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

Joel Robinson

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

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

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

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

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

Parcel delivery is joining the apartment amenity checklist

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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If you are renting a one-bedroom apartment in Carlton, an inner city suburb of Melbourne, it might actually be cheaper for you to buy the property than continue renting, says new REIV data.
Tenants can repay the mortgage on a $215,000 one-bedroom property for just $226 a week - $149 less than the suburb’s median weekly rent of $375, according to the data.
With a median apartment price of $328,000, one-bedroom apartments in Melbourne are also more affordable to buy than rent with weekly mortgage repayments of $345 - $50 less than the weekly median rent of $395.
Even in Noble Park, mortgage on a $185,000 one-bedroom apartment is $195 a week, while the median rent for the same property type is $215 – a $20 weekly difference.
These figures are based on median house prices by bedroom, a 10 per cent deposit and a three-year, fixed interest rate of 4.5 per cent.
REIV CEO Geoff White said first home buyers are taking advantage of low interest rates to enter the market at a price they can afford. 
“One and two-bedroom apartments allow first home buyers to get a foothold on the property ladder for about the same amount they are currently paying in rent,” he said. 
“Savvy buyers should also consider four-bedroom properties in Melton South, where the median house price is $290,000 and mortgage repayments are $15 cheaper per week than the median rent.”
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Property Observer found a few examples of one-bedroom apartments up for sale on www.realestate.com.au such as the ones cited by REIV.
1. A one bed unit in <a href="https://www.realestate.com.au/property-apartment-vic-carlton-121986834" target="_blank">6219/570 Lygon Street Carlton Vic 3053</a> is up for sale for $229,000
2. A two-bedroom property at 5/28 Toolern Street Melton South Vic 3338, has an asking price range of $229,000 - $239,000.
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jonathanchancellor-7SQnKwU6yx

In some Melbourne suburbs, buying units is cheaper than renting: REIV

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The latest research from Brisbane South Cityscope shows property sale numbers have remained level over the last three months.
The last three months to the end of August 2016 recorded 13 sales for a total of over $90.1 million; with $77.8 million for commercial, $1.1 million for commercial strata, $3.2 million retail strata and $8 million for other.
In comparison, the three months to the end of May 2016 recorded 13 sales for a total of over $44.6 million; with $21.5 million for commercial, $900,000 for commercial strata, $2.4 million retail, $1.3 million for retail strata and $18.5 million for other. 
The 12 months leading up to the end of August 2016 recorded 48 sales for a total of over $320 million, over $189.5 million lower than the recorded figure for the same time period the year before.
The table below shows sales recorded for the past eight updates of Brisbane South Cityscope:
<a href="/images/2016/09/09/CoreLogicBrisbane.png" target="_blank"> Click to enlarge</a><img src="/images/2016/09/09/CoreLogicBrisbane.png" alt="">
The top three most significant sales, all in South Brisbane, recorded this quarter together totalled over $78 million.
<ul>
<li>The Precinct 2, 10 Browning Street, a four-storey building which includes The Melbourne Hotel on the ground floor and three levels of offices above. Armada South Brisbane Office Fund sold the building for $65.5 million to Forza Browning Street Fund. The sale represented an initial yield of 8% on passing income of around $5.24 million. Bruce Baker and Flint Davidson of CBRE Brisbane negotiated the sale.</li>
<li>138 Montague Road, a large single-storey warehouse with around 30 car parks. Bought for $8 million by The MWX Properties Pty Ltd as trustee for The MWX Properties Trust.</li>
<li>10 Cordelia Street, a two-storey commercial building with car parking for 17 vehicles. Sold for $5 million to 10 Cordelia Property Trust No. 1 and 10 Cordelia Property Trust No. 2.</li>
</ul>
<img src="/images/2016/09/09/Brisbaneqtrsales.png" alt="">
Properties listed for sale include:
<ul>
<li>105 Melbourne Street, South Brisbane. Merivale Flats, a three-storey residential building with a retail unit on the ground floor. For sale as a tenanted investment, with an auction pending (auction date to be advised); agent, Property Inc (Leon Iconomidis and Michael Kazoullis).</li>
<li>427 Montague Road, West End. A two-level office building and a single-storey warehouse. For sale by expressions of interest, closing September 1, 2016; agent, CBRE (Callum Short and Peter Court).</li>
<li>26-28 Thomas Street, West End. Two, single-storey, raised, weatherboard houses which are used commercially. For sale with an asking price of $1.48 million; agent, First National Commercial (Hiep Nguyen).</li>
</ul>
Currently under contract:
<ul>
<li>Unit 11, West End Central, 200 Melbourne Street, South Brisbane. A 96 sqm restaurant with a 46 sqm outdoor area. Under conditional contract; agent, JPM Commercial (Justin Mollard and Chris McDonald).</li>
</ul>
Cityscope covers 28 predominantly capital city CBD markets across Australia and New Zealand.
 
