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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A strata store leased to men’s designer swimwear brand Orlebar Brown in Sydney’s Bondi Beach will go under the hammer on September 6. 
The British label recently opened its flagship store on <a href="https://www.gunningre.com.au/1P4098" target="_blank">1/79 Gould Street, Bondi Beach</a>, signing a six-year lease that commenced in June.
Orlebar Brown’s entry is another example of Bondi’s status as an affluent beachside location and joins the swimwear label’s other top-end locations such as St Tropez, Cannes, London’s Notting Hill, Mayfair and New York’s Soho.
Gunning’s director of Metropolitan Sales and Investments Tom Speakman said Bondi has undergone many changes and is a tightly held commercial and retail property market.
“Bondi is one of the hottest locations in Australia with its mix of high end brands and popup shops, eateries, luxury accommodation and lifestyle products,” Speakman said. 
In the last 30 years, Bondi has grown from a suburb with a median house price of $246,000 to recording one of the highest apartment sales in the country at $25.2 million at the renowned Pacific Bondi Development, according to the media release.
“The locals are affluent, with a high proportion of professionals, creatives and merchant bankers living in the area. Sixty per cent of residents are in managerial or professional roles, earning some 50 per cent above the Sydney average wage, which makes it appealing to retailers,” Speakman said.
The net rental for the 57 sqm store is $105,102 annually, exclusive of GST with options until 2026. There will be four percent increases from 2019.
The property will be auctioned at auctionWORKS at Sydney’s  50 Margaret Street.
The listing agents are Tom Speakman and Harry Sullivan of Gunning Real Estate.
 
 
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jonathanchancellor-7SQnKwU6yx

Bondi shop leased to fashion swimwear label goes to auction

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<img src="https://counter.theconversation.edu.au/content/63270/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Sound corporate governance not only boosts banks’ efficiency, it is also good for the profit of Australian banks and their shareholders.
However, new research shows that factors such as the number of board meetings, the involvement of large shareholders in boardroom decisions and whether or not the board has independent members don’t play a significant role in achieving those goals.
Our study, published in the Journal of International Financial Markets, Institutions and Money, investigated the effectiveness of certain corporate governance measures on the performance of 11 Australian banks from 1999 to 2013.
It showed Australian banks improved efficiency after the introduction in 2003 of the Australian Securities Exchange (ASX) Principles of Good Corporate Governance, which aimed for improved governance mechanisms and thus better control over bank management.
The principles meant all ASX-listed firms should have certain board attributes. It is recommended, for example, that a board’s chairman should not be part of the executive team, that boards should consider size and composition (such as gender equality) to meet the reasonable expectations of most investors in most situations, and that different committees for detailed oversight be established.
<h2>What makes a difference?</h2>
The study assessed the impact of corporate governance by the number of directors, the proportion of non-executive directors, the number of board meetings, committee meetings, and the largest share of the individual shareholders in Australian banks.
After the introduction of the ASX’s principles, the Australian banking industry performed better in maximising its total revenue (from lending and non-lending activities) for any given level of borrowing and operating expenses. The results also revealed that the “Big Four” banks – National Australia Bank (NAB) Commonwealth Bank (CBA), ANZ and Westpac – performed better in this than any competing regional banks.
We found that board size and committee meetings improve bank efficiency. This suggests that larger boards bring higher knowledge into the decision and supervisory process.
Committees considered in this study were: audit, nominating, remuneration and risk. These committees are seen as the main influence on boards’ most important decisions.
However, the number of independent board members and number of board meetings had no significant impact on a bank’s technical performance.
The study didn’t find any evidence of large shareholders executing power to affect banks’ performance.
Good corporate governance has intrinsic links to profit. Shareholders want value for money in paying board members. Regulators seek fewer failures and higher stability. And banks intend their corporate governance arrangements to deliver stronger oversight of management.
Investors have become more concerned about the role of the board in recent decades, especially in the wake of major corporate collapses including Ansett, OneTel, HIH and Bankwest in Australia. As a result, investors have demanded stronger corporate governance.
The consequences of ignoring risks and weak governance can be costly. For example, two former National Australia Bank (NAB) foreign currency options traders who were sentenced in 2006 for manipulating foreign exchange spot trades that falsely inflated profits and hid losses. The Australian Securities and Investments Commission (ASIC) noted in 2006 that
"By 13 January 2004, when the fictitious trades were discovered by the NAB, the loss incurred was approximately $160 million."
After revaluation, the incurred losses for NAB totalled $360 million.
In its March 2004 report into the case, the Australian Prudential Regulation Authority (APRA) noted that while the irregular trades did not threaten the bank’s viability or its capacity to meet its obligations to depositors,
"the governance and risk management weaknesses identified in the report were serious… NAB will need to address these issues promptly so that it meets “best practice” standards in its treasury area and problems of this kind do not recur."
Regulators have also developed new tools to supervise financial markets, stock exchange and financial institutions and to avoid corporate collapses. In 2008, APRA prudential standards particularly for credit institutions to ensure their stability.
Our research results can be seen as good news for Australian banks in general and the Big Four in particular, in a dynamic and turbulent banking environment. However, regulators must continue to improve corporate governance principles and further strengthen the supervisory conducts of boards.
Amir Arjomandi is lecturer, School of Accounting, Economics and Finance, University of Wollongong and can be contacted <a href="https://theconversation.com/profiles/amir-arjomandi-287010" target="_blank">here</a>.
Juergen Seifert is assistant professor in Accounting, University of Nottingham and can be contacted <a href="https://theconversation.com/profiles/juergen-seufert-287253" target="_blank">here</a>.
Ruhul Salim is associate professor, Curtin University and can be contacted <a href="https://theconversation.com/profiles/ruhul-salim-287254" target="_blank">here</a>.
All are authors for The Conversation.
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jchancellor-FAypfDUnLy

