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

Joel Robinson

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

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

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

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

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

Parcel delivery is joining the apartment amenity checklist

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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If you looked only at the generalised data excreted by research company computers, you’d think not much is going on in Adelaide.
According to one set of figures, house values are up 3.9 percent in annual terms and units 3.6 percent. But Adelaide is busier and more vibrant than those numbers indicate, particularly when you look at sales activity.
Adelaide started 2016 in solid fashion and continues to be one of the strongest city markets in the nation. The steady start to the year is encouraging, given that the March Quarter is typically the period that produces the smallest number of sales in the South Australian market.
Adelaide currently has more suburbs with rising sales momentum than Brisbane does, although it’s a smaller city, and considerably more than Sydney now does.
Generally, Adelaide had a solid year in 2015. Each of the four quarters had sales activity on a par with, or higher than, the corresponding period a year earlier. The June and September quarters were both substantially higher than the year before.
This continues a pattern of steadily rising sales over the past three years. In 2013 the SA market recorded between 7,000 and 7,500 dwelling sales per quarter. In 2014 sales rose above 8,000 per quarter and in 2015 every quarter was above 9,000 sales. The current year looks like continuing the pattern.
Our research for The Price Predictor Index shows that the growth suburbs in Adelaide are primarily middle-market areas and outer-ring precincts, with few top-end markets standing out.
The No.1 municipality is now the Port Adelaide Enfield LGA, one of the largest municipalities in Adelaide, covering the inner north and north-west of the city. Eight suburbs in this LGA having rising sales patterns, mostly suburbs with median house prices in the range from $380,000 to $510,000. They include Broadview, Northgate, Windsor Gardens and Largs Bay.
The Onkaparinga LGA, which always features as one of the strongest markets, has six growthsuburbs and six markets with steady sales activity in the far south of the Adelaide metropolitan area.
Many of the more active precincts are middle-market areas. The Charles Sturt LGA, which includes bayside suburbs like Henley Beach and West Beach, has seven suburbs with upward momentum. Growth markets include Findon, Kidman Park, Seaton and Semaphore Park.
The Tea Tree Gully LGA in the north-eastern suburbs stands out in most of our surveys as a highly consistent market. It now has six suburbs with steady sales patterns, plus five that are rising– including Hope Valley, Modbury and Ridgehaven.
The Holdfast Bay LGA has four Rising Steadily markets, including the bayside Glenelg suburbs and Somerton Park.
Another thing worth considering about Adelaide is the rental yields on offer. With negative gearing in the firing line in this long and boring Election campaign, cities that can offer higher rental yields become more appealing. If you borrow at 4 percent to buy a property returning 6 percent, negative gearing becomes a non-issue.
The cheaper precincts in the Adelaide metropolitan area provide houses with median yields between 6 percent and 7 percent. Areas that are slightly more expensive typically have yields in the 5.5 percent to 6 percent range.
 Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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Adelaide tops Brisbane for property sales momentum: Terry Ryder

