Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

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.

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

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.

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<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?

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.

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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

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Average house rents in metropolitan Melbourne have increased by 5.3 percent, with apartment rents growing by 2.8 percent, over the last three months.
A lack of affordable rental properties is a problem in Sydney too. This has fuelled speculation of a housing bubble, particularly in the wake of falling investor demand for new high-priced CBD apartments in these capital cities and others.
But beyond the headlines lies a difficult policy task for all three levels of government, in conjunction with the private sector and civil society. They need not only to create more affordable housing, but to keep it affordable in the long run.
Recent discussions with private developers and investors suggest there is growing willingness to collectively tackle the problem. However, some common misapprehensions remain about who needs affordable housing and how those needs might be met.
Looking beyond the stereotypes
There continues to be two quite different stereotypes about the people who need affordable housing:
<ul>
<li>First, there is the older single man with mental health and/or addiction issues, who may need therapeutic assistance and housing.</li>
<li>Second, there is the “key worker” individual or couple – young, working in education, medicine or emergency services – who just simply need “more supply”.</li>
</ul>
The reality is that there are many different kinds of households requiring affordable housing. Many different mechanisms will need to come into play to meet their needs.
Penny the pensioner is living in poverty, like one in three older women. She spent many years bringing up two children full-time and did not accumulate retirement savings or assets. As a very-low-income person, she receives Commonwealth Rent Assistance. However, she is among the 35,000 Victorians on the waiting list for public housing.
Penny can no longer afford to live in or near Port Melbourne, her home for her entire life. This is because there are simply no rental apartments available there for A$165 per week, which is what she could afford.
Penny wonders if Australia’s largest urban redevelopment project next to Port Melbourne, Fishermans Bend, could have an apartment for her sometime soon. But with no new Commonwealth affordable housing program in place, no inclusionary zoning or financial incentives at the state level, and rate capping at the local government level reducing capacity to invest in affordable housing, at most 1.3% of the total 40,000 projected housing units will be available to middle-income households – let alone low-income people like her.
Even if new units were developed in Fishermans Bend, a 50m² apartment would cost about $300,000 to build, given land, construction and financing costs. Rates, water, maintenance and management would cost about $9,000 a year per unit to deliver.
These costs could not be recovered fully through Penny’s rent, even if construction was completely subsidised. There would need to be a combination of lower-cost land, subsidised construction, guaranteed finance, rate relief and ongoing subsidy to make her living unit viable for the private sector to deliver and a community housing provider to own and manage.
Naresh is a nurse. He would be classified as a moderate-income earner. He lives with his wife Nadira. They recently had a child; Nadira is a full-time parent.
Because he is a shift worker, Naresh’s public transport options are not reliable. He would prefer to live within walking or cycling distance of his workplace, even in a smaller unit, as he does not own a car.
Naresh can afford to pay 30% of his $60,000 annual gross income on rent, which works out to $340 per week. This is still below the average rent in Melbourne for a 70m² two-bedroom unit.
A few two-bedroom apartments are available for that price – about an hour’s public transport ride away from his job. However, he works in a well-serviced but conservative inner suburb, where new apartments aren’t being constructed and existing flats are rented by much-higher-income households.
Naresh would have to add the cost of buying and maintaining a car to his rental cost and a long commute to an already difficult work-life balance. This is hardly affordable or family-friendly living.
Even if new apartments were being constructed where they are most needed, it would cost at least $400,000 to build and require about 50% construction subsidy for a community housing provider to be able to rent to Naresh and Nadira. The alternative would be short-term renting in the private market with the likelihood of having to relocate every year or two.
Signs of progress
Across Australia, there was a shortage of 122,000 affordable and available dwellings nationwide in 2011. This was a 40 percent increase from 87,000 in 2006. The problem has worsened since the last census in 2011.
There are some signs of progress across Australia. After a cross-party Senate inquiry into affordable housing in 2015, the Affordable Housing Working Group is looking at “innovative financial models” to scale up production.
Several states are taking concrete actions. Western Australia was the first cab off the rank and had attained its ten-year targets by 2015. New South Wales has established the Social and Affordable Housing Fund. Queensland’s Affordable Housing Strategy is at the discussion stage.
In Victoria, the previous Coalition government’s strategic plan for metropolitan Melbourne is being “refreshed”, including a greater emphasis on housing need. In advance of a promised affordable housing strategy, the current Labor government recently announced a $150 million “housing blitz” for women and child survivors of family violence.
Several local governments in Melbourne have also led the way in donating land to affordable housing, particularly the City of Port Phillip.
The trick is going to be combining various actions by Commonwealth, state and local government to support private developers and community housing providers in not only developing new housing, but keeping it affordable for hundreds of thousands of Australians.
 
