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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The HSBC Bank building in the Sydney CBD has sold for the first time in over three decades.
Last traded for $1,018,000 in 1984, the building at <a href="https://www.colliers.com.au/23929/" target="_blank">724-728 George Street</a> is anchored by HSBC bank with a new five year lease.
It is the first time offered on market by the original Haymarket developer, CKC Holdings aka as Chew Kong Chian and Sons. 
HSBC Bank have been trading in the seven storey building for 30 years.
The seven levels comprise with ground and 1st floor retail, 2nd to 6th floor offices, and 7th floor penthouse and offers a building area of around 3,383 sqm.
The total rental income for the building is $1.6 million per annum, and currently 95 percent is leased.
Colliers International agents Steam Leung and Jordan Lee were the marketing agents when it was offered for June tender on realcommercial.com.au.
No price has yet been revealed, but a similar 822sq m office building nearby, which is used by Citibank and St George Bank, at 695-699 George Street sold for $41 million in 2014. 
Colliers expected the yield as low as 4 to 4.5 percent.
It came with plans (pictured) for its redevelopment.
Chew Kong Chian, through an associated company, developed the Royal Gardens in Pitt Street.
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j.ballantyne1990-6AQqhLzZaK

Haymarket HSBC Bank building in Sydney CBD trades for first time

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GUEST OBSERVER
Applying the cognitive neurosciences to architecture and real estate development may raise some eyebrows and creates a certain amount of scepticism.
However, some solid peer-reviewed studies give reason to believe that, one day, these disciplines might be more closely aligned and complimentary than we thought. Let’s go back in time by way of illustration.
We’ve spent more than 99 percent of our entire time on the planet not in a building, but in a savannah, sojourning for millennia in the unstable worlds of the Serengeti and Ngorongoro Crater. This big fat brain of ours was thus forged outdoors, scrambling around Africa in small bands. Such pre-history affected the way we interacted with our environment. Still does. We’ve not spent enough time in civilization to outgrow our Darwinian reflexes. 
There are two ways to illustrate how this might inform the design of buildings, from workplaces to retail environments.
The first comes from something that’s been researched famously: the impact of natural environments on behavior. Well-regarded data shows that exposure to natural elements—trees, running water, even pictures of trees and running water—provide benefits ranging from shortened hospital stays for adults to increased academic performance for kids. Researcher David Strayer uncovered a 50 percent boost in problem-solving abilities after test subjects sustained a 72-hour exposure to nature. This makes perfect sense, given that 99 percent history part. The brain sees natural elements and says “I’m home.”
The second illustration also concerns evolutionary history. Most of us think humans were among the Pleistocene era’s biggest chickens, ones who got beat up a lot in the hardscrabble African plains. Just look at human fingernails and remember we competed against African lion claws for survival space. Not exactly a fair fight. With a founding population measured in the low hundreds, we almost didn’t make it.
The will to survive 
But we did make it. One reason was our ability to use our obese brains to respond and develop preferences for specific types of physical surroundings. We needed to survey the vast flatlands quickly, which might involve scrambling up a cliff, looking in the distance for sustenance and predators, formulating acquisition and avoidance strategies.
But we couldn’t stay up there forever, given our extreme physical vulnerability. We also had to be able to hide quickly. Developing simultaneous preferences for expansive space and enclosed shelter was thus fundamental to our survival.
The late geographer Jay Appleton proposed years ago Prospect-Refuge theory, which embraces this history: “People prefer environments where they can easily survey their surroundings and quickly hide or retreat to safety if necessary,” he wrote.
Designing modern buildings
How might these translate to architectural design? For companies, what kinds of spaces can get the best from your employees?
Many people want creative, friendly spaces to be competitive in the global world of 21st century business. Yet most don’t take into account the intersection between Darwin and Appleton. Designers end up either creating prospect or refuge, but never deliberately putting both together in dynamic, accessible tension.
Is that imbalance toxic? Could be. Open office spaces are a form of prospect, closed rabbit-warren offices are a form of refuge, and in isolation from each other, neither perform very well. Open offices often raise stress hormones. Closed environments don’t allow much collaboration.
These are questions behavioral researchers need to tackle in collaboration with architects, even given this evidence, because the real answer concerning toxicity is “we don’t know”.  If the data showed that such asymmetries were counter-productive, however, monolithic designs should be binned.
The pessimist in me says it’s still too early for brain science to be prescriptive. But that doesn’t mean we don’t know enough to collaborate, to design behavioral experiments capable of inserting bricks and mortar into the pages of On the Origin of Species. The optimist in me says we know just enough to fill up a blog.
While architects and developers are not neuroscientists, everybody involved in the design ecosystem should know something about how the brain works.  Better informed they might make better business and design decisions.
This article appears in <a href="https://www.jllrealviews.com" target="_blank">JLL Real Views</a> 
Dr John Medina is a developmental molecular biologist focused on the genes involved in human brain development and the genetics of psychiatric disorders. He is the author of the New York Times bestseller “Brain Rules”— a provocative book that takes on the way work and school environments are designed; a fellow of architecture firm <a href="https://www.nbbj.com/news/2014/6/19/nbbj-launches-new-partnership-program-with-leading-researchers/" target="_blank">NBBJ</a>; and holds an affiliate faculty appointment at the <a href="https://depts.washington.edu/bioe/" target="_blank">University of Washington.</a>
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jchancellor-FAypfDUnLy

