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.

<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?

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

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Sentiment in the Australian commercial property market hit a new high in Q4, but the headline index continues to mask big differences across property sectors and states, according to NAB’s quarterly tracker on the state of the sector.
The NAB Commercial Property Index rose to +17 points in Q4 from +10 in Q3, a new high since it first came out in 2010.
<a href="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2012.16.02%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2012.16.02%20PM.png" alt="">
By sector, CBD hotels and office markets are leading the way. NSW and Victoria are also out-performing, but WA is lagging considerably, it showed.
Property professionals noted a deterioration in their funding conditions on both debt and equity fronts in Q4, with tighter credit conditions also reflected in higher pre-commitment hurdles for new developments. 
The improvement in the overall index was led by CBD hotels, followed by office and retail. Sentiment in industrial property markets fell and is now weakest overall. 
Looking ahead, property professionals operating in CBD hotel markets are most confident, which may reflect a shortage of supply and the broader pick up in tourism on the back of the lower AUD, along with a pick-up in business travel. 
<a href="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2012.15.56%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2012.15.56%20PM.png" alt="">
Confidence is lowest (albeit positive) among retail property operators, perhaps reflecting expectations that the impetus to household consumption from the housing market will wane through 2016 as house price growth slows. 
The headline Commercial Property Index also continues to hide some very big differences in performance by state. 
“NSW and Victoria remain at the forefront of the improvement in market sentiment, with WA still wallowing in deeply negative territory,” said NAB Group chief economist Alan Oster. 
NSW would remain the most optimistic state for commercial property in the next two years, with Queensland tipped to be the big improver and WA the most pessimistic. 
Survey respondents believe that CBD hotels will provide the best capital returns in the next 1-2 years (4% in each year), followed by office (1% &amp; 1.2%), with significantly higher returns in NSW and Victoria masking further big corrections in WA. Capital returns are expected to be lowest for retail property (0.4% &amp; 0.6%). 
<a href="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2012.18.46%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2012.18.46%20PM.png" alt="">
In leasing markets, office property is expected to provide the best returns over the next 1-2 years (0.7% &amp; 1.7%), with rental growth in NSW and Victoria leading the way. In contrast, office rents in WA are expected to continue falling heavily amid elevated and climbing vacancy rates, significant over-supply and weak tenant demand. 
In the national industrial market, the outlook for rents has been pared back a little (0.2% &amp; 0.4%) with rental returns for retail property also softer (0.2% &amp; 0.5%). 
Despite an overall improvement in commercial property market sentiment, the survey reveals that fewer developers are planning to start new works in the short term. 
“Funding issues may be playing a role here, with more developers indicating that their debt and equity funding situations had deteriorated,” said Oster. 
Tighter credit conditions are also being reflected in higher pre-commitment hurdles for new developments - up for the third consecutive quarter to 53.5% in Q4 and expected to tighten further over the next 6-12 months. 
Around 250 panel respondents participated in the Q4 2015 survey, consisting of real estate agents/managers, property developers, asset/fund managers and owners/investors. 
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prateek24-ezbwHMbNAk