Carolyn Whitzman is professor of Urban Planning, University of Melbourne and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/carolyn-whitzman-9944" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Where do record rental prices leave low-income earners?

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
City of Melbourne councillors voted recently to implement the 2016-20 Bicycle Plan.
This followed public consultations that included two phases of community engagement and the release of a draft plan last October. Features of the plan, which has a budget of around A$2 million a year over four years, include:
<ul>
<li>
upgrading busy cycling routes;
</li>
<li>
increasing bicycle parking;
</li>
<li>
improving end-of-trip facilities;
</li>
<li>
conducting safety campaigns; and
</li>
<li>
undertaking research.
</li>
</ul>
Most inner-Melbourne cyclists would likely welcome this renewed commitment to improving the cycling environment. It is important, though, to put this expenditure into perspective.
A A$2 million-per-year plan for the population of about 127,000 who live in the City of Melbourne (about A$16 per person) is a pittance compared to the 20-year, US$600 million Bicycle Plan 2030 in the US city of Portland, Oregon. With a population of about 619,000, the US$30 million-a-year average works out to more than US$48 per person. Portland is mooted as one of the most cycle-friendly cities in the world.
<h2>Criticism of the plan</h2>
Days before the Melbourne councillors voted on the plan, a Herald Sun editorial said:
"Melbourne City Council appears hellbent on turning the city into cyclist heaven … More likely this will soon turn the CBD into an economic wasteland as drivers take their business elsewhere as well as their shopping."
The assertion that installing cycling infrastructure in inner Melbourne will hurt the local economy defies the evidence from a plethora of case studies.
There are numerous international examples where local business-owners have over-estimated the proportion of their customers who travel by car. Consequently, they have considered parking as an overarching issue of primary concern.
They have often resisted anti-car, pro-active transport infrastructure changes – such as removing on-street parking and car lanes, and creating shared paths – on the premise that these will be bad for business.
But such changes have often resulted in increases in retail activity as well as jobs, land value and tourism.
<h2>Economic impact of cycling infrastructure</h2>
In Valencia Street, San Francisco, traffic lanes were slimmed to slow down cars and accommodate other road users. Nearly 40 percent of merchants reported increased sales. More than 60% reported an increase in the number of customers who ride bicycles.
New York implemented a raft of changes across the city including traffic calming, separated and protected bike lanes, and dedicated bicycle signals. These changes resulted in significant rises in retail sales, beating the Manhattan average for the same period and substantially outpacing performance on nearby unaltered streets.
The city’s Department of Transport later released a report presenting and explaining the robust methodology developed for evaluating the economic effects of these “Sustainable Streets” improvements. This report is available for use by other cities and public agencies.
In Bloor Street, Toronto, a study of merchants and patrons found only 10 percent of patrons drove to the area. A majority of merchants believed that a bike lane or widened footpath would increase business and that off-street parking lots would cover the reduction in on-street parking. These findings from Canada demonstrate that local business-owners don’t always oppose improvements in cycling infrastructure at the expense of cars.
There have even been case studies in the City of Melbourne itself revealing the benefits of sacrificing infrastructure for cars to make way for bicycles.
A study of Lygon Street, Carlton, found that while the average cyclist’s retail spending is only $16.20/hr compared to a car driver’s $27.00/hr, six bicycles can park in the space required for one car. Therefore, while one car space equates to $27.00/hr retail spending, six bicycle spaces equate to $97.20/hr.
That puts a new light on the claims by our Herald Sun editorial:
"Motorists will be dismayed to learn that doubling the number of bike racks on city streets will mean fewer carparking spaces … Councillors must surely be aware of the problems they are creating for the thousands of businesses long established in the city."
Previous evidence suggests that inner Melbourne businesses will prosper under a changing transport environment – and not “see their money spent against their business and personal interests”, as the Herald Sun suggests.
On the contrary, improvements in bicycle infrastructure are likely to have a positive economic impact in their own right. That’s before we even consider the other positive effects. Physical inactivity costs Australia $13.8 billion a year when the health impacts were last assessed in 2008. Traffic congestion was estimated to cost Australian capital cities $16.5 billion last year.
The City of Melbourne and advocacy groups should continue pursuing bicycle infrastructure improvements – even at the expense of cars – where feasible.
Jerome N Rachele is research fellow in Social Epidemiology, Institute for Health and Ageing, Australian Catholic University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/jerome-n-rachele-251972" target="_blank">here</a>.
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Bicycle-friendly changes are good for retail business