 
 
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Commercial property sales in Brisbane steady in quarter to August: Cityscope

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Chinese developer Dahua Group Australia (Dahua) has bought a 134 hectare land parcel in south western Sydney’s Menangle Park, previously owned by Campbelltown City Council, with plans for nearly 800 homes.
The site, adjacent to a 364 hectare site Dahua purchased from UrbanGrowth NSW last year, is the third bought by the Shanghai-based developer since last year. The deal amount was not revealed.
Dahua also acquired a third land parcel in Edmondson Park from UrbanGrowth NSW in November 2015. It recently started construction on its New Breeze community in Edmondson Park which comprises 1,280 allotments. The project launched in April and 241 allotments have already been sold.
Eric Li, general manager for Dahua Group Australia, said, “We are very excited about acquiring our third major land holding in Sydney’s South West. All three land parcels are located at the epicentre of the South West growth corridor and will benefit greatly from the state government’s multi-billion investment in infrastructure, jobs and community facilities in the area.”
The developer plans to build more than 4,380 homes over these three land parcels. Plans are afoot for a new town centre in at Menangle Park, a school, community facilities and open spaces. 
“The three masterplanned developments will help accelerate housing supply in one of Sydney’s rapidly expanding areas. A broad range of lot sizes and housing types will be provided to cater for a wide range of purchasers.
Mayor of Campbelltown Cr Paul Hawker said the sale was another step towards cementing Campbelltown City as the leading regional city of South West Sydney.
The Menangle Park masterplanned developments are nearly 60 kilometres from Sydney’s CBD and is close to the train station. 
Dahua is ranked among the top 50 developers in China, according to a media release.
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Dahua buys third piece of land near Sydney's Campbelltown with plans for 800 homes

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Property and construction company Hindmarsh has begun construction of its Marigal Gardens retirement village in Kambah in the Australian Capital Territory.
The first 18 villas in the initial release of 30 have sold.
In April, Hindmarsh received approval for the first 71 architecturally designed homes at Marigal Gardens. 140 units are planned.
The first Marigal Gardens residences and the community leisure centre are expected to be completed in the first half of 2017. The release of a further 10 villas is planned this year. 
The new community leisure centre, which will be a key meeting place for Marigal Gardens residents, is currently before the Planning Directorate for approval. 
Marigal Gardens is being developed by Hindmarsh on a 3.6 hectare site on the corner of O’Halloran Circuit and Snodgrass Crescent in Kambah. 
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The homes will include a mix of 2 or 3 bedrooms with 1 or 2 bathrooms, priced from around $425,000 to $600,000 and designed to take advantage of the site’s convenient location while celebrating the natural beauty of the Tuggeranong Valley. 
For more information, <a href="https://www.marigalgardens.com.au" target="_blank">click here</a>.
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Construction begins at Marigal Gardens retirement village

