Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<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/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of 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."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

What does it really mean for a building to be 'green'?

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

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<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

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Ellen Walker

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

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GUEST OBSERVER
The change to foreign ownership of Australian companies and critical infrastructure continues with the takeover offer for rail and ports operator Asciano from Brookfield Infrastructure Partners, a Bermuda-based company listed on the New York and Toronto stock exchanges.
The offer, which values Asciano at US$9 billion, is a part cash (75%) and part scrip (25%) bid. While it has the blessing of the Asciano board, the offer is yet to be approved by both the Australian Competition and Consumer Commission and Foreign Investment Review Board.
Australians appear relatively unconcerned about major transfers of ownership such as these - yet it is at odds with the assiduous strategies of larger economies such as the United States and China, to secure their supply chains.
Asciano was a spinoff of the Toll Group, formed in 2007. It has a rail division, Pacific National, acquired by Toll from the federal government-owned National Rail Corporation in 2002, and a port and logistics division, Patrick Terminals and Logistics.
Patrick is a long-established Australian company. It was originally started by the owner of coastal trading vessels before morphing into a number of other shipping and stevedoring companies. Although known for its role in the 1998 waterfront dispute, it has since become a leader in the stevedoring sector. It was acquired by Toll in 2006.
The Brookfield name is not completely unknown in Australia. The company already owns Brookfield Rail – a 5,500 km rail network in Western Australia – and the Dalrymple Bay Coal Terminal in Queensland.
Brookfield’s interest in Asciano is partly driven by a goal of positioning itself for the mooted sale of the federal government-owned Australian Rail Track Corporation, the owners of 8,500 kilometres of critical rail track across Australia.
If the Asciano sale goes ahead, approximately 95% of all Australian containerised imports and exports will be handled by foreign-owned companies including Dubai Ports World (based in the United Arab Emirates), Hutchinson Port Holdings (based in Hong Kong) and International Container Terminal Services Inc. (based in the Philippines), with only the Adelaide container terminal still in Australian hands.
On the other hand, a potential benefit for Australia is that Brookfield has indicated it will utilise Patrick’s world-leading expertise in automation across stevedoring operations it owns in other countries.
The general public may not be fully aware of the extent and ramifications of this shift in ownership in businesses critical to Australian trade. The main driver for overseas owners is to maximise return on the considerable investment they have made to acquire the assets, with in some instances, applying creative means of getting around Australian laws and regulations. For example, the recent Senate Committee inquiry into tax avoidance highlights just one of the issues, that of tax avoidance by overseas companies operating in Australia.
Many countries are grappling with how to manage the increase in foreign ownership, but in some cases public opposition has prevented a takeover going ahead. In 2006, a number of North American container terminals and logistic centres were up for sale but Dubai Ports World, one of the bidders whose ownership is concentrated in the Middle East, was ultimately excluded from the process due to the public’s fear that such a sale would compromise port security.
The US is also fiercely protective of its coastal shipping regime where all coastal cargo in North America has to be shipped by American owned and crewed vessels. This is in stark contrast to the current Australian coastal trading policy where increasing amounts of cargo on the Australian coast are being carried by foreign flagged and crewed vessels.
China is taking the security of their supply chains even further. Chinese companies, with the help of the government, are in the process of acquiring interests in ports and port-related businesses in the Indo-Pacific, East Africa and the Mediterranean along the shipping routes from China to Europe, the so-called “Maritime Silk Road”.
This project is part of the “One Belt, One Road” policy, which is an undertaking to secure China’s supply lines to and from Europe. It also includes a land-based route the “Silk Road Economic Belt”, which more or less runs along the centuries old former Silk Road and is developed to allow China’s landlocked western provinces to access the markets of Southeast Asia and the Middle East. The other aim of this initiative (backed by a US$40 billion fund) is to shape China’s regional periphery by exercising economic, cultural and political influence.
Australia could learn something from other economies – to carefully assess the long-term harms and benefits of allowing the sale of critical assets.
Peter van Duyn is maritime logistics expert, Institute for Supply Chain and Logistics at Victoria University and author for The Conversation. You can contact him <a href="https://theconversation.com/profiles/peter-van-duyn-22412" target="_blank">here.</a>
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jchancellor-FAypfDUnLy

