Nature Based Cities (NBC), the not-for-profit organisation focused on improving biodiversity and nature outcomes in urban development, has launched its latest industry design guidelines and accreditation framework, this time targeting precinct-scale residential communities.

The move extends NBC’s influence beyond its initial focus on medium and high-density residential developments. Several projects have already achieved NBC accreditation since the launch of its Medium &amp; High-Density Residential Guidelines in early 2025.

The expansion into masterplanned communities and new residential precincts reflects the growing need for stronger nature-positive benchmarks as Australia’s outer suburban growth corridors continue to expand at pace.

Paul Hameister OAM, NBC Founder and the Executive Chairman of Melbourne developer Hamton who itself leans heavily into nature and biodiversity in its developments, says the&nbsp;nature-first approach to mitigate the effects of climate change has become standard in other parts of the world such as the UK, but Australia is lagging.&nbsp;Australia’s environmentally sustainable design (ESD) rating tools have no minimum mandatory requirements for living landscapes.

“We’ve always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren’t there,” Hameister says. “In Australia, you can have a five-green-star rated building that’s concrete and glass with not a blade of grass. 
 
“The focus is on reducing emissions, which is laudable, but there hasn’t been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities.”

He says that having now&nbsp;made good progress in supporting developers of medium and high-density residential projects, NBC is now looking to bolster better nature-based decision-making and recognise developers of greenfield projects in the outer ring and large inner-ring brownfield precincts, who want to champion nature and living landscape as a defining feature.

Since 2022, the not-for-profit has sought to remove the roadblocks preventing developers from incorporating nature and living landscapes into their projects, shifting the conversation from the reduction of emissions and grey infrastructure, toward recognising nature as an essential infrastructure.

The New Communities Design Guidelines and Scorecard arm developers with the tools needed to deliver a nature positive outcome for their new communities. Intended to be adopted at the outset of the planning process, the guidelines are designed to help create communities that are cooler, healthier and more resilient while also enhancing social wellbeing and long-term economic value.&nbsp;

New Communities developers seeking accreditation will be independently assessed across a range of key criteria including ecology, tree canopy, biodiversity, and walkability. Once the masterplan is complete and submitted for approval, the scorecard is formalised based on proposed outcomes. Projects that meet the NBC criteria will receive either Commended or Exemplary accreditation outcomes, creating a clear benchmark for nature-positive new communities in Australia.&nbsp;

Janis Fischer, Director at Tract and NBC Advisory Council member, said the development of new communities in our suburbs can have a substantial impact on nature and biodiversity.

"By incorporating nature-based design principles at the inception of a project, developers and their design teams can achieve nature positive outcomes that are good for both people and the planet.’’&nbsp;

NBC accredited New Community projects will gain access to NBC branding and marketing tools to help communicate their nature-based credentials to purchasers and the broader market.&nbsp;

Joel Robinson

Nature Based Cities: A new Australian benchmark for developing nature-positive new communities

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<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/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.

The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.

The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.

Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.

Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.

The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" />

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.

"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."

"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."

The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" />

DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.

Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.

"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."

The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.

If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.

<h2>Project Snapshot</h2>

Project: Honeysuckle Garden Redevelopment

Address: 494-516 Military Road, Mosman

Developer: Abadeen and Phoenix Property Investors

Architect: DKO Architecture

Lead Architect: Matthew Ritchard

Value: $230 million

Residences: 100 apartments

Key features:

<ul>
	<li>
	Ground-floor retail
	</li>
	<li>
	Rooftop wellness precinct
	</li>
	<li>
	Gym and sauna
	</li>
	<li>
	Outdoor entertaining and BBQ areas
	</li>
	<li>
	Landscaped communal gardens
	</li>
	<li>
	Multi-use recreation court
	</li>
	<li>
	Retained mature blue gum tree
	</li>
	<li>
	Connecting with Country design process
	</li>
	<li>
	Harbour, CBD and Balmoral views from upper-level apartments
	</li>
</ul>

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

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>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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Light rail upgrades within Sydney's inner east is tipped to push up the value of local apartments by a possible 20 percent, a real estate agent has predicted.
Greencliff executive director David Butt said additional and improved transport in and out of the CBD is key to residential planning as fewer apartments are sold without car spaces and options such as car sharing are becoming more popular. 
"Potential investors are aware that the light rail and the redevelopment of George Street into a pedestrianised street is going to have a huge flow-on affect to residential buildings on or near the street with more people wanting to live in these apartments and the rentals and sales prices are increasing as a result," he said.
“We are actually seeing prices increase as construction progresses – the further along construction is delivered, the higher prices grow.
"Providing additional and improved transport in and out of the CBD is key to residential planning as fewer apartments are sold without car spaces and options such as car sharing are becoming more popular."
<a href="https://dulwichgreen.com.au" target="_blank">Dulwich Green</a>, (above) a development project marketed by Greencliff, is located just 10 minutes to Dulwich Hill Light Rail Station, part of the newly completed Inner West Light Rail Extension.
The start of the light rail construction around the Lumiere Residences at 101 Bathurst St, (below) managed by Frasers Property, had piqued interest in further sales, he said.
<img src="/images/2016/01/28/Lumiere.jpg" alt="" width="1465" height="2191"> 
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jchancellor-FAypfDUnLy

Apartments on the new Sydney Light Rail corridor likely to see price growth of up to 20 percent

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Kevin Turner, host of Australia's most listened to property podcast RealEstateTalk tweeted an estimated apartment completion chart this morning. 
The high-rise hotspot chart shows Melbourne's CBD and the Docklands have the most estimated potential apartment completions by 2017.
Sydney's CBD and Parramatta come third and fifth in the list with a combined 4,500 apartments.
Victoria have 11 suburbs in the list, New South Wales have six, Queensland have two and South Australia have one.
 
