A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

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?

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

<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/dVG5ChLHf7E?si=7FZ1Sk-Vm60JbLwi" title="YouTube video player" width="560"></iframe>

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

RBA Governor Philip Lowe&#39;s meeting statement

At its meeting today, the Board decided to maintain the current policy settings, including: the targets of 10&nbsp;basis points for the cash rate and the yield on the 3-year Australian Government bond; the parameters of the government bond purchase program; and the rate of zero per&nbsp;cent on Exchange Settlement balances.

The global economy is continuing to recover from the pandemic and the outlook is for strong growth this year and next. The recovery remains uneven, though, and some countries are yet to contain the virus. Global trade in goods has picked up strongly and commodity prices are mostly higher than at the start of the year. However, inflation in underlying terms remains low and below central bank targets.

Sovereign bond yields have been steady recently after increasing earlier in the year due to the positive news on vaccines and the additional fiscal stimulus in the United States. Medium-term inflation expectations have lifted from near record lows to be closer to central banks&#39; targets. The 3-year government bond yield in Australia is consistent with the Board&#39;s target and lending rates for most borrowers are at record lows. The Australian dollar remains in the upper end of the range of recent years.

The economic recovery in Australia is stronger than earlier expected and is forecast to continue. The Bank&#39;s central scenario is for GDP to grow by 4&frac34;&nbsp;per&nbsp;cent over this year and 3&frac12;&nbsp;per&nbsp;cent over 2022. This outlook is supported by fiscal measures and very accommodative financial conditions. An important ongoing source of uncertainty is the possibility of significant outbreaks of the virus, although this should diminish as more of the population is vaccinated.

Progress in reducing unemployment has been faster than expected, with the unemployment rate declining to 5.5&nbsp;per&nbsp;cent in April. Job vacancies are at a high level and a further decline in the unemployment rate to around 5&nbsp;per&nbsp;cent is expected by the end of this year. There are reports of labour shortages in some parts of the economy.

Despite the strong recovery in the economy and jobs, inflation and wage pressures are subdued. While a pick-up in inflation and wages growth is expected, it is likely to be only gradual and modest. In the central scenario, inflation in underlying terms is expected to be 1&frac12;&nbsp;per&nbsp;cent in 2021 and 2&nbsp;per&nbsp;cent in mid&nbsp;2023. In the short term, CPI inflation is expected to rise temporarily to be above 3&nbsp;per&nbsp;cent in the June quarter because of the reversal of some&nbsp;COVID-19-related price reductions.

Housing markets have strengthened further, with prices rising in all major markets. Housing credit growth has picked up, with strong demand from owner-occupiers, especially first-home buyers. There has also been increased borrowing by investors. Given the environment of rising housing prices and low interest rates, the Bank will be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained.

As foreshadowed last month, at its July meeting the Board will consider whether to retain the April 2024 bond as the target bond for the 3-year yield target or to shift to the next maturity, the November 2024 bond. The Board is not considering a change to the target of 10&nbsp;basis points. At the July meeting the Board will also consider future bond purchases following the completion of the second $100&nbsp;billion of purchases under the government bond purchase program in September. The Board continues to place a high priority on a return to full employment.

The date for final drawings under the Term Funding Facility is 30&nbsp;June 2021. So far, authorised deposit-taking institutions have drawn $134&nbsp;billion under this facility and a further $75&nbsp;billion is available. The facility is providing low-cost fixed-rate funding for 3&nbsp;years and so will continue to support low borrowing costs until mid&nbsp;2024.

The Board is committed to maintaining highly supportive monetary conditions to support a return to full employment in Australia and inflation consistent with the target. It will not increase the cash rate until actual inflation is sustainably within the 2&nbsp;to 3&nbsp;per&nbsp;cent target range. For this to occur, the labour market will need to be tight enough to generate wages growth that is materially higher than it is currently. This is unlikely to be until 2024 at the earliest.

The RBA kept the official cash rate at record lows at its June meeting



RBA hold rates, cite increase borrowing from investors: RBA Governor Philip Lowe's June 2021 meeting statement

EXPERT OBSERVER

There&rsquo;s a strong argument that Brisbane is the leader among the major markets around Australia. Two-thirds of suburbs have rising sales activity and almost 90% have rising prices. Hotspotting&rsquo;s Autumn 2021 survey of sales activity three months ago identified 124 rising suburbs, easily a record for Brisbane. Our new winter survey has smashed that record, with 141 suburbs with rising sales activity.

The past four surveys have found 28, 56, 124 and now 141 rising suburbs, a pattern that encapsulates Brisbane&rsquo;s dramatic rise.

In our Spring 2019 survey, about 18 months ago, we classified 32 suburbs as declining markets and five as danger markets, with only 21 growth markets (most were plateau or consistency markets). Now, for the first time in five years, there are no suburbs we rank as declining or danger markets.

&nbsp;

<a href="/developments/brisbane-qld?source_news_article_id=102220&amp;ref=news_body_link"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/template_photoshop_brisbane_1.jpg" width="1200" /></a>

Partly this is due to dramatic improvements in the Brisbane-inner locations. This market has suffered in recent years from a major over-supply of apartments and most of the danger markets from previous surveys have been in this precinct: now vacancies are significantly lower and demand is rising for both houses and apartments.

Of the 22 Brisbane-inner suburbs ranked in our upcoming Winter edition of The Price Predictor Index, 17 are now classified as rising markets &ndash; and there are no longer any ranked as danger markets.