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GUEST OBSERVER
Secret Agent believes that knowledge about supply is crucial to making an informed and successful investment. This report will forecast what the supply of apartments and townhouses in Melbourne will be over the next 12-36 months.
Why is supply important?
Basic economics tells us that when supply is high, unless the market is in equilibrium, prices will drop because demand will not be able to keep up.
There is a less obvious reason that makes supply important. One of the biggest differences between supply and demand is that it is possible to forecast supply, and almost impossible to accurately predict demand.
It can seem like demand is certain. An investor might think he has struck gold when he discovers a suburb with rapidly rising rents and a growing demographic of people moving into the "hot new area" to live. Yet, in the background, a surge in planning proposals may cause supply to expand considerably. Supply created by developers does not trickle into the market but arrives in large batches, as each developer tries to use the same metrics to make guesses about demand into the future. All of a sudden, a glut starts to weaken rents and can drive away owner occupiers who had previously wanted to live within the area.
Demand is so difficult to accurately forecast that even the world’s biggest companies are often wrong when it comes to this. A great example is the large oil producers who have seen their profits diminished. They had continually invested in new wells with the expectation that the price of oil would continue to increase as demand intensified, only to see it collapse due to fracking and other factors.
World iron ore producers who made substantial long term investment decisions based on high iron ore prices made a similar error. There was too much focus on present demand rather than on future supply conditions, which could have helped them make sensible decisions over the business cycle.
Another example is this season’s avocado prices. Strong demand and a tough growing season caused prices to soar at the beginning of the season. As the season went on, prices started to moderate as supply caught up. No doubt avocado trees are being planted in record numbers with some producers seeking to benefit further from high prices. However, the likely outcome is diminished prices as supply starts to surpass demand. To maintain margins, differentiation is required, such as higher quality or varying varieties. The lesson here is that it is also the structure of supply that is crucial to evaluate.
The Australian property market has seen a sharp rise in supply. Developers have become much more comfortable with higher supply levels of their own product. Demand has been strong but it is only a matter of time before they too will have to differentiate.
How do we predict future supply?
Forecasting supply is especially useful in the property market. It is possible to know how many and where the upcoming apartments and townhouse developments will be, due to publicly accessible approved planning applications. This has huge implications for investors and home buyers.
Using data published by the Australian Bureau of Statistics (ABS), Secret Agent modelled Building Approvals by Statistical Area 2 (SA2) over the past financial year (July 2015 – June 2016) for two categories: apartments and townhouses. This report summarises our findings. Note that the figures may be slightly underestimated because it does not take into account approvals made prior to July 2015, which may still be in construction stages. 
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Part 1: Flats, units or apartments (including those attached to a house)
This is a measure of the upcoming supply of apartments. For larger buildings (4 stories and above), construction usually takes between 12 and 18 months, while for smaller buildings it can take up to 12 months. Therefore, the number of building approvals over the past 12 months in this category reflect the amount of supply for the next 12-18 months. Table 1 shows the ten suburbs with the highest amount of new developments of this type.
As expected, development in inner Melbourne (CBD, Southbank and Docklands) is much higher than anywhere else. Combined, these three suburbs account for almost 30% of growth of new apartments in metropolitan Melbourne. Southbank has by far the highest density of development, as its total area is much smaller than the CBD, yet there are nearly 2,000 more apartments being built here. West of the city, Footscray is the only major site for development. 
Notable suburbs in the inner north are North Melbourne (648), Brunswick (748), Brunswick East (468) and Collingwood (428). Further north, Preston (934) and Heidelberg West (612) have issued the highest number of building permits.
In the inner east, South Yarra (848), Richmond (566) and East Melbourne (550) are expected to see the biggest increases in new apartments, as well as Box Hill (1940), Doncaster (1056) and Malvern East (924) further to the east. To the south of the CBD, South Melbourne (1234), Albert Park (932), St Kilda (820), Caulfield (510), Bentleigh (612) and Cheltenham (942) have the highest number of new apartments being built. 
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Part 2: Semi-detached, row or terrace houses, townhouses
This shows the number of new townhouses being developed, as it includes any residential development of a subdivided block of land not included in the other category. As there will usually be less properties to be developed per site, some of these constructions have already been finished, while the vast majority will be completed within the next 12 months. 
While development of new apartments is mainly concentrated around the CBD and inner Melbourne, Port Melbourne is the only inner city suburb featured in the top ten list for semi- detached, terraces and townhouses. Note that most of the new developments in Port Melbourne are concentrated in the old industrial area of the suburb, which has recently undergone zoning changes to become residential. 
