emissions, and improve population health through increased physical activity. 
Food systems that promote consumption of fresh, local produce can benefit both the environment and nutrition. Energy-efficient housing reduces energy and water use and can improve occupants’ health at the same time.
Resource efficiency can also contribute to urban resilience. Nature-based solutions use relatively few non-renewable materials to increase resilience to environmental change and natural disasters. For example, a park can be designed to be flooded during storms or a tsunami, reduce the urban heat island effect, support urban ecosystems and provide areas for community activities, recreation and urban agriculture.
Efficiency can also ensure that redundancy – a core principle of resilience – is built into urban systems. This means resources can be repurposed in the event of an unanticipated shock or stress. For example, during the recent blackout in South Australia, a household with solar battery storage was able to maintain power for 12 hours “off grid”. 
<h2>Working together for better solutions</h2>
Although these steps move cities in the right direction, more action from governments, the private sector and civil society is needed to transform our growing urban footprints.
Focusing solely on resource efficiency may neglect opportunities to generate co-benefits across sectors and will not provide robust solutions. We need to look at the entire city as a system and work together, across all disciplines, with effective and strong governance structures that support integrated policy definition and long-term implementation. If we don’t, we might simply shift a problem from one area to another, increase resource demand elsewhere, or create social divisions and tensions. 
Strong leadership, political stability, effective institutions and awareness-raising among citizens are vital factors for success. Urban resource efficiency is critical, but it should be considered along all other pressing issues highlighted in the New Urban Agenda.
<a href="https://theconversation.com/profiles/andre-stephan-14991" target="_blank">André Stephan </a>is postdoctoral research fellow, University of Melbourne.
<a href="https://theconversation.com/profiles/alexei-trundle-11956" target="_blank">Alexei Trundle</a> is PhD candidate, Australian-German Climate &amp; Energy College, University of Melbourne.
<a href="https://theconversation.com/profiles/dave-kendal-180942" rel="author">Dave Kendal</a> is researcher, Royal Botanic Gardens Victoria (ARCUE), University of Melbourne.
<a href="https://theconversation.com/profiles/hayley-henderson-288490" target="_blank">Hayley Henderson</a> is PhD candidate in Urban Planning, University of Melbourne
<a href="https://theconversation.com/profiles/hesam-kamalipour-288498" rel="author">Hesam Kamalipour</a> is PhD candidate and Research Assistant in Urban Design, University of Melbourne
<a href="https://theconversation.com/profiles/melanie-lowe-288493" target="_blank">Melanie Lowe</a> is research fellow, McCaughey VicHealth Community Wellbeing Unit, Melbourne School of Population and Global Health, University of Melbourne.
All are authors for The Conversation.
</body></html>

jchancellor-FAypfDUnLy

Our cities need to go on a resource diet

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
</div>
</div>
<div class="layoutArea">
<div class="column">
Throughout November, capital city dwelling values rose by 0.2 percent. 
While the headline results remained in positive growth territory, the monthly capital gain reading was also the softest result since December 2015 when capital city dwelling values were unchanged over the month. The combined regional areas of Australia showed a weaker result with house values falling by 0.2 percent over the month. 
The soft performance across the combined capital city reading was attributable to a 1.5 percent fall in the Melbourne index, while all other capital cities recorded a positive month-on-month result.
<a href="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%2010.08.49%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%2010.08.49%20AM.png" alt="">
 
Delving into the Melbourne results in more detail showed that unit values were down a larger 3.2 percent in November, while Melbourne house values declined by 1.3 percent over the month. 
The November figures show that capital city dwelling values rose by 1.7 percent over the three months of spring; a substantial improvement over last year. Spring 2015 saw capital city dwelling values fall by 0.2 percent, with auction clearance rates dipping below 60 percent in late November and early December. 
In contrast, auction clearance rates held firm in the mid-70 percent range throughout spring this year, with Sydney clearance rates holding around the 80 percent mark over the past three months. 
On an annual basis, every capital city except for Perth is now showing a positive annual trend in dwelling value growth. The highest annual growth rate is evident in Sydney and Melbourne where dwelling values are now 13.1 percent and 11.3 percent higher respectively, reflecting a steeper upwards trajectory in growth over the second half of the year. The Hobart and Canberra markets have also seen some acceleration in growth rate trends with dwelling values up 8.5 percent, and 8.4 percent respectively over the past twelve months.
<a href="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%2010.10.01%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%2010.10.01%20AM.png" alt="">
 