But there are large numbers of growth suburbs right across the Greater Brisbane Area, led by Moreton Bay Region in the far north (28 rising suburbs) and Logan City in the far south (25). The big improver is Ipswich City, which three months was still lagging the rest of Brisbane and had only five growth suburbs. Now, of the 14 Ipswich suburbs ranked in The Price Predictor Index, 11 are classified as growth suburbs. Bundamba (quarterly sales of 8 21 23 52) and Brassall (23 42 53 85) provide two dramatic examples. Both have median house prices in the low $300,000s.

Logan City, which showed major advances in our previous survey with 17 growth suburbs, has improved further and now has 25 growth suburbs. Woodridge sales have been 9 12 25 37 85 while Yarrabilba has been 42 51 69 93 and Eagleby 27 32 42 48 75, data which charts firstly recovery and then boom.

Moreton Bay Region is often the Brisbane market leader and this continues, with 28 growth&nbsp;suburbs, down slightly from 31 in the previous survey. Neighbouring Brisbane-north has also dropped slightly from 20 growth suburbs to 19, but remains a very strong market. There are also notable numbers of rising suburbs in the Brisbane-east, Brisbane-south and Redland City precincts.

[smartcode_project:default project_id=21877 project_image_fid=82698]

PRICES: When we did our prices analysis three months ago, 76% of suburbs had delivered annual growth in their median house prices. This latest analysis finds that 89% of suburbs have had growth in the past 12 months.

Similarly, there has been improvement in the apartment markets, from 56% to 64% of suburbs recording annual growth in their median unit prices. The uplift in house prices is spread right across the Greater Brisbane Area, through a variety of price points in the inner, middle and outer ring precincts.

The Brisbane East precinct is a particular standout, with 12 suburbs delivering annual growth between 8% and 19%. The best performers have been Carina Heights, up 17% to $775,000, and East Brisbane, up 19% to $930,000. Lota ($690,000), Balmoral ($1,180,000) and Murarrie ($710,000) have all lifted 13%, while Tingalpa ($600,000), Norman Park ($1,010,000), Manly ($935,000) and Camp Hill ($975,00) all rising 10-11%. Carindale, Manly West and Wynnum has all grown 8%.

The neighbouring Redlands City area has also produced multiple growth suburbs, led by Thorneside (up 12% to $610,000) and Cleveland (up 10% to $645,000). Alexandra Hills, Birkdale, Capalaba, Ormiston, Thornlands and Victoria Point have all increased 7-9%. There are numerous growth markets in the city&rsquo;s north. Increases in the Brisbane North precinct have been led by Ashgrove (up 16% to $1,140,000), Clayfield (up 17% to $12,40,000), Banyo (up 14% to $625,000) and Sandgate (up 13% to $800,000). Suburbs which have recorded annual growth between 7% and 9% include Ascot, Chermside, Everton Park, Hendra, Taigum, Kedron and Stafford Heights.

A little further north, growth in the Moreton Bay Region is led by Eatons Hill (up 13% to $690,000), while Banksia Beach, Clontarf, Everton Hills, Kippa Ring and Strathpine have all increased 7-8%.

In the Brisbane South precinct, Yeronga has been a city growth leader, with its median house price rising 31% to $1,115,000 in the past 12 months. Holland Park ($820,000) is up 13%, while Wishart ($800,000), Moorooka ($695,000), Tarragindi ($865,000) and Upper Mount Gravatt ($680,000) all have increased 10-12%.

Further south, growth markets in Logan City include Daisy Hill (up 20% to $570,000) and Windaroo (up 16% to $560,000), while Waterford, Underwood, Eagleby, Edens Landing and Jimboomba have all grown 7-9%.

Among the inner-city suburbs, New Farm has grown 20% to $1,855,000, Bardon is up 17% to $1,175,000, West End is up 13% to $1,115,000 and Woolloongabba has increased 15% to $870,000.

Of the Brisbane West suburbs, St Lucia has jumped 23% to $1,505,000, Graceville is up 17% to $1,035,000 and Taringa, Chapel Hill and Sinnamon Park have all increased 10-11%.

Two-thirds of suburbs have rising sales activity and almost 90% have rising prices

terryryder

Brisbane is now the leader among Australia's property markets: Terry Ryder

Australia's 30 plus days mortgage arrears in 1Q21 were up by only 4bp to 1.05 percent on the previous quarter, with Fitch Ratings expecting a bigger rise in the current quarter, after the payment deferral period ended on 31 March.

Fitch's Dinkum RMBS Index tracks arrears and performance of mortgages underlying public Australian prime RMBS.

The update advised RMBS transactions losses from the sale of collateral property were the lowest since the 2007-08 global financial crisis, with lenders' mortgage insurance payments and excess spread being sufficient to cover principal shortfalls in all transactions. 

Fitch expects losses to stay low due to a recovering economy and strong home-price growth. 

However Fitch Ratings expects the Dinkum RMBS Index to rise in the next quarter, as the payment deferral period ended on 31 March 2021 and government pandemic-related support measures, such as JobKeeper, have been rolled back.

"The recovery in home prices remained strong, with Australia's eight capital cities recording the highest quarterly increase in more than a decade of 5.6%," it noted.

Prices were up by 4.8% yoy, as all capital cities registered positive growth, some at double-digits. 

Fitch expects prices to continue to increase, supported by record-low mortgage rates, a recovering economy and government incentives for housing, particularly for first-home buyers.



Australia's 30+ days mortgage arrears in 1Q21 were up by only 4bp to 1.05% from the previous quarter

jchancellor

Fitch expect mortgage arrears to rise in current quarter, but stay low

The NAB has cut its variable investor interest-only rate by 30 basis points to 2.99 per cent.

The big four lender also cut its variable principle and interest loan for investors with an 80 per cent or less loan/value ratio to 2.79 per cent last week.