Aussie ports in foreign hands could hurt security

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The value of new residential construction work completed fell nationally by 3% in seasonal terms for the June 2015 quarter according to the latest ABS Construction Work Done release. 
For the 12 months to June 30 however, the value of new residential construction work done had improved by 10.6% across the country largely due to more significant annual improvements in the value of residential work completed in New South Wales, Queensland, South Australia and Tasmania. 
The figures underscore the important role residential construction work is playing right now in supporting the broader Australian economy.
The activity underway is still very strong, however the drop over the quarter posted by most states could be signs of a slowing in commencements. 
This is something to watch as we can’t afford to see new construction levels weaken. Maintaining high activity is crucial to keep pace with housing demand, population growth and job creation. 
States such as Queensland and South Australia posted declines in the value of work done in the June quarter of 10.2% and 16.2% respectively which needs to be monitored over the forward updates. 
The value of residential construction work done in Queensland is the best it’s been since 2010, however the 2015 result still sits below the ten year annual average. 
The ABS data shows good annualised levels of activity is flowing through the residential industry and the industry is in the midst of a strong patch but supply side efficiencies will be needed to support this activity long term. 
Governments need to focus on supply side efficiencies in land release, improvements to development assessment and reform of inefficient taxes such as stamp duty to create prosperity, jobs and strong communities.
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<img src="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%2010.56.47%20PM.png" alt="" width="806" height="373">
Nick Proud is residential executive director, Property Council of Australia and can be contacted<a href="https://www.propertyoz.com.au" target="_blank"> here</a>.
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Mid-year drop in residential construction value

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GUEST OBSERVER
Construction activity surprised to the high side, advancing by 1.6% in the June quarter. Expectations were for a decline (Westpac and market median –1.5%).
Private infrastructure, dominated by mining, was the source of surprise, jumping 10.2% in the quarter, centred on a 35% spike in WA.
Total construction work ex WA infrastructure was weak in the quarter, declining by 5.3%.
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The construction report reads more like an update from 2011, when the mining investment boom was in full swing. However, this spike in infrastructure work will not be sustained. Rather prospects are for sizeable falls ahead, even more so given this burst of work.
The positive, is that the construction sector (which accounts for around 15% of the economy) will add to growth in the June quarter 2015. This will provide a partial offset to the drag from net exports, which have swung from a positive contribution in Q1 of 0.5ppts to an estimated subtraction of –0.4ppts in Q2.
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Infrastructure work in WA jumped to $11.3bn in the quarter, a $2.9bn increase on Q1 or a rise of 35%.
Construction of the $10bn Roy Hill iron ore project and the $61bn Gorgon LNG project will have contributed to this spike. It appears that there has been a ramping up of work in an effort to make up for past delays. 
Elsewhere, it was a weak quarter for construction.
Public works fell further, down a sharp –8.4%qtr, to be 15% lower than a year ago. In the year ahead, public infrastructure is likely to improve as state governments begin work on new transport projects.
Commercial building was little changed, ahead of likely falls with approvals falling sharply in 2014, particularly in the mining states.
Private new residential building surprised, declining by 3.6% in the quarter. Although, this dip follows a 16% rise over the past year, including a near 8% increase in Q1. With approvals hitting fresh record highs early in 2015 new home building activity is set to strengthen in coming quarters.
Private home renovations strengthened, up 0.9% in the quarter to be 4% higher than a year ago. This is likely the beginnings of a modest upturn, following a period of softness, consistent with the upturn in the housing market more generally.
By state, Q2 construction work was: up sharply in WA, +25.5%qtr, 14%yr; broadly flat in NSW; edged lower in Victoria, -2.8%qtr, but was still up over the year, +7%; and fell further in Qld, -11%qtr, -32%yr.
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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June quarter construction activity surprising: Westpac's Andrew Hanlan

