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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GUEST OBSERVER
As you all know, over the past couple of years, there has (quite justifiably) been a great deal of attention given to the implications of the first recommendation of the Financial System Inquiry (FSI): that APRA should set capital standards such that Australian authorised deposit-taking institutions (ADIs) would have capital ratios that are seen to be ‘unquestionably strong’.
Since that recommendation was published, much has been written about what it means – and given that it will be a little while before APRA is in a position to make a final determination on how we best meet this recommendation, no doubt much more will be. Today, I’ll simply repeat the point I’ve made previously: that the steady accumulation of capital remains a sensible course of action for most ADIs.
It’s always important to remember, though, that a stable and resilient banking system is not just delivered by more capital. Capital adequacy is a relative concept – is capital adequate relative to risk? When we judge a bank’s capital to be high or low, or something in the middle, we are making a judgement that takes into account a range of issues that impact on bank risk profiles: funding and liquidity, asset quality, governance, risk management and risk culture, to name a few, all come into the equation in some way or another.
We also need to remember there are no guarantees. No level of capital (short of 100 per cent equity funding) can provide creditors with an absolute guarantee against the possibility of bank failure. To pick up today’s theme, we can’t always ‘bank on capital’: something can always go wrong.
To attempt to provide the community with an iron clad guarantee that nothing can go awry would require severe limitation on the risk-taking ability of the banking system, and prevent it from fulfilling the vital and productive roles that it plays in intermediating between borrowers and lenders and facilitating the smooth functioning of payments throughout the economy. Put simply, a zero failure regime is not desirable.
Inevitably, we need to find a balance1. One implication of that is, even once we define and achieve ‘unquestionably strong’, we won’t be downing tools. In a world of fractional reserve banking, ‘unquestionably strong’ will never equate to ‘invincible’.
That in turn means we need to think about failure2. And when I use the word ‘failure’, I’m not just talking about a classic case of insolvency or bankruptcy, but using it more broadly to capture situations in which the on-going viability of one or more financial institutions is in serious jeopardy. 
The failure of a bank is not like the failure of a bakery. The potential for contagion to other financial firms, not to mention the widespread adversity it can impose on the broader community, means the failure or near-failure of a bank is no run of the mill matter. So, if we start with the proposition that failures are inevitable, then I’d suggest the regulatory system needs to be assessed against two benchmarks: are failures nevertheless sufficiently rare, and do we have mechanisms to handle them adroitly when they occur? 
If the answer to both these questions is yes, then community confidence and trust in the financial system is likely to remain high.
With that in mind, we can think of two basic types of failure: orderly and disorderly. 
To the extent we have failures, orderly failures are what we aspire to. Orderly failures will typically have been anticipated, produce no loss to protected beneficiaries,3  and be managed in such a way that the firm’s critical functions are maintained without disruption while the situation is resolved. (Shareholders and other providers of capital of the non-viable firm may very well lose out along the way, but that is their lot in life). 
To the extent any failure can be regarded as a success, then an orderly exit from the industry in this fashion is what we should strive for. For example, a firm that identifies it is approaching non-viability or a strategic dead-end, and seeks to merge with a stronger and more viable entity (sometimes with a nudge along the way from APRA) is a far from uncommon event in the Australian financial system. To the extent such exits can be classed as failures, or at least near failures, they are often so orderly that no one notices them.