For the first time since February 2015, Darwin’s annual growth rate has moved back into the black and recorded a 1.1 percent rise in dwelling values over the past year. Results for smaller cities such as Darwin, can tend to show higher levels of volatility. 
The November results also show a rise in transaction numbers across the Darwin market over recent months, supporting the moderate improvement in market conditions that the hedonic index is showing. 
Currently the national growth cycle has been in play for 4.5 years, with capital city dwelling values rising by 42.2 percent over the cycle to date. 
Disaggregating this growth figure highlights the diversity in market conditions with Sydney and Melbourne at one end of the spectrum experiencing an increase in dwelling values over this period of 67.3 percent and 46.3 percent respectively, while at the other end of the spectrum, Perth and Darwin values have broadly declined since 2014. Perth values are 6.9 percent higher since the cycle commenced in June 2012, while Darwin values are 13.8 percent higher over this period. 
It appears that higher unit supply is progressively weighing down the capital gains across Melbourne’s unit sector, with annual capital gains tracking at 3.9 percent for Melbourne units compared with a 12.2 percent annual gain in Melbourne house values. 
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
A similar trend can be seen in Brisbane, where the supply of units across key inner city regions is also high. Brisbane house values were up 4.3 percent over the past twelve months compared with a 0.9 percent fall in unit values. 
With the unit supply pipeline remaining substantial, we expect to see a continuation of weaker market conditions across those unit markets where high supply levels are dampening the prospects for higher value growth.
<a href="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%2010.11.05%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%2010.11.05%20AM.png" alt="">
Rental yields reached a new record low in November across the combined capitals index due to dwelling values continuing to rise at a faster pace than weekly rental rates. The average gross rental yield across combined capital city dwellings is now recorded at 3.2 percent, down from 3.5 percent a year ago and 4.1 percent five years ago. 
Sydney and Melbourne share the lowest yield profile for detached housing, with an average of 2.8% in both cities, while the gross yield on Sydney units has fallen well below Melbourne’s at 3.8 percent. 
With rental markets remaining soft, it is likely there will be further yield compression across those markets where residential property values are rising. 
The only market segments where yields have improved over the past 12 months were the Hobart and Canberra unit markets where rental rates have shown a higher growth rate than unit values. 
It appears as though the low yield profile is no deterrent to investors, with ABS housing finance data showing a consistent rise in finance commitments for investment purposes since May this year. 
Clearly investors are continuing to see housing as the preferred investment option, despite low yields and a mature growth cycle. 
</div>
</div>
<div class="layoutArea">
<div class="column">
Settled transaction numbers nationally have reversed their downward trend over recent months with CoreLogic estimates of settled sales rising to the highest level in a year. Even though transaction numbers have improved, settled sales remain 9.6 percent lower than a year ago. Every state and territory has shown a reduction in settled sales over the year, however the largest fall has been in Victoria with a 14.9 percent year-on-year decline. In contrast, CoreLogic mortgage valuation platforms experienced record daily volumes earlier this week, reflecting the robust level of late season market activity. 
As the last month of spring, November has seen listing numbers ramp up more substantially with the total number of homes advertised for sale over the past month now tracking higher than a year ago. The latest CoreLogic listing counts show there were approximately 113,500 properties advertised for sale over the past 28 days across the capital cities, which is 2.4 percent higher than the same time a year ago. 
Despite higher listing numbers at a combined capitals level, the hottest markets are still showing listing numbers lower than a year ago. Sydney listings are 9.4 percent lower than last year, while advertised stock levels in Melbourne are 2.9 percent lower. Hobart listings have fallen sharply compared with last year, to be 29 eprcent lower, whilst Canberra stock is 7.6 percent lower than a year ago. 
Lower stock levels in these markets are likely to be one factor contributing to the upwards pressure on dwelling values. Vendors are still very much in the driver’s seat in these markets and buyers have little in the way of leverage to negotiate, or time to consider their purchase decision. 
The strong selling conditions can also be seen in the average selling time, which is tracking at 31 and 32 days in Sydney and Melbourne respectively. Canberra and Hobart are showing the third and fourth fastest average selling times across the capital cities, at 44 and 48 days respectively. 
<a href="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%2010.12.12%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%2010.12.12%20AM.png" alt="">
With real estate agent activity across CoreLogic platforms easing over the past two weeks, it suggests that we may have moved through the peak of new listings activity. Additionally, as we move into the first month of summer, the housing market is likely to remain active for another two weeks before we start to see the normal seasonal slowdown in buyer numbers. 
After four and a half years of strong value growth, Mr Lawless said it’s hard to imagine a reacceleration in property values could be long lived. 
Affordability constraints are creating high barriers to entry, particularly in Sydney, and lenders are becoming more cautious in their lending practices. The supply pipeline is substantial for inner city units, which is likely to dampen value growth in these precincts as well as dent buyer confidence and push vacancy rates higher. 
Additionally, buyer enthusiasm could be muffled by speculation that interest rates may rise late next year, with fixed rates already starting to edge higher. 
With household debt at record levels, Australians are very sensitive to the cost of debt, and an expectation that the period of record low mortgage rates is approaching an end may reduce buyer demand. 
</div>
</div>
</div>
</div>
Tim Lawless is head of the CoreLogic research and analytics team and can be contacted <a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank">here</a>.
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