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After we find a development site for our client, one of the most important processes is to negotiate not only the purchase price, but the terms of the purchase.
Terms are the conditions you want to use when purchasing the property - and using terms can help put you in a powerful negotiating position.
As a property developer, one of the first terms we always negotiate is an extended settlement. Property Bloom wants to ‘buy’ as much time as possible to get as much done before our client settles on the land. Once settlement takes place holding costs come into play in the way of interest payments on their loan. 
We will often achieve a twelve week settlement and permission from the vendor to lodge a DA during the settlement period.  So after exchange, we swing into action and order a contour survey, within a few days this is with our builder and they are working on plans and the Development Application (DA) preparation. We can have a DA lodged with council within a few weeks of exchange and then we manage council as best we can to try and have the DA Consent before or as our client is settling on the land.
Another key term is a low deposit, for the very same reason as a long settlement, to minimize holding costs.  Most sales contracts will ask for a ten percent deposit, we have been able to achieve a five thousand or even a one thousand dollar deposit.
 A quick calculation based on purchasing a development site say at $250,000 and paying a ten percent deposit or $25,000 will cost $146 a month in interest over a three month settlement period based on 5.5% interest rate. Yet a $1,000 deposit over the same period and interest rate will cost just $4.58 a month so we can save about $424 over the settlement period – every little bit helps. You can also save on stamp duty if you apply for the NSW Government New Home Grant which offers a $5,000 to offset stamp duty if buying land to build on or a brand new or off the plan property, check it out:  <a href="https://www.osr.nsw.gov.au/grants/nhg/about">https://www.osr.nsw.gov.au/grants/nhg/about</a>
Another term Property Bloom usually throws into the negotiation process is to waive the Cooling Off period. When you buy a residential property in NSW, there is a 5 business-day cooling-off period after you exchange contracts. During this period, you may get out of the contract as long as you give a written notice. A cooling-off period does not apply if you buy a property at auction or exchange contracts on the same day as the auction after it is passed in.
However, you can waive the cooling-off period by giving the vendor a ‘66W certificate’. This is a certificate that meets the requirements of section 66W of the Conveyancing Act 1919. The certificate needs to be signed by your solicitor or conveyancer. It is also possible to reduce or extend the cooling-off period by written agreement with the vendor. 
By the time our client is ready to exchange, we have done all our checks and research and our client has an unconditional loan approval, so there is really is no reason to ‘cool off’ as our client has committed to the project weeks before. To waive the cooling off period adds weight to your offer and gives the vendor piece of mind that there won’t be a last minute change of heart.
We will always make offers subject to pest and building inspections (if there is a house on the land) and to conditional loan approval (which our clients have up to a level even before we make an offer).
Another term we may use is to release the deposit to the vendor once exchange has taken place. We usually save this one as a final tool to leverage the sale depending on the vendor’s situation. We will gauge this from the selling agent.
You can also offer the vendor two or three different purchase prices at the same time - each with different terms.  We may offer a higher price but with a longer settlement period and ask for access to the property during the settlement period to start renovations.  We’ll include a lower offer but with a fast settlement – as long as we are sure that our client does have fast access to finance. This gives the vendor options or choices which empowers them. 
The vendor may not quite be ready to move out of their home so you can offer them a rent free period or reduced market rent to sweeten the deal.
Maybe there is a lot of rubbish lying around the property and if your plan is to renovate or demolish the house, you can tell them that you’ll remove the rubbish at your cost, anything like this that makes their life easier and the sale process quicker will help you so be creative and think about how you can meet the needs of the vendor.
After the offer is accepted then you can also negotiate on the terms in the Contract of Sale. Many of the terms in the sales contract will be standard, which means that they’ve been in use for a long time and are fair to both seller and buyer. Your solicitor will check the clauses of the contract to make sure they do suit you and if not, they will ask for changes to be made.
In order to cut the best deal on your property purchase, be creative with your terms and if you show sympathy to the vendor then this may give you the edge over other buyers.  
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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jochivers-wq5Bp59R5a