Sentiment at record high in NAB Q4 commercial property survey  

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Renowned for being the holiday destination, Surfers Paradise in Queensland, postcode 4217, was sitting high on the list of most searched suburbs for rentals in 2015, compiled by rent.com.au. 
The median rent for all rental properties advertised in Surfers Paradise within the last 30 days was $375 per week, down 1.32% or $5 than the last quarter and more affordable than the $410 median rent in surrounding suburbs.
<a href="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.17.57%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.17.57%20AM.png" alt="" width="835" height="235"> 
The range was wide, with $220 for a one-bedroom dwelling as the least and $1,100 for a four-bedroom place.
The average days on market for all rental properties advertised in Surfers Paradise within the last 90 days was 23 days, compared with 25 days for the surrounding suburbs of Southport, Bundall, Main Beach, Broadbeach, Broadbeach Waters and Gold Coast.
The days on the market also fell from the preceding quarter by nine days.
<a href="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.16.17%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.16.17%20AM.png" alt="">
There were 143 rental properties advertised in Surfers Paradise within the last 30 days, of which 137 were apartments (around 96 percent), while only six houses were up for rent. 
This contrasts with the 73 percent apartments and about 27 percent houses advertised in the last 30 days in surrounding suburbs.
<a href="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.14.32%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.14.32%20AM.png" alt="">
There are a total of 4,624 rental properties in Surfers Paradise, making up 54% of all properties in the area, according to ABS census data 2011. 
Three-fourths of all properties in the suburb are apartments, with the rest houses, the data shows.
Property Observer went looking for dwellings in the suburb around the median price advertised recently on rent.com.au and found these:
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2010.14.22%20AM.png" alt="" width="650" height="484">
1. A fully-furnished one-bedroom apartment at <a href="https://www.rent.com.au/property-apartment-surfers+paradise-4217-516026" target="_blank">3400 Gold Coast Highway</a> (above) is available for $400 a week.
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2010.15.49%20AM.png" alt="" width="583" height="385">
2. A two-bedroom unfurnished apartment at <a href="https://www.rent.com.au/property-unit-surfers+paradise-4217-59967" target="_blank">201-3 Oak Avenue</a> (above) is up for rent at $350 per week.
The ASX-listed Rent.com.au Ltd achieved a record 615,405 unique visitors to its website in January, followed by more than 610,000 unique visitors in February.
Landlords are able to list their property for free in a limited time offer on <a href="https://www.rent.com.au/" target="_blank">rent.com.au</a>.
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jonathanchancellor-7SQnKwU6yx

Apartments dominate recent rental properties in Surfers Paradise: rent.com.au's top searched list

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Poorly performing Brisbane based property development company Devine has posted a $36 million after tax loss.
Its liabilities now exceed assets.
The developer, controlled by construction giant CIMIC, told the Australian Securities Exchange its primary focus was the completion of the strategic review and the upcoming discussions with its primary financier ANZ.
"Currently, there is uncertainty in regard to whether the group can continue to operate as a going concern to realise assets and discharge liabilities in the ordinary course of business."
The company said its results were "extremely disappointing" after three consecutive profit downgrades since August.
The company's chief executive, chairman and chief financial officer have all resigned with Devine's current chairman David Robinson, the only one of eight directors who remain at the company from last year.  
Devine, which has about 3000 shareholders, has also been subject to a takeover bid by CIMIC, with it highly likely that the company could end up delisting. 
The company which is subject to a takeover bid from its largest shareholder CIMIC, formerly Leighton Holdings, largely missed out on the apartment development boom in Brisbane.
Devine has 11,000 dwellings it can develop with about 2500 lots are in Gladstone. 
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jchancellor-FAypfDUnLy