Understanding how our brains work makes for better buildings

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The award-winning penthouse office in Melbourne's South Yarra has sold after having price expectations of $6.5 million plus.
It is understood to have been bought by parties associated with SecureCorp joint managing director Craig Harwood
The two-level office with 675 sqm of flexible space is set in one of Melbourne's top retail hubs.
It sits on the corner of Arthur and Chapel Street, perched above the vibrant precinct.
In 2015 it took out the Interior Design Magazine's Best Interior Design Award, one of New York's most prestigious design awards.
It was also named a finalist in the Workplace Design and Workplace Less Than 1,000 sqm categories at the 2015 Interior Design Excellence Awards in Australia.
Colliers International secured the sale of <a href="https://www.realcommercial.com.au/property-offices-vic-south+yarra-501998198" target="_blank">529 Chapel Street</a> on behalf of local developer Bill McNee.
“This is a truly unique offering – there is no other office in Melbourne that compares to this one,” agent Daniel Wolman said before the sale.
“On offer is the world’s best office in the heart of one of Melbourne’s trendiest and most sought after suburbs."
The office has communal and private workspaces, innovative entrances, steam rooms and luxury finishes with multiple rooftop terraces.
Luxury features include a Sonos sound system throughout, automated bi-fold doors, a teppanyaki grill and beer taps on the external terrace. 
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World's best small office design sells on Chapel Street

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Palace Cinemas has announced it will open a multi-screen complex on the fringe of the Sydney CBD.
The cinemas will be at Central Park on Broadway.
Palace Central will be Palace’s fifth cinema in NSW. It also recently announced a new Double Bay location.
“The most impressive thing about the Central Park location is that it’s so accessible to the people of Sydney; it’s become a major thoroughfare and a new community that we’re delighted to be a part off,” says Benjamin Zeccola, CEO of Palace Cinemas.
The 14-screen complex, which will be located on level three of the centre.
The cinema will be the new home of the Italian Film Festival and the Latino Film Festival.
Designed with a bar, the complex is scheduled to open in late 2017.
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Palace Cinemas to open on Broadway

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Melbourne’s much-loved Preston Market is all set for a makeover.  
Preston Market Developments Pty Ltd, a partnership between Salta Properties and Medich Corporation, announced that following the approval of its Town Planning Permit by the Darebin council, the upgrade is about to commence. 
The launch of Fresh Hood Market in July was the first step bringing a mix of art, music and food.
The upgrades will cover existing buildings and public spaces, amenities, including new kids play areas and landscaping. Works will commence in October with Preston Artist Market (PAM Lane), the Fruit and Vegetable block, and the Meat, Poultry and Fish Hall. PAM Lane expects to have more local artists and designers at completion.
Preston Market has become one of Melbourne’s best-loved shopping destinations and cultural hubs since trading started on the site in the late 1970s.
Salta Properties’ managing director Sam Tarascio said the makeover has been on the cards for some time. 
“For the most part, the market has not been touched since the 1970’s and we are thrilled that we can now get on with improving the market for our loyal shoppers and introduce the market to a new generation,” Tarascio said.
“The works will reinforce Preston Market’s position as a unique shopping precinct and we are looking forward to working with our traders to bring new life to the market.”  
Eco-friendly measures will also be a part of the upgrade, including solar panels, onsite waste treatment, recycling improvements and smart building technologies to cut its carbon footprint, added Tarascio. 
The renewal works have been designed by well-known Melbourne architects, NH Architecture and Breathe Architecture. 
Though some interruptions are expected during construction, Preston Market will remain open as usual.
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jonathanchancellor-7SQnKwU6yx