The inner and outer north have the highest density of development, with suburbs like Glenroy (640), Reservoir (488), Pascoe Vale (456), Craigieburn (364), Preston (336) and Heidelberg West (296) all making the list.
More suburbs in the inner west are experiencing development of townhouses compared to apartments. These include Altona North (316), St Albans (230), Braybrook (218) and Sunshine (212).
To the east, Doncaster (380) and Doncaster East (222) are again feature suburbs, while to the southeast, most of the development seems to follow the major rail network through Malvern East (166), Oakleigh (164), Clayton (212), Springvale (124), Noble Park (174) and Dandenong (272). 
Observations on future apartment supply
Secret Agent studied hundreds of floor plans of upcoming apartment buildings whilst compiling this report. The "Better Apartments" design standards draft for Victoria is currently in its consultation stages, so it was interesting to see that a number of these advertised apartments are not compliant with the proposed standards. It's likely that a big portion of the supply over the next year will not meet the quality of apartment living we are hoping to achieve. Here is a summary of our observations.
Balconies are too small.
Many balconies do not meet the minimum 2m dimension nor the minimum size requirements (8m2 for a 1 bed dwelling and 10m2 for a 2 bed dwelling).
Some apartments have used juliet balconies, a.k.a. false balconies, to allow for ventilation without actually providing open space.
"Snorkel" or "saddlebag" bedrooms are widespread.
This L-shaped layout is an ineffective yet popular solution to provide light access to the second bedroom of 2 bed dwellings. The "snorkel" is often too narrow to be considered habitable, and in many cases direct light does not penetrate into the actual room due to its depth.
Light wells are too small.
These non-compliant light wells are much smaller than the suggested minimum area of 9m2 with a minimum dimension of 3m, for buildings up to 13.5m (approx. 4 storeys). The example on the right was taken from an 8 storey building. These bedrooms would either have compromised access to sunlight, views, or both.
When appropriately designed, light wells increase the surface area of the external envelope and introduce more openings (i.e. windows) to allow light into dwellings.
Some bedrooms adjoin the lift core.
This isn't good news for light sleepers. Placing noise sources directly adjacent to habitable areas (especially bedrooms) increases noise transmission. Unless adequate acoustic insulation is in place, you can expect to hear each lift ride throughout the night. This has long term implications on health and happiness. 
Storage cages are too small.
New design standards suggest a minimum of 6 cubic metres of additional storage space for 1 bedroom dwellings. Common sizes for today's apartments (that is, if they have any) are 3 and 4 cubic metres, and 2.5 cubic metres for storage above car spaces.
Quality can vary within the same building.
An apartment building can have both A and B grade units, even within the same level. A proposed residential tower in Abbotsford had a combination of 70sqm 1 bedroom dwellings and 70sqm 2 bedroom dwellings. These 1 bedroom units are far bigger than the inner Melbourne average of 47sqm, whilst the latter sits just below the average of 73sqm.
2 bedroom dwellings are most often compromised.
1 bedroom dwellings usually have satisfactory access to sunlight and size. It’s the 2 bedroom dwellings that have the most compromised layouts, usually involving a "snorkel" bedroom in the floor plan (see point 2 on the previous page).
3 bedroom units are less common and are usually located around the corners or on the upper levels of the building. These apartment types tend to be of higher quality and command a premium. 
Conclusion
Future supply is fairly simple to predict. The implications of the forecast are far more complex. This report will conclude with a summary of points you should draw from our forecast of Melbourne's upcoming supply.
1.  High supply in certain suburbs does not mean you should avoid buying in these areas. You just need to be more careful with what you choose to buy. Differentiated products will perform better in the long term.
2.  While the new supply figures may seem high, it is important to consider context. For example:
<ul>
<li>How many existing apartments are in that suburb?</li>
<li>What is the proportion of apartments, townhouses  and houses in that suburb?</li>
<li>How big is the suburb?</li>
</ul>
3.  The availability of surrounding amenity and infrastructure should also be considered. Suburbs with high supply and good amenity and infrastructure will outperform suburbs with high supply but lacking in these features. An example is the Glenroy area, which has a large volume of supply coming up amidst a grim future for job growth, as many automotive industries based in this region will be shutting down by 2017.
4.  Generally, investors may want to consider the areas identified as having a high supply with caution. Rental yields are likely to be driven down unless the properties are suitable to family occupants.
5.  Home buyers may want to consider areas where there is a greater supply of townhouses, since these may be more suitable to a growing family. Townhouses are also an affordable alternative to a house, especially in areas of high supply.
6.  The quality of supply in the apartment market is lacking in many areas, especially for 2 bedroom units. This reinforces the importance of implementing better design standards for developers to adhere to.
Overall, for those interested in maintaining the value of their property investment, present areas of demand with excellent amenity to jobs, transport and lifestyle options that also offer scarcity and very little opportunity for future supply to be created will be long term winners. 
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 For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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jchancellor-FAypfDUnLy