tlawless-5VLUrbAk9s

Sydney dwelling values up 13 percent over the year while Perth remains in decline: Tim Lawless

<html><body>
GUEST OBSERVER
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
The latest figures from the Australian Bureau of Statistics (ABS) for dwelling approvals show a slow down for NSW particularly for apartments and proposed extra costs could slow housing production even more.
Apartment approvals have dropped by 12% between July and October 2016.
The high point of 4,105 new apartments approved in NSW in July 2016 has dropped to 3,620 in October which is a significant decrease. Housing approvals have also fallen but not by the same amount with all homes dropping from 6,500 in July 2016 to 5,945 by trend in October 2016.
There are a number of signals from the NSW Government that are likely to add more costs to developing apartments and houses and this will add uncertainty to those investing in new housing. The release of the District Plans by the Greater Sydney Commission has highlighted a number of new levies to housing.
An affordable housing levy of up to 10 percent is now proposed in the District Plans as well as statements about Value Capture levies. On top of this the NSW Minister for Planning is encouraging changes to Negative Gearing that would reduce the investment interest in new homes that are needed for the rental market and potential changes to the BASIX sustainability program could lead to additional building costs.
There will be an uncertain environment over the next 12 months as the very broad District Plans are discussed leaving confusion over just which planning rules apply. The council elections at the end of 2017 for amalgamated councils could put decision making on hold.
All of this uncertainty is in the context of an increased number of new homes needed in Sydney yet the uncertainty is likely to slow production down. The Department of Planning has indicated that an average of 36,250 new homes are needed over the next 20 years but the highest production has been 30,000 for the last financial year. The government’s high growth scenario would require 41,500 homes a year.
<a href="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%209.51.02%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%209.51.02%20AM.png" alt="">
 
Clearly for Sydney the NSW Government must be encouraging an increase in housing supply of around 10,000 more than is currently occurring but the uncertainty over the District Plans, Affordable Housing levies, Value Capture levies, Council Amalgamations and potential changes to BASIX will slow housing supply down.
What is needed is policies that stimulate more housing production like the Urban Taskforce proposal for 4,000 affordable homes a year rather than a raft of new levies, taxes and an uncertain planning environment. The current slow down on housing approvals should be seen as an early warning that support for housing production is needed.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
</div>
</div>
</div>
</body></html>

Apartment approvals slow in Sydney as more costs are imposed

<html><body>
A renovated hotel with a turnover of $28,000 per week in Victoria's historic gold-mining town of Beechworth has recently sold for an undisclosed sum.
The <a href="https://www.realcommercial.com.au/property-hotel+leisure-vic-beechworth-501480123" target="_blank">Hibernian Hotel at 34 Camp Street</a> comprises seven self-contained apartments and tea rooms.
The apartments have a turnover of $3,000 per week while the tea rooms are rented out for $20,000 per annum. The property occupies a land area of nearly 2,054 sqm.
The property was sold by Chapman Gould &amp; May.
Listed in 2015, it was on the market for 632 days.
Its last listed price was $2,250,000.
<img src="/images/2016/12/01/Hibernian1.png" alt="">
</body></html>