Disorderly failures, on the other hand, are to be avoided. Disorderly failures will be those which catch everyone by surprise, impose significant losses on those who the regulatory framework seeks to protect, and/or involve significant disruption to the smooth operation of the financial system, and economic activity more generally. HIH Insurance would be the classic of this genre.
So what can we do to maximise the probability that failures will be orderly, rather than disorderly? I’d suggest there’s a number of preconditions that the public sector needs to put in place:4
<ul>
<li>active supervision is at the heart of identifying the risk of failure early – it will be hard to anticipate problems if there is no one looking for them in the first place;</li>
<li>powers to intervene must exist – this is critical to being able to address small problems before they become big ones;</li>
<li>a willingness to intervene is also critical – powers are of no value if there is no capacity or willingness to use them when needed5;</li>
<li>planning and preparation – ideally, contingency plans will have been prepared and tested in ‘peace time’ rather than thought up on the run in the midst of a crisis;</li>
<li>a capacity to maintain critical functions – an orderly resolution of a failure may take time, yet critical functions need to be maintained in the meantime; and</li>
<li>there will ideally be a safety net or backstop to provide additional confidence at a time of uncertainty – which will help avoid actions that are individually rational but collectively damaging (the typical case being a bank run). </li>
</ul>
APRA, along with our colleagues amongst the Council of Financial Regulators, has spent a great deal of time in recent years looking in a fairly hard-nosed way at how well Australia stacks up against these preconditions. The conclusion was somewhat mixed: there are no glaring deficiencies, but a number of areas for improvement.
The importance of active supervision, and a willingness to intervene where appropriate, were some of the hard lessons that APRA took to heart following the HIH episode. Justice Owen found APRA under-resourced to identify problems, and slow to respond to them once found. These were fair conclusions, and APRA worked hard under my predecessor to build both its capacity and conviction. Fifteen years on from HIH, efforts to further improve our supervision – to identify risks early and respond promptly – remain at the forefront of our latest strategic plan, and I expect they will always feature prominently in APRA’s priorities.
When it comes to powers to intervene, the FSI’s Final Report noted there are some gaps and deficiencies in the Australian statutory framework for crisis management and resolution when compared with international standards.6 This includes the need for such things as broader investigation powers; strengthened directions powers; improved group resolution powers; enhanced powers to deal with branches of foreign banks; and more robust immunities to statutory and judicial managers. In his speech last week, the Treasurer noted the Government’s intention to make improvements in this area, which we see as a very valuable (and low cost) investment in the stability in the financial system.
Crisis planning is critical. Last year at this event I spoke about our plans for recovery and resolution planning. During the past year, I’m pleased to say larger ADIs have submitted new plans based on updated guidance issued by APRA, and we are now reviewing and benchmarking the plans in order to highlight areas of better practice that will further increase the credibility of plans in subsequent iterations.7 On resolution planning, more detailed work is also underway with specific firms to consider the planning required to ensure that APRA is able to use our resolution powers when needed. Our focus here is on the assessment of critical functions, intra-group dependencies such as critical shared services, and the identification of potential barriers to resolvability.
No matter how good the plan, however, stabilising and restructuring a financial firm that is no longer viable in its current form is rarely going to be a quick and easy exercise. So it is important that, while a resolution plan is being implemented, the firm’s critical functions can be maintained so as to reduce potential losses and minimise the disruption to the broader financial system. Key to doing this is that the firm has the financial resources to allow it to continue to operate while its business is reorganised. 