Melbourne's future supply of apartments and townhouses: Secret Agent 

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Reserve Bank governor Glenn Stevens has conceded that he has "some discomfort' about rising Sydney house prices, but argued that these concerns need to be weighed up against the need to stimulate economic activity across the nation. 
He said the Reserve Bank remained confident there was little evidence of a widespread bubble in house prices.
Australia had a new "two speed" economy, with strong growth in states such as NSW, while resource-rich states, such as Western Australia and Queensland, had seen growth rates slump as the mining boom had ended.
Hie final interview with The Australian Financial Review, mentioned some mixed evidence as to the strength of the housing market. 
"Prices are probably rising smartly in some areas, but in other areas they're not, and in some cities in the country, they're falling," he said.
"So I think it's a mixed picture. It's not without risk, and it certainly gives me some discomfort, but then we're balancing that against the other obligations we have to pursue."
He said the RBA was tasked "to balance all these things and make a decision that neither completely ignores the financial stability and housing concerns, nor let them completely dictate the decision.
"That's the balance that we've tried to strike".
"Most of the domestic effects of cheap money comes through the household sector. Higher house prices than otherwise, more borrowing than otherwise, wealth effects, lower saving rate, etc."
But he added, "the thing that I've tried to grapple with is – that's where we get the effects, but do we actually want households to engage in a major levering-up from here?
"It's not that what they did before was disastrous – that clearly hasn't been. But from here, how much more do you want?"
"As the facts at the moment are, the credit growth of households is running about 6 percent. Fractionally less if you take account of a build-up in mortgage offsets and so on".
He added, "I don't think you can say this is a terrible risk. If it was 10 percent or 15 percent – that would be a different story".
He noted two speed housing price movements.
"It's probably not that surprising that parts of Sydney are leading the charge, because this economy is leading the country at the present time."
This, he added, is something "which, actually, we needed if we're to manage the transition after the mining boom".
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Housing markets not without risk as Sydney leads the charge: RBA's Glenn Stevens

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Queeensland's Retail Shop Leases Amendment Act has been proclaimed, with a commencement fixed for 25 November 2016.
The amendments, which passed the Parliament in May 2015, followed a consultative review of the <a href="https://www.legislation.qld.gov.au/LEGISLTN/ACTS/2016/16AC021.pdf" target="_blank">Retail Shop Leases Act</a> throughout 2011-2013.
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Property 101: Queensland retail shop leases act amendments