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GUEST OBSERVER
Construction, Forestry, Mining and Energy Union (CFMEU) official Brian Parker has announced his union is banning work on the art-deco redevelopment of Sydney’s historic Bondi Pavilion. The work is part of a A$38 million “refurbishment” that residents – including actor Jack Thompson and musician Dave Faulkner – are concerned is designed to privatise public space.
But why is the CFMEU sticking its neck out over these issues, which overwhelmingly do not impact its blue-collar base?
To answer this question, it’s important to look at who joined Parker on the platform at a recent rally – veteran unionist, ex-Communist and conservationist Jack Mundey. Mundey is a Sydney folk hero. He popularised the term “green ban” – which the CFMEU has dubbed its recent efforts to save Sydney’s heritage – in the 1970s.
Today, opponents of the West Village development in Brisbane, WestConnex in Sydney and the recently halted East West Link in Melbourne are all asking similar questions to those of the 1970s. Why are multibillion-dollar projects put ahead of green spaces and affordable housing? And why do ordinary people so rarely get a say over the cities they inhabit?
The story of Mundey’s union, the Builders Labourers Federation (BLF), and its successful campaigns to save historic locations like The Rocks and green spaces like Kelly’s Bush shows why this radical heritage speaks to contemporary Australia.
<h2>Civilising the industry</h2>
Mundey came to prominence when the Australian construction industry was booming. Meredith and Verity Burgmann note that new building approvals across the country soared from A$1.7 billion in 1966 to A$2.9 billion in 1971. This meant inner suburbs and CBDs were being remade with new construction.
Boom times for construction also meant boom times for building unions: workers were in demand and in a better position to bargain. The BLF in New South Wales gained in both members and power during this period. This allowed it to rethink the role of unionism.
But the BLF members didn’t just discover a green thumb and decide to be the saviours of inner Sydney. They were among the most exploited of workers: low-skilled, often from migrant backgrounds, and working in an unsafe industry with low rates of pay.
When Mundey and his supporters won control of the union in 1968, they first turned to “civilising” the industry. This included both significant improvements in health and safety and the use of militant tactics to win wage parity with other workers in the industry.
Fixing these basic issues was a requirement for workers to consider more socially conscious demands.
When workers were later interviewed, they revealed Mundey nurtured a rapport through these traditional trade union struggles, which got members onside for the wave of green bans to follow. The unashamedly working-class BLF began to adopt issues beyond “normal” trade union politics.
<h2>Housewives meet unionists</h2>
Among the union’s first “bans” took place after the Battlers for Kelly’s Bush – an all-female committee from well-to-do Hunters Hill – cautiously approached the BLF in June 1971 to save one of Sydney’s last remaining harbourside green spaces.
The women were initially reluctant. Images of macho builders' labourers violently picketing sites and sawing down goalposts at the SCG prior to a controversial Springboks rugby game were fresh in their memories. Similar images are associated with the CFMEU today; their members are regularly labelled thugs, gangsters and criminals.
However, the Hunters Hill committee was impressed by an initial meeting with BLF official Bob Pringle, who proposed a union ban on the site.
Committee members remember the BLF as having political and social “vision”. But Mundey remembers the decision to place the ban as divisive for his newly democratised union:
Some opined that since [builders' labourers] couldn’t afford to live in Hunters Hill … we should not become involved.
It was, however, “quality of life” issues that won the day. Mundey was successfully able to sway his members by posing the issue as one of:
… [a] millionaire developer, hell-bent on building luxury homes and apartments for the fortunate few at the expense of the many who would lose a natural outdoor space of beauty and recreational value.
Workers were increasingly realising that rather than just being passive victims of urban development, they could and should be able to have a voice in the fate of the cities they were building.
The BLF approved the first green ban at the request of a 600-strong community meeting. Such consultation became a hallmark of its politics.
The union undertook similar bans in working-class suburbs like The Rocks, Woolloomooloo and Surry Hills – not only as “the builders’ labourers could identify easily with the people affected”, but because they had pioneered a politics that put preserving urban spaces ahead of developers’ profits.
The BLF’s 1975 deregistration by an alliance of government, bosses and rival unions capped off this period of experimentation.
<h2>The ‘right to the city’?</h2>
Clearly, the example of Mundey, the BLF and the green social consciousness they pioneered speaks to contemporary Australia.
A lack of rental affordability, spiralling house prices and continuing sell-offs of prime public land for development make the slogan of “people before profits” eminently appealing. Yet today’s industrial relations landscape is marked by significant restrictions and penalties for strike action.
The return of limited green bans could complement a broader strategy, perhaps borrowing divestment strategies from the climate change and refugee rights movements. Union super funds provide significant funding to construction projects, and an activist union might choose carefully – in consultation with communities – which ones are deserving of their members’ money.
In so doing, we might start to make a better, more liveable city.
Jon Puccini is UQ research fellow, School of Historical and Philosophical Inquiry, The University of Queensland and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/jon-piccini-202430" target="_blank">here</a>.
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Bondi Pavilion ‘green ban’: why revive an old union heritage protection tactic?