Turn up the terms: Jo Chivers

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
For economists and others who ‘grew up’ being challenged to achieve low and stable inflation against the background of high and volatile inflation rates that emerged in Western countries in the 1970s (and persisted in Australia through the 1980s), the possibility inflation could be ‘too low’ can seem like something from another universe.
The Reserve Bank of Australia’s 2-3% inflation target was more-or-less unilaterally promulgated by Bernie Fraser (who was RBA Governor from 1989 until 2006).
In a speech just after the 1993 election (at which the Liberal Opposition had advocated the introduction of a 0-2 percent inflation target, similar to that which had been adopted in New Zealand in 1989), Fraser suggested that:
“If the rate of inflation in underlying terms could be held to an average of 2-3 percent over a period of years, that would be a good outcome. Such a rate would be unlikely to materially affect business and consumer decisions, and it would avoid the unnecessary costs entailed in pursuing a lower rate.”
Although Bernie Fraser was initially “rather wary of inflation targets”, he explicitly couched the series of interest rate hikes he implemented during the second half of 1994 as being undertaken in order to maintain inflation within the 2-3 percent range.
The target was formally embodied in a Statement on the Conduct of Monetary Policy agreed between newly-installed Treasurer Peter Costello and newly-appointed RBA Governor Ian Macfarlane shortly after the 1996 election, and has been re-iterated after each change of government and upon each appointment of a new RBA Governor ever since.
Australia’s approach to inflation targeting differs from that of most other countries which have inflation targets in two important respects. First, it does not stem from a government directive, nor is it enshrined in legislation. As former Governor Ian Macfarlane has said, “the government didn’t introduce it, we introduced it”.
The Reserve Bank does not have to “explain itself” to politicians if it “misses” its target for some reason. Second, the target is intentionally and explicitly flexible. It is expressed as a range, to be achieved “on average” and “over the course of the business cycle” (a term which is not anywhere defined), rather than at all times and in all places, as it were.
This means that the Reserve Bank can “tolerate” inflation being either above or below the target for a temporary period if it has good reason to believe that the deviation is only temporary, or is the result of some one-off factor whose influence will soon pass, without needing to take monetary policy actions to push it back into the target range more quickly but which would, in the RBA’s judgement, not otherwise be necessary.
This “flexible inflation targeting regime” has served Australia well over the past two-and-a-bit decades. The target is widely perceived to be “credible” – that is, it is widely recognised and understood that the Reserve Bank will do what it needs to do in order to ensure that it is achieved (as it demonstrated, for example, in 1994 and in 2007).
As a result, it has served to “anchor” inflationary expectations – that is, to give participants in the economy (businesses, consumers, union officials, governments and others) a sound basis for expecting that inflation will average somewhere between 2 and 3% over the medium-to-longer term – as it was intended to do.
And it has allowed the RBA to keep interest rates more stable than would have been the case if it had been required to chase after inflation on each and every occasion on which it temporarily departed from the target range.
With the annual “headline” rate of inflation having been below the bottom end of the 2-3% target range since the December quarter of 2014, and more recently the annual “underlying” inflation rate also having dropped below 2 percent, some have suggested that the inflation target should itself be lowered.
This would allow the central bank more room to accommodate unusually low inflation without having to cut rates to levels which might risk triggering unsustainable rates of credit growth and/or an asset price bubble.
Ironically, the opposite proposition was put during the resources boom of 2010-12, when some suggested that the RBA should increase its inflation target so as not to have to raise interest rates as much in the face of the inflationary pressures which it was feared that boom might engender.
The RBA resisted such calls on that occasion, and should do so on this. As it is formulated, the RBA’s flexible inflation target gives it latitude to determine how dogmatic it needs to be in pursuit of “low and stable” inflation.
If it were to change its target every time it appeared as though inflation might be either above or below the target range for an extended period, the target would eventually lose whatever role it has as an “anchor” for inflation expectations, increasing the chance that inflation would – as a result of the well-documented propensity of inflation expectations to become self-fulfilling – remain above or below the target for even longer, and perhaps by even wider margins.
Australia’s inflation targeting regime has served the country well, and the challenges it faces at this time are not so great as to warrant altering it.
Saul Eslake is Vice-Chancellor’s Fellow, University of Tasmania and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/saul-eslake-665" target="_blank">here</a>.
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Why the Reserve Bank should resist calls to alter its inflation range: Saul Eslake