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Australia does not build enough new housing to support the growing population according to the Urban Development Institute of Australia with inadequate investment in urban infrastructure, high taxes and charges and excessive red tape on new developments driving the shortage in housing supply.
Whilst the overall rate of home ownership has only declined by a relatively modest 7%, from 71.3% of households in 1982 to 64.3% of households in 2011, according to UDIA, it masks the disproportionate decline experienced by younger generations, where rates of home ownership have collapsed. 
"The 25-34 and 35-34 year old demographics have seen the largest declines in the rate of home ownership, falling by 39% and 20% respectively. 
<a href="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%209.31.53%20PM.png" target="_blank">Click to enlarge</a>
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In the submission to the inquiry into Home Ownership, UDIA says there is an urgent need for governments to take necessary action in order to resolve these issues and restore housing affordability.
"UDIA is strongly of the view that Australia has not built enough new dwellings to support population growth for many years, and that the country now suffers from a significant underlying shortage of homes, pushing up both rents and house prices. 
"Population growth must be planned for, with the necessary land, new housing and infrastructure to support population growth. Doing so will ensure that population growth is managed sustainably and for the benefit of the entire community. 
"Timely and sufficient provision of new urban infrastructure, such as transport, utilities, and community facilities is a particularly important factor for ensuring an adequate supply of new land. Infrastructure investment can act as a critical catalyst for development and new supply, by improving access and opening up new areas for urban growth."
UDIA made several recommendations to the House of Representatives Standing Committee on Economics such as provide additional funding for investment in new urban infrastructure, in order to unlock land for development. 
"The Commonwealth should work with state governments to prepare comprehensive strategic plans for future urban infrastructure, land-use planning, and land supply, to align with forecast population growth. 
"Facilitate non-traditional methods of funding infrastructure, to increase the level of funding available for infrastructure investment at both a federal and state level."
UDIA believes that costs associated with the Environment Protection and Biodiversity Conservation Act (EPBC Act) are a concern for the development industry.
"The Commonwealth should work with State Governments to undertake planning system reform to reduce delays and increase certainty in planning, zoning, assessment and approval systems, and increase the flexibility with which they operate. 
"UDIA supports the creation of a single, streamlined environmental approvals system to reduce the red tape associated with duplicated systems, without harming environmental outcomes. The Government should continue with its plan to streamline the environmental approval process to create a ‘one stop shop’. 
"The Commonwealth should stop attempts to restrict development around airports and airport corridors beyond the current and existing standards. 
"Stamp duty on property purchases should be phased out, and replaced with more efficient taxes, such as a broadening of the GST. 
"Governments should avoid revenue raising through the application of up front developer charges, and should seek to fund infrastructure through recurring charges directly related to specific infrastructure investment, over extended time frames. 
"The Commonwealth should cease plans to shift the cost of providing the National Broadband Network to new home buyers through up front connection, network and backhaul charges. 
"Governments should commit to broadening the base and reducing the rate of land tax regimes over a number of years, as an efficient way to raise revenue and reduce reliance on up front developer charges. 
"Governments should ensure land taxes apply per land holding, not on an aggregate basis, to in order promote large scale land development. 
"Land taxes should be levied on only the unimproved value of land, to avoid distorting disincentives to invest in improvements. 
"Exclude state and local government taxes and charges from GST calculations on land development, to reduce double taxation and improve tax system integrity. 
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New housing needed to support population: UDIA

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Prosper Australia does not believe in the home ownership problem being due to lack of housing supply, rather data has been wrongly analysed and a tax reform should be put in place.
"A good way to examine whether an adequate supply of housing exists is to compare the flow of new dwellings to new net population. Many analyses simply look at the relative or absolute change in dwelling stock, which is pointless without first considering changes in population."
Prosper Australia understands several factors have not been taken into consideration. For example, the total population measure is used, when only adults should be considered.
"An increase in the natural population through births doesn’t automatically necessitate new dwellings be built, though it may result in families upgrading to larger dwellings. 
"Renovations and extensions of existing dwellings are overlooked, but generate additional housing capacity. Many immigrants arrive in groups, initially requiring only one dwelling per family/shared household. 
"Building completions do not take into consideration dwellings that are demolished, condemned or held off the market. The slow rise in sole occupant households, divorce and/or childless couples (demographic change) may drive a long-run trend toward lower occupancy rates in general.
"The inadequacy of the housing shortage argument is apparent for the trend in the NSW ratio. Sydney, which dominates the state’s housing market, experienced a massive price boom between 1996 and 2004, yet over this period, one new dwelling was built for every 1.4 new people.  
"At the peak in 2004, the ratio decreased to an insane 0.2. In other states and territories, the ratio turned negative, indicating negative population growth in the face of positive dwelling construction, even while prices remained steady or even rising.
"Australia would be much better served if investor attention was refocussed onto genuine investment that added to our national capacity and strength rather than idle ticket-clipping. 
"In conclusion, there is no housing shortage as is commonly claimed, though a temporary shortage did emerge during the GFC. Australia is a mirror of other countries where high housing prices were also blamed on a shortage, always revealed, in hindsight, to be a chimera."
In the submission to the House of Representatives Standing Committee on Economics, Prosper Australia recommended the Government to introduce a one per cent Federal Land Tax, fully rebatable on State Land Tax paid. 
"State governments could adjust their tax rules and keep every dollar the Federal Land Tax raises, to the great benefit of all Australians. The Commonwealth would be entitled to argue this intervention is for sound economic reasons and dissipate the political fallout.  
"Few state taxes have such economically useful and dynamic properties, except State Land Tax, which rises and retreats with land price changes. This rare and valuable quality is masked by biennial land valuations. 
"Prosper recommends government revalue all land annually, by interpolation. This is quite straightforward with computer-assisted mass appraisal. The economic benefit of this automatic stabiliser function is profound in eras of rapidly rising or falling land prices. 
"Reducing wage and business taxation and increasing land tax would not necessarily lower land prices, given the offset of increased final wages, profits, and real and imputed rents. This macro reform – urged on government by every independent tax review in living memory – would solidly correct the price/income and price/rent ratios. 
"Transitional arrangements would need to be considered. A logical solution is to credit all landowners with the amount of stamp duty paid and then deduct the hypothetical land tax they would have paid since the date of purchase. This would address much of the fairness question."
Prosper Australia claims that stamp duty deters property transactions and innovation.
"It inhibits the transfer of property to higher value uses, resulting in an inefficient allocation of resources. 
"This transaction tax falls on both land and buildings, whereas land tax falls solely on the underlying land. Thus, stamp duty lifts the cost of and constrains construction and construction employment. 
"Stamp duty inhibits transactions. If removed, we would see more and better construction, lower rents, better matching of households to housing stock, a greater propensity to buy (on ease of exit), less traffic congestion, and a deeper, more active land market.
"Prosper commends the Henry Review recommendation to tax on a per square meter basis, rather than aggregating holdings. The flatter the rate schedule, the less significance this question holds. 
"The proposed property tax should fall solely and utterly on the underlying land. Taxing structures discourages construction; land cannot be discouraged, it simply is."
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Home ownership data wrongly analysed: Prosper Australia