Melbourne's Preston Market to get facelift

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The housing market appears to be responding to a number of factors which have spurred further growth in home values. 
Official interest rates are at historic low levels which has encouraged borrowing for housing and driven housing debt to record-high levels. 
The low interest rate setting is also seeing significant competition amongst lenders which has resulted in substantial discounts to headline mortgage rates. 
Furthermore, while the total number of homes available for sale is similar to levels a year ago, there has been significantly fewer newly advertised properties listed for sale over the past few months relative to previous years. 
The low number of newly advertised dwellings available for sale has created a sense of urgency for buyers in the market, particularly in Sydney and Melbourne, and resulted in further increases in home values over this growth cycle which has been running for more than four years.
While the banking regulator has implemented policies aimed at slowing investment related credit demand, his has not resulted in a significant cooling in the housing market. The pace of investment related credit growth has slowed from a peak of nearly 11 percent per annum to 5 percent over the most rent 12 months period, however we are now seeing an uplift in lending to investors once more. 
Following the most recent interest rate cut, auction clearance rates have elevated to levels not seen for more than a year, particularly in Sydney, the nation’s least affordable housing market.
Interest rates
On August 2, the Reserve Bank (RBA) decided to cut official interest rates by 25 basis points to 1.5 percent. 
While interest rates were lowered to historic lows, headline variable mortgage rates were generally reduced by much less, with each of the Big 4 banks lowering their mortgage rates by no more than 14 basis points. 
Despite the fact that the interest rate cuts were not passed on in full to mortgage holders, mortgage rates below 4 percent are available for those who wish to move from their current lender.  With most mortgages on a variable rate, any cut to mortgage rates will improve a household’s disposable income.  Furthermore, it has become clear that it will also give them more confidence to increasingly purchase more expensive homes, well in Sydney and Melbourne at least.
Housing debt
Each quarter the RBA publishes ratios of household finances which include the ratio of household debt to disposable income. The latest data to March 2016 shows that the typical level of housing debt is 134.7 percent higher than household disposable income. 
The current ratio is a record-high but it is important to remember that it is a national snapshot and conditions across different housing markets are likely to vary substantially.  Since the current phase of growth in home values commenced in the June 2012 quarter, this ratio has lifted from 119.0 percent.
While the ratio of housing debt to disposable income has increased and is at a record-high, the ratio of housing assets to disposable income has also risen as home values have increased. 
In the June 2012 quarter, the typical value of household assets was 394.4 percent higher than household disposable income.  
By March 2016, the ratio had increased to 470.8 percent indicating a significant increase in the value housing assets.  Again, it should be remembered that this is a national measure and local market ratios are likely to be vastly different especially within areas of very little value growth over that time as well as those areas in which home values have fallen.
Properties listed for sale
Over the four weeks ending August 21 2016 there were 39,676 new (not previously advertised for at least six months) residential properties listed for sale and 229,386 total (includes new and relisted properties) properties advertised for sale. 
The number of newly advertised properties listed for sale was -3.4 percent lower than at the same time last year and new listings have been lower each week year-on-year since early June 2016.  Meanwhile, total listings are -0.9 percent lower than they were a year ago and on a weekly basis have been consistently lower year-on-year since early July of this year.  New and total listings are now starting to increase as we head closer to the beginning of the Spring Selling Season as they do each year.
While the national figures show fewer listings than a year ago, the trends are very different across individual capital cities, particularly in Sydney and Melbourne where home value growth conditions are strongest.
In Sydney, over the past four weeks there were 6,299 newly advertised and 18,951 total properties advertised for sale. Year-on-year, new listings have now been lower than they were the previous year fairly consistently since last November and are currently -20.6 percent lower than they were a year ago. 
Over the past four weeks there were 17,949 total listings in Sydney which was 0.8% higher than a year ago. 
While total listings are slightly higher than a year ago, there is very little new stock being listed for sale.  New listings are arguably more important than relisted properties, especially if the relisted stock has been for sale for a long period of time and vendors aren’t adjusting their price expectations.   Even though spring is just around the corner, there is very little fresh stock being added to the market.
It is a similar story in Melbourne where there were 7,177 new and 25,846 total residential properties listed for sale over the four weeks to 21 August 2016.  The number of new listings was -9.4 percent lower year-on-year and total listings were -0.8 percent lower.  Again, with spring just around the corner there is a relatively low supply of newly advertised properties hitting the market for sale.
Mortgage demand
One of the big challenges the RBA has is the quality and regularity of mortgage data collection. While housing finance data is published each month, owner occupier housing finance commitments are published both on a number and value basis while investor housing finance commitments are only published on the basis of value not the number of loans. 