<img src="/images/2016/01/29/Screen%20Shot%202016-01-28%20at%2010.18.44%20am.png" alt="" width="523" height="506"> 
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jrobinson-rf4aSBido9

Tweet of the day: Melbourne tops estimated apartment completion chart

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Homeowners trying to sell their homes on their own — for-sale-by-owners (FSBOs) — are courted by emerging disruptive websites.
Most of them want to save money on real estate commissions, rather than because they feel they don’t need a professional to sell their home.
Recent data from a National Association of Realtors survey in the United States shows that less than 10 percent of FSBOs actually sell.
The Inman site listed some of the top reasons why FSBOs fail in real estate.'
1. Owners do not know how to screen potential buyers and fail in the closing process.
2. Owners fail to solve buyer’s queries.
3. Owners don’t understand the concept of ‘golden time’, as according to this concept, homeowners get the most money for their homes shortly after of putting the property on the market. 
4. Owners fail to understand the contract procedures.
5. FSBOs don’t know how to handle the home building inspection findings.
6. FSBOs incorrectly price their homes too high.
7. FSBO homes lack exposure.
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Property 101: Why for sale by property owners fail

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It’s a marvel that Australia has any regional cities left.
Every time there’s a major (and sometimes relatively minor) business reversal, media declares the death of the local economy and often the collapse the local property market.
Legendary author Mark Twain could have been speaking for Newcastle, Wollongong, Geelong and many other regional cities when he said that “the reports of my death have been greatly exaggerated”.
The latest Australian regional city to inspire a premature obituary is Townsville in the wake of the decision by political and business buffoon Clive Palmer to shed 237 jobs at his Queensland Nickel refinery. 
As has become common in the wake of such events, the media coverage has been a tad over the top since the announcement. I’ve seen reports predicting devastation of the local economy. One suggested Townsville would become “a ghost town”.
Admittedly some of the dire forecasts have been sourced from sacked workers who were understandably emotional.
But beyond the unfortunate impacts on the affected families, the downsizing of the Queensland Nickel business is not a catastrophe for Townsville.
The northern Queensland city is one of Australia’s strongest regional economies. It has wonderful diversity, with a broad range of strong industry sectors providing employment and economic activity.
It has a major (and expanding) military presence, a massive government sector, a significant education industry, a busy tourism industry and various activities related to the resources sector, among others. 
Few Australian regional cities can match it for strength and diversity.
A couple of years from now the Queensland Nickel kerfuffle will be seen as a minor blip in the economic life of this very strong city.
Townsville is not the first regional economy to be declared terminal and it won’t be the last.
Last rites have been administered in recent years to both Wollongong and Geelong, which nevertheless remain very much alive and kicking.
Wollongong was proclaimed an impending basket case when Bluescope Steel announced some major downsizing in 2011. Media went overboard. I recall one headline predicting that property values would fall 50%.
But something quite different occurred. The Wollongong property market has recorded strong price growth in the years since, partly because it caught the wave from Sydney and partly because of positive events in the local economy. 
What the doomsayers overlooked when they over-reacted to the Bluescope Steel job cuts is that there are a lot of  other things happening in Wollongong besides the smokestack industries. Like many other regional cities, Wollongong has been busily reinventing itself and these days has strong industry sectors in education, IT and tourism, among others.
The gradual decline in employment at the steelworks has been going on since the 1970s. Back then, Bluescope Steel employed 27,000 people. Today it provides jobs to only 10% of that number. In the meantime, Wollongong has moved on and created new modern industries to sustain itself.
It’s doing just fine.
So is Geelong, although it should have shuffled off this mortal coil before now, in the wake of bad news about the Ford car plant and one or two other old-style industries. 
But, like Wollongong, Geelong isn’t a blue collar factory town any more. Its biggest employment sectors are eduction and health. The city is thriving as an affordable lifestyle alternative to Melbourne, to which it is now better connected since the completion of the $5 billion Regional Rail Link.
Major new enterprises are opening up in Geelong. One is the National Disability Insurance Scheme, which is being headquartered in Geelong and is attracting other enterprises that want to be located near it.
In real estate terms, Geelong is the strongest market in regional Victoria and I don’t expect that to change any time soon.
There are echoes in this situation also of Newcastle, which was expected to wither and die following the closure of BHP activities in the late 1990s. But check it out today and you’ll find a strong and vibrant city where spending on new infrastructure and property developments totals many billions of dollars. 
And so it will be with Townsville. I’m sure those 237 people who are losing their jobs are suffering (I’ve experienced retrenchment a couple of times in my life and it’s not pleasant) but Townsville as a community and as an economy will not be devastated. 
We’re talking 237 jobs in a city of 200,000 people. Even allowing for flow-on effects, Townsville’s future is as strong as ever.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