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In their submission to the House of Representatives Standing Committee on Economics, the Australia Institute state not only is current tax treatment putting upward pressure on house prices but are also encouraging speculative behaviour and increasing the chances of property bubbles and financial instability. 
"Negative gearing has been a part of the Australian tax system from early last century. In the context of residential housing investment it allows property investors to write off any losses against their taxable income from other sources. This effectively means that the tax payer is paying for some of the loss. 
"The CGT discount was introduced in 1999 and means that for assets held for more than a year only 50% of the capital gain is taxed. This decreased the amount of CGT paid, and means capital gains become increasingly important to property investment."
The effect of the GCT discount can be seen in the Net rental income table 1995-2013.
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"After the introduction of the CGT discount net rental income collapsed. Investors were willing to take on significantly larger losses at a time when they could keep a larger slice of the capital gain. 
"In a normal investment market if the return on the asset was going down because the price of the asset was rising then this would be a signal to investors that it could be overvalued and would decrease the interest in investing. 
"But an interest in capital gain means that a rising price is a signal to enter the market because future capital gain is likely. Such a situation makes speculative bubbles more likely. 
"While middle and lower income households are being increasingly shut out of home ownership, most of the benefits of negative gearing and the CGT discount flow to high income households. 
"Modelling done by NATSEM for the Australia Institute shows that 55 per cent of the benefits of negative gearing and the CGT discount flow to high income households, while 50% of families only get 13% of the benefit. Figure 3 shows the income distribution of the negative gearing and CGT discount benefits. 
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<img src="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%202.28.03%20PM.png" alt="">
The Australia Institute does not believe that changes made to negative gearing would decrease investment and increase house prices. AI claims that there is already little investment into property with just six per cent of investment finance going to new housing.
"The other 94% is spent on existing stock. If the objective of negative gearing is to encourage new housing then this could be achieved by restricting negative gearing to apply only to new housing. 
"The Australia Institute proposes that negative gearing is restricted to new housing stock and only for a period of 10 years.
"The CGT discount replaced a system where capital gains were discounted by the inflation rate. The argument for the CGT discount is that it is a simpler method for calculating and taxing the real capital gain. 
"The broader question that should be considered is why we tax real capital gains but level all other taxes on the nominal gain. For example, interest earned on money is taxed at the nominal interest rate rather than the real interest rate. 
"Given that all other taxes are levelled on the nominal gain and not the real gain there is little justification that capital gains should be taxed differently. The Australia Institute proposes that the CGT discount should be abolished. 
"These changes will have a number of effects. It will decrease demand for housing and hence put downward pressure on house prices as potential investors pick other investment opportunities. 
"It creates a bigger incentive for new housing. It reduces the speculation in the residential housing market, making property bubbles and financial instability less likely. Finally it will raise $7.4 billion a year in revenue at a time when the government is trying to decrease the budget deficit."
 
