Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

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The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

Joel Robinson

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

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<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

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?

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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The RBA’s decision to leave interest rates on hold earlier this month is unlikely to have any negative effect on the property market. Interest rates have already fallen to a point where investors are being enticed to act and when investors come out so do the property marketers ready to sell.
But when you’re leafing through the glossy brochures and touring the display suites, remember that today’s financial benefits could be tomorrow’s financial headaches. These benefits are nothing new to the market as they are rolled out each time investors get active. Here are the most common ones to look out for:
Depreciation benefits
Buildings and their contents depreciate (decrease) in value, whilst land appreciates (increases). When you buy a new property, the tax office will enable you to defray part of the purchase price by allowing you to claim depreciation on certain items. This can be helpful in increasing your cash flow, particularly during the early years when the property is likely to be negatively geared.
However, the downside is that most of the depreciation you can claim comes from fittings and fixtures like the oven, air conditioner, blinds and carpets, which fully depreciate in five to 10 years. Furthermore, depending on the way you calculate your depreciation allowance, the amount you can claim may decrease each year. This means it will cost you more to hold the property as each year goes by.
Claiming depreciation can also have a hidden tax consequence because it will also increase the amount of capital gains tax you pay when you sell. I’m not saying you shouldn’t claim depreciation – but you should be aware that it may have financial consequences later down the track.
Stamp duty savings 
When you buy property off the plan in Victoria, you will only be liable to pay stamp duty on the property’s value on the date of purchase. If construction is partially completed, you’ll only pay stamp duty on that portion of the building, plus the land value. If construction hasn’t begun, you’ll only pay stamp duty on the land value.
<blockquote>
Don’t let short-term benefits hold too much sway when you’re choosing an investment property.
</blockquote>
Whilst this can help considerably when you first buy a property, it’s only a one-off saving that won’t help you after the loan has settled and you have to make repayments. What’s more, when you come to sell the property, potential buyers won’t have the same benefit of a stamp duty reduction, so there’s less incentive for them to buy it.
Rental guarantees 
When you buy a property brand new or off the plan, the developer will often undertake to provide a guaranteed level of rent each week for the first year or two that you hold the property. This kind of guarantee generally applies even when the property isn’t tenanted, because the developer picks up the tab.
Although it is reassuring to have certainty of rental income during the early stages of holding an investment property, there are two significant downsides. First, you’ll pay a premium to secure the rental guarantee; the developer will build it in to the sale price. Second, in accepting a guaranteed rent level, you’re insulated from market forces. Once the guarantee expires, the amount of rent your property can command will depend on a range of factors including supply and demand.
As newer properties come on to the market and tenants have a wider choice of places to live, the market rent for your property could fall. This is a particular risk in areas like the CBD and Docklands where there’s likely to be a substantial amount of new construction during 2009 and 2010 as developers scramble to keep up with demand from investors returning to the market.
Remember also that when you’re no longer protected by the rental guarantee, you’ll have to have sufficient cash flow to hold the property during periods when your property is not tenanted.
In summary, don’t let short-term benefits hold too much sway when you’re choosing an investment property. Focus instead on the long-term factors that will influence capital growth and rental demand: land values, demographic trends and the balance of supply versus demand. If these factors don’t add up, move on to another property.
You can visit Mark's website <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>.
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Buying an investment property? Be aware of short-lived benefits

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Pure Kirra, a $70 million residential tower for the Gold Coast from Pikos Group, has reached its halfway point with a July completion date expected. It’s also just one of two highrise apartment projects currently underway on the southern Gold Coast.
Launching their furnished display suite for <a href="https://www.facebook.com/PureKirra" target="_blank">Pure Kirra</a> over the Easter weekend, they were looking to capitalise on the number of holidaymakers to the city for their 33 beachfront apartments in Coolangatta.
CBRE Gold Coast project marketing agent, Chris Litfin, said that the July completion date is on track.
“The opening of the furnished display suite was well-timed to take advantage of the long weekend, which is traditionally an active period for the local market,” Litfin said.
“The project offers increasingly rare premium-grade apartment product in a blue-chip beachfront position and the market has responded well to this,” he said.
The tower is 12 storeys with two-bedroom apartments with a multi-purpose room, being advertised as convertible into a third bedroom, each with north-east aspects and ocean views. There are just three of these apartments per floor.
The apartments remaining are from 131 to 304 square metres from $829,000. A 134 square metre apartment on level seven is being advertised at $945,000. Some include balconies and decks.
Previous marketing suggested that the cheapest apartment was snapped up for $769,000.
Apartments all include underground carparking, but there is also a ground-floor retail precinct, as well as a swimming pool, barbecue and entertainment space solely for residents.
The display suite is located at 30 Musgrave Street, Coolangatta.
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jduke-EHk3XBmHkn