Good corporate governance is good for banks’ bottom line

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Costly pre-purchase building, pest inspection and strata reports are an imperative when buying property, but laws now operational across NSW might make them cheaper from a collaborative approach.
It's a timely initiative by the Minister for Innovation and Better Regulation Victor Dominello who has come up with a system that should see savings for intending home buyers.
With Sydney auction clearance rates at around 80 percent, there will still be plenty of disappointed, and out of pocket, buyers this spring. 
But rather than bear the cost yourself, the system encourages a sharing among competing buyers. Building and pest inspection reports can cost anywhere from $200 to $600 each.
When any prospective buyer requests a contract of sale for the residential property, the estate agent will now need to inform the buyer about any pre-purchase reports that have been undertaken by other potential buyers.
Home buyers may then opt to access an already available report, and negotiate a reduced cost with the inspection company, instead of commissioning their own full priced report. 
Qualified inspectors are important because they look beyond cosmetic repairs or improvements, and identify unsafe renovations and repairs, thus minimising the issues of unforeseen costs.  
Prior to the August 15 amendments, Dominello met with participants from the NSW property industry. It had been an issue for around three decades, especially as the city's embrace of auctions rather than private treaty meant 10,000s of unsuccessful bidders were left with binned inspection reports.  
It was raised with vigour under the State Labor Government in 2010, by the founder of Aussie Home Loans, mortgage broker John Symond who described the longstanding practice of buyer inspection reports as "antiquated, cumbersome and expensive".
"It imposes a serious cost to the consumer in circumstances where there's no guarantee they'll get the property anyway," he noted.
Since 2004, vendors in the Australian Capital Territory have been required to provide pre-purchase reports to potential purchasers. Upon completion of the contract, the purchaser reimburses the vendor for the cost of the reports. 
The NSW Government toyed with vendors providing one report, but there were always conflict of interest, disclosure and liability concerns. There was always the concern the inspection reports provided by vendors may not rigorous enough especially if the vendor's mate was the building inspector.
This article was first published in the Saturday Daily Telegraph.
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Cheaper NSW pre-inspection reports