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A Sunshine West childcare centre is on the market with expectations in the mid-$3 million range as demand from investors for the secure lease profiles on offer in the sector is seeing yields tighten.
The 2 David Drive property comprises a purpose-built centre, with a 703 square metre building licensed for 93 places.
The 2,216 square metre site is leased to ASX-listed operator G8 Education and includes outdoor playing areas. 
G8 Education Limited is a national operator with more than 450 child care centres. It has a 10-year lease expiring November 2018 with two five-year options at $198,061 per annum. 
According to marketing agents, Savills’ Julian Heatherich and James Lockwood, the property will test the market in a strong education precinct comprising eight primary schools and five secondary schools.
Lockwood said the sheer number of investors clamouring for a piece of the childcare centre action had seen yields fall continuously over the last 18 months, with yields in Melbourne now as low as 3.89 per cent.
"What has worked so well for childcare centres, apart from the obvious growth industry aspect, are the secure lease profiles, usually to national operators, and the prime, main street, locations,’’ Lockwood said.
 
 
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jonathanchancellor-7SQnKwU6yx

Childcare centre in Melbourne's Sunshine West on the market

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Auction activity has eased slightly this week, with 1,824 capital city auctions held, down from 2,230 last week and also lower relative to the same week last year when 2,232 residential homes were taken to auction.
The preliminary clearance rate across the combined capital cities strengthened slightly this week, from 67.7 percent the previous week to 68.9 percent. One year ago, along with the higher volume of auctions, the clearance rate was also stronger at 77.5 percent.
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<img src="/images/2016/05/16/20160516-Capital-city-1.png" alt="">
After Melbourne was host to 1,404 auctions over the final week in April, and 1,150 last week, the number of Melbourne auctions this week has fallen to 859. The clearance rate, on the other hand, has remained relatively steady, with preliminary results showing 70.6 per cent of Melbourne auctions clearing this week, compared to 73.2 per cent last week. At the same time last year, 78.3 per cent of Melbourne auctions were successful. The busiest Melbourne sub-region this week was the Inner region, with 160 auctions and a preliminary clearance rate of 76.3 per cent. In terms of clearance rates, the most successful sub-region this week was the West region (80.3 per cent).
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Preliminary results for Sydney show a 75.6 percent clearance rate across 517 results this week. Over the week there were 614 Sydney homes taken to auction, down from 676 last week and significantly lower relative to last year (885). Sydney’s clearance rate last week was lower in comparison, at 71.8 per cent, while one year ago it was 85.0 percent. Across the individual regions of Sydney there was some varied performance this week with clearance rates ranging from as high as 93.1 percent in Ryde and as low as 26.3 percent in the Outer South West region where just 22 auctions were held.