Townsville economy will weather mining downturn: Terry Ryder

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GUEST OBSERVER
Yesterday's Q4 CPI numbers showed the RBA's preferred measures of underlying inflation are at the bottom edge of the 2-3% target band. The trimmed mean was 2.1% y-o-y (market had 2.1%), while the weighted median was 1.9% y-o-y (market had 2.1%) and the average of the two was running at 2.0% y-o-y. These numbers were in line with the RBA's own forecast for Q4 from its November official statement.
Importantly, the RBA also remains more focused on the recent lift in jobs and activity indicators, so we expect them to be on hold next week. However, with inflation at the bottom edge of the target band and growth unlikely to be above trend this year, we think another cut is likely around mid-year (pencilled in for Q2).
Facts
The trimmed mean rose by 0.6% q-o-q in Q4 (market had 0.5%) and by 2.1% y-o-y (in line) while the weighted median was up 0.5% (in line) and 1.9% y-o-y (market had 2.1%). The CPI excluding 'volatile items' was up 2.1% y-o-y in Q4, which was unchanged from last quarter.
CPI inflation was 0.4% q-o-q and 1.7% y-o-y (market expected 1.6%).
Tradable inflation was 0.5% q-o-q and 0.8% y-o-y (up from -0.3% previously). Non-tradable inflation was 0.4% q-o-q and 2.3% y-o-y (down from 2.6% previously).
The largest positive contributions to inflation in the quarter were from alcohol and tobacco (up 2.7% q-o-q, driven by an increase in tobacco excise) and recreation and culture (up 1.6% q-o-q, driven by higher prices for domestic and international holidays).
The largest negative contributors in the quarter were transport (-1.4% q-o-q due to lower petrol prices) and communications (-2.4% q-o-q due to falling prices for telecommunication equipment and services).
Implications
Underlying inflation this low is usually a recipe for an RBA cash rate cut. But not this time: or at least not yet. Late last year, the RBA Governor, Glenn Stevens, made it clear that the RBA was prepared to be more tolerant of low inflation, for a number of reasons, including: that low inflation is a global force, so the RBA may not be able to do much about it; that the RBA already has its cash rate at a record low of 2.00%; and, that the RBA sees risks to financial stability if it cuts further and were to drive an additional lift in housing prices.
Importantly, for the moment, the RBA can afford to tolerate low inflation because the jobs and activity indicators have been lifting. The unemployment rate fell to a two-year low of 5.8% in December and a key survey also shows that business conditions have been around 7-year highs recently (albeit falling back a little in the December print). While the labour market and activity surveys are still holding up, the RBA is unlikely to cut rates. This pretty much rules out a cut next week.
However, as today's CPI numbers confirm, underlying inflation is no constraint on the RBA's scope to cut rates, if they deem it necessary and useful for supporting growth. At the same time, we expect growth to remain a bit below trend this year and recent global developments, particularly in China, suggest the risks to the growth outlook are tilted to the downside. 
A fourth year of below trend growth is expected to continue to weigh on the outlook for Australian inflation. The recent fall in oil prices is also a clear downside risk to the inflation outlook. In short, we do not see enough growth momentum to get inflation back to the mid-point of the target band this year.
What will trigger the RBA to move?
In our view, some pullback from the strong pace of jobs growth or the high level of business conditions, combined with a continued cooling of the Sydney and Melbourne housing markets may be enough to convince the RBA that another cut may be needed. 
Of course, a further fall in the AUD, perhaps to US60-65 cents, could do the work for them, but the currency does seem to be quite sticky around the US70 cent level.
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%202.43.19%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%202.43.19%20PM.png" alt="" width="705" height="320">
 
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%202.44.53%20PM.png">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%202.44.53%20PM.png" alt="" width="825" height="369">
Paul Bloxham is chief economist (ANZ) for HSBC . Daniel Smith is economist. They can be contacted <a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">here</a>.
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Inflation is low, but unsurprisingly so: HSBC's Paul Bloxham

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GUEST OBSERVER
There is no better indicator of the success of a city than the numbers of people who want to visit, live and work there. But this success creates demand for space, which is increasingly hard to come by in a growing number of world cities. This is especially the case on constrained land and historic sites, where expansion potential is limited. 
<h2>Worldwide increases in tourism</h2>
According to the UNWTO World Tourism Barometer, worldwide international tourist arrivals reached 1,138 million in 2014, a 4.7% increase over the previous year, and have already increased by 4% in the first half of 2015.
The Savills 12 Cities Report (which examines worldwide trends) found that nine of the 12 cities included in the report were featured in the top 20 worldwide for international overnight visitors. London topped this list with 18.8 million overnight visitors in 2014, and a huge 300,000 visitors every night.
Although cities in Australia tend to receive a smaller amount of international visitors in comparison to some of the world's top tourist destinations, international visitation is still increasing. According to Tourism Research Australia, Australia saw a 7% increase in international visitors in 2015, which has also led to a growth of 10% for international visitor spend.
This growing trend means that world cities need to consider how to accommodate an increasing number of international visitors. International business people, if they continue to invest in a city, will want to spend time there. The quality, availability and convenience of accommodation – owned or rented – is an important component of city investability and economic success.
<h2>The question then becomes how to accommodate all these visitors</h2>
Governments will need to look at ways to sustainably develop and increase the density of their cities, and extend their reach, or a combination of the two. This means construction and transport infrastructure are likely to remain high on the list of priorities for some time to come.
In addition, certain businesses such as Airbnb have emerged over the past five years to revolutionise how we perceive available space in a city. Instead of building new space, Airbnb connects travellers with pre-existing space (rooms, apartments or whole houses already built). 
New technology and the digital space has allowed this new accommodation platform to disrupt the traditional travel industry, and Airbnb has already hosted more than 50 million guests worldwide, with 1.5 million properties currently listed around the world. 
<h2>Lack of space leads to rising rents </h2>
The inability to keep pace with accommodation demand has created cost pressure, which is why rising rents are a common feature of world cities.
The average accommodation cost per person in the Savills Executive Unit (SEU)* and their household in the 12 cities featured in the Savills 12 Cities Report is now $74,945, compared to $68,538 in December 2008. So despite the recession of 2008-2010, when average live/ work accommodation costs fell by 5%, rents are rising faster than city GDP growth in most jurisdictions.
The biggest rise has been seen in San Francisco, but high live/work rental growth has also been seen in other cities since 2008; New York, Los Angeles, London and Sydney have all seen rents spike between 18% and 28% during this time.
To learn more about the trends across world cities, view the Savills 12 Cities Report <a href="https://pdf.euro.savills.co.uk/global-research/12-cities---h2-2015.pdf" target="_blank">here</a>.
 