With the investment segment having become so prevalent, it is a challenge not knowing both the number and value, particularly when investment is so strong in Sydney and Melbourne at a time when home value growth is also so strong. 
Adding to the challenge of interpreting housing finance data is the lack of clarity about how off-the-plan unit purchases are captured in the data.  It is unclear as to whether they are classified as construction of dwellings or purchase of new dwellings. Finally re-classification of large swathes of mortgages from lenders away from investment and toward owner occupiers has made reading the market even more difficult.
The latest housing finance data showed that in June 2016 there was $32.6 billion worth of commitments with the value having increased by 2.3 percent over the month following a 1.8 percent rise in May. 
Although mortgage lending is rising, it remains -2.1 percent lower than its peak in April of last year. 
Over the month, there was $20.8 billion in commitments to owner occupiers and $11.8 billion in commitments to investors.  Both segments of lending rose over the month however, owner occupier lending is -2.4 percent lower than its December 2015 peak while investment lending is -22.0 percent lower than its April 2015 peak.
Owner occupier lending remains quite strong and although investment lending has slowed significantly, there is now scope for it to increase over the coming months.  Without additional details on the number of investment loans it is difficult to know whether the increase is being driven by larger loan sizes, a larger number of loans or a combination of both.
Auction clearance rates
Auction clearance rates are one of the timeliest indicators of the housing market and they tend to be indicative of the broader housing market trends.  It is important to remember that far more homes sell by private sale than by auction and auctions are only a significant proportion of sales in the Sydney, Melbourne and Canberra housing markets.
Auction clearance rates in Sydney last week were at their highest levels in more than a year.  Sydney’s auction clearance rate has been above 70 percent for 18 consecutive weeks and in Melbourne they have been above 70 percent for 7 consecutive weeks.
As already discussed, the supply of homes available for sale, particularly in Sydney and Melbourne, is much lower than it has been over recent years.  This is particularly evident when looking at auction volumes. 
Over 2016 so far there have been 18,619 auctions in Sydney compared to 25,399 auctions at the same point in 2015.  This represents a -26.7 percent decline in the number of auctions in Sydney over the year to-date. 
In Melbourne there have been 23,779 auctions so far this year which is -9.5 percent lower than the 26,282 auctions to the same point last year.  The low volume of auction stock is likely to be resulting in the ongoing strength in clearance rates across each city.  Less stock for sale creates a sense of urgency for those looking to purchase.
So what does this mean for Spring?
It is too early to say definitively what will happen this Spring but I would be very comfortable stating that what happens with property listings will have a substantial influence on the market’s performance over the period. 
Spring is typically characterised by a fairly significant upswing in stock for sale, this is driven by the belief that Spring is the best time of year to sell (that is a topic for another day).  As supply increases, the value growth performance can slow and as we saw last year, auction clearance rates can actually start to dip.  So the amount of stock which becomes available for sale will be an important factor for the strength of the Sydney housing market.
The recent interest rate cut is another important consideration for the market’s performance. Although mortgages and the availability of them, is calculated on the borrower’s ability to repay the mortgage at a much higher interest rate, lower mortgage rates impact households by giving them the option to reduce mortgage repayments and therefore having more money each week in their pocket. 
This is because most mortgages are on a variable rate and changes to the interest rate on their largest commitment (the mortgage) have an immediate impact on household balance sheets. 
With the recent cut to interest rates, it is unlikely to mean that people that could not previously borrow now can, but it does mean that households that previously weren’t considering moving home or buying an investment property may now be more inclined to do so. 
This may result in more confidence from those looking to upgrade their property to list their home which means that they also become an additional purchaser.  If someone is now starting to consider buying an investment property it also means additional demand for housing. 
How many new buyers there are in Spring remains to be seen but it may encourage an increase in demand for purchase and could result in more people looking to sell their home.
The other major consideration, particularly in Sydney and Melbourne, but also across the rest of the country is what the prospects are for additional increases in home values over the short and medium term. 
Combined capital city home values have been rising for more than four years now however, this has largely been driven by Sydney and Melbourne due to their much stronger economies. While the economies in these cities remain strong, the increasing cost of housing due to the four plus years of value growth may be starting to deter buyers.
When you also consider that rents are increasing at record low levels (falling in some areas) and gross rental yields are at record lows, purchasing a property, particularly an investment, is looking less attractive than it has for some time.  Especially when you also factor in the heightened level of housing construction, most of which is inner city units, which is currently underway.
It is going to be interesting to see how all of these factors play out over the next few months and ultimately how the housing market performs.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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ckusher-ujnxiKuFQs