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 GUEST OBSERVER
<a name="x_OLE_LINK5" target="_blank" href=""></a>Employment rose by 26,200 in July after rising by 10,800 people in June (previously reported as a rise in jobs of 7,900).
Full-time jobs fell by 45,400 while part-time jobs rose by 71,600. Economists had tipped a 10,000 increase in jobs.
Hours worked rose by 0.2 percent in July. Hours worked are up by 1.1 percent on the year.
Jobless rate: The unemployment rate fell from 5.8 percent to 5.7 percent in July. To two decimal points the jobless rate fell from 5.77 percent to 5.72 percent (lowest rate recorded in almost three years). The trend unemployment rate was steady at 5.7 percent (hasn’t been lower in three years). The participation rate was steady at 64.9 percent.
Unemployment across states in July: NSW 5.2 percent (June 5.3 percent); Victoria 5.9 percent (5.7 percent); Queensland 6.1 percent (6.4 percent); South Australia 6.4 percent (7.0 percent); Western Australia 6.3 percent (5.7 percent); Tasmania 6.2 percent (6.6 percent). In trend terms unemployment in the Northern Territory fell from 3.7 percent to 3.5 percent; ACT unemployment fell from 3.7 percent to 3.6 percent.
A raft of companies is affected by the employment data but especially those dependent on consumer spending. Amongst stocks affected are Fairfax, West Australian Newspapers, Seek Limited, McMillan Shakespeare and Skilled Group.
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What does it all mean?
The headline employment result was certainly encouraging. Over 26,000 new jobs were created in July and the unemployment rate fell to a three-year low of 5.7 per cent. However the breakup of the figures, suggests the labour market has been largely marking time over the last few months, influenced by election uncertainty. Hours worked lifted in July, however it has fallen for six out of the past nine months. 
Given the month to month volatility it is better to look at the longer term results. And in that regard, employment has totalled almost 72,000 new jobs in the first seven months of 2016, compared with over 150,000 in the same period last year. And the results are markedly more polarising when you compare the growth in full-time jobs. 
Full-time jobs growth has gone backward by almost 65,000 so far in 2016 compared with jobs growth of almost 90,000 in the same period last year. It is clear that a slowdown in hiring has taken place – a result that has also seemingly shown up in the more sedate growth in the job ads series earlier this year. 
The softer results across the labour market mirror other indicators across the economy, including retail sales. It’s pretty clear that the sluggish first half of 2016 resulted in employers managing their major cost base (employees) more carefully.
Importantly the election would have played a significant part in the pullback in hiring momentum over the first half of the year. And you could easily argue that the employment results are backward looking. Highlighting the economic environment 4-5 months ago.
The hope would be that now the election is out of the way consumers and businesses will go back to spending, investing and hiring - particularly given the ultra-low interest rates on offer and significant improvements in the household budget.
The Reserve Bank is likely to look through the latest result and wait on timelier forward looking data. Recent Reserve Bank commentary suggests policymakers are relatively optimistic about Australia’s medium-term growth prospects. Over the next few months the Reserve Bank would be looking at the impact of the last couple of rate cuts. Further rate cuts are more dependent on inflation outcomes, and from that regard CommSec expects another interest rate cut in November.
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
 
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November rate cut still on despite unemployment to a 3-year low: CommSec's Savanth Sebastian

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There's new technology to allow approved buyers to tour a property in the United States without an estate agent being present.
Kickstarter has helped launch Toor, a bluetooth-connected device dubbed the 'smartest lockbox ever'.
Toor, the fancy new lockbox is an app-animated key storage device and communication tool.
It shares notes, notifications, showing instructions and alerts with buyers and sellers.
The homes can be shown without any representative from a real estate agency present.
Toor has partnered with an identification verification company to help ensure the safety of the property, customers and the agents.
The method has been tried before by ZipTours, however the industry didn't react well to the idea. They now only support video tours of its own listings.
The Toor app can request a nearby Toor-associated agent to assist in the showing of the property should it ever become required that a licensed agent be present.
 
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Kickstarter helps launch Toor, the ‘smartest lockbox ever’ app for scheduling buyers' tours of homes for sale without an agent

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GUEST OBSERVER
An initiative to provide better customer service and help consumers make more informed decisions will been introduced in NSW this week but will unfairly tarnish reputable businesses.
The NSW Fair Trading Complaints Register which is due to come into operation on Wednesday, 24 August 2016 will provide information about businesses that are the subject of 10 or more complaints to NSW Fair Trading in a calendar month. 
The Complaints Register will list businesses under their public and recognisable ‘trading’ or ‘brand’ name which means that franchises or brand co- operatives will be grouped together instead of as the individual businesses they are. 
As a result, the register will simply be full of franchises and groups who, due to the popularity of their brand and their sheer size, will almost always have 10 consumer complaints per month.
While the Real Estate Industry wholeheartedly supports the concept of a complaints register, we believe the NSW consumer watchdog has poorly executed what is essentially a good idea – a complaints register to “out” poor traders. 
NSW Fair Trading has failed consumers in the creation of this initiative and has missed an opportunity to use data in an effective way for the benefit of consumers. 
REINSW has been engaged in discussing better consumer complaint outcomes with our members and the major brands for some time now. To have this register effectively target the major brands is simply unjust and needs to be remedied urgently. 
Small businesses with exemplary records, operating under franchise or co-operative brands, will be impossible to distinguish from those who have been identified as poor traders given all businesses operating under a brand will be grouped together. 
This false and misleading information could be used to discredit businesses who demonstrate responsible business practices and, in their wake, innocent parties could be disadvantaged including consumers, employees and small business owners. 
NSW Fair Trading has been negligent and reckless to apply a product based system to the service industries of NSW, thereby unfairly discrediting good businesses and, as such, is acting as one of the worst discriminators in NSW. 
The consumer will naturally gravitate to the agent that does not appear on the register due to the misleading information provided by NSW Fair Trading. 
The issue could be simply rectified by providing accurate and helpful information to the consumer by treating businesses as individuals rather than trying to lump large groups under one umbrella.
It is not too late to remedy this issue and REINSW calls on Minister for Innovation and Better Regulation Victor Dominello to right this wrong and provide consumers with accurate information and to protect small businesses in NSW who may been tarnished unfairly.
John Cunningham is president, REINSW, and can be contacted <a href="https://www.reinsw.com.au" target="_blank">here</a>.
 