Searching for new capital when a business is distressed, and time is of the essence, is ideally to be avoided. And we want to minimise the risk that the taxpayer has to come to the rescue. With that in mind, the post-crisis regulatory framework has built mechanisms that trigger automatic corrective action to help restore a firm’s capital when it has been diminished. There is a lot of discussion and debate on the merits of so-called bail-inable instruments and bail-in powers, including in response to the FSI’s third recommendation that APRA implement a framework for recapitalisation capacity sufficient to facilitate the orderly resolution of an Australian ADI and minimise taxpayer support.
But the idea of bail-in is not something completely new: certain recapitalisation mechanisms already exist in the Australian framework. Examples include:
◦                      the use of the capital conservation buffer, which imposes increasing limitations on a ADI’s ability to make discretionary distributions to capital providers and employees as the ADI approaches its minimum regulatory requirements;8
◦                      the trigger that exists in Additional Tier 1 instruments (often referred to as ‘hybrids’) that provide for the instrument to be written off, or converted to equity, in the event that an ADI’s capital ratio falls below 5.125 per cent; and
◦                      the point of non-viability trigger in both Additional Tier 1 and Tier 2 instruments, which provides for the instruments to be written off or converted to equity in the event that APRA considers that the ADI would become non-viable without such action (or some other form of support).
These latter two recapitalisation mechanisms, in particular, are designed to provide some ‘breathing space’ to allow for orderly resolution. They are not designed to deliver resurrection, but more modestly to provide scope for an ADI’s services to customers to continue while new owners and managers are being put in place. Strengthening this by increasing loss absorption and recapitalisation capacity further, as recommended by the FSI, remains a work in progress and likely to take some time to complete.
We are, as I have said elsewhere, hastening slowly in response to that recommendation given the importance of getting the policy settings right.
However, the new mechanisms that have already been instituted within existing capital instruments are a very important part of the new regulatory framework. Viewing these capital instruments as simply higher-yielding substitutes for vanilla fixed-interest investments, let alone deposits, is something to be counselled against, since from APRA’s perspective holders of these instruments are providing the important first lines of defence that we can call into action, in some instances even ahead of shareholders, to aid an orderly resolution.
Finally, despite these new mechanisms, having a safety net or backstop to provide additional confidence before and during a period of resolution is an important component of any resolution framework. Australian depositors have long had the benefit of the depositor preference provisions in the Banking Act 1959. In 2008, this was supplemented by the Financial Claims Scheme (FCS) which seeks to provide certain depositors with prompt access to their funds – up to $250,000 per account holder - in the event an ADI fails.9
But to achieve a prompt payout of protected deposits to account holders – something depositors must be confident of for the backstop to work as intended – requires that ADIs be operationally ready, prior to any failure, to meet payment, reporting and communication requirements for the FCS.10 Planning and investing to facilitate their own demise is something that financial firms inevitably struggle to do, so APRA will be reinforcing its expectations in relation to ADI’s FCS testing programs in the near future, with a view to ensuring there is genuine readiness to activate the FCS if it is ever needed. 
Concluding remarks
Adequate capital is undoubtedly critical to the stability of any banking system. But to return to today’s theme, we can’t solely ‘bank on capital’ to deliver safety and stability. If we accept that failures, while hopefully still reasonably rare, are nevertheless inevitable, then preparation to minimise their impact is an essential investment. ‘Successful failures’ might seem a contradiction in terms, but they are far better than the alternative.
Wayne Byres is a member and chairman of <a href="https://www.apra.gov.au/Pages/default.aspx" target="_blank">APRA</a>. 
 