Tony Crabb is Savills Australia’s national head of research and can be contacted <a href="https://www.savills.com.au/blog/author/109174/Tony" target="_blank">here</a>. 
 
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How will the world’s top cities cope with the increase of visitors? Savills' Tony Crabb

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The Australian inflation rate figures have been released showing a 0.4 percent increase in the December quarter 2015, or 1.7 per cent year-on-year.
The consumer price index data, released by the Australian Bureau of Statistics, also showed underlying inflation slightly higher than expected, at 0.6 per cent for the December quarter, or 2.1 per cent year-on-year. 
The Consumer Price Index increase follows a rise of 0.5 percent in the September quarter 2015 according to the Australian Bureau of Statistics.
The most significant price rises in the latest quarter were in tobacco (+7.4 percent), domestic holiday travel and accommodation (+5.9 percent) and international holiday travel and accommodation (+2.4 percent).
The rises were partially offset by falls in automative fuel (-5.7 percent), telecommunication equipment and services (-2.4 percent) and fruit (-2.6 percent).
The increase of 0.1 percent for the housing group is the weakest movement since March quarter 1998 as prices rise for rent (+0.2 percent) and new dwelling purchase by owner occupiers (+0.1 percent) have been subdued through the quarter.
The 0.1 percent rise for new dwelling purchase by owner occupiers is the weakest movement since March quarter 2014.
The CPI rose 1.7 per cent through the year to the December quarter 2015, following a rise of 1.5 per cent through the year to the September quarter 2015.
AFR contributor Christopher Joye was one of the first to take to twitter, as Commsec and Stephen Koukoulas tweeted the increase in the Australian dollar.
 
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%2011.40.23%20am.png" alt="" width="434" height="173">
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%2011.44.28%20am.png" alt="" width="442" height="146">
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%2011.45.24%20am.png" alt="" width="580" height="211">
 
Craig James at Commsec noted inflation "remains in Goldilocks territory – not too hot, not too cold, but broadly just right."
He advised it was pretty clear that inflation is not a threat to the domestic economy, meaning that the Reserve Bank can comfortably keep interest rates at exceptionally low levels over the medium term.
"Domestic inflationary pressures remain well contained and given the slow growth in wages it is unlikely to result in a change to the domestic inflation landscape. In addition the ongoing slide in oil prices will offset any lift in imported inflation due to the weaker Australian dollar.
"The headline inflation measure rose by a mildly larger-than-expected 0.4 per cent in the December quarter.
"And while the underlying measures were also mildly higher than expectations, the annual growth rates were at the low end of the Reserve Bank’s 2-3 per cent target band. The average of the three key underlying inflation measures lifted by 0.6 per cent in the quarter to be up 2.0 per cent over the year."
"And while the door remains ajar when it comes to the likelihood of another rate cut, CommSec expects the Reserve Bank to keep rates on hold over 2016."
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Tweet of the day: Inflation slightly above consensus