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Your home may be the biggest investment you'll ever make. But if it was built before the 1980s, it could be affected by hazardous loose-fill asbestos insulation. Loose-fill asbestos is raw crushed asbestos, which in the 1960s and 70s, was installed as insulation.
Over time hazardous airborne fibres can move from the ceiling into your living space.
If your home contains loose-fill asbestos insulation, its value in the market will be affected.
The NSW Government is proposing new laws to protect the community from unknowingly purchasing a property that contains loose-fill asbestos. Under these laws, when selling your property, you must confirm in the contract of sale if your property:
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<li>contains loose-fill asbestos; or</li>
<li>is free of loose-fill asbestos.</li>
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If you do not comply with these laws you risk significant financial loss and potential legal action. The Government's assistance program is your chance to protect yourself from the financial consequences of loose-fill asbestos.
NSW Fair Trading will provide financial assistance and support to affected homeowners and tenants, but you must register by 1 August 2016.
The NSW Government is providing free sample testing to owners of pre-1980s residential premises in 28 identified NSW local government areas.
For more information <a href="https://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Loose_fill_asbestos_insulation/Register_for_free_testing/Additional_free_sample_testing.page" target="_blank">click here</a>.
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Property 101: Loose-fill asbestos in NSW homes

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Frankston's bathing box prices are on the rise.
One of the 30-odd foreshore boxes on Gould Strett, <a href="https://www.realestate.com.au/property-other-vic-frankston-122228534" target="_blank">Bathing Box 26</a>, is being offered for sale at $145,000.
The selling agent Robert Austin of LJ Hooker Seaford said the property would likely break the Frankston record.
Frankston's recent beach box sales include <a href="https://www.realestate.com.au/property-other-vic-frankston-119371491" target="_blank">Bathing Box 32 </a>which fetched $125,000 in March last year, and the Sunrise Rotary Club-built <a href="https://www.realestate.com.au/property-house-vic-frankston-116155691" target="_blank">Bathing Box 10</a> which sold for $114,500 in 2014.
Bathing box records have fallen in Portsea, McCrae, Dromana and then three times in Brighton over the past year. 
Frankston resident Bill Gardiner bought his box 30 years ago for just $3000.
Gould St’s beach boxes can only be owned by Frankston council ratepayers, similiar to the situation at Brighton’s Dendy Street beach.
MELBOURNE'S BEACH BOX BONANZA
Brighton: the record price for the Dendy Street beach foreshore has been broken three times this year, most recently with Bathing Box 44, which fetched $307,000 last month.
Dromana: Boatshed 145 set a new benchmark when sold for $306,800 in March.
Portsea: Boatshed 23 broke the Shelley Beach record, fetching $615,000 in November, but a subsequent prized offering failed to sell.
McCrae: a mystery racehorse owner paid a record price<a href="https://www.heraldsun.com.au/realestate/news/melbourne-vic/racing-identity-wins-bidding-race-for-beach-box-on-mccrae-foreshore-on-the-mornington-peninsula/news-story/4d66598d44c0cc6bd08bf14981ad00a4" target="_blank"> </a>of $239,000 for Boatshed 28 last October.
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Frankston bathing box prices on the rise

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Belconnen’s Wayfarer development is 90 percent sold, with a mix of one, two and three-bedroom apartments still available.
One-bedroom units range from $332,900 to $418,900, two-bedroom are priced from $452,400 to $622,400 and three-bedrooms are priced from $503,900 to $701,400.
Completion is expected before the end of the year on the 27-storey building.
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The Wayfarer apartment kitchens were designed by renowned chef Tetsuya Wakuda who was engaged by Geocon managing director Nick Georgalis.
The complex was designed by Cox Architecture, with the top two levels of the 88-metre tall building including an infinity pool.
<img src="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%2011.53.13%20AM.png" alt="">
Level 25 will feature a sky lounge entertaining area with 360-degree views across Canberra.
For more information, <a href="https://geocon.com.au/project/wayfarer-apartments/" target="_blank">click here</a>.
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Belconnen's Wayfarer is 90 percent sold with Tetsua designed kitchens