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jchancellor-FAypfDUnLy

Finding success in failure: Wayne Byres

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After CoreLogic recently reported a median unit price of $415,000 in Canberra, Property Observer went searching for what that got.
At <a href="https://www.realestate.com.au/property-apartment-act-braddon-122918490" target="_blank">718/74 Northbourne Avenue</a>, (above) Braddon the median house price will purchase the two-bedroom, two-bathroom apartment. Located on the seventh floor of the Medina building the apartment is fully furnished and equipped.  
At <a href="https://www.realestate.com.au/property-unit-act-city-123214594" target="_blank">33/45 Mayfair West Row</a>, (below) located in the heart of Canberra’s city, the median price will purchase just a one-bedroom, one-bathroom unit. The seventh floor apartment measures 67 square metres and features a balcony. 
<img src="/images/2016/08/30/500_mayfair.jpg" alt=""> 
The one-bedroom, one-bathroom apartment in Barton at <a href="https://www.realestate.com.au/property-apartment-act-barton-123233566" target="_blank">28/43 Blackall Street</a> (below) will set buyers back $419,000. The third-level apartment is located within the Landmark complex and measures 37 square metres. 
 <img src="/images/2016/08/30/500_balcony.jpg" alt="">
 
For offers above $405,000 buyers can secure a one-bedroom, one-bathroom apartment at <a href="https://www.realestate.com.au/property-apartment-act-kingston-123048386">56/1 Honeysett View</a>, Kingston. The apartment is located on the first floor of The Prince development and features a single-basement car park and an energy efficiency rating of 9.2. 
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jonathanchancellor-7SQnKwU6yx

What the $415,000 median apartment price gets in Canberra

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Co-working, or the sharing of workspaces by different companies or people, has evolved from a trend to a “revolution”, says a recent paper by real estate consultancy JLL.
Traditionally seen as a startup model, even big companies like Philips and IBM have jumped onboard now. The number of co-working spaces has grown from a small 75 globally in 2007 to 7,800 spaces in 2015 and is expected to engage one million people globally by 2018, says JLL’s A new era of coworking.
As companies in Australia and around the world adopt co-working practices, there are a number of benefits that this rising workplace strategy presents for businesses. The paper identifies these benefits as well as the four core models of co-working that are emerging. It says that flexible or ‘liquid’ space solutions are becoming important aspects of wider Corporate Real Estate (CRE) and portfolio strategy.
The paper says the demand has been driven by the growth of creative and technology industries in addition to the changing nature of work. 
According to JLL director of Workplace Strategy, Dinesh Acharya, “An increasing number of companies across the world are realising the value that a co-working environment can provide with respect to flexibility, collaboration and inspiration. 
<a href="/images/2016/08/30/Screen%20Shot%202016-08-30%20at%201.05.37%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/30/Screen%20Shot%202016-08-30%20at%201.05.37%20PM.png" alt="">
Benefits of co-working
A tailored co-working solution can reap benefits for businesses ranging from increased innovation due to from working with entrepreneurs, start-ups and emerging technology platforms; to meeting the demand for business agility by providing flexible occupancy terms and fluid space, without the need for major organisational changes. 
Co-working can help companies attract talent and also reduce costs through more efficient utilisation of space. 
Co-working hubs can even fatten the toppling.
“Companies can realise additional benefits by paying for space ‘just in time’ to increase flexibility and reduce CRE costs, and by expanding social networks and reinforcing community to drive increased staff engagement,” said Acharya.
The results of the latest Global Coworking Survey reveal that 61 percent of co-working space providers are planning to expand their operations and almost 80% expect the number of members to increase in 2016.
However, the paper cautions the risks that co-working may expose an organisation to, such as cyber security, privacy and possible issues associated with organisational culture, if it is implemented without careful consideration, or if staff don’t buy into the reasons why co-working is being implemented.
“It is important for organisations to assess the suitability of a co-working environment for their business model and monitor the risks this type of environment could pose, as part of a strategic corporate real estate and portfolio strategy.However, with an estimate of one million people to be coworking globally by 2018, this is a testament to how far the practice has evolved since its beginnings.”
“We expect its prominence and success in the Australian market to continue growing in the near and medium-term future,” he added.  
The four core models of coworking
The paper notes that four core models of coworking are emerging which can be applied by organisations seeking to take advantage of the benefits of co-working. These are internal collaboration (internal co-working space for employees only), co-working memberships (external co-working memberships for employees), external coworking space (collaboration space for employees shared with external organisations/individuals in an external co-working environment) and internal coworking space (internal co-working space open to external organisations/individuals). 
 
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A new era of co-working: What are the benefits for businesses?