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<h4> </h4>
GUEST OBSERVER
It’s been a shaky start to 2016 for global stock markets, with substantial falls across all international markets, followed by some weak rallies.
The overall decline has been partly blamed on the price of crude oil, which is hovering around US $30 a barrel down from $100 over a year ago, along with market fears on the overall health of the Chinese economy.
The headlines tell us markets are sinking in the sea of oil. A measure of fear in the stock market, the widely quoted Chicago Board Options Exchange volatility index, is also closely tracking the oil price, adding to the gloomy picture.
However the most likely driver of further market deterioration is not a further decline in oil prices, but the negative sentiment itself. This is due to a flaw in the way analysts ascribe value in markets that <a href="">behavioural economists</a> call “anchoring bias”.
This is the idea that people tend to start from what they know and then attempt to make appropriate adjustments based on this. Over 40 years of research has found that these adjustments tend to be insufficient.
Everyone can be prone to this bias, there are a few studies that demonstrate this. For example, when people were asked which year George Washington became the first US President, most would start from the year the US became a country (in 1776). They would reason that it might have taken a few years after that to elect the first president so they add a few years to 1776 to work it out, coming to an answer of 1778 or 1779. George Washington actually became president in 1789.
Similarly, most people would know the freezing point of water (0 degrees celcius) as compared to vodka. So if they were asked what the freezing temperature of vodka is, they would tend to start from 0 and adjust downwards. The freezing temperature of vodka is around -24 degrees celcius, much lower than what people usually answer.
Both these examples demonstrate how the reasoning associated with anchoring bias leads to people falling significantly short of the right answer.
In the case of the stock market, analysts look to the performance of blue-chip stocks linked to commodities like oil because they are associated with large, well established companies with time-tested business models. There are large data sets available with which to analyse these stocks.
However less than 4% of companies are classified as blue-chips globally. What about the remaining 96%? To value them, analysts may start from the payoffs of blue-chips and then attempt to make appropriate adjustments for size and other differences.
The overreaction of the market in relation to oil prices is further exposed by the fact that lower oil prices aren’t all bad news. Low oil prices can be good for countries that import oil as well as their consumers, retailers and industry. Higher production of goods drives cheaper prices leaving more money in the pockets of consumers to spend.
Other economic indicators also tell a very different story to the oil price. Job numbers are good both in the European region and US, and growth seems to be picking up.
In fact, based on encouraging data, Fed has recently raised interest rates for the first time after nine years. The slowdown in China is not the giant collapse that some were fearing.
If analysts and investors continue to display anchoring bias and the oil price drops, it could become a self fulfilling prophecy where a prolonged market slump cuts off investment, reduces consumption, and pushes the global economy into a recession. Central banks will do what they can to prevent this from happening by talking of quantitative easing. However, the interest rates are already near zero so they do not have much room to move.
Hammad Siddiqi is research fellow in Financial Economics, The University of Queensland and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/hammad-siddiqi-156874" target="_blank">here</a>.
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Property 101: Behavioural economics: How hidden bias is sinking global stock markets

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GUEST OBSERVER
How are Australia’s states and territories performing? Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.
Just as the Reserve Bank uses long-term averages to determine the level of ‘normal’ interest rates; we have done the same with key economic indicators. For each state and territory, latest readings for the key indicators were compared with decade averages – that is, against the ‘normal’ performance.
NSW has retained top spot as the best performing economy, edging a little further ahead of Victoria. Both states are maintaining a healthy lead over the other states and territories.
The big change over the past quarter has been the lift of the ACT economy to equal third position alongside the Northern Territory. Western Australia has dropped from fourth to fifth. But there is little to separate the ACT and the Northern Territory in the second grouping of economies. In the third grouping of state and territory economies, Queensland is sixth ranked, ahead of the South Australia (seventh) and Tasmania (eighth).
 