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GUEST OBSERVER
A new report by JLL says it is time to review pre - Global Financial Crisis yardsticks to judge future investment performance for commercial real estate.  Instead, investors need to look more broadly at the long-term structural changes to the market that have been underway, behind the scenes.
And don’t wait for ‘normal’ market conditions to return, as traditional real estate benchmarks may not be reliable indicators in the future.  Some metrics, such as workspace ratios and retail turnover ratios, may no longer even be relevant in the shifting world of workplace mobility and IT connectivity.
The Report - ‘Real Estate Conundrums - Just another cycle – or a whole new ball game?’ was presented at a JLL Research event in Sydney.
Technology and urbanisation have been gathering pace for decades.  But while the cyclical nature of real estate has not been abolished, investors in real estate face a range of conundrums relating to yields, cross border investment, technology and urbanisation that can have long-term impacts for commercial real estate.
<a href="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%208.26.15%20AM.png" target="_blank">Click to enlarge</a>
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The GFC has been a convenient scapegoat for the breakdown in previously trusted rules of thumb when investing in commercial real estate.  While for some the benchmarks of the years 2007-2008 do seem to mark a clear break from the patterns of the past, many trends have been evident for far longer than that.  Not everything is a GFC-driven event. For instance, real and nominal interest rates have been declining for 30 years.
The challenge for investors right now is that numerous structural and cyclical shifts are emerging, converging and interacting with each other.
Structural shifts for Australian commercial real estate:
<ul>
<li>Real estate markets are globalising – tenants, investors, developers</li>
<li>
Yields: Low growth, low inflation, low yields are also here to stay</li>
<li>
Cross Border Investment: Offshore capital is here to stay</li>
<li>Fundamental mismatch between capital and available assets</li>
</ul>
Market cycles have not been abolished:
<ul>
<li>Yields will cycle around lower benchmark levels</li>
<li>
Demography a key driver of all real estate asset classes</li>
<li>Financial markets move faster than physical markets</li>
<li>Don’t wait for ‘normal’ conditions to return</li>
</ul>
Structural Shifts – Yields and Cross Border Investment:
Implicit in JLL Research forecasts is a downward structural shift in interest rates and real estate yields – in other words, the ‘lower for longer’ theory is correct.  This does not mean that cycles have been abolished.  But average yields are likely to be lower than in the past.
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<img src="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%208.28.57%20AM.png" alt="">
Supported by growth in global pools of capital and a search for yield, JLL calculates that global cross border investment will continue to grow over the medium term.  In Australia, cross border investors accounted for 42 percent of all commercial property transactions in 2015.
While the impact of technology has been massive, the impact on real estate has been less than was anticipated 20 years ago; CBD’s remain magnets for office and retail tenants, despite rising travel and congestion costs, and inner-city residential demand (which was not foreseen) has increased substantially.
Perhaps though the falling cost of technology, the advent of wireless capabilities, combined with the rising cost and scarcity of skilled labour and rising wages (that puts a premium on commuting travel times) will now lead to a more substantial impact on real estate investment returns and a re-ranking of market values in CBD and non-CBD locations? 
If location premiums erode, non-CBD and suburban locations could be rewarding for investors.
Demography (and urbanization): – is it destiny?
Are we under-estimating the impact of the changing population age profile?  Baby-boomers and first home buyers are important – but over time there are many other impacts on real estate to consider – childcare, student housing, retirement living as well as the age profile within the working age population. 
While population will grow across all age categories in Australia, some age groups will grow much faster than others – therefore requiring specific real estate solutions – right across the spectrum from childcare, student accommodation, first home buyers, upgraders, empty nesters and retirement villages.
 
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David Rees is regional director, head of research, JLL Australasia and can be contacted <a href="https://www.jll.com.au/australia/en-au/people/113/david-rees" target="_blank">here.</a>
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Time to review pre-GFC yardsticks to judge future performance of commercial real estate: JLL's David Rees