The Australia Institute report outlined the case for abolishing the capital gains tax discount – not capital gains tax as previously headlined.
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Abolish capital gains tax discount: Australia Institute

Banking on housing: APRA's Wayne Byres

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Home values are still falling in Darwin, with the latest figures from CoreLogic RP Data showing the largest annual decline since early 2012. 
The median house price is $570,000 and the median price for units $441,500.
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mick.cee-iDmgDDAmu8

Darwin home values continue to fall: CoreLogic RP Data

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<div class="column">Construction work done in the June quarter rose by 1.6%, driven by a 5.6% rebound in engineering work. </div>
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<div class="column">Residential work surprisingly fell by 3.0% in the June quarter with commercial building down by 1.8%.</div>
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<div class="column">Annual inflation in the building sector (residential and commercial building) eased from a 6-year high of 3.3% to 3.0%.</div>
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 The construction slump in Queensland continues. Queensland construction work has fallen 37% in almost two years.
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 The data on construction work is important for builders, building material companies and developers.
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<div class="column">What does it all mean?</div>
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 Overall it is the softest of landings in the construction sector. After soaring by 34% in a three-year period to peak levels in late 2012, construction has since eased by just 8%.
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 The ‘baton pass’ from engineering to residential building is proceeding but had a hiccup in the June quarter – engineering building actually soared, not fell, while home building eased. But the outlook is for more home building ahead and less spending on roads, bridges, railways and dams.
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 The other good news is that inflationary pressures have not worsened in the high-flying home building sector. Still, residential building costs are up 3.5 per cent on a year ago and need to be watched.
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 Trends in construction activity in Queensland remain a concern. In just under two years, construction work has slumped by 37% in Queensland – the most of any state or territory. By contrast construction work in the Northern Territory is up 84%. The lack of construction work in Queensland needs to be addressed by the State Government as it is robbing momentum from the economy. 
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What do the figures show? 
Construction Work
Construction work done rose by 1.6% in real (inflation-adjusted) terms in the June quarter after falling in the previous four quarters. Work done is down by 3.3 % on a year ago.
Public sector construction work fell by 8.4% in the quarter while private sector activity rose by 3.6%.
Construction work fell in six of the states and territories in the June quarter.
Leading the falls was ACT (down 14.6%), followed by Queensland (down 11.0%), South Australia (down 8.9%), Victoria (down 2.8%), Tasmania (down 1.4%) and NSW (down 0.1%). Construction rose in Western Australia (up 25.5%), and the Northern Territory (up 2.4 %).
Engineering work rose by 5.6% in the June quarter, after falling almost 25% in the previous six quarters. Engineering construction is down by 8.8% on a year ago.
Commercial (non-residential) building fell by 1.8% in the June quarter (private sector up 0.3%) to be down 1.8% over the year.
Residential building fell by 3.0% in the June quarter (private sector down 3.1%) but was still up by 7.4% over the year. Alterations &amp; additions rose 0.2% in the June quarter while new residential work fell by 3.5%. In trend terms, residential building rose by 2.5% – the eighth quarter of gains.
The measure of inflation in the construction sector (deflator) fell by 0.1% in the June quarter after rising by 0.3% in the September, December and March quarters. The annual rate of construction inflation fell from 1.5% to a 5-year low of 0.7%. Engineering prices fell by 0.7% in the quarter (down 1.3% over the year) while building prices rose by 0.6% in the quarter. Annual building inflation eased from a 6-year high of 3.3% to 3.0%. Annual inflation in home building remained at a 6-year high of 3.5%.
What is the importance of the economic data?
The Bureau of Statistics releases quarterly estimates of Construction work done. The estimates are based on a survey and cover around 85 per cent of the construction work done in the period. Revised estimates will be released in coming months. The data is useful largely for historical purposes but the work yet to be done estimates provide an early warning signal of future activity. The residential work figures give a good early guide to the strength of residential investment in the national accounts.
What are the implications for interest rates and investors?
There is plenty of work in the construction sector. But activity is patchy – soaring in some states and sectors and slumping in others. Builders, tradespeople and construction firms need to be mobile in the current environment.
The Reserve Bank will be pleased about current trends in construction. Overall activity has not fallen of a cliff, and while there is a sniff of inflation in home building, overall construction inflation is at 5-year lows. The RBA will continue to stay on the interest rate sidelines over coming months.
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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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Soft landing for construction work: Craig James

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Two Balmain terraces and a warehouse with double street frontage in Sydney's Balmain have sold at auction for a total of $4.13 million.
The lot comprised four separate titles over approximately 560 sqm and was offered for sale in one line or two and two.
Ray White Commercial Inner West principal Tim Morrison said the 77-79 Beattie Street property has two separate buildings, two street frontages and being zoned residential with commercial use rights, it offers a myriad of potential uses for development or conversion.
“This property was offered at auction as a vacant possession and attracted considerable interested from developers and occupiers during the marketing campaign,” he said.
 
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