“NAB wants a bigger slice of the action in the investor market and have been tweaking both their serviceability rules and their rates to attract new business, after losing ground to its competitors in this arena," 
RateCity.com.au research director Sally Tindall said.

With new lending to investors in March growing the fastest rate in 18 years, the NAB was attempting to increase its share.

“These are our lowest ever advertised variable rates for property investors,” NAB executive for home ownership Andy Kerr told The Australian.

NAB offers the lowest rate for that class of loan of the big four banks, but smaller lenders have lower offers.

Citi is offering 2.59 per cent, ING 2.64 per cent, HSBC and Macquarie 2.69 per cent and UBank 2.74 per cent.

Last week the NAB’s group chief economist Alan Oster noted the recent small rises in four and five-year fixed-rate home loans for owner occupiers reflected growing inflationary fears in the bond market however borrowers are unlikely to be caught out by steeper rises until 2025.

Oster said adjustments in longer term fixed-rate loans are the result of a sell-off on the bond market as investors worry there is too much stimulus in the market and central banks will need to begin tightening, the AFR noted.

The big four lender also cut its variable principle and interest loan for investors with an 80 per cent or less loan/value ratio to 2.79 per cent last week

NAB cuts variable investor interest-only rate by 30 basis points to 2.99 per cent

With so much choice, searching for property can be a long and arduous process for some.

They can consume the whole of a Saturday, driving around properties, cramming through the door and spending five minutes in the property, maybe one minute with the agent in the company of others, before having to make the decision whether you want to buy.

Purchasing an apartment off the plan&nbsp;offers a different approach to property buying, through a more hands on and personable approach at the developers display suite of one of the apartments in the building.

Display suites give prospective buyers an insight as to how their apartment will look when construction is completed.

There are very different questions to ask when talking to an agent about an off the plan property purchase compared to an established property. Urban has wrapped up the top questions to ask when buying an off the plan apartment.

1. Who built the display, and will they be the same builder who will construct the development?

When buying any home, build quality is an important consideration.

The display suites are created to give prospective buyers an insights in to exactly what their apartment will look like on completion.&nbsp;

<a href="/developments/melbourne-vic?source_news_article_id=101649&amp;ref=news_body_link"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/template_photoshop_melbournecbd_0.jpg" width="1200" /></a>

Wiser developers appoint the builder before creating the display suite and get&nbsp;the builder to construct the space which gives buyers further peace of mind when it comes to signing on the dotted line.

Knowing the builder this early one as well helps as then you can check the builder&#39;s track record of developments within the area, or even within the state. Go and visit some of the former developments, and see how close the completed build is compared to the renders which are usually available online.

2. Any developer incentives or stamp duty savings for the apartment I&#39;m looking at buying?

One of the biggest questions - how much money can I be saving?

Agents and developers are in the best position to highlight current government incentives which could help you shave thousands off your apartment purchase.&nbsp;

There may also be limited-time developer incentives if you buy the apartment before a certain date.

3. Is there a sunset clause in the contract? And when was the last time the developer enforced it?

A sunset clause is one of the most talked about contract stipulations&nbsp;in off the plan property.

Essentially, in the contract a developer will put&nbsp;a date on completion, which usually is well past the date the developers actually think&nbsp;construction will complete.

That&#39;s because if construction isn&#39;t completed before the date, the buyer, or the developer, have the legal right to pull out of the deal, with the buyer receiving their full deposit back.

The developer doesn&#39;t want to run over this date, in case the market dropped during construction and buyers want to pull out because their apartment is now worth less than when they paid.

On the flip side, and there have been occasions when this has happened which is why buyers need to be careful,&nbsp;developers can, and&nbsp;have, purposefully ran over the construction date so they can claim the apartment back. This can be due to price rises over the same period.

The developer would have the right to take the apartment back and then sell the apartment for a higher price.

<a href="/developments/southbank-vic-3006"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/template_photoshop_southbank.jpg" width="1200" /></a>

4. What are the strata fees, and are they fixed?

Apart from the mortgage on the apartment, strata fees are one of the biggest ongoing fees for apartment owners.

It is important to know when going in to buying an apartment what the strata fees are, and more importantly whether they are fixed or whether there are plans for them to fluctuate.

The good news for off the plan apartments buyers, compared to those buying established apartments, is that the funds in the strata kitty, generally, won&#39;t have to be used to fix issues in the building given it will have only recently have been built and will be covered by a number of insurances.

Those buying apartments in buildings that may be 40 or 50 years old are likely to see the strata fund spent on maintaining and updating the building.

5. Who have been the predominant buyers in the apartment?

If you are intending on living in the apartment you buy and you&nbsp;want to live in the same development as people&nbsp;like you, whether a young professional, down-sizer or family, ask how many apartments have sold and to which demographic.

If there have been a number of investor purchasers in the development, ask how many and why the agent thinks this is the case.

At this point it will also be worth asking what the forecasted rental yield and rental income per week estimate they are quoting. Plans might change during construction of the development and the apartment may become an investment down the line.

<a href="/developments/docklands-vic-3008"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/template_photoshop_docklands.jpg" width="1200" /></a>

6. Can I upgrade&nbsp;my apartment?

Depending on how far out the developer is from construction, many developers are open to buyers customising their apartments.

Generally there might not be whole sale changes which are wanted to be made by a buyer. Developers who have a solid pipeline of projects tend to know what they&#39;re doing when positioning bedrooms and bathrooms etc.

It might be that you&#39;d rather the built in kitchen appliances located elsewhere in the kitchen as to what has been mocked up in the display suite.

The question is also worth asking because some developers offer extra upgrade packages which could set your apartment from the rest. Think fixed outdoor barbecue kitchens, fireplaces, built-in study nooks or an upgrade in kitchen appliances.