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<img src="/images/2016/05/16/Screen%20Shot%202016-05-16%20at%2011.34.02%20AM.png" alt="">
Brisbane had 153 auctions last week, down from 195 the previous week, which was the busiest for the city in seven weeks. The preliminary clearance rate rose to 51.2 per cent from 41.2 percent the previous week, while last year half of the 136 homes taken to auction were sold. Across the Gold Coast, 34 results have been reported so far with a preliminary clearance of 41.2 per cent.
<a href="/images/2016/05/16/20160516-Brisbane.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/16/20160516-Brisbane.png" alt="">
The preliminary clearance rate for Adelaide this week is 67.9 per cent, up from 59.8 per cent last week and also higher than one year ago (63.8 per cent). Despite the fall in auction activity on an aggregate level, there were more auctions in Adelaide this week (100) compared with last week (94). One year ago, 106 Adelaide auctions were held.
<a href="/images/2016/05/16/20160516-Adelaide.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/16/20160516-Adelaide.png" alt="">
Across Perth, 41 auctions were held this week with 20.0 per cent selling, based on the 15 reported results. Last week showed 23.5 per cent of auctions were sold and 41.9 per cent last year, noting that the cities clearance rate tends to move around a fair bit on a week-on-week basis.
Canberra’s preliminary clearance rate was 58.6 this week, compared to 54.3 per cent last week and 70.3 per cent at the same time last year.  Auction volumes were relatively steady over the week, at 49 compared to 50 over the previous week.
In Tasmania 8 auctions were held over the week and of the 7 reported results, 2 sales have been recorded. 
 
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Preliminary clearance rate edges higher, to 68.9 percent from 67.7 percent last week: CoreLogic RP Data's Shana Miller

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The top sale for the week ending 15 May is a five bedroom three bathroom home in the Victorian suburb of North Albert that sold for $7,850,000 according to CoreLogic RP Data.
The property, 24 24 St Vincent Place, North Albert (above) sold through Marshall White Albert Park.
 
TOP TEN SALES
24 St Vincent Place, North Albert, Vic, 5 bed, 3 bath, 2 car house $7,850,000 Marshall White Albert Park 
23 Marine Parade, Watsons Bay, NSW 4 bed, 3 bath, 2 car house $7,450,000 BradfieldCleary Double Bay 
36 Viret Street, Hunters Hill, NSW 3 bed, 2 bath, 2 car house $7,025,000 McGrath Estate Agents 
72 Raglan Street, Mosman, NSW 5 bed, 5 bath, 1 car house $4,700,000 McGrath Estate Agents 
312 Glenferrie Road, Malvern, Vic 4 bed, 3 bath, 2 car house $4,700,000 Marshall White Armadale 
59/155 Macquarie Street, Sydney, NSW 3 bed, 2 bath, 4 car unit $4,250,000 McGrath Estate Agents 
30 Shackel Avenue, Clovelly, NSW 5 bed, 2 bath, 2 car house $4,200,000 Ballard Property Group Double Bay 
7 Violet Street, Bronte, NSW 5 bed, 3 bath, 2 car house $3,975,000 Phillips Pantzer Donnelley Woollahra 
12 David Place, Seaforth, NSW 3 bed, 3 bath, 2 car house $3,750,000 Belle Property Seaforth 
46 Bulls Road, Burraneer, NSW 7 bed, 4 bath, 6 car house $3,600,000 Apac Group Property Agents 
 