jonathanchancellor-7SQnKwU6yx

Beechworth hotel with $28,000 pw turnover sold

<html><body>
The Hills of Carmel, a 2,000 lot sub-division spread across 223 hectares in the newly rezoned Box Hill, is progressing at least six months ahead of schedule, according to the developers.
More than 275 housing lots have been sold to home buyers since the $1.3 Billion Hills Shire site launched in May with council consent received for a further 300 lots, likely to be released to buyers in stages in the new year.
“We’ve seen extremely strong sales since day one and that doesn’t seem to be slowing down as the year draws to a close,” said Bob Welsh, the property development consultant for The Hills of Carmel.
According to Welsh, housing construction will commence in February 2017 for the master-planned community in the soon-to-be developed suburb of Box Hill, with the first Hills of Carmel residents set to move into their new homes by winter 2017.
Australia’s biggest and most established display home organisation, Homeworld, has also announced plans for a new 110-lot display village in The Hills of Carmel from mid next year.
“This really shows the quality of the future suburb, as the builders want to display their best product,” said Welsh.
Situated in the premium Hills Shire area, just 40 minutes from the Sydney CBD, 10 minutes from the soon to be completed Metro line at Rouse Hill, and 10 minutes from the Hawkesbury River, the 223-hectare Hills of Carmel offers unparalleled views to the Blue Mountains.
“In line with the need for smaller lots, as described by the Department of Planning, we are providing both small detached dwelling lots and larger lots ranging in size from 300m2 to 870m2.
"We have just released a further 25 lots for sale in the current stage, with prices starting from $427,000 for 300m2, 16 of which sold on the first weekend,” he said.
The Department of Planning expects the new suburb of Box Hill to eventually comprise of 9,600 dwellings and a population of more than 28,000 people.
For more information on The Hills of Carmel, visit <a href="https://www.thehillsofcarmel.com.au/" target="_blank">www.TheHillsofCarmel.com.au</a>.
</body></html>

Billion dollar Box Hill development, The Hills of Carmel ahead of schedule

<html><body>
Pinned to the wall beside my computer is a report I wrote in June 2015 entitled “Top 20 worst predictions about Australian property markets”.
It contains a stunning line-up of doomed forecasts from the previous six or seven years about our property markets. They all have two things in common: they all predicted massive price decline, and none of them was correct.
But they’re still out there and media never tires of them. Forecasts of price collapse are a dime a dozen in mainstream media. 
In many cases, I suspect, the forecasters don’t really believe their own statements. The objective is to generate publicity, truth notwithstanding. Apart from anything else, no one (apart from me) ever checks to see how the forecasts of the past have turned out, so the fallout for false prophets is zero.
So if American spruiker Harry S Dent pops up in Australia next year and predicts a 50 percent collapse in property values, he’ll get masses of free publicity for his seminar tour or book launch, despite having made that prediction twice before (in 2011 and 2014) and been proven wrong by subsequent events.
Predictions of real estate Armageddon in Australia have become common. One of the most recent was widely reported around Australia in early September. This headline appeared in The Australian: “Australia six weeks from a housing collapse, US report warns.” Time is well and truly up on that forecast and we do not appear to have a housing collapse.
The Washington-based International Strategic Studies Association said: “We estimate that Australia has about six weeks or so to turn this situation around, otherwise there would be a massive hit on property valuations and the building trades.”
Its president delivered quite a rant on the subject. You have to wonder why serious newspapers would report such nonsense, particularly given the failure of other similar predictions since the start of the century.