There&#39;s of course the potential to buy neighbouring apartments and amalgamate before they are constructed as two apartments. The amalgamation, despite costing more than just a single&nbsp;apartment, will likely become bigger than that of any of the other&nbsp;apartments in the development.

Display suites give prospective buyers an insight as to how their apartment will look when construction is completed.

What an off the plan buyer needs to ask when visiting a display suite

Australia needs to &lsquo;urbanise the &rsquo;burbs&rsquo; as the recent property boom and skyrocketing house prices drives more residents to the outer suburbs of our cities, says Hatch RobertsDay partner, Mike Day.

The leading urban planner says these new residents seek out the ingredients that make our inner cities so attractive.

&ldquo;Many want the urban experience and lifestyle: from the inner-city layout of small parks, mini main streets, and public transport at their doorstep to the bustling cafe and restaurant culture and an integrated community feel&rdquo;, he said.

[smartcode_project:default project_id=6284 project_image_fid=77232]

According to the urban planning consultancy, the last 30 years saw planners follow the conventional suburban model of separating land uses &ndash; houses in one area and shopping centres and business hubs in another, which are only accessible by car.

&ldquo;With hundreds of thousands of new dwellings set to be developed in the outer city fringes, urban planners, developers and councils need to ensure we get this urban mix right&rdquo;, Day said.

<blockquote>
&ldquo;We need to foster a diverse range of housing with more compact and attainable homes centred around mixed-use community hubs.&rdquo;
</blockquote>

This is especially true for Australians who are now finding that the community they buy into is just as critical as choosing the home they live in.

Leading property investment expert Michael Yardney has long sustained that up to 80 per cent of the capital growth in the value of a home or investment property will be due to its location.

As a result, new housing estates must co-exist with other land uses and return to old-fashion community life: connected footpaths to community hubs, and schools, shops, restaurants, and facilities within walking distance.

[smartcode_project:default project_id=5995 project_image_fid=78732]

Day offered the example of the new mixed-use project Ed.Square in south-west Sydney&rsquo;s Edmondson Park as an ideal community.

&ldquo;One of the first planned neighbourhoods under the South West growth area, Frasers Property Group has successfully created an urban community and neighbourhood feel in Sydney&rsquo;s outer suburbs.&rdquo;

With apartments and townhouses within walking distance and minutes from trains and buses, the development encourages residents to rely less on cars &ndash; giving the community a sense of identity and soul.

<h2>What needs to change?</h2>

[smartcode_project:default project_id=27139 project_image_fid=77337]

Mike Day shared five key factors of inner-city neighbourhoods that developers could apply to our outer suburbs:

1. Diversity in housing types

[smartcode_project:default project_id=7633 project_image_fid=32168]

Communities that contain a mix of apartments, townhouses and single-dwelling homes attract residents across all ages and incomes &ndash; a solution to Australia&rsquo;s lack of housing affordability.

According to Day, developers and urban planners need to step away from suburban resident-only enclaves and large homes on large blocks that segregate people from others and their local community hubs.

Instead, he encourages a shift towards modest, compact homes to create strong local connected communities.

2. Integrated communities with centralised amenities

Mixed-use developments blend residential with commercial, cultural, and entertainment uses.

Having local community facilities in a central hub enable residents to walk and cycle to their daily needs &ndash; reducing the reliance on cars. It also promotes healthier lifestyles.

Day said new urban neighbourhoods require mini main streets that safely and easily connect shops, parks, schools, and community centres to homes. In doing so, residents can also minimise the cost of owning and servicing a vehicle &ndash; which could save them thousands each year.

3. Open green space and &lsquo;destination parks&rsquo;

[smartcode_project:default project_id=22700 project_image_fid=48701]

According to the Housing Industry Association, backyards shrinking and the&nbsp;average lot size 16 per cent smaller than in 2009. Thus,&nbsp;there is a further need for neighbourhood parks, signature streets, and green spaces for the community to enjoy.

Tree-lined streets and small green &lsquo;destination&rsquo; spaces with playgrounds and outdoor equipment are essential. This can reduce the creation of empty &lsquo;cookie cutter&rsquo; parks with little purpose.

4. Driveways and garages positioned on small streets at the rear of the home

Townhouses in our cherished inner-city neighbourhoods were designed with small streets behind the home that provided access to driveways and garages.

According to Day, suburban streets should return to this timeless layout to provide more greener, tree-lined streets. It also removes driveways at the front of homes &ndash; enabling more pedestrian- and cycle-friendly paths.

5. Separate and wider walking and cycling pathways

[smartcode_project:default project_id=22699 project_image_fid=70088]

Walkable neighbourhoods require wider and separate pathways for pedestrians and cyclists, which increases safety for residents.

It can also motivate more people to reduce car usage &ndash; in turn, reducing road congestion and air pollution &ndash; and create a sense of community.

The leading urban planner says new residents who have been pushed to the outer suburbs seek the ingredients that make inner cities so attractive

max.kwok_55688

Australia needs to ‘urbanise the ’burbs’, says Mike Day

<h2>EXPERT INSIGHT</h2>

The most pointless discussion in real estate is the one about housing affordability. It&rsquo;s pointless, not because it lacks importance or potential solutions, but because the conversation never focuses on the real issues.

Australia has been debating affordability for decades. The media discussion that&rsquo;s happening in 2021 is the same one that occurred last year, and five years ago, and 20 years ago. Go back in time as far as you like and you&rsquo;ll find acres of newsprint describing how young Australians are priced out of the market and doomed to a lifetime of renting.&nbsp;(Ironically, the past 12 months has seen record activity from first-home buyers.) But if you examine media coverage of the affordability issue over the past 10, 20 or 30 years, you will struggle to find any reference to the root causes.