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Five bedroom North Albert trophy leads CoreLogic top ten sales

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The retail component of the Aqua development in Sydney's Bondi Junction is for sale by public expressions of interest closing June 10.
Real estate developer Qualitas has appointed Cushman &amp; Wakefield to sell the 241 – 245 Oxford Street property.
The residential component of the development included 129 units that were released in May 2014 and were sold within four hours.
The retail investment opportunity will be sold 100% leased with a Weighted Average Lease Expiry (WALE) by income of over nine years. The development is due for completion by September 2016.
“An investment opportunity in the tightly held Bondi Junction retail market is unique, particularly in a location adjacent to one of the strongest performing Westfield Shopping Centres in Australia. As a result, we expect strong interest from local high net worth private investors as well as offshore purchasers," said Cushman &amp; Wakefield’s senior director of Retail Investments, Sashi Makkapati.
Makkapati and Cushman &amp; Wakefield’s Billy Dent are handling the marketing of the property.
Qualitas has agreed leasing terms with Neil Perry’s Burger Project and Damat &amp; Tween, a European fashion label that will be open their flagship Sydney store.
 
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Qualitas' Bondi Junction retail development up for sale

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A 195-hectare Surf Coast development, The Sands Torquay Resort, is set to hit the market in Victoria's coastal township of Torquay with price expectations of $25 million.
The master-planned subdivision at 2 Sands Boulevarde comprises a hotel Peppers The Sands, an 18-hole championship golf course, clubhouse and health club facilities integrated with a residential subdivision surrounding the course and an additional 4000 sqm of vacant land opposite the clubhouse with potential for further development.
Colliers International’s Guy Wells, Stephen Burt and Raymond Tran have been appointed to sell the property on behalf of the Handbury Group. 
“This major landholding within the fast-growing township of Torquay represents a one-off investment and development opportunity in one of Victoria’s most popular destinations,” Wells said.
“Torquay is well known as the home of surfing in Victoria and is a hub of major surfing activity at the northern end of the Great Ocean Road. The township of Torquay has grown significantly in the past 10 years and developments such as The Sands Torquay Resort have added to the popularity of the location."
The golf course was designed by Stuart Appleby and the resort has a pro shop, members locker rooms and clubhouse facilities. There is also a separately operated health club with an indoor pool.
 <img src="/images/2016/05/16/Peppers-The-Sands-Conference7.t48527.jpg" alt="" width="608" height="405">
Adjacent to the clubhouse is the Peppers The Sands hotel comprising 112 rooms and suites over three levels, conference facilities, restaurant and bar facilities and tennis courts.
<img src="/images/2016/05/16/Peppers-The-Sands-Deluxe-Room-Lounge.t35201.jpg" alt="" width="611" height="407"> 
<img src="/images/2016/05/16/Peppers-The-Sands-Premier-Suite-View.t45649.jpg" alt="" width="605" height="403">
<img src="/images/2016/05/16/Peppers-The-Sands-Room4.t35226.jpg" alt="" width="605" height="403">
<img src="/images/2016/05/16/Peppers-The-Sands-Conference.jpg" alt="" width="611" height="407">
“This distinctive hotel, designed by award-winning Melbourne architects Perrott Lyon Mathieson, is unique to the area and draws visitors from the surrounding region and beyond from Melbourne,” he said. “The hotel operates under a marketing agreement with Mantra Group and under the Peppers Brand. This agreement could be transferred to a new owner as desired.”
The Sands Torquay Resort is part of a residential development known as The Sands which includes about 400 residential homes and 150 townhouses around the picturesque golf course. 
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Surf Coast's The Sands Torquay resort to hit the market, $25 million expected