Devine into losses as ANZ financing under cloud

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Following a survey of 23 home insurance brands covering 12 insurers, ASIC is calling for further improvements across the sector to help consumers make good decisions about their home insurance cover.
In response to ASIC's recommendations from October 2014, insurers have made a range of improvements. In particular, most insurers have implemented, or are implementing, the following changes:
<ul>
<li>Incorporating a sum insured calculator into point of sale processes, including through updated sales scripts, and providing better access to online calculators. This helps consumers select an appropriate sum insured amount during the quote and sales process, an important way to help reduce the risk of underinsurance; since October 2014, four additional insurers have made available sum insured calculators in both their telephone and online sales channels.</li>
<li>Training staff so that information provided to consumers about the sum insured, and the maximum amount paid by the insurer, is clear and in plain English; since October 2014, an additional eight insurers have adopted this practice for their telephone sales and an additional 11 for their online sales.</li>
<li>Providing information or assistance to consumers about the effect of changes to building codes which may increase the cost of rebuilding homes after a total loss; since October 2014, four additional insurers have made changes to provide this information.</li>
</ul>
<a href="https://download.asic.gov.au/media/3554171/home-insurance-underinsurance-infographic.pdf?utm_source=Mediarelease&amp;utm_medium=pdfdownload&amp;utm_campaign=Underinsurance"></a>
Although welcoming these changes, ASIC's survey identified that there is scope for insurers to take additional steps. In particular, we would like insurers to help consumers select the right insurance cover by:
<ul>
<li>explaining that the sum insured amount needs to enable complete replacement of contents or complete rebuilding of their home;</li>
<li>providing guidance about coverage or sum insured amounts, rather than simply referring consumers to the product disclosure statement;</li>
<li>referring to the Key Facts Sheet to assist decision making; and</li>
<li>providing information and guidance about natural perils risks and additional rebuilding costs due to natural perils, to better estimate rebuilding costs after a total loss.</li>
</ul>
An example of an initiative that is aimed at providing more information and guidance to consumers is one insurer's website that allows consumers to enter their suburb or postcode and receive targeted information about that area including relevant risks, types of claims, types of weather events, and a dollar figure for how much other consumers in the area insure their building and contents.
ASIC has been working with the insurance industry to better understand barriers to the provision of financial product advice to consumers purchasing home insurance. ASIC has already taken steps to encourage and facilitate insurers operating under general advice models to provide useful information to consumers.
'ASIC is keen to see industry make improvements in all of the areas identified in ASIC's 2014 report,' ASIC Deputy Chair Peter Kell said.
'Our goal is to make sure that consumers buy insurance that better meets their needs – including by helping to reduce levels of underinsurance, especially when there are natural disasters.'
ASIC will continue this work with the insurance industry to further enhance the sector's  ability to assist consumers in purchasing home insurance that better meets their needs.
<h2>Background</h2>
ASIC released two reports in October 2014 exploring consumer experiences with the sale of home insurance.
In Report 415, ASIC reviewed the sales practices of 13 insurers who sell home insurance across Australia. Report 415 found that for sum insured policies, it is important to help consumers to set an appropriate sum insured amount, so that they are adequately insured in the event of a total loss.
Most home insurance policies in Australia are 'sum insured' policies, where the insurer agrees to pay only up to an agreed amount (the sum insured), nominated by the consumer, to repair or rebuild a damaged or destroyed home.
ASIC encourages insurers to inform consumers that the building sum insured amount should reflect the amount that it would cost to completely rebuild their home. Similarly, the contents sum insured amount should reflect the amount it would cost to completely replace all contents with new items at today's prices. The sum insured amount should also reflect the cost to rebuild the consumer's home to meet new building codes and standards, and any other supplementary costs. For information on supplementary costs see MoneySmart's page on <a href="https://www.moneysmart.gov.au/insurance/home-and-contents-insurance/home-insurance-supplementary-costs" target="_blank">home insurance supplementary costs</a>.
Findings from Report 415 were considered in the Financial System Inquiry which called for improved guidance (including tools and calculators) and disclosure for general insurance, especially in relation to home insurance.  The Government has agreed to support work by industry to increase guidance and disclosure in general insurance.<a name="_ftnref2" href="file://a1.asic.gov.au/ds/userHome/miriam.phillips/Desktop/16-053MR%20home%20insurance%20update.docx#_ftn2" title=""> </a>
ASIC also notes and welcomes subsequent industry recommendations targeted at effective disclosure. Some of the Effective Disclosure Taskforce's recommendations align with ASIC's findings, particularly in relation to improving the provision of information to consumers about natural hazard risk, and integrating sum insured calculators into the sales process.
<a href="https://www.moneysmart.gov.au/insurance/home-and-contents-insurance/home-insurance-supplementary-costs" target="_blank">ASIC's MoneySmart website</a> has recently been updated and includes further information on home and contents insurance.
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po-LsXgBTHBmX