Here’s another example: in October 2015 the Sydney Morning Herald made a huge front-page splash with this headline: “7.5 percent - house prices tipped to slump.” The 7.5 percent was in huge type and dominated the page.
The article said “Australian house prices” would fall 7.5 percent in 2016 and the decline risked causing a recession. It quoted reports from several investment banks – Macquarie, Credit Suisse and Bank of America Merrill Lynch – which all made dire forecasts.
One said property investment in Australia was “riskier than the equity market”, especially in Sydney. Another said the RBA would be forced to lift interest rates in 2016 to tackle high inflation. How wrong did they get that?
When will media ever learn that economists are not real estate specialists and seldom get it right when they drift outside their comfort zones (getting it wrong on the economy) and delve into property prognostication? They regard Australia as a single property market and their understanding of the different market dynamics around Australia could be written on the back of a postage stamp – in crayon.
Other media outlets made big of the same material. The news.com.au website ran this headline: “Five months until property bubble bursts”. The article began: “FIVE months. That’s how long before house prices start to fall, according to the latest major investment bank to call the peak in Australia’s housing cycle. ‘Credit growth, auction clearance rates, house prices, settlement volumes and the dollar value of settlements are all showing signs of slowing, albeit from lofty levels,’ analysts from investment bank Macquarie said in a note today, The Australian reports.”
In November last year the Australian Financial Review ran a major article based on the forecasts of ANZ economists, who predicted that Australian house prices would fall in 2016 by “less than 10 percent”. There, again, we had that fatal formula for failed forecasts: economists, a perspective that Australia is a single market and a gloomy outlook based on a misreading of the signals.
Around the same time, the clown prince of failed forecasting Professor Steve Keen was at it again, still predicting a property crash – as he famously did in 2008 and every year since – and once gain getting it wrong.
Also around the same time, Smart Property Investment ran this headline: “Outer suburb markets could halve in value”, referring to the outer ring suburbs of Sydney. A year later, it’s pretty clear than suburban values have not dropped 50 percent.
In January this year the same magazine reported more dodgy predictions from economists under the headline “Investors warned about looming price declines”. Leading that particular charge was the man with worst record of all in real estate forecasting, AMP Capital chief economist Shane Oliver.
Oliver is probably the only guy who has made negative forecasts about housing prices than Steve Keen, and with an equivalent track record of success. It was Oliver who famously declared in 2005 that there would be no growth in Australian property prices any time in the next 10 years. Oh dear.
He’s made many similar statements over the years, with the same level of success. But he was back for more in January this year, stating that the Sydney market had become so stretched that prices were likely to fall. 
Also mentioned in that SPI article was Fitch Ratings, which claimed that “house price growth is set to decline significantly in 2016, with the possibility of entering negative territory …”
According to Fitch Ratings Australia managing director Ben McCarthy, the downturn would be caused by “reduced demand in Sydney and Melbourne as population growth declines and the market reaches limits of affordability and investor demand and interest recedes".
If there’s a group that has even less success at calling property market outcomes than bank economists, it’s the ratings agencies whose track record is just dismal – and whose motivations are particularly shallow.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
</body></html>