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GUEST OBSERVER
The Westpac–Melbourne Institute Index of Consumer Sentiment dipped 1 percent in June to 102.2 from 103.2 in May.
Coming after an 8.5 percent surge in May, the small decline in June mostly represents a consolidation at improved levels.
Last month’s surprise rate cut from the RBA was the main catalyst behind May’s rally and although confidence has slipped back a touch in June this is a fairly common pattern following an interest rate driven bounce. At 102.2 the Index is still in slightly ‘positive’ territory overall – recall that readings above 100 indicate optimists outnumber pessimists.
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Responses to additional questions on ‘news recall’ point to a somewhat calmer backdrop compared to March although the majority of consumers still assessed news as being unfavourable. The highest recall levels were for news on ‘economic conditions’ (27.8 percent) and ‘Budget &amp; tax’ (25 percent) but both were notably lower than in previous quarters. That is despite the May Budget and campaigning in the lead up to next month’s Federal election.
News on ‘international conditions’ was also much less prominent with the 10 percent level of recall on this item the lowest read in over a decade. Unsurprisingly, there was higher recall for news on ‘interest rates’ (16.5 percent) with the news on this topic viewed less negatively than in the previous four quarters.
Responses to additional questions on the ‘wisest place for savings’ showed a slightly less risk averse tone but attitudes still appear to be more conservative than seen throughout 2015. The proportion of consumers nominating ‘pay down debt’ fell from 24.4 percent in March to 20 percent in June.
This compares to an average reading of 17 percent in 2015. Consumers continue to heavily favour ‘safe’ options as well, with the proportion nominating bank deposits rising from 27.4 percent in March to 29.5 percent in June. That contrasts with continued lower readings for the proportion nominating real estate (15.8 percent in June vs 14.7 percent in March and average 25.4 percent in 2015) and shares (8.0 percent in June vs 7.6 percent in March and an average of 8.9 percent in 2015).
Consumers’ assessments of labour market conditions also consolidated on recent improvements. The Westpac Melbourne Institute Index of Unemployment Expectations declined 0.1 percent from 136.3 in May to 136.2 in June. This Index measures respondents’ assessments of the outlook for the unemployment rate so lower reads indicate improved confidence in the employment outlook. The Index has fallen 7.5 percent over the last three months and is now down 10.9 percent on levels a year ago but is still 4.9 percent above its long run average – assessments have shown a steady improvement but are still more negative than usual.
The component detail behind the headline sentiment index showed firmer reads on ‘family finances’ but a softening in expectations for the economy. Most notably, the sub-index tracking respondents’ assessments of ‘family finances compared to a year ago’ – a component the RBA has emphasised as an indicator of demand – increased 4.3 percent. The sub-indexes tracking the one and five year outlook declined 3.8 percent and 5.2 percent respectively, with falls following particularly strong gains in May, of 13.2 percent and 14.8 percent respectively. The ‘time to buy a major household item’ sub-index was unchanged.
Consumer views on housing also consolidated in June. The ‘time to buy a dwelling’ index declined 2.7 percent but the retracement followed a strong 12.1 percent surge in May. Price expectations firmed in the month with the Westpac Melbourne Institute Index of House Price Expectations up 3.6 percent to the highest level since September 2015. Both buyer sentiment and price expectations are still well below the readings seen a year ago but have shown a clear firming from the weak levels in early 2016, the RBA’s May rate cut clearly a supporting factor.
The Reserve Bank Board next meets on July 5. A move at that meeting is highly unlikely. The key considerations for the Bank are around the outlook for inflation. On its current forecasts the RBA does not expect inflation to return to the bottom of the band until 2017, and that is on the assumption of a further rate cut given that the Bank’s forecasts are based on ‘market pricing’ for rates.
The most important and immediate information about whether the RBA’s May assessment is correct will come from the June quarter inflation report which prints on July 27, after the July Board meeting but ahead of the August 2 meeting. It is our assessment that the information in this report will confirm to the Board that another cut is indeed necessary.
 
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Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Consumer sentiment consolidates after post-rate cut bounce: Bill Evans