 
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.38.04%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.38.04%20AM.png" alt="" width="749" height="620">
NSW has retained its top rankings on population growth, retail trade, dwelling starts and housing finance but now adds unemployment and equipment investment to the list. NSW is still fourth-ranked on construction work done and fifth ranked on economic growth.
Victoria has lost a little ground on NSW but is solidly in second spot on the economic performance rankings. Victoria’s main strengths are population growth and housing finance (second ranked) and dwelling starts and retail trade (third ranked on each indicator).
The Northern Territory remains the third ranked economy, but now shares that position with the other territory – the Australian Capital Territory.
Northern Territory is top ranked on construction work done and is second ranked on economic growth, business investment and unemployment. But the ‘top end’ economy is last ranked on population growth and housing finance.
The ACT economy lifted to equal third courtesy of improved rankings on equipment investment and dwelling starts. The ACT is also third ranked on economic growth, population growth and housing finance. Western Australia is in fifth spot on the economic performance rankings. While top ranked on economic growth, it is bottom ranked on equipment investment and unemployment.
Queensland is now in sixth position on the economic performance table. Best rankings are retail trade and dwelling starts (fourth ranked on each indicator). South Australia remains in seventh spot on the economic performance rankings.
South Australia does best on population growth and housing finance (both fourth ranked) but is seventh or eighth on three indicators. Tasmania remains at the bottom of the Australian economic performance table. Tasmania is third ranked on unemployment (previously first) and weakened from third to sixth on housing finance.
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.42.20%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.42.20%20AM.png" alt="">
Ideally gross state product (GSP) would be used to assess broad economic growth. But the data isn’t available quarterly. Rather, state final demand (household and business spending) is added to exports less imports to act as a proxy for GSP.
Exclusion of the trade sector would provide an incorrect assessment of growth for economies such as Western Australia and Queensland. The only major change in the rankings since the last quarter has been at the top of the leader-board with Western Australia now on top from Northern Territory.
Now while economic growth has slowed in both economies over the past year, the current level of economic activity is still higher than the ‘normal’ or decade-average level of output in percentage terms than the comparison for other economies.
Western Australian output is just under 19 per cent higher than the decade average level of output, from Northern Territory (18.1 per cent), ACT (up 11.6 per cent), Victoria (up 10.8 per cent) and NSW (up 10.1 per cent).
At the other end of the scale, economic activity in Tasmania in the September quarter was just 1.6 per cent above its decade average, while South Australian activity was higher by 8 per cent and Queensland economic activity up by 9.2 per cent.
Victoria now has the fastest annual economic growth rate in the nation, up by 3.4 per cent on a year ago, ahead of ACT with 2.6 per cent and Tasmania (2.3 per cent). By contrast, the Northern Territory economy is down 13.9 per cent on a year ago, while Western Australian economic activity is down 1.6 per cent on a year ago with the Queensland economy down 0.2 per cent on a year ago.
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.44.56%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.44.56%20AM.png" alt="" width="807" height="337">
The measure used was real (inflation-adjusted) retail trade in trend terms with September quarter data the latest available. NSW has held on to the top spot on the retail rankings from Western Australia and Victoria with spending in the September quarter 17.0 per cent above decade-average levels. Solid activity in the housing sector, lower unemployment and higher home prices are supporting spending.
Spending in Western Australia was 14.3 per cent above decade-average levels with a legacy of the mining boom – higher income levels – supporting spending. Spending in Victoria was up 13.8 per cent on the decade average followed by Queensland (up 11.5 per cent).
In fifth spot was the Northern Territory with spending 10.5 per cent above decade averages. Tasmania continues to record the weakest result on retail spending, up 6.8 per cent on the decade average, just below South Australia with 6.9 per cent growth and the ACT with 8.3 per cent growth.
If monthly retail trade was assessed instead to calculate the rankings (November data available), the rankings would be slightly different with Victoria in second spot and South Australia in eighth position. In terms of annual growth of real retail trade, Victoria is strongest, up 4.0 per cent, from NSW, up 3.7 per cent, and South Australia, up 3.6 per cent.
And looking at monthly retail trade, the strongest annual growth is again in Victoria (up 5.8 per cent) from Tasmania (up 4.8 per cent) and NSW (up 4.7 per cent).
NSW is now on top on equipment investment from the Northern Territory, further highlighting the transition in the economy after the resources boom. Equipment spending in the September quarter was just under 5 per cent above ‘normal’ – or decade-average levels.
In the June quarter Northern Territory equipment spending was 20.2 per cent above decade-averages. Now spending is up by just 1.5 per cent. South Australia has held onto third spot, up 1.2 per cent above decade-average levels, followed by ACT (up 0.2 per cent). By contrast, other states and territories had equipment spending below decade averages in the September quarter.
Weakest was Western Australia (down 30.5 per cent) followed by Tasmania (down 17.0 per cent) and Queensland (down 10.1 per cent). Equipment spending in Victoria was down on decade average levels, but just by 1.5 per cent. On a shorter-run analysis, equipment investment in the September quarter was higher than a year ago in only three of the state and territory economies (last quarter, five states and territories had equipment spending up on a year ago).
Equipment investment is up the most on a year ago in the ACT (up 12.6 per cent), followed by Tasmania (up 7.8 per cent) and Victoria (up 2.7 per cent). By contrast new equipment investment in the Northern Territory was down 30.6 per cent on a year ago while spending in Western Australia was down 30.1 per cent with Queensland down 10.3 per cent. 
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.47.32%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.47.32%20AM.png" alt="" width="757" height="302">
Which state or territory has the strongest job market in the nation? It is not an easy question to answer. The lowest trend unemployment rate in Australia can be found in the Northern Territory at 4.1 per cent from NSW and the ACT at 5.2 per cent. But the ACT jobless rate is over 44 per cent above its decade average. And Northern Territory’s jobless rate is 0.7 per cent above its decade average (“normal”) jobless rate.
However the NSW jobless rate is actually 2.4 per cent lower than the decade average. In further comparing current jobless rates in each state and territory with their respective decade averages, Tasmania follows NSW and Northern Territory, its 6.6 per cent jobless rate is 8.7 per cent above the decade average.