Where to for the housing market in Spring? Cameron Kusher

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<img src="https://counter.theconversation.edu.au/content/64600/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Victorian government has announced it will permanently ban unconventional gas, often produced through the controversial process of hydraulic fracturing or “fracking”.
Legislation to implement the ban will be introduced this year.
This ban follows a 2015 report on unconventional gas. Following extensive review, committee members were split over whether to implement a full ban or extend the moratorium on onshore gas development by five years.
The ban announced by the government won’t apply to offshore gas. The government will also legislate to extend a moratorium on onshore conventional gas until 2020. Any future decision to approve onshore conventional gas exploration and production will be subject to review by an expert panel.
So will the ban make a difference?
Where did the ban come from?
The moratorium has been in place since 2012. It applies to all types of onshore gas (tight, shale, coal seam and conventional gas) and to any approval for fracking, exploration drilling activities and the use of chemicals us in fracking.
Last year the Victorian government examined the ban and consulted farmers and other landholders, environment and community groups, the gas industry, gas market analysts, hydrogeologists, manufacturers, tourism operators, local governments and the general public.
The final report was the product of more than 1,600 submissions over a six-month period, as well as the findings of the Victorian Auditor-General Report on Unconventional Gas.
The rationale for the ban comes from two core factors. The first is the significant degree of community concern about the social and environmental impacts of onshore unconventional gas, particularly those associated with hydraulic fracturing.
Secondly, the future economic benefits connected with unconventional gas development did not appear, from the findings of the reports, to outweigh those risks. Indeed, the final report found that it was unlikely that strong unconventional gas reserves were present in large commercial and extractable qualities in Victoria’s brown coal fields.
On the other hand, any development would be highly likely to have a dramatic effect on the region’s agriculture and tourism sectors.
Can fracking be permanently banned?
The existing regulatory framework does not recognise any ban on onshore unconventional gas. Indeed, the provisions in the Mineral Resources Sustainable Development Act explicitly include exploration and mining licences for coal seam gas projects.
However, these regulatory frameworks are being completely overhauled. It is clear that the new provisions will introduce a permanent prohibition on unconventional exploration and development in Victoria. The scope and nature of the ban will depend upon the wording of these provisions.
Any law that is introduced cannot be overridden at the national level because the ownership and management of all onshore minerals and hydrocarbons, including gas, are vested in the state.
Pros and cons
The ban will end the strong environmental concerns that continue to exist around unconventional gas production. It will also alleviate some of the emerging conflicts over land allocation and water usage that have emerged between regional food, tourism and energy sectors.
The ban will also ease climate concerns connected with the generation of energy from fossil fuels. In Australia, fugitive emissions from coal mining, oil and gas production account for approximately 8% of Australia’s greenhouse gas emissions.
Gas extraction, whether conventional or unconventional, can result in significant methane seepage. To date, very few baseline studies are available to compare seepage from drilling and fracking with natural methane seepage.
The ban is likely, however, to have a negative impact on supply, which may affect domestic gas pricing. This is particularly the case if the moratorium on onshore conventional gas production continues and no policy is implemented requiring gas producers to reserve a percentage of produced gas for domestic usage.
The 2015 Gas Market Report, released in March this year, showed that the nexus between international gas prices and east coast LNG production for export, domestic demand and domestic gas prices has become increasingly complex.
Theoretically, eastern Australia has enough reserves to supply the domestic and export markets for the next 20 years. But if the market is divided into the north (Queensland and Cooper Basin) and the south (Victoria and New South Wales) there is unlikely to be enough reserves in the south to meet forecast demand, particularly following the ban.
This will inevitably require the development of more gas reserves in other areas of the south, or imports from the north. If international gas prices and demand support more east coast LNG production, things will get worse as this supply will not be available in the north.
Victoria will, however, continue to utilise gas exploration and production in offshore gas wells in Bass Strait. There are 23 offshore platforms in the strait and ExxonMobil has held these titles for many years.
The offshore gas wells have traditionally supplied most of Victoria’s domestic gas market. Consequently, if the ban did apply to offshore gas exploration and production, it would have a profound effect on domestic gas supply.
Such a ban is, however, unlikely. First, it could not apply to offshore wells located beyond the territorial sea because these come under Commonwealth jurisdiction.
Second, a ban could not be applied retrospectively. Hence it would not affect established offshore title holders who have been supplying the domestic gas market for many years.
Samantha Hepburn is director of the Centre for Energy and Natural Resources Law, Deakin Law School, Deakin University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/samantha-hepburn-5327" target="_blank">here.</a>
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Victoria bans fracking, but leaves questions over gas supply