terryryder-YECXbqmri2

Forecasts of housing price collapse are a dime a dozen

<html><body>
GUEST OBSERVER
Although the Strata Schemes Development Act 2015 does not yet have a commencement date, Part 10 of the Act, the part dealing with strata renewal is the topic of much discussion. Specifically, lot owners and owners corporations have been asking what is the process for strata renewal?
Note: we use the term strata renewal for both a collective sale (lot owners agreeing to sell to a developer) and a collective redevelopment (lot owners agreeing to refurbish the building and potentially build additions).
Once Part 10 of the Act comes into effect the process is as follows:
Anyone (it does not have to be a lot owner) can give a written proposal to the owners corporation (OC) for a collective sale or redevelopment of the strata scheme. The proposal cannot be the same as, or substantially similar to, a proposal that lapsed within the previous twelve months.
The executive committee (soon to be the strata committee (SC)) must consider the proposal at a meeting no later than 30 days after it is received. There are two options at this meeting:
If the SC decides the proposal warrants further consideration it must no later than 30 days after the meeting convene a general meeting to consider the proposal.
If the SC decides the proposal is not worthy of consideration the proposal will lapse unless lot owners with at least 25% of the unit entitlements of the scheme request the proposal be considered at general meeting.
Assuming the proposal has been deemed worthy of consideration or there has been a qualified request, the OC at general meeting must decide whether the proposal warrants further consideration. This is an ordinary resolution meaning a simple majority is required to pass it.
If the OC decides the proposal is worthy of consideration it:
<ul>
<li>Must establish a strata renewal committee to prepare a strata renewal plan (ordinary resolution required);</li>
<li>Must elect members of the strata renewal committee (ordinary resolution required &amp; note there are eligibility requirements);</li>
<li>May provide the strata renewal committee with a budget to develop the proposal; and / or</li>
<li>May authorise the strata renewal committee to engage professional advisers to assist it in developing the proposal;</li>
<li>If the OC decides the proposal is not worthy of consideration it lapses.</li>
</ul>
Assuming the OC decided the proposal was worthy and elected a strata renewal committee, that committee is to prepare a strata renewal plan. The committee will operate for one year unless it is either dissolved by the OC or the OC by special resolution, votes to extend its time frame. The contents of a strata renewal plan are prescribed and include provision for compensating dissenting lot owners.
Once the committee has a strata renewal plan to its satisfaction it must put it to the OC at general meeting for approval. The OC must, by special resolution, decide whether or not to give the plan to lot owners for their consideration.
If the OC specially resolves to put the plan (or an amended plan) to lot owners for their approval:
<ul>
<li>A copy of the strata renewal plan must be provided to all lot owners within 14 days plus any information prescribed by the regulations, then</li>
<li>A minimum of 60 days after receipt of the strata renewal plan, lot owners may provide a support notice stating they support the plan. It must be signed by each owner and registered mortgagee or covenant chargee of the lot.</li>
<li>A minimum of 75% of lot owners must return a support notice (and not withdraw it) for the strata renewal plan to proceed. If the required support is not received within three months the plan lapses.</li>
</ul>
If the OC decides not to put the strata renewal plan to the lot owners then it may either:
<ul>
<li>resolve (ordinary resolution) to amend the strata renewal plan and put that plan to the lot owners instead: or</li>
<li>resolve (ordinary resolution) to return the strata renewal plan to the strata renewal committee for amendment; or</li>
<li>if it does neither and does not pass the special resolution to put the strata renewal plan to the lot owners, the plan lapses.</li>
</ul>
Assuming 75 percent of lot owners return (and do not withdraw) a valid support notice within the three month period the OC must:
<ul>
<li>provide notification to the Registrar General and each lot owner within 14 days of being advised the required support has been obtained.</li>
<li>meet and resolve to apply to the Land and Environment Court for orders to give effect to the strata renewal plan.</li>
</ul>
If the OC decides (by ordinary resolution) to apply to the Land and Environment Court the OC must provide notice of the decision to do so to all tenants within 14 days.
The Land and Environment Court must review the strata renewal plan and go through a hearing process to consider whether to make orders to give effect to it. The Act prescribes factors that the Court must consider including the relationship between the owners of lots and the purchaser or developer, steps taken in preparing the plan including whether the required notices were served, the compensation value to be paid to dissenting lot owners and the proposed distribution to supporting lot owners. Lot owners (and specified others) may file objections to the application to the Land &amp; Environment Court and be joined to the proceedings.
As you can see, even a summary shows that this is a complicated process. We recommend seeking legal advice before embarking along this path.
Also please note that compensation is problematic. If the plan is for a collective sale it must provide for each dissenting lot owner’s lot to be purchased at not less than the compensation value for the lot. If the plan is for a redevelopment it must provide for each dissenting lot owner’s lot to be purchased at not less than the compensation value of the lot.
The compensation value for a lot is based on section 55 of the Land Acquisition (Just Terms Compensation) Act 1991. This Act however primarily relates to compensating land owners for compulsory acquisition by statutory authorities which arguably has a different effect when used in valuing the lot of a dissenting owner.
The “highest and best use” which is used to determine market value of the dissenting lot owners lot would likely not be the same as the highest and best use that a developer could put that lot to. Section 55 does however allow a component for disturbance in calculating the compensation value. This is likely to include stamp duty, legal costs and relocation fees but may not include costs such as the liability from terminated leases.  We believe this will be an area that is much disputed.
If you or your scheme are potentially looking at a strata renewal program you may find the report “Renewing the Compact City” by UNSW’s City Futures Research Centre of interest. The link to the report is <a href="https://cityfutures.be.unsw.edu.au/research/projects/renewing-the-compact-city/" target="_blank">here</a>.
<div class="entry-content">
Allison Benson is legal practitioner director, Kerin Benson Lawyers and can be contacted <a href="https://kerinbensonlawyers.com.au/">here</a>.
</div>
</body></html>

Property 101: Highest and best usage compensation under new NSW strata laws will be problematic