In Victoria, unemployment stands at 5.9 per cent, up 9.0 per cent on its decade average of 5.4 per cent. At the other end of the scale is Western Australia. Trend unemployment stands at 6.4 per cent, 47.8 per cent higher than the 4.3 per cent ‘normal’ or decade-average. Next weakest is the ACT – as noted above the trend unemployment rate is 44.4 per cent above the decade average.
South Australia’s jobless rate is 28 per cent above the decade average, while Queensland is mid pack – its 5.9 per cent jobless rate is up 12.5 per cent on the ‘normal’ level. Unemployment rates in NSW, Victoria, Queensland, South Australia and Northern Territory have all eased in trend terms in the past three months.
The measure used for analysis was the total real value of residential, commercial and engineering work actually completed in trend terms in the September quarter. In five of the states and territories, construction work was higher than decade averages.
Leading the way was the Northern Territory with construction work done almost 117 per cent above its decade average with activity associated with the gas projects providing solid support. Next strongest was Western Australia (up 35.1 per cent) while construction work done in Victoria was up by 17.2 per cent on ‘normal’ levels in trend terms. Construction work done in both economies was well up on a year ago in the September quarter.
NSW is fourth ranked with construction work 7.2 per cent above decade averages. Tasmania is fifth ranked with construction work 0.7 per cent above ‘normal’ levels. In Queensland, overall new construction work completed in the September quarter was almost 19 per cent below the decade average, weaker than the 11 per cent decline recorded in the June quarter.
Next weakest to Queensland was the ACT where construction work was 12.1 per cent below decade averages, followed by South Australia (down 1.6 per cent). In terms of annual growth rates, Western Australian construction work done in the September quarter was up 13.3 per cent on a year ago, followed by Victoria, up 11.5 per cent. Other economies had construction work lower than a year ago, led by Queensland, down by 30.5 per cent – the biggest annual decline in records going back over 26 years.
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.49.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.49.58%20AM.png" alt="" width="698" height="299">
The measure used was the trend number of dwelling commencements (starts) with the comparison made to the decade-average level of starts. Starts are driven in part by population growth and housing finance and can affect retail trade, unemployment and overall economic growth. However any over-building or under-building in previous years can affect the current level of starts.
The outlook for home building remains strong over the next year but a slowdown can be expected later in 2016 as the surge in the supply of new homes meets pent-up demand. The slowdown in population growth will also restrain future home building. NSW retains the mantle of the strongest in the nation for new home construction, with starts almost 72 per cent above decade averages.
In addition, in the September quarter the number of dwellings started was 24.6 per cent higher than a year earlier. The ACT has replaced Victoria in second spot, with starts 48.2 per cent above decade averages. Victorian starts are 38.3 per cent above decade averages and Queensland starts are up 26.7 per cent. At the other end of the scale, South Australian dwelling starts were 3.0 per cent below decade averages.
And in the September quarter starts were down 2.6 per cent on a year earlier. Next weakest was Northern Territory (down 2.8 per cent from decade highs) from Tasmania (up 12.6 per cent on the decade average) and Western Australia (up 16.1 per cent on the decade average). In terms of annual growth, the ACT is strongest with dwelling starts at record highs in trend terms in the September quarter, up 44.3 per cent on a year ago.
In the June quarter, NSW was alone in recording a fall in real wages. However in the September quarter, wage growth in all states and territories was above that of consumer prices.
Strongest real wage growth was again recorded in the Northern Territory with wages 2.0 percentage points (pp) higher than consumer prices. Wage growth was second highest in the nation while inflation was the lowest. Real wage growth was next highest in three economies – Victoria, South Australia and Tasmania – with wages 1.2pp above consumer prices (inflation).
At the other end of the scale, NSW wage growth of 2.2 per cent was just above the 1.9 per cent annual growth of prices. Despite that, retail spending still remains firm in NSW. Real wages remains only modestly positive in Queensland (+0.5pp) and Western Australia (+0.9pp).
Turning to home prices, in December four of the capital cities had positive annual growth of home prices. Back in June, similarly four of Australia’s capital cities had home prices higher than a year earlier. Strongest growth in home prices was in Sydney (up 11.5 per cent) followed by Melbourne (up 11.2 per cent) and then there was a fair gap to the other capital cities. Next strongest were Brisbane and Canberra with prices in both cities up 4.1 per cent on a year ago. Home prices were lower than a year ago in Perth (down 3.7 per cent), Darwin (down 3.6 per cent), Hobart (down 0.7 per cent), and Adelaide (down 0.1 per cent).
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.53.11%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.53.11%20AM.png" alt="">
Currently we look at eight indicators to get the broadest assessment of economic performance. If we added new motor vehicle registrations to the list the only change in the overall economic rankings would be the ACT taking third position on its own.
NSW has a solid grip on the top ranking of economic performance. Unemployment has improved while population growth is above long-term averages, thus providing solid momentum to the economy.
Victoria also still has a strong grip on the second ranking but hasn’t been able to narrow the gap with NSW. Victoria still has the strongest population growth in the nation, underpinning retail and housing activity.
The ACT has been the big improver in the rankings and a sharp lift in dwelling starts is a clear reason for the improvement. Stronger housing activity will support the job market and retail spending over 2016.
The Northern Territory will face challenges in the next few years as key resource projects are either completed or near completion. Slow population growth, weak demand for housing loans and a sharp fall in dwelling starts will constrain economic momentum. Western Australia continues to slip in the performance rankings, having relinquished top spot in October 2014.
Slower population growth and higher unemployment will constrain activity in the housing market. Queensland remains in the third tier of economies alongside South Australia and Tasmania. Encouragingly, however, unemployment has fallen to two-year lows in trend terms.
And dwelling starts have lifted to 7½ year highs. The South Australian job market has improved in the past eight months. If the positive trend continues, then there is scope for an improvement in retail spending. The Tasmanian economy continues to struggle for momentum. In October, trend unemployment had fallen to near 4-year lows. While unemployment has lifted in the past two months, real wage growth remains healthy.
Craig James is chief economist, CommSec and Savanth Sebastian is economist, CommSec. Both can be contacted <a href="https://www.commsec.com.au/" target="_blank">here</a>.
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CommSec's State of the States shows NSW as best performing economy: Craig James