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<img src="https://counter.theconversation.edu.au/content/63125/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
We often take for granted our access to vast quantities of inexpensive goods manufactured overseas.
And we often overlook the unassuming innovation that has made this global industrial revolution possible: the shipping container.
While the shipping container was conceived in the 1950s by American businessman Malcom McLean, it was only widely adopted after the US military used containers to supply its war effort in Vietnam in the 1960s.
After the Vietnam war, container ports were built in Japan and then the rest of the world. Old ports, such as in New York, were devastated, while ports such as Oakland, in California, became the new centres of globalised shipping. 
With containerisation went the old wharf-side communities of dockers and labourers, previously employed to hoist cargo with ropes and pulleys. This fundamentally changed not only the urban fabric of port cities but the very dynamics of globalisation.
With more than 18 million in the global fleet, shipping containers have become an ubiquitous icon of globalisation.
At the same time, shipping containers have become a surprising part of modern urbanisation, infrastructure and the built environment. Here, their boxy and bland uniformity has become a tableau for creativity, innovation and experimentation.
Plug-in cities
Container architecture has roots in both mid-20th-century modernism and an entirely different approach to architecture and urbanism that emerged in the new millennium.
Antecedents to today’s container architecture can be seen in Yona Friedman’s La Ville Spatiale, the work of Japanese Metabolists, such as Arata Isozaki, and the Plug-in City of Peter Cook and the Archigram Group.
These architects imagined vast mega-structures to support countless mobile, transportable and containerised units.
In the early 2000s an entirely different approach to architecture and urbanism was emerging. This DIY and experimental approach had more in common with Christopher Alexander – architect and father of the Pattern Language movement in design and construction – than high modernism.
It is also extremely diverse, including parklets, tactical urbanism and the pop-up retail phenomenon.
The shipping container slotted into this movement nicely. Whether it’s a container bar, a pop-up retail shop or beer garden, a garden shed, a prepper’s bunker or entire university dorms, the shipping container has become a common feature of the modern built environment. 
Plug-and-play infrastructure
Much has been made of the use of containers in architecture, even though their suitability for long-term living is widely debated. Less explored is the way containers and containerisation have been transforming infrastructure.
There is great need for easy access to infrastructure, from medical facilities to water treatment around the world. The shipping container is an appealing option, being rapidly deployable, scaleable, transportable, plug-and-play and a turn-key solution.
Again, the military has been at the forefront of many of these innovations, as have the oil, gas and mining industries, where containers are used for housing, sanitation, cooking and power generation.
But innovative approaches to containerised infrastructure are rapidly expanding outside the military and energy sectors.
Interest in containerised green energy is growing. In fact, fully containerised biogas plants using methane generated from landfill or agricultural waste are a mature industry.
Containerised solar and wind power generators are also generating a lot of interest. Green Tech Africa, for example, is aiming to provide solar power to sub-Saharan Africa through systems including containerised solar power and storage systems.
At least two companies – Uprise Energy and Natural Power Concepts – are developing portable wind turbines that deploy from containers. This, in turn, has attracted interest from Oshkosh Defense and the military.
All in a box
Innovative approaches to containerised infrastructure have expanded outside the energy sectors.
Clinic In A Can builds fully equipped, customisable, solar-powered containerised clinics. These clinics have been deployed in the developing world, remote areas and in disaster relief missions.
At least one hospital in the US purchased Clinic In A Can’s isolation unit to cope with potential patients infected with Ebola or another highly infectious disease.
A more surprising use of containers is food production. Motivated by the farm-to-table ethos, the owners of The Farmery, a food truck in North Carolina, partnered with Williamson Greenhouses to develop the Crop Box.
This is a complete hydroponic growing system using super-efficient LEDs. It can produce the equivalent of one acre of lettuce inside a single container. Students at Stony Brook University are using a similar system, built by Freight Farms, to grow over a thousand heads of lettuce a week for the campus.
Farm From a Box offers a different business model and vision. They have packaged the core components and tools needed to set up the equivalent of a two-acre farm in a single turnkey farm kit in a shipping container.
Farm From a Box
Water purification and sewage treatment are another two infrastructure services that have been containerised, with systems on offer from many companies.
Residential-scale treatment facilities such as one offered by Biokubeseem like they might offer an attractive solution to cities such as Rio de Janeiro with well-publicised sewage treatment problems.
Containers are also providing scaleable solutions for digital infrastructure as well, from solar-powered internet cafes in refugee camps and developing cities to the rapidly growing market for data centres in the developed world.
These are just some of the innovative and emerging infrastructure services that are being containerised and deployed, not only in the developing world, but in our own backyards.
This isn’t the containerised vision imagined by Archigram or the Metabolists, but it certainly is reminiscent of it, in a Through the Looking Glass way. Not a plug-in city built around a centralised infrastructure, but plug and play infrastructure providing real solutions for a rapidly urbanising planet.
Morgan Saletta is from the history and philosophy of Science and Department of Management and Marketing, University of Melbourne and an author for The conversation. he can be contacted <a href="https://theconversation.com/profiles/morgan-saletta-138289" target="_blank">here</a>.
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How shipping containers are changing infrastructure: the plug and the play city