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GUEST OBSERVER
On Tuesday, in its last board meeting with Glenn Stevens as Governor, the Reserve Bank of Australia left the cash rate unchanged at 1.50 percent.
This was widely anticipated by markets. Glenn Steven’s statement basically said: growth is pretty low, but not horrible; business investment is way down, but other investment is up; commodity prices are up; but they fell a lot in the last two years; and so on.
Essentially, things are bad, but not too bad. In other words, the glass is half “fumpty”.
The two things he made a non-bland statement about were inflation and the exchange rate, saying:
“Inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.”
and:
“Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector…though an appreciating exchange rate could complicate this.”
And therein lies the key to future rate moves in Australia. If inflation drops below 1 percent, or if the Aussie dollar gets above 78 or so cents, then the RBA will strongly consider another rate cut.
There was somewhat positive news from the ABS on the trade front for Australia. The seasonally-adjusted trade deficit was A$2.41 billion in July, compared to A$3.25 billion in June, and better than market expectations. This was driven largely by a big jump in gold exports, while imports did not rise, staying at A$28.8 billion. The latter figure was, in part, due to a 6 percent fall in imports on consumption goods. This helped the trade deficit, but one wonders whether it is a sign of reduced consumer confidence.
GDP growth in Australia came in at 0.5 percent for the June quarter, slightly below expectations of 0.6 percent. Still, that put year-on-year growth at 3.3 percent, leading Treasurer Scott Morrison to say:
“Today’s June Quarter National Accounts confirm that 2015-16 was Australia’s 25th consecutive year of economic growth and show our economy growing at the fastest rate in four years, but we must continue to push for stronger growth.”
As they say in baseball, “you can’t boo a home run,” but there was a little less to cheer about in the figures than it might seem at first glance. A big chunk of the growth came from pre election government spending, something that is unlikely to continue (note to ABS: don’t you want to seasonally adjust for this?) Our terms of trade also increased by 2.3%, aiding growth.
Nominal GDP growth remained below trend and below Treasury budget forecasts at an annual rate of 3.4%. This is the key figure for tax receipts. Remember that the budget – which still had a lot of flowing red ink involved in it – forecast a return to 5% nominal GDP growth over the coming years. That still looks a way off.
Speaking of growth, as the G20 met in China the IMF laid the groundwork for a lowering of its 3.1% global GDP growth target when it revises its figures in October. It warned the original goal would not be met: “without quick implementation of all announced measures and significant additional efforts to boost productivity, especially in advanced economies”. Translation: “Houston, we have a problem.” Again.
This week also saw the announced of the US Federal Reserve “beige book”. This odd-sounding object is a compendium of anecdotal evidence – collected by the constituent Federal Reserve Bank – published eight times per year.
The book provided further evidence, albeit anecdotal, that the US economy is slowly bouncing back:
“Reports from the twelve Federal Reserve Districts suggest that national economic activity continued to expand at a modest pace on balance during the reporting period of July through late August. Most Districts reported a "modest” or “moderate” pace of overall growth."
What we know for sure is that global growth is low and below expectations. It looks like the US economy is bouncing back. And GDP numbers in Australia look good, but when one looks one level below, the picture isn’t so good.
Richard Holden is professor of economics and PLuS Alliance Fellow, UNSW Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">here</a>.
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Scrape below the surface and the economy doesn’t look so good 