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GUEST OBSERVER
For more than 100 years the average Australian family was able to buy its first home on one wage. The median house price was around three times the median income allowing young home buyers easy entry into the housing market.
 As can be seen from the graph below (ï¿½ Real Home Price Indexï¿½), the median house price has increased, in real terms, by more than 300% - from an average index of 100 between 1900 and 2000 to an index over 300 by the year 2008. Relative to incomes, house prices have increased from three times median income to more than nine times income. 
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.21.37%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.21.37%20AM.png" alt="">
Thatï¿½s $600,000 they are not able to spend on other things - clothes, cars, furniture, appliances, travel, movies, restaurants, the theatre, childrenï¿½s education, charities and many other discretionary purchase options. 
It is a similar story in the UK, US, Canada, New Zealand, Ireland and Japan. The economic consequences of this change have been devastating. The capital structure of these countriesï¿½ economies have been distorted to the tune of hundreds of billions of dollars and for those on middle and low incomes the prospect of ever becoming homeowners has now all but vanished. 
Housing starts are below what they should be and so have all the jobs associated with them - civil construction, house construction, transport, appliances, soft furnishings, you name it. Not to mention billions of dollars in lost taxes and other housing-related revenue to the nation state. 
The distortion in the housing market, this misallocation of resources resulting from the supplydemand imbalance is enormous by any measure and affects every other area of a countryï¿½s economy. New home owners pay a much higher percentage of their income on house payments than they should. Similarly, renters are paying increased rental costs reflective of the higher capital and financing costs in turn paid by landlords. 
12th Annual Demographia International Housing Affordability Survey (2015: 3rd Quarter) The economic consequences of all that has happened over these past 15 years have been as profound as they have been damaging. 
The housing industries of these countries have been decimated as have industries supplying that sector. Economies have been distorted and getting them back into alignment is going to take some time. But it is a realignment that is necessary. A terrible mistake was made and it needs to be corrected. Home ownership has long been a feature of western life. Levels of home ownership rose sharply in the postwar period. 
Home ownership had become both a symbol of equality and a means through which average citizens could provide security and stability for themselves and their families while building wealth and claiming a tangible stake in their nation. For the vast majority, owner-occupation of the home in which they live was, and remains, a great ambition. So what happened? Why have ï¿½house pricesï¿½ skyrocketed?
 While influential bodies in Australia like the Productivity Commission and the Reserve Bank focused their attention on demand drivers like capital gains tax treatment, negative gearing, interest rates, readily accessible finance, first home buyers' grants and high immigration rates, few were looking at the real source of the affordability problem - land supply for new housing stock. 
It is undeniable that demand factors played a role in stimulating the housing market and those factors were, for the most part, in the hands of national governments. However, the real culprit, the real source of the problem, was the refusal of local and state governments and their land management agencies to provide an adequate and affordable supply of land for new housing stock to meet demand. 
The graph below (Capital Cities: Price of Land per sq/mï¿½) highlights the growth rate in the price of serviced allotments in Australiaï¿½s five mainland capital cities. This massive escalation in the price of land carries with it a multitude of detrimental impacts. Establishing affordable rental accommodation for those in greatest need becomes even more difficult for social and public housing authorities as they seek to purchase land and housing in a greatly inflated market. 
<a href="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.23.19%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/27/Screen%20Shot%202016-01-27%20at%209.23.19%20AM.png" alt="">
Road widening and major infrastructure projects experience cost blow-outs as land acquisition costs skyrocket, and establishing schools, community centres, health services and business facilities becomes difficult, and at times impossible. 
The whole community suffers as a result of increased 12th Annual Demographia International Housing Affordability Survey (2015: 3rd Quarter) tax, transaction, finance and establishment costs. It is important to remember that the "scarcity" that drove up land prices is wholly contrived - it is a matter of political choice, not geographic reality. 
It is the product of restrictions imposed through planning regulation and zoning. The problem is, it is young home buyers, hit with spiraling costs of home ownership who end up paying. They are mostly forced into overpriced units and will never be able to afford their primary ambition ï¿½ a free-standing family home of their own. Quite apart from the economic foolishness of it all, it is morally wrong for legislators to be enriching some (established home owners) while impoverishing others (first home buyers). 
We cannot deny the rising generation a home of their own merely to satisfy the ideological fantasies of urban planners and the financial concerns of State and Territory Treasury officials. We cannot deny ourselves the joys of grandchildren because young women have to work to pay mortgages instead of raising a family. The joke that high mortgages are the new contraceptive is becoming no laughing matter. Young women used to be afraid of getting pregnant, now, as they approach 40, they are afraid of not getting pregnant. 
We have to get back to the situation where a couple can pay off a mortgage on one income so they can start a family in their 20s, not in their late 30s or early 40s. In creating the conditions for home ownership to become the privilege of the few rather than the rightful expectation of the many, governments have produced intergenerational inequity and breached the moral contract between generations. 
In human affairs this imprecise, and at times neglected, moral contract between generations dictates that we should leave things better than we find them. When it comes to home ownership this contract has been breached. In making home ownership much harder for the next generation we have denied them much more than a home. We have denied them the security and benefits that go with home ownership and the opportunity to build wealth that will provide them with options in later life. 
Many are now choosing to defer having a family in the hope that they will be able to somehow put together the funds to buy a home later in life. If they can't afford to buy a house, they certainly can't afford to have children! 12th Annual Demographia International Housing Affordability Survey (2015: 3rd Quarter) When the time for retirement comes, those who own their homes have much more control over their lives than renters. 
They can choose where they will live and how they will live. Given the vast social and economic benefits that flow from homeownership, restoring housing affordability should once again become one of a nationï¿½s most important priorities. 
Senator Bob Day, a former National President of the Housing Industry Association, <a href="https://www.demographia.com/dhi.pdf" target="_blank" style="line-height: 1.3em;">wrote the forward for the 12th Demographia report</a>. He was elected as a Senator representing the State of South Australia at the 2013 Australian Federal election.
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