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There are over 300 species of termite in Australia, but the vast majority of termite damage in New South Wales is caused by subterranean termites, so called because they make their nests in the ground.
Termites have been known to feed on many materials including plastics, rubber, fibreglass and of course wood.
They attack house frames, wall linings including plaster board, cupboards, skirtings, windows and door frames, carpets, plastic coating on electrical wiring and even books, artwork, clothing and personal papers!
Protection options
The big question is: how can termites be stopped from destroying your home?
You should be aware of the options for termite control so that you can discuss the matter with your builder, and if necessary seek further advice. As we shall see, there are different methods of termite protection depending on whether your home is built on - a concrete slab on the ground or a raised or suspended floor.
Whatever method or combination of methods is best for your home, it is most important that your builder provides “whole of house” protection. You want to protect your whole home, not just the structure.
Don’t make it easy for termites to enter your home from the outside. Here are some tips on how to avoid providing conditions that suit termite activity.
• Don't attract termites by placing materials such as wood chips against your home.
• Avoid gardens alongside your home, especially if you have a chemical barrier at the perimeter. Normal gardening or use of topsoil may ruin the barrier.
• If you must have gardens alongside your home don’t raise the beds above the existing ground level, especially with slab-on-ground construction. The ground level or finished paving level must be at least 75 mm below the damp-proof course line or the bottom of the weepholes. Never cover up the weepholes.
• Don’t plant flowers or shrubs that will hide weepholes, vents in walls with timber floors or the exposed edge of concrete floor slabs.
• Areas under suspended floors should be well ventilated and dry. Don't close off sources of ventilation.Attend quickly to any leaking pipes or sources of dampness.
• Be aware that the later construction of unprotected additions such as carports, pergolas, porches, access ramps and steps to your home may allow termites to bridge an existing termite barrier. Even installing something like a new water heater on the outside of your home could damage the termite barrier or make it difficult to detect any future termite activity.Termite protection needs to be considered for all building work.
• Take care when selecting trees to plant. If you plant the wrong tree too close to your home, its roots may damage the termite barrier under or beside the concrete slab or cause the slab itself to crack.
 
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Property 101: Protecting your house from termites 