Property 101: ASIC calls for further improvements from home insurers 

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GUEST OBSERVER
On Monday, a scarifying account of Tony Abbott’s prime ministership appears in the bookshops. By journalist Niki Savva, The Road to Ruin: How Tony Abbott and Peta Credlin Destroyed Their Own Government will paint a graphic picture of political disaster.
In recent days we’ve seen Abbott step up to an intense level of activity. A 4000-word essay for Quadrant defending his government. A well-publicised dinner with Japanese Prime Minister Shinzo Abe, and effective endorsement of Japan’s bid for the submarine contract. Condemnation of the Safe Schools anti-bullying program in media comments.
And, most significant of all, an intervention in the tax debate at Tuesday’s Coalition partyroom meeting – the first time since losing the leadership he has weighed in at that forum on policy.
Some around the government see a link between the imminent appearance of the Savva book and what Abbott is doing – an attempt at putting his version of the past and seeking, to the extent possible, to erect firewalls. Regardless of whether they’re right, Abbott’s decision to inject himself into the tax debate has significant implications for Malcolm Turnbull.
Abbott is not a threat to Turnbull. But in the context of the volatile tax issue and a vociferous backbench, the amplified voice of a former leader is unhelpful.
Consider where Turnbull is on tax. With the GST change now overboard, he has had to retreat to a modest package. Options still on the table include trimming superannuation concessions, tightening negative gearing, and overhauling deductions, with proceeds used for limited income-tax cuts.
Given previous expectations about reform, many would find the result disappointing even if the government took up all these options. But some backbenchers are pushing back hard especially on negative gearing, buttressing their case by the argument – with obvious attractions for Turnbull – that it is easier to demolish Labor’s policy if the government stays with the status quo.
That was a point Abbott made strongly in the partyroom, when he endorsed the view of a colleague who had expressed discomfort about talk of capping negative gearing.
According to the regular post-meeting briefing, Abbott reminded the partyroom of “two truisms” – that “we don’t have a revenue problem, we have a spending problem”, and “you can’t reduce taxes by raising taxes”. He said Turnbull in parliament had “brilliantly” destroyed the ALP’s tax proposals. But the corollary, he warned, was that the Coalition could not go down the same path itself – or its words would come back to haunt it.
Abbott instead urged the government go down the savings path; savings were very difficult, as the 2014 budget showed, “but we have to revisit that task”.
In another burst of wicked flattery, he said that with Turnbull’s communications skills and the new team, “this can be done and this is the challenge”. “We’re a low-taxing, small-government party, and these are the fundamentals for the cabinet to consider as we finalise the tax package.”
In a return of mutually insincere compliments, Turnbull said leadership was about both continuity and change, and many of the things the Turnbull government was doing represented continuity from the leadership shown by Abbott. He told Abbott that “Scott Morrison and I are completing the process of looking right across the board in our review of the tax system, which you and Joe Hockey started … continuing the process that you, Tony, so openly and courageously began.”
Turnbull finished by congratulating Abbott for opening up the tax debate. It was convenient to overlook that Morrison only recently said that when the new team came in, work had to start on a plethora of options which had been previously taken off the table.
One of those was negative gearing, which Abbott had not wanted touched, despite the inclination of Hockey. At least Abbott is being consistent in saying it should be protected, albeit either disingenuous or weak-headed in suggesting the new salesmen could sell extensive spending cuts before an election.
On negative gearing, the government has turned mute. Morrison is on record about its “excesses”. But Turnbull declined to be drawn on what they are, as the opposition pursued him on Tuesday. The normally imperturbable Finance Minister Mathias Cormann was uncomfortable when pushed on excesses. “The treasurer can talk for himself. I am the finance minister – I look after the expenditure side of the budget.”
Earlier at the party meeting, Morrison, still desperate to get enough money to address – even in a small way – bracket creep, said: “When it comes to tax policy we are dancing on the top of a pin head. We have very few options. There is no burden-free decision in the tax debate. If you choose not to act, you will nevertheless be acting by default and increasing the income tax rate through bracket creep.
“Let no-one think that doing nothing on the tax debate is without consequences.”
A frustrated Morrison might feel he’s on a pin head. For Turnbull – with Tuesday’s Essential poll joining Newspoll in having the Coalition and Labor tied on 50-50 – it feels more like a barb-wire fence.
Michelle Grattan is professorial fellow, University of Canberra and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/michelle-grattan-20316" target="_blank">here</a>.
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Tony Abbott and Malcolm Turnbull wield swords of flattery in negative gearing tax face-off