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Engineering contractor John Holland has leased office space in Melbourne’s Carlton after winning the contract for early works on Melbourne Metro, Victoria’s biggest public transport project. 
The lease is for Level 1 at 121 Cardigan Street, with the asking rent $380 per sqm gross plus GST. 
The 1,556 sqm space comprise the entire first level of the two-storey building plus majority of the car parking. 
The office space is mostly open plan, said leasing agents Stephen Land and Rob Harrington of Fitzroys.
Melbourne Metro would cost nearly $11 billion and will have five new underground stations along twin tunnels between South Yarra and Kensington. 
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Engineering firm John Holland takes new lease for Melbourne Metro project work

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A semi-detached commercial building in Port Fairy, Victoria is under contract having been listed with $1.25 million hopes.
The two bedroom property at <a href="https://www.realestate.com.au/property-duplex+semi+detached-vic-port+fairy-122200018" target="_blank">20 Bank Street</a> was built in the late 1800s and is currently occupied by the Italian restaurant L'Edera.
It was offered for sale as an unregistered plan of subdivision with separate titles expected to be issued shortly. 
The property was listed by Robertson Port Fairy agents Paul Ross and Di MacKirdy. 
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j.ballantyne1990-6AQqhLzZaK

1800's commercial property in Port Fairy under contract

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A tenanted retail/office space at Toorak in Melbourne’s inner south-east has been sold for $760,000 for a yield of 5.6 percent. 
The ground floor tenancy at 7/521 Toorak Road spans nearly 110 sqm. 
The property is leased to a quality tenant and returns net rental income of nearly $43,264 per annum.
Ray White Commercial’s Paul Rizzo brokered the sale on behalf of a private owner.
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Office space in Melbourne’s inner suburb sells for $760,000

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GUEST OBSERVER
To most within the development sector, the world of construction finance beyond the major banks is largely opaque, with no clear signage or yellow pages directory to guide developers in the right direction to find the best fit for their business and project needs. 
There are a multitude of sophisticated providers of private construction or site acquisition money available to be tapped into, however most do not have a front door as such and they certainly don’t have a team of business development executives who pound the pavement looking for deals to invest in. 
They rely on origination businesses like HoldenCAPITAL to source and present the opportunities to them, which is why we commit a lot of our time to engaging with them to gain a clear understanding of what they will and won’t invest in and the terms on which they will do so. 
A point we often make to clients is that you wouldn’t waste your time trying to negotiate an important town planning issue without input from an experience town planner in order to draw on their experience, relationships and understanding of current approval authority expectations. 
Similarly, we see ourselves in the same light, tapping into the knowledge gained from settling over $340 million in new development transactions over the past 12 months and our accreditation with over 100 lenders to ensure we secure the best possible financial outcome for our clients. 
In fact, our list of lenders and equity providers is growing at the rate of about one a week and of these, some 87 are currently active in one form or another with Investor Funds, Mezzanine Lenders and Private Lenders accounting for over 70 percent of them. 
<a href="/images/2016/08/30/Screen%20Shot%202016-08-30%20at%2012.50.54%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/30/Screen%20Shot%202016-08-30%20at%2012.50.54%20PM.png" alt="">
In particular, we are seeing a growing level of demand for and supply of, Stretch Senior funding options where lenders are prepared to provide up to 86% of the Total Development Cost, in return for a total interest cost in the order of 11 percent but with more relaxed terms and conditions. This is particularly evident in the area of pre-sale debt cover, where there is scope to reduce this figure to well below the 100 percent+ required by the banks. 
The demand supply equation for construction funds tends to react quickly as evidenced when the major and second tier banks started to withdraw from the market under regulatory pressure and we saw increased demand on those smaller funds and private lenders to fill the gap. After a flurry of activity many were tapped out and we found ourselves looking further afield to meet the demand. 
Following interstate visits and trips to Asia we now have a significant number of new sources and as a result, we are finding that the capital supply is meeting demand and with a steadily growing supply of mandated transactions these new lenders are stepping up to meet the demand. 
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arranged over $300 million of construction finance in 2015 across 52 projects. To discuss your project finance requirement please call (07) 3171 4200 or visit <a href="https://www.holdencapital.com.au/" target="_blank">www.holdencapital.com.au</a>
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The world of construction finance without banks: HoldenCAPITAL