That&rsquo;s why the debate is pointless. If you&rsquo;re not going to discuss the real issues, why bother? The debate is generally driven by politicians skilled at diverting blame and the reports are written by journalists who haven&rsquo;t got a clue.

[smartcode_project:default project_id=100322 project_image_fid=161038]

Recent decisions by the State Government in Victoria encapsulate why we have expensive housing and difficult issues for first-home buyers. They hiked taxes on investors and reduced grants for FHBs &ndash; thereby making affordability worse at both ends of the equation. More expensive housing and less government assistance. Brilliant.

But Daniel Andrews and Tim Pallas would swear they cared more about FHBs and housing affordability than anyone else in the nation.

This is standard fare from our politicians. When Gladys Berejiklian became Premier of NSW in early 2017, she used her first press conference to claim that improving affordability was top of her priorities. Four years later, most decisions by her government impacting on affordability have made it worse, not better.

It&rsquo;s a similar story with deadly Dan Andrews. He would have us believe that he lies awake at night fretting over the plight of young housing hopefuls, but in so many ways his government has made affordability worse.

[smartcode_project:default project_id=3565 project_image_fid=68186]

The decision by his Government to hike land tax and stamp duty on investor owners continues the age-old problem of politicians using the housing industry as a cash cow - and thereby making housing more expensive to create.

The problem of affordability can be summarised like this: it&#39;s caused by politicians at all three levels of government&nbsp;milking the housing industry for revenue. Local government does it and the Federal Government does it, but by far the worst are state governments.

Every time a state government&nbsp;needs some extra revenue, they slug developers and investors. They believe there&amp;#39;s little electoral damage&nbsp;in doing that, but ultimately it&amp;#39;s the home-buyers who pay,&nbsp;including first-home buyers.

Australia has a rental shortage crisis and politicians should be encouraging investors. But they continue to discourage investors - hence the ultra-low vacancies and rising rentals in most locations. The State Government in Victoria has made the situation worse. A memorable episode of the iconic British comedy Yes Minister involved the quintessential public servant Sir Humphrey Appleby lecturing about how governments present the appearance of caring about an issue while changing nothing.

You call for an inquiry. Let the inquiry run for a couple of years. Then recommend a Royal Commission. Another couple of years gets chewed up. At the end of the process, identify an unpopular minority to blame for the problem and scapegoat them. Nothing has changed but you&rsquo;ve created the appearance of serious action.

[smartcode_project:default project_id=2407 project_image_fid=77658]

It sounds farcical but Australia actually did this with housing affordability. There was a series of Federal Government inquiries and at the end of a very low process, devious politicians decided to scapegoat foreign investors as the cause of the affordability problem.

That gave politicians a licence to slug foreign investors with a series of new charges, all under the guise of improving affordability. It was an incredibly cynical exercise - a revenue-raising measure, pure and simple &ndash; and nothing changed about affordability because foreign investors were never the problem.

At the last Federal Election, the Labor Party under Bill Shorten sought to save money in the Budget (they fully expected to win) by proposing to scrap negative gearing and increase capital gains tax &ndash; but tried to dress it up as a measure to improve housing affordability. When asked &ldquo;Does this mean that the value of homes will fall under your policies?&rdquo;, Shorten claimed that it did not. The value of homes would not fall. This begged a follow-up question: &ldquo;How, then, will affordability improve?&rdquo;

Labor front-bencher Tanya Plibersek, in the lead-up to the 2019 election, claimed that the typical property investor in Australia owned 15 or 20 properties. Given that the official data shows that the typical investor owns one or two properties, this was an outrageous lie. But quite deliberate and calculated.

Federal Labor (and many sections of the media) generally portrayed property investment as something akin to a criminal activity, thereby scaring off investors already discouraged by APRA measures.

The outcome is a national rental shortage crisis.

Yes Minister was a documentary, not a comedy. And we will never resolve the housing affordability issue until we understand that the politicians are the problem.

Daniel Andrews and Tim Pallas would swear they cared more about FHBs and housing affordability than anyone else in the nation, standard politician bunk

How state governments smash housing affordability: Terry Ryder

<h2 class="legacy">EXPERT INSIGHT</h2>

Victorian treasurer Tim Pallas&rsquo;s three-pronged strategy to raise an extra <a href="https://www.premier.vic.gov.au/contributing-fair-share-stronger-victoria">A$2.7 billion in property taxes</a> over the next four years is a case of two out of three ain&rsquo;t bad.

<h2>Land tax ✅</h2>

First, Pallas will raise $1.5 billion over four years by lifting land taxes on landholdings worth between $1.8 and $3 million by 0.25%, and by 0.3 percentage points on landholdings worth more than $3 million.

This is a good move. Taxes levied on the value of landholdings are among the <a href="https://theconversation.com/abolish-stamp-duty-the-act-shows-the-rest-of-us-how-to-tax-property-105378">most efficient states can impose</a>. And land taxes offer a more sustainable and less-volatile tax base than stamp duties on property transactions.

<h2>Windfall gains levy ✅</h2>

Second, developers and landowners who reap windfall gains when their property is rezoned will be hit with a 50% levy if the gain is $500,000 or more, with the tax phasing in from windfalls above $100,000. The new levy will not apply to growth-zone land where developers already pay the <a href="https://www.sro.vic.gov.au/growth-areas-infrastructure-contribution">Growth Areas Infrastructure Contribution </a>charge.