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The Australian Prudential Regulation Authority (APRA) released its December 2015 quarterly data on property exposures by Australian authorised deposit-taking institutions (ADIs).
The data is always interesting to analyse in order to get further insight into the current state of the mortgage market.
The first data point is residential term loans to households which have a total outstanding balance of $1.384 trillion which has increase by 8.9% over the past year. The total value of outstanding owner occupier loans is $884 billion having increased by 12.8% over the past year and accounting for 63.9% of all outstanding loans. The remaining 36.1% of outstanding loans are to investors, having increased by 2.6% year-on-year to $500 billion. 
Growth in outstanding loans has tilted away from investors to owner occupiers.  After year-on-year growth in investor loans peaked at 18.2% in March 2015 it has slowed to 2.6% growth while owner occupier credit troughed at an annual rate of 2.2% in March 2015, before rebounding to the current annual rate of 12.8% (the fastest annual growth rate since June 2010).
<a href="/images/2016/03/Chart-1-3-580x204.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-1-3-580x204.jpg" alt="">
In terms of the types of loans outstanding, 42.3% have an offset facility, 39.3% are interest-only, 0.2% are reverse mortgages, 2.0% are low documentation loans and 0.1% are other non-standard loans.  The year-on-year change across these loan types has been recorded at: +22.0% for loans with an offset facility, +11.6% for interest-only loans, +1.6% for reverse mortgages, -16.6% for low documentation loans and -5.7% for other non-standard loans.  Importantly, the value of outstanding residential loans for low-documentation loans is now at a record low.
<a href="/images/2016/03/Chart-2-3-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-2-3-580x207.jpg" alt="">
The data highlights that the average outstanding balance on a residential loan is $248,800, up by 1.0% over the quarter and by 4.4% year-on-year.  Reverse mortgages ($95,700), low-documentation loans ($192,800) and other non-standard loans ($195,900) all have much lower outstanding balances.  Meanwhile, loans with offset facilities ($303,700) and interest-only loans ($330,000) have significantly higher outstanding balances. 
The year-on-year changes to the outstanding loan balances have been recorded as follows: +7.2% for loans with an offset facility (fastest year-on-year growth since June 2011), +4.9% for interest-only loans, +2.8% for reverse mortgages (slowest year-on-year growth on record), -1.5% for low-documentation loans and -6.8% for other non-standard loans.  The data shows a slowing in the growth of outstanding loan values for reverse mortgages while riskier lending types (low-documentation and other non-standard) have seen an ongoing fall in outstanding loan amounts.
While the previous data looked at the total value of residential mortgages outstanding, the following data focuses on new residential mortgages over the final quarter of 2015.
Over the December 2015 quarter there was a record-high $98.130 billion worth of new residential mortgages approved, $69.091 billion worth were owner occupied with the remaining $29.040 billion being for investment purposes.  Year-on-year the value of new owner occupier loans is 28.8% higher, its greatest change on record, while investor mortgage lending is -24.9% lower, its largest fall on record.
<a href="/images/2016/03/Chart-3-3-580x212.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-3-3-580x212.jpg" alt="">
Looking at the types of mortgages approved over the quarter: a record low 0.3% were low-documentation, 37.0% were interest only which was its lowest proportion since March 2013, 0.1% were other non-standard loans, 47.4% were originated by third parties and 3.7% were loans approved outside of serviceability.
Focussing on the year-on-year change; low documentation loan approvals are -41.8% lower (their largest year-on-year fall since March 2013), interest-only loan approvals are -11.0% lower (their largest year-on-year fall since March 2009), other non-standard loan approvals are up 28.2% (their largest year-on-year increase since December 2013), third party originated loans are up 6.2% and loans approved outside of serviceability are up 41.3%.  The data indicates there has been a significant pull-back in low-documentation loans and interest-only loans. 
At the same time, non-standard and loans approved outside of serviceability are rising significantly which may be a potential point of concern for APRA.  Although they make-up a small overall proportion of lending it will be something to keep a close watch on over the coming quarters especially since both have also recorded a quarterly increase.
<a href="/images/2016/03/Chart-4-3-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-4-3-580x207.jpg" alt="">
Finally the data breaks out new lending by loan-to-value-ratio (LVR) bands.  Over the quarter, 23.4% of all new loans had an LVR of less than 60%, 53.4% had an LVR of between 60% and 80%, 14.5% had an LVR of 80% to 90% and 8.7% had an LVR of more than 90% which was its lowest proportion on record. 
Looking at the year-on-year changes, the value of lending for LVRs of less than 60% was 16.1% higher, LVRs of between 60% and 80% increased 6.1%, LVRs of 80% to 90% increased 14.3% and LVRs greater than 90% fell by -20.1% which was the largest year-on-year fall June 2010.  Based on the data it is clear that lenders have been tightening lending requirements over recent quarters which has led to a sharp decline in new mortgage lending for LVRs above 90%.
Overall the data indicates that the market is responding to regulatory changes in the lending space implemented over the past year.  There is less new lending to high LVRs, fewer low documentation and interest-only mortgages being written. 
On the other-hand some other potentially more risky lending types such as non-standard and outside of serviceability loans are continuing to rise.  It will be interesting to see whether APRA starts to look to crack-down on some of these types of lending in order to ensure stability within the mortgage market.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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APRA data shows a further tightening of lending standards: Cameron Kusher