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The weekly tug of war between Sydney and Melbourne in the quest for property market supremacy nears it autumnal finale.
There was a stellar <a href="https://www.realestate.com.au/property-house-vic-albert+park-122454754" target="_blank">$7,805,000 Albert Park sale</a> which headed off Sydney's top $7,025,000 price on the river at Hunters Hill.
Both highly coveted locations.
The 24 St Vincent Place, Albert Park offering through the Marshall White agency was a freestanding balconied Victorian residence overlooking the heritage garden square.
The pre-auction price guidance was $6.25 million plus. The bidding opened at $6 million and the property was announced on the market just after $7.3 million with three bidders.
The five bedroom house on its 480 sqm holding, now with the rear extension designed by Bates Smart, last traded in 1978 at $107,000, reflecting 12 percent annual price growth.
The two level house, built in the 1870s for Melbourne’s harbour master, Robert Fullarton, fell on hard times becoming a rooming house in the 1950s for around three decades.
The three bedroom, single storey, Hunters Hill riverfront home was a knockdown at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-122433278" target="_blank">36 Viret Street</a> (above) on 695 sqm which sold through Tracey Dixon at McGrath Estate Agents at $7,025,000.
It had last sold in 1975 at $170,000, reflecting 9.5 percent annual price growth.
When it came to clearance rates, CoreLogic RP Data had Sydney having the edge securing in the mid-70s with Melbourne dipping unusually into the high 60s.
Sydney's house auction median price was $1.27 million - well inexcess of Melbourne's $860,000 auction median house price. For apartments the difference was even higher - $812,500 in Sydney to $515,000 in Melbourne, according to Domain.
Around 500 Sydney properties were scheduled to go under the hammer, below the 550 auctioned over the same weekend last year, with Marrickville and Mosman the busiest suburbs for auctions each with eight scheduled. 
Nearly 750 Melbourne auctions were scheduled to be held, also lower than the 830 held over the same weekend last year.
Richmond was the busiest suburb for Melbourne auctions with 14 offerings.
Weekend celebrity sales included the legendary Collingwood full forward Peter McKenna who secured <a href="https://www.realestateview.com.au/real-estate/8-malleson-street-richmond-vic/property-details-buy-residential-10151560/" target="_blank">$1.42 million for his Richmond home</a>.
It was a single fronted Edwardian cottage was bought at 1998 auction for $306,750.
Despite the cuts to mortgage rates, the seasonal effect of the approaching quieter winter selling market and the cyclical impact of declining underlying price growth was at work, Dr Andrew Wilson, Domain's chief economist suggested.
"The announcement of the federal election and a lengthy election campaign may also act to quell some buying and selling decisions, particularly given the potential for significant changes to the treatment of property taxes for investors," Dr Wilson said.
Brisbane had the nation's cheapest weekend sale when $220,000 was paid at Regency Downs. The <a href="https://www.realestate.com.au/property-house-qld-regency+downs-122388854" target="_blank">18 Bucknall Court</a> three bedroom house, listed through Elders in the Lockyer Valley region, last sold at $73,000 in 2002.
It was a mortgagee sale for the three bedroom weatherboard Queenslander on an 8000 sqm parcel.
Brisbane's weekend clearance rate sat close to 60 percent, one of the strongest results in recent times.
Over in the west the big news was West Coast Eagles star Nic Naitanui spending $3 million on a Mount Lawley home.
The star ruckman secured a five bedroom, four bathroom 2008 Zorzi-built house with home cinema. It was listed with high $3 million hopes mid-last year, selling earlier this year by private treaty.
His redundant Swan View home, which cost $1,285,000 in 2012, had been put up for rent.
Last month he sought $900 a week, which has been adjusted now to $800 a week.
Perth's weekend auction success rate sank to 20 percent, according to CoreLogic RP Data.
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