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<img src="https://counter.theconversation.edu.au/content/63597/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The energy sector is dealing with a complex mix of relationships between consumer trends, global commodity markets, and state, federal and industry regulation.
Because large established companies in electricity generation and distribution and coal and natural gas export have a lot of influence in this process, Australian energy regulations reflect more traditional energy provision rather than global trends where renewable energy is becoming more prevalent.
State governments are currently coming to terms with the regulatory changes needed to accommodate public support for disruptive technology. One example is the ongoing adoption of ride-sharing company Uber. However this same pragmatism needs to be reflected in preparations for the provision and consumption of energy in Australia. The energy companies that are prepared for this disruption will survive and flourish, while those that cling to traditional structures will struggle.
<div id="responsive-iframe-0">Evidence of disruption</div>
Globally energy companies are already showing signs of being affected by the looming disruption. Coal miners have been subjected to multiple forces over the last decade, but the changing landscape associated with new forms of energy, is a strong influencer of their performance. Coal companies in the US are facing dwindling share prices or bankruptcy like Peabody Energy and Arch Coal.
Tesla’s share price, which increased from US$28.52 in August 2012 to US$220 in August 2016, is more than double that of more traditional vehicle company Toyota. Toyota has experienced moderate growth from US$79.62 in August 2012. With electric vehicles forcing themselves into the motor vehicle market, technological disruptors like Tesla are seen as more likely to succeed than traditional motor vehicle companies like Ford.
West Texas Intermediate, a benchmark international oil price, declined from US$133 a barrel in July 2008 to US$45 a barrel in July 2016. This followed a slowdown in global growth after the global financial crisis and increased production of oil in Saudi Arabia, which some claim is to gain market share. Coal prices for export from Australia have fallen from A$180 a tonne in July 2008 to A$63 a tonne in July 2016 as China’s voracious appetite for coal has declined.
International natural gas prices have also declined because in Europe the natural gas price has been referenced to the oil price. Separate to this, the US price of natural gas declined as a result of new drilling technologies which released huge quantities of natural gas onto the US market, dragging down the price.
Many of these global trends are apparent in Australia too. Coal export prices have caused concerns for existing companies to the extent that new mine development has been shelved since 2008. Coal mine profits have dwindled and job losses abound.
Ambitious plans for coal seam and natural gas extraction for export to Asian markets have been curtailed with some experts predicting still further price declines in response to oversupply.
While there have been recent small upticks in prices, the trend for Australian primary energy company share prices since early 2014 has been downwards.
<h2>Challenges facing the Australian electricity generation sector</h2>
The electricity sector in Australia is facing multiple challenges. Electricity consumption has declined since 2009 and is forecast to increase only slightly by 2035/6. The closing of large energy users like the Kurri Kurri aluminium smelter and the Clyde Oil refinery, and a shift by residential consumers to the consumption of electricity from solar panels have contributed to this trend.
This is coupled with increasing supply of energy from low marginal cost wind power which, if the Australian National Energy Market is working as designed, reduces the spot price for electricity.
Many electricity generators have launched or acquired retail businesses to market directly to customers. AGL and Origin are the two largest of these “gentailers”, with a combined 56% of the small customer market in the eastern states. However, there is potential for disruption to this existing industry model. 1.57 million households now have solar panels on their roofs, and residential batteries are expected to increase consumer control of residential electricity.
Startups like Sunverge, Reposit and Powerledger are looking to connect households with spare energy to households buying spare energy. Mojo Power is offering customers fixed price packages that are more reminiscent of mobile phone offers than electricity. At this stage it is unclear whether the National Electricity Market will play a part in, or hinder, these new business models.
A few retail companies, like Red, Lumo, Powershop and Infinite spruik their renewable energy credentials. Renewable energy is viewed very favourably by the public.
Recent polling suggests that 71% of respondents would favour a government that facilitated greater support for solar panels and batteries. Energy giant AGL has a larger renewable energy portfolio than Origin making it slightly more attractive to consumers with environmental concerns, but it is exposed to the risk of owning a large coal generation fleet.
Infigen is the only renewable, publicly listed company. Infigen faced torrid times during the multiple back-to-back reviews of the Renewable Energy Target, but since the target has been set at 33GWh, Infigen’s share price has been recovering.
Of note, is the share prices of domestic energy companies AGL and Origin who are both in the business of generating and retailing electricity and previously were both engaged in the development of coal seam gas. Origin has continued its coal seam gas investment while AGL exited the market. AGL has instead focused more on diversifying its electricity generation portfolio. Part of this strategy has involved formulating innovative plans for virtual power stations of consolidated rooftop solar panels and residential batteries.
Origin’s foray into the export of Liquid Natural Gas (LNG) has not been good for its share price. Concern over debt related to the investment in LNG and exposure to declining LNG prices has worried investors.
<h2>Electricity distribution also faces multiple challenges</h2>
Electricity distribution companies in Australia are regulated monopolies. Distribution companies in NSW and QLD have been government owned and as a result of hefty investment plans, large electricity price rises were passed through to customers after 2009. This was at the same time as environmental charges were being included in electricity tariffs.
Customers were angered by the rise in electricity prices, but the NSW and QLD governments have enjoyed the profits that have flowed back into state coffers.
The NSW government is now seeking to sell a large share of its distribution businesses, although the most promising buyers have been knocked back by the federal government due to security concerns. With the popularity of solar panels and the expectation about the benefits of battery storage to meet demand after sundown, investors buying into the electricity distribution sector will be facing disruption.
Origin and AGL have gambled on different strategies to face a future with carbon constraints and technological disruption. Origin has bet on natural gas being a transition fuel to a cleaner energy future, while AGL is betting on electricity from renewable sources with batteries as the preferred path.
Energy distribution companies need to wrestle with the technological disruption that is looming from decentralised, distributed generation from solar panels, batteries and peer-to-peer energy transactions. Coal miners should seriously consider diversification to face a carbon-constrained future. The energy sector is in a state of transition; profits and share prices may be volatile for a few years to come. It would be advantageous if regulation did not get in the way of the shifts already evident.
Lynette Molyneaux is researcher, Energy Economics and Management Group, Global Change Institute, The University of Queensland and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/lynette-molyneaux-9433" target="_blank">here</a>.
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Company results wrap: energy companies are facing disruption