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Vacancy across Melbourne’s 10 key retail strips has fallen by a quarter over the last four years, driven largely by strong population growth in the city's inner suburbs, according to the latest Savills research.
The research found that overall vacancy rate had fallen to 7 percent from 9.5 percent over the four years from May 2012 with 184 shops now vacant, down from 253.
Glenferrie Road, Hawthorn and Church Street, Brighton were the top performers with vacancy rates of 2.1 and 2.3 percent respectively, while Bridge Road trailed the field at 13.6 percent. 
Savills Victorian research manager, Monica Mondkar, said while vacancy in some strips remained high, the most vibrant retail and entertainment precincts outside of the CBD were doing well and could look forward to continued growth as Melbourne’s inner suburbs recorded double digit population growth.
"Some strips, such as Bridge Road, have struggled in recent years but that has been more to do with tenancy mix and a lack of local government initiatives," she said.
"Retailers in the most popular strips, such as Chapel Street, South Yarra and Toorak Road, Toorak, can generally now look forward to tighter vacancy with stronger fundamentals underpinned by the massive influx of residents to new apartment developments.
"Retailers left behind will be those in strips where the mix of retailers has failed to attract consumers and where they lack effective local government support.’’ 
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Of the 2,620 shops surveyed, the Cafes, Restaurants &amp; Takeaway Food Services category had seen the largest increase of 20 percent to 581 shops, Services was up 12 percent to 612 shops, while Clothing, Footwear &amp; Accessories fell 15 percent to 663 stores.
Notable leases included those of national fashion retailers, Peter Sheppard at 626 Burke Rd, Camberwell, Bendon at 143-151 Bridge Rd, Richmond, Mimco at 87 Church St, Brighton, Flannel at 40b Church St, Brighton, and Trenery at 1015 High St Armadale, while international brands, Canadian cosmetic retailer As Colour opened a store at 230 Chapel St, Prahran, and Nike leased space at 71-73 Church St, Brighton.
ABS retail trade (seasonally adjusted) indicates that Victorian retail trade grew by 5.2 per cent in the 12 months to March, above the national average growth of 4.1 per cent, while consumer confidence, buoyed by low interest rates, measured 103.2 points in May, up from 102.4 points a year ago.  
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Savills Victorian director-Retail Services, Michael Di Carlo, said the increase of 186 new stores in food and beverages and services retailing correlated with the dramatic growth in the number of apartments.
"Population growth has been the key to the growth in these sectors, and these are the sectors which cater for the most immediate needs of local residents. The decrease in fashion related stores, on the other hand, may be about the competition from national and international brands along with a preference for that type of shopping elsewhere including the CBD or the larger enclosed centres," Di Carlo said.     
He said yields and rents varied widely according to the particular attributes of the strip.
"Strip retail, especially suburban strip retail has long been a favourite of the small investor and in recent years that focus has intensified with the emergence of the SMSF and of course record low interest rates.
"Yields have always been tight in these markets but those factors have seen even further downward pressure to the point where yields around 3.5 to 4.5 per cent are now much more common,’’ Di Carlo said.
"Rents can vary dramatically between precincts and indeed, in some cases, within precincts  They are very much about the location, the position within the location and current and historic vacancy levels.’’
He said rents for strips shops in the best strip locations generally ranged between $800 and $1200 a square metre.    
 
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Vacancy in Melbourne’s top retail strips down 25 percent: Savills

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Over the week ending June 3 there were 20 commercial auction results reported with a preliminary clearance rate of 35 percent, down from 42.6 percent the previous week across 54 results, according to CoreLogic.
In comparison, at the same time last year, 47 commercial results were reported with a higher success rate of 59.6 percent.
There were 215 auctions reported over the past four weeks, with 116 sales. Of these 116 sales, 95 have been reported with a sale price, representing $199.3 million in total value.
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Commercial auctions down for week ending June 3, 2016: CoreLogic

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Shane Moran, of the Moran health care family, is the mystery buyer of Darling House, the priciest cottage yet sold in the NSW Government's Millers Point sell-off.
He paid $7.7 million for the 1840's Georgian Regency property which was previously an low income aged care facility. He now plans a boutique low care aged care enterprise.
It's no great surprise as the visionary Moran family have a very long association with heritage buildings across Sydney.
The property was marketed with the possibility to be turned into a grand family home, but Moran is intent on re-establishing its previous use.
But with an intimate club-like 10 rooms, it will be aimed squarely at wealthy retirees whose middle aged children likely work and live in the city proximity.
Set back from the street on 759 sqm, the standalone sandstone house offers ten bedrooms, ten ensuite bathrooms and picturesque gardens in a quiet enclave.
It's a little less grand that where Shane calls home. That's Swifts, the 56 room neo-Gothic castlelated mansion in Darling Point.
Darling House, formerly known as the Rocks Cottage Type Hospital, was sold by Richard Shalhoub of McGrath in conjunction with Shayne Harris from Savills.
The transformation of the suburb is set to make Millers Point a very special part of the city.
Darling House was first owned by local businessman Joseph Farris whose early tenants including surgeon, Leopold Sachs. 
The Sydney Harbour Trust took over the property in 1901.
This article was first published in the Daily Telegraph.
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