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GUEST OBSERVER
There have been no surprises from the RBA which left interest rates on hold at its March meeting. This marks the tenth month in a row with the cash rate remaining at 2 percent.
In its Statement accompanying the decision, the RBA made very little changes: continuing to sound less upbeat on the global economic outlook, acknowledging the volatility in financial markets, continuing to see inflation remaining low and seeing property price gains 
in Sydney and Melbourne as having moderated.
The RBA also indicated that it is continuing to wait for more information in order to be able the impact of financial turbulence on the Australian economy and to assess the labour market. 
However, it did make too substantive changes to its post meeting Statement. In removing a reference to above average levels for survey measures of business conditions and in saying that “continued low inflation would [as opposed to “may” in the February Statement] provide scope for easier policy, should that be appropriate…” the RBA appears to have strengthened its easing bias somewhat.  
Our view remains that the RBA will cut interest rates again this year reflecting the risks around the global economy, weaker than expected commodity prices, still subdued growth in Australia at a time when the contribution from housing construction is slowing, a more dovish Fed threatening a higher Australian dollar and continued low inflation. However, this may not come till May. Given the RBA’s focus on inflation the March quarter CPI to be released in late April will be worth watching.
However, whether there is another rate cut or not from the RBA, it remains very hard to see rate hikes any time soon. So the period of low interest rates is set to continue.
<a href="/images/2016/03/image003.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/03/image003.png" alt="">
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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RBA on hold as expected, but signals a slightly stronger easing bias: AMP Capital's Shane Oliver

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An off-shore developer recently paid $7.2 million for a 1612-square-metre site in Doncaster, setting a new land record for the suburb. The site on 1027-1029 Doncaster Road had a square meter price of a whopping $4,467. How is it Doncaster along with other eastern suburbs such as Glen Waverley and Mt Waverley witnessed these crazy sales prices, and will the trend last through 2016?

Doncaster of course is relatively close to the city which makes it a very attractive place to commute from. The rising number of apartments along Tram Road and Doncaster Road has set a new trend for living for both the young and the downsizer market. Along with townhouse developments of varying densities, apartments are popping up everywhere along the main roads, generally in close proximity to activity centres.

The amount of foreign investment in Doncaster is significantly on the rise and most of the investment flows from China; these investment savvy land dragons are still keeping their eye on the area. As such Architeria Architects are designing more and more townhouse developments as well as apartments in the eastern suburbs as there seems to be an ever increasing demand for good architecture and great living in these areas.

Doncaster is also considered as a good location from a Feng Shui perspective as it is positioned high, looking down at the CBD. It is the 'Head of the Dragon' and with its close proximity to Box Hill and Westfield Shopping Centre, it's a very favourable place to invest and live in. No doubt that overseas demand has driven up property prices and homeowners in Doncaster have been enjoying gains, as have residents in Mt Waverley and Glen Waverley. These three suburbs along with Balwyn are the eastern suburbs most in demand.

Michael Morris, sales representative at Appleby Real Estate is in agreement that the eastern suburbs are rocking. For many years a market leader in the eastern and south eastern Melbourne metropolitan areas, Appleby Real Estate is well known and highly regarded, having regularly delivered its services to consecutive generations of local families and businesses.

Michael Morris took some time off his busy schedule to answer some of my questions regarding the real estate market in Melbourne's eastern suburbs and also my curiosity in relation to the future of apartment living in general.

How is the current market in the eastern suburbs compared to Melbourne in general?

We have seen strong growth Kate – Appleby’s is breaking records in our area and have not seen any decline. Suburbs such as Croydon, Bayswater, Boronia, and Ferntree Gully, for example, have been, and still are, affordable. So the slight slump in the overall market hasn’t impacted our local area because of continued demand.

Which suburbs do you see as the ones where prices are increasing?

Again, we are seeing steady growth in Croydon, Heathmont, Bayswater, Boronia and Ferntree Gully, because property is still affordable, which makes these areas popular for developers, investors and first home buyers. There is certainly money to be made in these suburbs.