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Commercial property investing can be complex and the jargon can sometimes be overwhelming.
Property fund manager Charter Hall’s magazine Directly Speaking tries to demystify commercial property jargon for you:
AB 
Anchor Tenant: Key tenant(s), who attract other tenants and customers to a shopping centre. 
A-REIT: Australian Real Estate Investment Trust is the pooled capital used to purchase and manage real estate investments to provide investors a return. Often traded on a stock exchange. 
ASX: Australian Securities Exchange 
Average Lease Term: see WALE. 
Basis points: Generally used to define differences in yield. 1% is equal to 100 basis points. 
Benchmark: Relative measure of performance. Often used as a synonym for Index. 
Book Value: Value of an asset for accounting purposes, representing its cost plus any additions, less depreciation. 
CD 
Capitalisation Rate: The rate at which the annual net income from an investment is capitalised to ascertain its capital value. 
CHC: ASX ticker code for the Charter Hall Group. 
CHDPML: The Responsible Entity for Charter Hall’s direct property funds. 
CHIFs: Charter Hall’s investment fund syndicate series. 
Commercial Property: Office, industrial and retail investment property. 
CQR: ASX ticker code for the Charter Hall Retail REIT. 
DA: Development Application 
DD: Due Diligence 
DIF3: Charter Hall Direct Industrial Fund No.3 
Direct Property Fund: An unlisted property fund, trust or syndicate investing in commercial property but not listed on the ASX. Available to all investors. 
Distribution: Regular income payments made from the fund to investors. 
DOF: Direct Office Fund 
DRP: Distribution Reinvestment Plan is the opportunity to reinvest distributions by purchasing additional units. 
EFGH 
Effective Rent: Rental payments less landlord concessions or incentives. 
EOI: Expression of Interest.
Gearing: Total interest bearing liabilities 
divided by the total assets. 
GLA: Gross Lettable Area is the total amount of oor space available to be rented. 
HOA: Heads of Agreement is the agreement with a prospective tenant before the lease is signed. 
IJK 
ICR: Interest Cover Ratio is revenue over the interest expense. 
Independent Valuation: Actual value of a property from an independent, impartial property agent. 
Initial Yield: The annualised property income expressed as a percentage of the property value. 
IPD: Investment Property Databank provide research-based indexes and analytics. 
LMN 
Lease: Binding agreement where one party agrees to rent property from another party for a fixed period. 
LVR: Loan to Value Ratio is a method of determining borrowing capacity, usually expressed as a %. 
Major Tenant: Normally the largest tenant(s) in an of ce or industrial property. 
Market Price: The price actually paid for a property. 
Market Rent: Rent applicable to a property in the open market. 
NABERS: National Australian Building Energy Rating Scheme 
NAV: Net Asset Value is total assets minus total liabilities. 
Net Absorption: Difference between space leased and space supplied over a set time period. 
NGERS: National Greenhouse and Energy Reporting Scheme 
NLA: Net Lettable Area is the total amount of floor space available to be rented. 
OPQR  
Occupancy: The number of tenants at a given property, usually expressed as a % i.e. 98% occupancy. 
PCA: Property Council of Australia is the industry body and leading advocate for Australia’s $600 billion property industry. 
PDS: Product Disclosure Statement
or Prospectus is the offer document containing information for assessment of a specific investment opportunity. 
PIR: Property Investment Research is an Australian provider of property funds research and analysis. 
RE: Responsible Entity is responsible for managing an investment trust on behalf of scheme members. 
Retail Property: Shopping centres including regional, sub-regional and neighbourhood centres. 
STUV
Sqm: Measurement of square metres. 
Tax Deferred: Portion of distributions that are income tax advantaged due to depreciation. The cost base of units for calculation of capital gains must be reduced by the amount of tax deferred income received. 
Unlisted Property Fund: see Direct Property Fund. 
WXYZ 
WALE: Weighted Average Lease Expiry is a metric used to express the duration of lease commitments across a portfolio. 
Yield: The ratio of net income from an asset to value of the asset, expressed as a %. In terms of property trusts it can be calculated as distribution divided by market price, multiplied by 100. 
 