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Real estate franchises tarnished by flawed complaints register

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<div style="text-align: left;" align="center">GUEST OBSERVER</div>
<div style="text-align: left;" align="center">
First time real estate purchasers in Australia are increasingly entering the property market as investors rather than as owner occupiers.
Data has found the number of first time buyer investors has skyrocketed over the past two years.
Since 2014 the number of first home owners who are buying through iBuyNew to invest has increased by 188 percent.
The findings by iBuyNew, which specialises in off-the-plan properties, follows a warning by outgoing Reserve Bank Governor Glenn Stevens that the entry hurdles for first home buyers “may be getting worse”.
Mr Stevens said “almost the only way” first home buyers can enter the property market in real estate hot spots such as Sydney is through parental assistance.
Despite record low interest rates, the first time buyerowner occupier sector has collapsed with many who do choose to buy property now doing so as investors.
Even though property in most cities is very affordable with interest rates set to stay at historical lows, young Australians have been put off entering the market and they prefer to rent.
The reality is that the great Australian dream of owning your own home is fading and the goal of being a home owner is diminishing.
It’s an issue for state and federal governments with the current schemes to entice first home buyers out of the rental market either out of date or ineffective. 
We have also found that stamp duty which can add many thousands of dollars to the cost of a property purchase is also a major deterrent to first home buyers.
 
</div>
<div style="text-align: left;" align="center">Mark Mendel is chief executive officer of iBuyNew and can be contacted <a href="https://www.ibuynew.com.au" target="_blank">here</a>.</div>
<div align="center">
 
</div>
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First home buyer investors on the rise

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The <a href="/news/spring-street-releases-long-awaited-draft-apartment-design-standards">proposed apartment standards</a> will add $62,500 to the construction cost of each apartment. The attached document below illustrates our calculations for each of the standards.

The cost of each standard is calculated by multiplying the construction rate with the increased area of each item. None of the standards are for free. They all come at a cost. The yield of each site will also decrease by 20% to 40% as a result, with the impact on potential development sites, profound.

Supply will reduce and if potential developments are to be unlocked, then the land component of each apartment will increase by $20,000 to $40,000. There are two indisputable requirements for property development: one, the land component of the development must be worth more than the existing building; and two, the development must make a profit otherwise the banks won't fund it.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image58_3.jpg" rel="gallery-all" title="Industry impact of the design standards"><img alt="" class="image-article-full-width-580px" height="373" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image58_3.jpg?itok=0gRUyws-" title="Industry impact of the design standards" width="580"></a>

<figcaption>Industry impact of the design standards</figcaption></figure>If a site is vacant, the land value will simply be reduced – bad for the land owners, yes, but for developers, this will have no impact. However, in <a href="/new-apartments/melbourne-vic">Melbourne </a>where the majority of developable sites require the demolition of a pre-existing building, (think every high street within a 5km radius of the CBD), then it is a completely different and far less positive story for the developer.

The proposed apartment standards call for enormous building separation, the extent of which makes many sites un-developable. This means that whatever type of building currently exists on the site, it will remain – no matter how under-utilised it is. 
The overall result? Less supply.