Again, this is a good move. It should reduce incentives for <a href="https://www.theage.com.au/politics/victoria/how-money-talks-in-victorian-politics-five-lessons-from-the-casey-corruption-scandal-20201218-p56oo3.html">corruption</a> when planning applications are decided.

As a tax, collecting unearned windfall gains is extraordinarily efficient, so efficient it shouldn&rsquo;t even be called a tax but a charge for a change in allowable land use, which is <a href="https://theconversation.com/our-states-are-crying-poor-they-wouldnt-if-they-charged-for-rezoning-142838">what it is</a>.

[smartcode_project:default project_id=95340 project_image_fid=160800]

The new re-zoning charge won&rsquo;t raise much in the short term: just $124 million over four years.

But the next time there is a major rezoning &mdash; think of the bonanzas that have flowed to land holders from previous rezonings in <a href="https://www.theage.com.au/national/victoria/report-slams-matthew-guy-on-rezoning-of-fishermans-bend-20151019-gkcyrv.html">Melbourne&rsquo;s Fisherman&rsquo;s Bend</a> and the Docklands &mdash; it will deliver taxpayers hundreds of millions if not billions.

The property lobby <a href="https://www.afr.com/property/commercial/victorian-windfall-tax-will-hit-urban-infill-developers-say-20210516-p57sbh">has been quick to claim</a> that charging for rezoning windfalls will deter higher-density development in Melbourne, or increase prices. Both claims should be ignored.

Capturing a share of rezoning windfalls won&rsquo;t deter developers. Instead it could make it easier to solve Melbourne&rsquo;s housing crisis while reducing incentives for corruption in planning decisions.

Planning rules make it hard to build more housing in inner suburbs. Zoning for higher density is necessary, but unpopular. Local residents partly object because they think developers are getting a free kick.

The Victorian treasurer&rsquo;s decision to make the winners pay for some of their winnings will make the process fairer and less divisive.

It&rsquo;s a myth that charges for changes in land use raise home prices. Australian evidence suggests those lucky enough to own land before it is rezoned <a href="https://www.sciencedirect.com/science/article/abs/pii/S0264275117301051">pay the charges</a> rather than pass them on to eventual homebuyers, which might be why they object.

And future developers will pay less for their land, because the expectation of windfall gains won&rsquo;t be built into the price.

The ACT Government has charged <a href="https://www.planning.act.gov.au/leasing-and-titles/varying-crown-leases/lease-variation-charge">75%</a> for land value uplift for three decades without scaring away developers.

But the third prong of the Pallas plan &mdash; lifting stamp duty from 5.5% to 6.5% on properties that sell for more than $2 million &mdash; is a step in the wrong direction.

<h2>More stamp duty ❌</h2>

Stamp duties are among the most <a href="https://theconversation.com/abolish-stamp-duty-the-act-shows-the-rest-of-us-how-to-tax-property-105378">inefficient</a> and inequitable taxes Australia has.

They discourage people from moving to housing and cities that better suit their needs, and they are inequitable discourage people from moving to better jobs.

And the revenue they provide is volatile: any slowdown in property sales &mdash; as happened during COVID took hold &ndash; punches a big hole in state budgets.

Few Victorians will be affected by this tax hike: less than 5% of all Melbourne homes (and just 0.5% of regional Victorian homes) went for $2 million or more last year, according to <a href="https://twitter.com/timlawless/status/1394500338846081026">Corelogic</a>.

Someone buying a $2.5 million home will pay just an extra $5,000 in stamp duty.

But Pallas should be looking to replace stamp duty with broad-based land taxes, as <a href="https://www.treasury.nsw.gov.au/property-tax-proposal">NSW</a> is planning to do.

Tax hikes are rarely popular. But they will become increasingly necessary as states try to repair their budgets after the COVID crisis.

In the quest for a better tax system, Pallas has just taken two steps forward, and one step back.

<img alt="The Conversation" f="" height="1" j="" m8tkrlktj="" src="https://counter.theconversation.com/content/161353/count.gif?distributor=republish-lightbox-basic" width="1" />

<hr />
<a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, Program Director, Household Finances, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</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/the-lesson-for-australia-out-of-victorias-property-tax-hikes-two-out-of-three-aint-bad-161353">original article</a>.

Victorian treasurer Tim Pallas’s three-pronged strategy to raise an extra A$2.7 billion in property taxes over the next four years is a case of two out of three ain’t bad

jordan_55689

The lesson for Australia out of Victoria’s 3 property tax hikes

EXPERT INSIGHT

Despite overwhelmingly endorsing the general stance of the 2021 budget, only a few of the 56 leading economists surveyed by the Economic Society of Australia and The Conversation are prepared to give it top marks.

Asked to grade the budget on a scale of A to F given Treasurer Josh Frydenberg&rsquo;s objective of <a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/speeches/budget-speech-2021-22">securing Australia&rsquo;s economic recovery and building for the future</a>, only three of the 56 economists surveyed gave it an &lsquo;A&rsquo;.

But a very large 41% awarded it either an A or a B, up from <a href="https://theconversation.com/could-do-better-top-australian-economists-award-the-budget-a-cautious-pass-148624">37%</a> in last year&rsquo;s October COVID budget.

[smartcode_project:default project_id=94542 project_image_fid=160739]

The economists chosen to take part in the Economic Society of Australia survey have been recognised by their peers as Australia&rsquo;s leaders in fields including macroeconomics, economic modelling, housing and budget policy.

Among them are a former head of Australia&rsquo;s prime minister&rsquo;s department, a former member of the Reserve Bank board, a former OECD director and two former frontbenchers, one from Labor and one from the Coalition.