There is a lot of talk about a bubble in the property market that may burst. What are your thoughts on this?

My thoughts are the same as they have always been, and what I have seen in my twenty years of living in this magnificent city; Melbourne is the most liveable city in the world with the best people in the world; 70,000 people move here every year. At any given time we are short some 7,000 homes for these families.

My first Burwood property was purchased for $180,000 in the late 90s which we thought was outrageous. We sold it ten years later for $770,000. It is now back on the market having been subdivided with plans and permits for a three level townhouse in the back for $1.6million.

So in an almost twenty year life cycle it has gone from $180,000 to $1,600,000. I have talked to couples who couldn’t believe paying 25K for their home in Blackburn thirty years ago. It is now worth $2,500,000. That’s Melbourne for you.

There was recently a sale in Doncaster where the price per square metre went beyond the $4,000 mark. Will we be expecting more crazy sales prices like this triggered by auctions?

Possibly. It all depends on the location and what you can do with it. Developers have their numbers figured out well and truly ahead of an auction. If it works for them financially they’ll pay whatever.

Chinese developers and investors are often blamed for prices rallying and there are worries that first time home buyers can’t afford to buy in to the market due to this. What are your thoughts on this?

Between APRA and the Federal Government I think we’ve seen more opportunities for first-time home buyers in the last couple of months. However, it is often these Chinese developers and investors that are creating the affordable first-time home purchases such as apartments, units and townhouses, for young individuals and couples to buy. If first-time home buyers purchased off the plan they would find very affordable housings purchases and save a lot of money in all markets.

Will Melbourne be following in the footsteps of other big cities in America and Europe where apartment living is dominating? With this I mean, do you think that the new generation of people and with the increasing migration, people may consider trading their backyards in to apartment living instead.

My first two homes in Melbourne were apartments, one in Southbank and then the other in South Melbourne, and I loved it! But after your third child you need a little more room to move. My wife and I plan on moving back to apartment living when our kids are grown. Coming from the San Francisco Bay Area I concur that apartment living has its benefits and will continue to grow in popularity with all generations and cultures.

With Melbourne’s public transport system, walk ways, bike paths and parks apartment living is truly enjoyable not to mention imperative for our sustainable growth. It is amazing to live in a city where car ownership is optional without diminishing your lifestyle. Apartment living is our future.

Who is the typical client looking for apartments in the Eastern Suburbs?

 We have such a diverse clientele: We have over three thousand landlords on our books who are always looking for their next investment property. We have mums and dads who are looking to downsize and would like an apartment that they can enjoy for themselves yet leave without concern as they travel the world.

We also have young singles and couples looking for their first home, not wanting to pay rent. The demand for quality projects is astounding and it is our experience that there is not enough supply currently to meet that demand.

What defines a good apartment?

I have seen excellent apartments and I have seen poorly designed apartments, and I have sold and lived in both. My advice to developers: Be generous with your floor plan in terms of size and you will sell more units, quicker.

Location is key but also considers vantage points. If one is going to live in an apartment, at least ensure it has a view. And if you can bring some pizazz to the foyer, common area, gym, pool, gardens, and make it truly exciting your owner-occupiers and tenants will be your best advertisers. As one successful builder once quipped; I don’t build anything I wouldn’t live in myself. We never get to market his product. It sells before we can.

It sure sounds like we have just touched the tip of the iceberg when it comes to apartments. The eastern suburbs will continue to grow, evolve and have more to offer its population. We at Architeria Architects are excited to be part of this continuous growth and contributing with our fresh design approach, creating great living.

Kate Gawi is the Co-Founder of Architeria Architects. Along with Principal Architect Mel Gawi they lead the team at <a href="http://www.architeria.com.au/">Architeria Architects</a> which has a rapidly expanding workbook of Melbourne projects.
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Kate Gawi

Apartments: the future of living in the eastern suburbs?