<html><body>
<img src="https://counter.theconversation.edu.au/content/69055/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
“Our Future”, a year-long consultation process about a long-term vision for the City of Geelong, has begun. City of Greater Geelong CEO Kelvin Spiller engaged the first UNESCO chair of futures studies, Sohail Inayatullah, to kick-start the project in September.
Spiller, who has produced outcomes for city visioning initiatives on the Sunshine Coast, describes Our Future as a process of “presenting new perceptions, future directions, identifying used futures and new scenarios”. In a rapidly changing world, citizens use scenario thinking to gain insights into how cities can create alternative possibilities and solutions. 
How does industry see the future?
Inayatullah helped workshops of industry professionals develop various industry scenarios: 
Geelong’s emerging futures emphasise its great coastal beauty and its people’s strengths. The city remains small compared to the Gold Coast although, with 229,000 people, Greater Geelong is still among the largest of 561 local government areas in Australia. It is attractive, scenic and touristy. The city’s tranquil bay and marina, picturesque vineyards and proximity attract holidaymakers from Melbourne. 
Artificial intelligence (AI) futures open up a journey on the digital highway to build crowdsourced ideas, new funding models and business start-ups. Geelong’s traditional motor vehicle manufacturing culture combines with a spirit of innovation and global enterprise. The city promotes, evolves and services the introduction of driverless cars, the gaming industry, smart technologies and robotics.
Geelong’s population density, growing diversity, economic mix and proximity to Melbourne’s demographic richness support it as a social and education city. Geelong increases its transport and connectedness to its unique destinations to attract wide interests, new worker profiles and residents seeking a “sea change” from Melbourne’s inner suburbs. Residents network with local business owners and workers to generate services and programs for regional neighbours and Melbourne’s markets.
What does the community want?
Guided by Inayatullah, a community interactive session used metaphors to bring home a message of continual transition. He describes the use of metaphors as being a decisive factor in shifting narrative strategy:
If you don’t innovate and create agency to shift your own narrative, then culture eats strategy for breakfast. 
Geelong’s history of innovation includes the development of the world’s first ute and the first industrial refrigerator. This history suggests Geelong could provide services to global niche markets. 
The community also suggested transitions from costly and unnatural botanic gardens to green bionic gardens – sprawling rooftop gardens, indoor gardens and rainwater systems flowing into indigenous gardens. Gardens would beautify municipal roads and infrastructure. 
Another suggested transition was from being a “dormitory of Melbourne” to being a retreat for Melbourne holidaymakers and a “hive” location for its best thinkers to create their futures.
In the community session, I outlined Gold Coast’s Bold Future initiative. My presentation featured the city’s growth, including 100 new high-rises on the Surfers Paradise skyline in five decades. 
Navigating different growth scenarios
The challenge for Geelong is to navigate through growth scenarios such as:
Sustainable growth: five new high-rises emerge to support low-level tourism, conference accommodation and a burgeoning education and health precinct.
Overdevelopment: an oversupply of residential and holiday maker apartments become difficult to fill, halting investment. Population waves are required to sustain rates and market base.
Underdevelopment: Gold Coast’s rapid growth raises questions about Geelong’s slow growth and missed opportunities to develop high-rises alongside celebratory events packages. These packages rely on transport and tourism infrastructure and include the building of stadiums. The strength of underdevelopment, however, is that Geelong remains a clean, green and historically beautiful seaside city.
Negative growth: collapse results in generations of hardship. 
An outcome of Gold Coast’s 2037 vision is its Health and Knowledge Precinct. The 200-hectare site has generated more than A$5 billion in investment and is now linked by light rail to the city’s tourism centres.
Spiller noted that Geelong’s Our Future is continuing a 175-year process of reinvention. He hailed transformational metaphors that saw the city as more than a technology hub, potentially providing a deep commitment to networking to create a Silicon Valley. These have led to visions of transforming from a “resort city” to a “city of health and wellness”, from an “industrial, agricultural city” to a creative lifestyle, and from a “sleepy hollow” to an “emerging and sustainable city”. 
Time for feedback on Geelong’s future
Our Future extends over five stages, with the final three to begin in 2017. 
From January to March, the community can comment on ideas presented to date. Stages four and five will provide vision documents and conclude with an exhibition of the foresight journey the city has created.
Spiller and his team are developing a ten-to-30-year Our Future vision and strategies, for the city’s social, environmental and community infrastructure in particular. You can have your say about Geelong’s future via the Our Future survey.
Colin Russo is futurist, University of the Sunshine Coast and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/colin-russo-267108" target="_blank">here</a>.
</body></html>

Latest Expert Insights

The inflation result the property market was waiting for

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

The inflation result the property market was waiting for

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News