Think of it this way, if every site yields on average, a third less apartments, then there will obviously be a third less apartments on the market and therefore a far lesser supply in established areas. The by-product of this? The population will be pushed further and further out until it reaches the urban growth boundary where prices will increase due to the extra demand.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image62_1.jpg" rel="gallery-all" title="Supply and demand fluctuations"><img alt="" class="image-article-full-width-580px" height="598" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image62_1.jpg?itok=SeeVGpx7" title="Supply and demand fluctuations" width="580"></a>

<figcaption>Supply and demand fluctuations</figcaption></figure>Of course, developers won't develop only to lose money. They will instead hold their land until such a time as demand becomes so high that the public is forced to pay the additional apartment price, at which point making the development profitable again. We saw this happen in <a href="/new-apartments/sydney-nsw">Sydney</a>, where many developers put their projects on hold for some years until the prices reached $15,000 a square metre and then were developed in a frenzy.

This means that as the <a href="/new-apartments">apartment</a> industry supply slows, prices will rise. Only once the public are willing to pay that extra $100,000 per apartment, will development take off again. It’s a scary truth, but a truth nonetheless.

The government is fully aware that their apartment standards come at a significant cost, but whether they decide to communicate this to the public is an entirely different matter – what do you think they will do?

<a href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/price_increase_based_on_apartments_draft_standards.pdf">Click here to see our calculations.</a>

Above are images taken from Craig Yelland's/Plus Architecture's response to the Better Apartments Draft Standards as of 15th August, 2016.

This piece was written by Craig Yelland, Director of Plus Architecture – a firm with vast experience in the multi-residential sector, Craig Yelland is an advocate of apartment living and innovative design.

Lead image: Andrew Curtis Photography
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cyelland

Calculating the cost of the new Better Apartments Draft Design guidelines

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Quest Apartment Hotels has opened Quest Mounts Bay Road in central Perth, the second from Quest in Perth's CBD. It features 71 fully self-contained studio and one-bedroom apartments.
Quest East Perth will open in September.
Zed Sanjana, chief executive officer of Quest said Western Australia is experiencing a tourism resurgence, along with significant growth across the education and agricultural sectors.
“The Australian headquarters of many global companies are located in the City of Perth due to its proximity to key international markets. Strong growth is expected to continue over the next decade as major industries strengthen and diversify, thereby expanding the workforce in the CBD," he said.
“State Government investment in WA is strong, with an ongoing commitment to several major redevelopment projects, including the $1 billion Gateway WA project improving access to and from the Perth Airport precinct, the $2 billion Fiona Stanley Hospital and the new $1.2 billion Perth Children’s Hospital.”
Quest Mounts Bay Road franchisee Don Goode said the new property is ideally located for both the corporate and leisure guest, within walking distance of Mount Hospital, the Perth Convention and Exhibition Centre, Esplanade Station, Elizabeth Quay, the Perth Arena, and the State Theatre.
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Quest Mounts Bay Road, Perth opens

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The top sale for the week ending 21 August was a four bedroom home in the Sydney suburb of Strathfield, according to CoreLogic.
The home, 23 Newton Road Strathfield, sold for $6.8 million through Devine Real Estate, Strathfield.
 
Top 10 sales
23 Newton Road, Strathfield, NSW 4 bed, 3 bath, 3 car house $6,800,000 Devine Real Estate Strathfield 
12 Tutus Street, Balgowlah Heights, NSW 4 bed, 3 bath, 3 car house $4,870,000 LJ Hooker Lane Cove 
2/18 March Street, Bellevue Hill, NSW 3 bed, 4 bath, 2 car unit $4,451,000 Laing + Simmons Double Bay 
4/2 Walton Crescent, Abbotsford, NSW 4 bed, 3 bath, 2 car unit $3,890,000 PRB Real Estate Five Dock 
130 Edinburgh Road, Castlecrag, NSW 4 bed, 3 bath, 3 car house $3,600,000 Phillips Pantzer Donnelley Woolahra 
37 Claremont Avenue Malvern, Vic 4 bed, 3 bath, 2 car house $3,553,000 Marshall White Armadale 
9 Adderstone Avenue, North Sydney, NSW 3 bed, 2 bath, 2 car house $3,400,000 McGrath Estate Agents 
4 Milton Street, Chatswood, NSW 3 bed, 2 bath, 2 car house $3,300,000 Richardson &amp; Wrench Chatswood 
105 Albert Road, Strathfield, NSW 5 bed, 3 bath, 4 car house $3,320,000 Devine Real Estate Strathfield 
1 Milroy Avenue, Kensington, NSW 4 bed, 2 bath, 2 car house $3,150,000 Ballard Property Group Double Bay 
 
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