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<div class="column">The mostly gloomy debate around the Australian economy often gives the impression we are in a constant state of crisis.</div>
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<div class="column">But economic growth is pretty good, the economy has rebalanced without the (“inevitable”) recession, the worst of the mining bust looks to be behind us, public infrastructure spending is ramping up, consumer and business confidence are around long term averages, share market profits have likely bottomed and Australia stacks up well on social considerations.</div>
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 These are all reasons to be reasonably optimistic about the Australian economy and Australian assets. </div>
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Introduction 
Ever since the mining boom ended several years ago it seems a sense of gloom has pervaded debate regarding Australia. There is constant talk of recession whether we don’t do something (like control the budget) or even if we do nothing (with reports titled “Australian Recession 2016 – Why it’s unavoidable and the quickest way to protect your wealth”). This sense of gloom makes me wonder whether it could be harming us – by dulling innovation, investment and a “can do” spirit. This note looks at seven reasons for optimism on Australia. 
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There is always something to worry about 
To be sure Australia does have its problems. Unemployment at 5.7 percent and labour underutilisation at over 14 percent are too high. Housing is too expensive, the Sydney and Melbourne property markets are too hot, we are likely to see an oversupply of apartments and household debt levels are very high. The biggest boom in our history has ended, hitting investment and national income. Given this the $A is arguably still too high. Profits of listed companies fell around 7% over the last financial year. Wage growth and inflation are arguably too low for comfort. And we seem to be in perpetual political grid lock with a difficult Senate and no political ability to control the budget and undertake hard economic reforms. 
But these worries are well known and have been done to death. Of course there is always something to worry about, but the endless whinging we hear in Australia leaves the impression we are in a constant state of crisis &amp; distracts from the good news. 
Seven reasons for optimism on Australia 
There are in fact several reasons for optimism on Australia. 
1. First, economic growth is pretty good with the economy expanding 3.1 percent over the year to the March quarter and looking similar for the June quarter. This is in line with Australia’s long term average. It’s also way above most other advanced countries. Latest annual GDP growth rates are 1.2% in the US, 1.6% in the Eurozone and 0.6% in Japan. Of course I could add that the economy hasn’t had a recession in over 25 years, but that one gets a bit overdone and owes a little bit to luck with statistics!
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2. Second, the economy has rebalanced. The slump in mining investment and national income due to the collapse in our export prices has been offset by a surge in housing construction, solid consumer spending, a pick-up in services exports and a surge in resource export volumes. 
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As a result of all this, post mining boom weakness in WA &amp; NT is being offset by strength in NSW and Victoria as the much talked about two speed economy has just reversed. 
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The bottom line is that the recession many said was inevitable as a result of the mining bust hasn’t happened.
3. Third, the worst of the slump in commodity prices and mining investment looks to be behind us. After sharp falls from their highs around the turn of the decade global prices for iron ore, metals and energy have stabilised as greater balance has started to return to commodity markets and the $US has stopped surging higher. While a new commodity price boom is a long way away the stabilisation should help our terms of trade and national income.
Furthermore, after falling for three years from a peak of 7 percent of GDP, mining investment intentions indicate that mining investment will have fallen back to around its long term norm of around 1-2% of GDP by mid next year. Reflecting the slump in mining investment, engineering construction has now fallen back to near its long term trend indicating that the wind down in the mining investment boom is almost complete and that it will be less of a drag on growth next year. This is important because the slump in mining investment has been knocking 0.5 to 1 percentage points of annual GDP growth over the last three years. 
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4. Fourth, public infrastructure investment is ramping up strongly. This is partly driven by former Federal Treasurer Joe Hockey’s Asset Recycling Initiative that is seeing new state infrastructure spending particularly in NSW and the ACT financed from the privatisation of existing public assets. The upshot of a fading growth drag from mining investment and rising public capital spending is that it will offset the inevitable slowing in housing construction that we will see next year.
5. Fifth, despite all the gloom consumer and business confidence are actually around their long term averages. Would be nice to be higher but it ain’t bad.  
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6. Sixth, share market profits have likely bottomed. 2015-16 was not great for listed company profits with earnings per share down around 8% driven by a 47% slump in resources profits and a 4% fall in bank profits. But it is notable that 62% of companies have seen their profits rise on a year ago and the typical or median company has seen profit growth of around 4%. 54% have seen their share price outperform the market the day results were released which suggests results haven’t been worse than expected. While aggregate dividends fell 10% mainly due to a cut in resources company dividends (which were never sustainable anyway), 86% of companies actually increased or maintained their dividends indicating that the median company is doing okay. 
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Overall profits are on track to return to growth in 2016-17 as the slump in resources profits reverses (thanks to higher commodity prices, cost and supply controls) and non- resource stocks see growth. 2016-17 earnings growth is expected to be around 8%.
7. Finally, there are lots of social reasons to be optimistic about Australia. For example, we are living longer, healthier lives – in fact we rank 4th in the world in terms of life expectancy (at 82.8 years). Our cities regularly rank amongst the world’s most liveable cities - with Sydney and Melbourne at 10 and 15 respectively according to one survey. Unlike many developed countries our population is still growing solidly and we seem to do a better job at integrating immigrants than many countries. We are not wracked by the problems of a sharp rise in inequality seen in the US and UK. Despite the usual post-Olympic whinging we outperformed all the other top 10 2016 Olympic medal winning countries with 1.2 medals per million people (with the UK being the closest at 1 and the US at just 0.4).
Implications for investors
While the RBA may still need to cut rates again to help push inflation back up and keep the $A down, there is good reason for optimism regarding the overall Australian growth outlook making our call for one more rate cut a close one. Either way it’s unlikely that Australia will need zero interest rates or quantitative easing. But the key for investors is that there is reason for optimism regarding the outlook for Australian assets (Sydney and Melbourne residential property aside). Shares are due a short term correction with the next few months seeing various global event risks, but the broad trend is likely to remain up. 
 
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds. 
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