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GUEST OBSERVER
The cash rate has been left at a record low of 2.00 percent for a 10th month (11 months of rates at 2 percent).
The Reserve Bank Board has not adjusted commentary on the Australian dollar, implicitly signalling that the currency is broadly where it should be. The real trade weighted index is near 6-year lows.
What does it all mean?
The Reserve Bank adopted a ‘conditional easing bias’ in November 2015. That is, the Reserve Bank indicated at the time that scope existed for lower interest rates “should that be appropriate to lend support to demand.” But while the Reserve Bank has indicated that rate cuts are more likely than rate hikes, it is no closer to acting on that bias. In fact, the more likely situation is one where interest rates remain on hold for a prolonged period.
It’s not hard to work out why stable rates are the preferred course of action. In simple terms, the economy is doing OK and doesn’t need a kick along. Clearly the economy could be doing better and the Reserve Bank would be hoping that its forecast for stronger growth proves to be right. But it is by no means becalmed. 
Dwelling starts are at record highs, so are car sales, so are tourism numbers. And while there has been some easing of home
demand in Sydney, Melbourne remains strong and other cities are recording stronger conditions. Hobart home prices are rising at the fastest annual rate in 5ó years.
The housing market had been a source of angst for the Reserve Bank. But conditions are becoming more balanced across cities and regions.
The Reserve Bank has maintained its positive commentary on the Australian economy and its cautious view of the global economy. “…the available information suggests that the expansion in the non-mining parts of the economy strengthened during 2015 despite the contraction in spending in mining investment.”
Is the Reserve Bank worried about the recent lift in the Australian dollar? Not in the least. The commentary on the Aussie was brief: “The exchange rate has been adjusting to the evolving economic outlook.”
Perspectives on interest rates
The previous rate cut was in May 2015 (25 basis points), taking the cash rate to a record low of 2.00 per cent.
There have been 10 rate cuts since November 2011.
The Reserve Bank had previously lifted rates seven times from October 2009 to November 2010 – a total of 1.75 percentage points, from 3.00 percent to 4.75 percent.
What are the implications of today’s decision?
CommSec doesn’t expect any change in the cash rate for the foreseeable future. Underlying inflation remains at the bottom of the 2-3 percent target band but should lift over 2016 as import prices gradually lift in response to a weaker exchange rate.
<a href="/images/2016/03/Screen%20Shot%202016-03-01%20at%203.07.41%20PM.png" target="_blank">Click to enlarge</a>
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Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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Reserve Bank keeps rates at record lows: CommSec's Craig James

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Statement by Glenn Stevens, Governor: Monetary Policy Decision
<h3 id="mr-title">Statement by Glenn Stevens, Governor: Monetary Policy Decision</h3>
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At its meeting today, the Board decided to leave the cash rate unchanged at 2 per cent.
Recent information suggests that the global economy is continuing to grow, though at a slightly lower pace than earlier expected. While several advanced economies have recorded improved growth over the past year, conditions have become more difficult for a number of emerging market economies. China's growth rate has continued to moderate.
Commodity prices have declined very substantially over the past couple of years. This partly reflects slower growth in demand but also, in some key instances, large increases in supply. The decline in Australia's terms of trade has continued.
Financial markets have once again exhibited heightened volatility over recent months, as participants grapple with uncertainty about the global economic outlook and policy settings among the major jurisdictions. Appetite for risk has diminished somewhat and funding conditions for emerging market sovereigns and lesser-rated corporates have tightened. But funding costs for high-quality borrowers remain very low and, globally, monetary policy remains remarkably accommodative.
In Australia, the available information suggests that the expansion in the non-mining parts of the economy strengthened during 2015 despite the contraction in spending in mining investment. This was reflected in improved labour market conditions. The pace of lending to businesses also picked up.
Inflation is quite low. With growth in labour costs continuing to be quite subdued as well, and inflation restrained elsewhere in the world, inflation is likely to remain low over the next year or two.
Given these conditions, it is appropriate for monetary policy to be accommodative. Low interest rates are supporting demand, while supervisory measures are working to emphasise prudent lending standards and so to contain risks in the housing market. Credit growth to households continues at a moderate pace, albeit with a changed composition between investors and owner-occupiers. The pace of growth in dwelling prices has moderated in Melbourne and Sydney and has remained mostly subdued in other cities. The exchange rate has been adjusting to the evolving economic outlook.
At today's meeting, the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target. The Board therefore decided that the current setting of monetary policy remained appropriate.
Over the period ahead, new information should allow the Board to judge whether the improvement in labour market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand. Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand.
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