 
 
 
 
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Commercial property jargon, simplified: Charter Hall

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The office vacancy rate on Melbourne’s most famous boulevard, St Kilda Road, has fallen to 7.3 percent, its lowest level in eight years, according to property firm Savills’ latest Fringe Office market research.
The fall in vacancy from 10.8 per cent in July 2013 drove rental growth of 23 percent over the last three years including 12 percent in the last 12 months. The market is so tight that vacant is 38 percent below the average vacancy over the last 25 years. 
Monica Mondkar, manager-Research &amp; Consultancy, said, “Net face rents in July 2013 ranged between $270 and $325, and in July 2016 between $340 and $400. Based on an average rent, that is a 23 percent rise over the last three years.”
Vacancy peaked at 22.4 percent in July 1992 following the Savings and Loan Crisis but has been on a rollercoaster ride ever since.
However, according to Savills associate director-Office Leasing, Kizzy Okoukoni, the latest figure has more to do with the iconic boulevard’s residential makeover than an economic recovery. 
“Ongoing demand for CBD fringe office space is of course a key contributing factor in the tighter vacancy level but the continual withdrawal of stock for other uses, predominantly residential, has also been a significant determinant,’’ Okoukoni said.
Despite residential conversions St Kilda Road is still Australia’s fourth largest non-CBD office market with 686,175 square metres of office space. It has lost less than 1.2 percent of office space to residential use per year over the last 10 years, however, this has accelerated in recent years.
"It’s only a matter of time before the commercial/residential property profile balance in St Kilda Road, which currently has a two thirds office/one third residential mix, shifts permanently to residential.
"For some landlords maintaining an older office building with any vacancy, on top of exorbitant land taxes, is not a long term option.
"There is no way this can stack up when a residential redevelopment can mean such a massive increase in return on the property,’’ Okoukoni said.
Office buildings likely to withstand this change would be the more modern ones with long-term tenants, he added.
But despite the incentive to convert to residential use, office property would always maintain a significant presence on St Kilda Road, he said.
“Residents need services, they need supermarkets, they need childcare, they need restaurants, cafes, accountants, financial planners, gymnasiums, etcetera.”
<a href="/images/2016/08/29/charty.png" target="_blank"> Click to enlarge</a>
<img src="/images/2016/08/29/charty.png" alt="">
The total investment sales on St Kilda Road were $246 million with the most notable being AMP Capital’s acquisition of 636 St Kilda Road for $87.5 million and Bayley Stuart Capital’s purchase of 616 St Kilda Road for $40 million. Domestic funds and syndicates accounted for 52 percent of the sales by value.
Mondkar said yields on the boulevard over the 12 months had firmed by 25 basis points and now range from 6.75 to 7 percent. In comparison, in September 2013 yields ranged from 8 to 8.75 percent. 
 
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Office vacancy in Melbourne’s St Kilda Rd at lowest level in eight years: Savills

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Two land holdings with a total of 7,614m2 have been sold in Werribee, Victoria, by Werribee Council for the redevelopment of Werribee’s Activity Centre.
The properties were recently rezoned to Activity Centre Zone.
One site, The Bridge Hotel, is located at 197-199 Watton Street, Werribee which was built circa 1926. The two-storey brick building includes an alfresco area, two dining rooms, private function room, full commercial kitchen, large freezer and cool rooms. The first floor provides accommodation and a private residence.
The land area is 4046m2 and equates to $1334.65 per square metre. Sale price was $5,400,000.
The second property, 201 Watton Street, Werribee, a Toyota car dealership, has a land area is 3568m2 which equates to $1,443.39 per square metre. Sale price was $5,150,000.
Both sold through Robert Cubelic and Charles Cini of CVA Property Consultants.
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