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<div class="row">
<div class="meta">GUEST OBSERVER</div>
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<div class="body">
The Reserve Bank of Australia announced it will hold the official cash rate in September at the historically low rate of 1.50 percent.
The decline of rates throughout 2016 may be partly attributed to the stubborn Australian dollar, which hovered around US$0.76 for most of July and August. The RBA have used subtle language and interest rate cuts in an attempt to de-value the Australian currency over the year.
A lower Australian dollar increases competitiveness of Australian goods. It also increases general prices through imported inflation, lifting the price of imported inputs for Australian goods and services. The annual inflation rate of just 1% to June in Australia looks set to remain low, at least over the remainder of the year.  
Despite the best efforts of the RBA, the AUD continued to climb gradually since May, which partially contributed to the August cut. The persistently high AUD made a case for further rate cuts.
That was, until, Federal Reserve Chair Janet Yellen spoke at a symposium on the 26th of August.
Yellen argued that strengthening in the US labour force meant “the case for an increase in the federal funds rate has strengthened in recent months”. The speech was followed by comments from the Vice Chair Stanley Fischer, who indicated that US rates could rise as soon as September.
This hint at higher interest rates saw a boost to the USD, and a complementary weakening in the AUD. Graph 1 shows the movement of the AUD relative to the USD over August. This took pressure off the RBA to use monetary policy as a means to lower the dollar, and may have contributed to the hold decision this month.
Graph 1: AUD/USD-August 2016
<a href="/images/2016/09/08/Screen%20Shot%202016-09-09%20at%208.50.40%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/08/Screen%20Shot%202016-09-09%20at%208.50.40%20AM.png" alt="">
Source: RBA &amp; Trading Economics
The next Fed rate decision is September 22nd, and an increase is likely to place further downwards pressure on the AUD and potentially create room for the RBA to delay further rate cuts.
This is important, because residential property value growth and dwelling approvals in Sydney and Melbourne have continued to be reactive to rate cuts earlier this year. Across Australia, dwelling construction saw a 1.2% increase over the June quarter, and a strong 6% increase over the year. Meanwhile, other sectors of construction work fell dramatically: engineering work fell by 9% in the quarter, and private construction fell by 14% over the period. 
Building approvals were up across Australia in July, as the number of units approved increased 4.97% year on year. However, across the country the number of separate houses approved fell by 3.19%. Much of the growth in dwelling approvals for the year was driven by the Sydney and Melbourne markets. This was expected following a May rate cut as more dwelling development projects gain cost benefit. A hold in rates is likely to see the market steady.  
Graph 2: Trend Data - Residential Dwelling Approvals Australia Wide
<a href="/images/2016/09/08/Screen%20Shot%202016-09-09%20at%208.49.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/08/Screen%20Shot%202016-09-09%20at%208.49.29%20AM.png" alt="">
Source: RBA &amp; Onthehouse.com.au
Graph 3: Trend Data - Total Residential Dwelling Approvals by Capital City
<a href="/images/2016/09/08/Screen%20Shot%202016-09-09%20at%208.48.09%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/08/Screen%20Shot%202016-09-09%20at%208.48.09%20AM.png" alt="">
Source: RBA &amp; Onthehouse.com.au
The number of dwelling approvals across Australia over time is shown in Graph 2. While 2012-15 saw a steep increase in the number of dwelling approvals, another small upward trend can be seen over 2016. Graph 3 shows the original monthly data of total dwelling approvals by capital city (which is volatile relative to the trend data), with Sydney and Melbourne experiencing a significant surge.
The movements in dwelling approval data is expected, as it follows capital growth in the dwelling market. Following the May rate cut, Residex observed strong growth in Sydney and Melbourne dwellings for the June quarter, including a 1.85 percent surge in Sydney units, and 2.29 percent in Melbourne units.
The RBA faces a two-tiered economy in which housing has boosted growth in the south-east coast of Australia, while growth in other cities across Australia is subdued. Part time employment in Australia also reached a record high of 31.63 percent in July, suggesting ongoing structural challenges in full time job creation and wage growth. As the rate is held for September, we may expect these east coast markets to steady a little, and growth in approvals start to flatten.
Eliza Owen is market analyst for Onthehouse.com.au and can be contacted <a href="https://www.onthehouse.com.au/" target="_blank">here</a>.
 
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