Of the panel members who commented on the historic stance of the budget &mdash; expanding the size of the deficit <a href="https://theconversation.com/frydenberg-spends-the-bounty-to-drive-unemployment-to-new-lows-159229">beyond what it would have been</a> in order to drive down unemployment &mdash; all but three offered enthusiastic endorsement.

Emeritus Professor Sue Richardson of the University of Adelaide commended the government for at last turning its back on a &ldquo;debt and deficit&rdquo; mantra, that was &ldquo;never justified&rdquo;.

Professor Richard Holden praised the &ldquo;watershed&rdquo;. In due course there should be increased attention paid to the structure and quality of spending, but for now we should applaud the &ldquo;Frydenberg Pivot&rdquo;.

Saul Eslake said the strategy of providing further stimulus to push unemployment down to levels <a href="https://theconversation.com/josh-frydenberg-has-the-opportunity-to-transform-australia-permanently-lowering-unemployment-156175">not seen consistently since the first half of the 1970s</a> was the right one. It meant the Reserve Bank and the treasury would no longer be working at &ldquo;cross purposes&rdquo; as they had been for most of the past two decades.

But Eslake said the budget fell short in the A$20 billion it devoted to tax concessions for small business in the mistaken and unfounded belief it is &ldquo;the engine room of the economy&rdquo; and in housing measures that failed to heed warnings from history about the risks of ultra-high loan-to-valuation ratios.

Rebecca Cassells of the Bankwest Curtin Economics Centre said the claim that 60,000 jobs would flow from extending the temporary loss carry back and full expensing tax concessions was &ldquo;a stretch,&rdquo; with the connection quite tenuous.

Bucks, but not the biggest bang

Consultant Nicki Hutley said a bigger boost to the JobSeeker unemployment payment would have achieved much more than the $7.8 billion one-year extension of the &ldquo;<a href="https://theconversation.com/the-low-and-middle-income-tax-offset-has-been-extended-yet-again-it-delivers-help-neither-when-nor-where-its-needed-160772">lamington</a>&rdquo; low and middle income tax offset.

Economic modeller Janine Dixon said while spending more to get more people into work was the &ldquo;right setting for the times,&rdquo; Australia had to ensure its workforce was ready to supply the extra aged care and child care and disability services it had funded by delivering the right training, especially in the absence of migration, which has traditionally been used to address workforce shortages.

Labour market specialist Elisabetta Magnani said measures to boost wages in the caring occupations could have achieved the double bonus of drawing more workers into those occupations and shrinking the gender pay gap, given that more than 80% of the workers in residential aged care are female.

Little for net-zero

Michael Keating, a former head of the prime minister&rsquo;s department, said restoring high wage growth would require big investments in education and training, which sits oddly with the cuts in funding for universities. The extra funding for apprentices and trainees only makes up for past cuts.

Professor Gigi Foster said the $1.7 billion spent on childcare subsidies was only &ldquo;surface-level fiddling with the sticker price&rdquo;.

&ldquo;Where is the supply-side intervention required to make childcare services sustainably accessible and of high quality?&rdquo; she asked. &ldquo;Childcare should be viewed as social infrastructure. Instead, when we heard infrastructure, it was mainly code for transportation.&rdquo;

Margaret Nowak of Curtin University said a budget that really &ldquo;built for the future&rdquo; would not have focused on the &ldquo;infrastructure of the past&rdquo;. Professor Richardson lamented that most of the infrastructure spending was on traditional &ldquo;roads and ports&rdquo; when the future was net-zero emissions.

&ldquo;There is little in the budget that supports this transformation,&rdquo; she said. &ldquo;It is an extraordinary lost opportunity.

Nicki Hutley said retooling the economy for zero emissions would have brought forth &quot;more jobs, higher wages, more growth and private sector co-investment&rdquo;.

Some concern about debt

Former OECD director Adrian Blundell-Wignall said a much-greater investment in vaccinations would have helped &ldquo;get the economy back to work and the borders opened sooner which, in turn, would have saved unemployment benefits, tourism, aviation support and the need for the extension of temporary measures&rdquo;.

And he was concerned that a jump in US inflation might cause international interest rates to rise faster than expected, forcing Australia to cut its projected budget deficits in order to stabilise net debt.

Former International Monetary Fund economist Tony Makin, a <a href="https://research.treasury.gov.au/external-paper/the-effectiveness-of-federal-fiscal-policy-a-review">critic</a> of government spending during the global financial crisis, described the budget spending as a &ldquo;knee-jerk primitive Keynesian reaction&rdquo; to the COVID recession.

Unease about going into debt to keep and create jobs aside (and very few of the economists surveyed shared Makin&rsquo;s unease) the criticisms of the economists surveyed relate to execution and details. If Frydenberg had been judged on his approach, most would have given him an A.

<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/great-approach-weak-execution-economists-decline-to-give-budget-top-marks-161347">original article</a>.

Asked to grade the budget on a scale of A to F given Treasurer Josh Frydenberg’s objective of securing Australia’s economic recovery and building for the future, only three of the 56 economists surveyed gave it an A

Economists decline to give budget top marks

EXPERT INSIGHT

Ahead of the definitive official read of the economy from the treasury in the budget on <a href="https://budget.gov.au/index.htm">Tuesday</a>, the Reserve Bank has given us two special insights into its own thinking in the space of 14 hours.

They suggest that (first) the economy is improving, and (second) the bank is not going to let up on driving that improvement, not for anything &mdash; including concern about climbing home prices &mdash; until it has pushed unemployment down and wage growth back up to where it believes it should be.

The first insight was in Deputy Governor Guy Debelle&rsquo;s <a href="https://www.rba.gov.au/speeches/2021/sp-dg-2021-05-06.html">Shann Memorial Lecture</a> on Thursday night. The second was in Friday&rsquo;s <a href="https://www.rba.gov.au/publications/smp/2021/may/pdf/statement-on-monetary-policy-2021-05.pdf">Statement on Monetary Policy</a>

Growth without inflation

The statement emphasised that the although the bank expects economic growth to bounce back fairly strongly, getting inflation back within the bank&rsquo;s 2-3% target band and getting wages growth up will take much longer

As the statement put it:

&quot;Despite the stronger outlook for output and the labour market, inflation and wages growth are expected to remain low, picking up only gradually.&quot;

On one measure just <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release">1.1%</a>, the lowest on record, underlying inflation is to climb to 1.5% over the course of 2021 before gradually climbing to close to 2% by mid 2023.

It&rsquo;s well short of the bank&rsquo;s target of 2-3% which is only likely to be achieved with much higher wages growth driven by much deeper inroads into unemployment.\

Those inroads will be easier to achieve if COVID is firmly under control.

The bank explicitly linked its forecasts of an improving economy to an assumption that Australia&rsquo;s vaccine rollout accelerates in the second half of the year. It could have added to that (but didn&rsquo;t) the importance of getting purpose-built quarantine facilities up and running.

Its baseline forecast has economic growth of 4% in the year to June 2022 and 3% in the year to June 2023.

But there is a fairly wide range around its downside and upside scenarios.

Economic growth might be as low as 2.5% or as high as 5% in 2022 and as low as 2% and as high as 3% in 2023.

Similarly, the unemployment forecast is somewhere between 4.25% and 5.25% by June 2022 and in a very wide range of 3.75% and 5.5% by June 2023.

These forecasts produce below-target inflation forecasts of between 1.5% and 2% in June 2022 and 1.5% to 2.25% in June 2023.

What the bank will do to help drive the upside scenario, and what else will need to happen, was laid out by Debelle in Thursday night&rsquo;s <a href="https://www.rba.gov.au/speeches/2021/sp-dg-2021-05-06.html">Shann Memorial Lecture</a>.

The Debelle Doctrine

Adjectives like &ldquo;seminal&rdquo; are bandied about liberally these days, but for me, Debelle&rsquo;s speech on <a href="https://www.rba.gov.au/speeches/2021/sp-dg-2021-05-06.html">Monetary Policy During COVID</a> was a masterpiece.

He began by outlining the suite of measures the bank introduced from the beginning of the pandemic in March 2020. They involved

<ul>
	<li>
	cutting the cash rate to a record low of 0.25% and then cutting it again to 0.1%
	</li>
	<li>
	undertaking to not increase the cash rate target until the bank is confident that inflation will be sustainably within the 2&ndash;3% target band
	</li>
	<li>
	cutting the rate paid on private banks&rsquo; exchange settlement balances with the bank to 0.1% and then to 0.0%
	</li>
	<li>
	buying enough three-year government bonds to target a yield of 0.25%, later <a href="https://theconversation.com/5-ways-the-reserve-bank-is-going-to-bat-for-australia-like-never-before-149311">0.1%</a>
	</li>
	<li>
	guaranteeing to buy $5 billion of five-year and ten-year state and Commonwealth week-in week-out <a href="https://theconversation.com/5-ways-the-reserve-bank-is-going-to-bat-for-australia-like-never-before-149311">whatever the economic circumstances</a>
	</li>
	<li>
	buying bonds as needed to address the &ldquo;dysfunction&rdquo; in the bond market
	</li>
	<li>
	offering banks cheap lending finance through a new <a href="https://www.rba.gov.au/mkt-operations/term-funding-facility/overview.html">term funding facility</a>
	</li>
	<li>
	ensuring that the financial system has sufficient liquidity
	</li>
</ul>

Debelle methodically described how each of these measures are likely to flow through into economic activity.

That is, he articulated what economists call the &ldquo;transmission mechanism&rdquo; &mdash; how the measures work.

And then he delivered the setup for the punchline.

The tools the bank is using might affect all sorts of things, including house prices. But the bank plans to focus on just one thing &mdash; getting unemployment down until it gets inflation back up to its target band.

Then the punchline itself: the bank will do this even if it leads to higher house prices

<blockquote>
there are a number of tools that can be used to address the issue. But I do not think that monetary policy is one of the tools. Monetary policy is focussed on supporting the economic recovery and achieving its goals in terms of employment and inflation
</blockquote>

It was important to remember that while housing prices may not rise as fast without low interest rates, unemployment would definitely be materially higher without low interest rates.

Unemployment has serious consequences.

What it all means

The Debelle Doctrine is that the bank will focus on a narrow range of objectives, and will not be timid about using the tools in its arsenal to achieve them.

This may not be a seismic shift, but it is significant.

It gives the bank a much clearer focus; it gives others a much better way to judge how it is performing; and it makes clear that if the government is concerned about rising house prices, it&rsquo;ll have to do something itself (perhaps by tightening the tax rules governing capital gains and negative gearing).

Debelle produced a clear, precise, and authoritative statement of what the Reserve Bank can, should, and will do.

In a word, it was gubernatorial.<img alt="The Conversation" height="1" src="https://counter.theconversation.com/content/160171/count.gif?distributor=republish-lightbox-basic" u="" width="1" wkje2jqm7="" />

<a href="https://theconversation.com/profiles/richard-holden-118107">Richard Holden</a>, Professor of Economics, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</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/vital-signs-the-rba-wants-to-cut-unemployment-and-nothing-not-even-soaring-home-prices-will-stand-in-its-way-160171">original article</a>.

The RBA suggest that (first) the economy is improving, and (second) the bank is not going to let up on driving that improvement, not for anything

Latest Expert Insights

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News