July completion date for Pure Kirra tower on southern Gold Coast

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Investors in all states except South Australia and the Northern Territory plan to increase their exposure to property over the June quarter, a sentiment survey has found.
High income earners, those working in professional jobs and people living in larger households were most likely to say they intended to boost their property investment portfolios over the next three months, the latest MLC Quarterly Australian Wealth Sentiment Survey revealed.
More than 2000 people responded to the national survey, which was released in mid-April.
Investors were asked about their existing financial situation and whether they were more or less likely to invest in certain asset classes over the next three months.
Investment property was the only growth asset to which respondents planned to increase their portfolio allocations, although appetite for investment property was down slightly from the previous survey for the December quarter.
All groups said they would cut their holdings of shares and diversified balanced funds over the June quarter.
 <img src="/images/2014/04/17/zoe-april-17-three.jpg" alt="">
Source: MLC Quarterly Australian Wealth Sentiment Survey Q1, 2014
The results are in line with an improvement in broader consumer sentiment towards residential property, as recorded by the NAB Residential Property Index, which rose one point to a high of 37 in the March quarter.
The outlook for house prices improved across all states except Victoria, with further increases expected in the next six, 12 and 24 months. Rental growth, however, was subdued indicating investment property yields could fall.
<img src="/images/2014/04/17/zoe-april-17-two.jpg" alt=""> 
Source: NAB Quarterly Australian Residential Property Survey: Q1 2014 
Around 30% of respondents to the MLC sentiment survey who earned more than $100,000 already had property investments. Some 10% of people in that wages bracket said they planned to invest more in property over the next three months.
Property was a more popular investment choice with younger people than with those aged over 50. Around 10% of people aged 49 and under said they were looking to buy property during the June quarter. On a net investment basis, over-50s intended to slightly reduce their property exposure.
Debt reduction was the top priority for the majority of people surveyed with around one in three saying that would be their goal for the three months to the end of June.
A large group also said they would invest more in cash and term deposits, as well as superannuation in the coming months.
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zfielding-GvX3Uq9KTa

Investors intend to boost property portfolios over next three months: MLC survey

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The longest standing prerequisite for being a politician in Australia is to turn a question into a rhetorical question – cue Sydney’s political self-preservation argument for a second airport.
This particular debate goes way back to the 1970s where nearly five decades after the initial announcement reality has now come to the fore. The only reason for this five decade delay was the concern of politicians losing office should they back such a controversial recommendation.
The Sydney to Melbourne route in 2011 was declared as the fifth busiest in the world. Sydney airport is by far the busiest in Australia with approximately 36 million passenger movements and 320,000 aircraft movements annually. By 2035, projections have passenger movements at 80 million and aircraft movements at nearly 430,000.
For too long Sydney has fictitiously survived under the falsehood that everything happens within just a 15 kilometre radius of the Sydney CBD. This myth was exposed further in 2014 when the state government moved that 24 hour a day, seven day a week clearways would come into force. Sydney was suffocating and the only solution was to move west – the embarrassing part of this entire debate is why has it taken so long?
<blockquote>
For too long Sydney has fictitiously survived under the falsehood that everything happens within just a 15 kilometre radius of the Sydney CBD.
</blockquote>
Look no further than the fact that Sydney does not have a plan to cope with the fastest growing population in Australia – which has resulted in residents moving elsewhere for a better lifestyle.
Kudos to Parramatta which has fast-tracked itself as Australia’s boomtown over the next five years with a record $8 billion designated with 33 major projects on the drawing board – when completed this will make it Australia’s fifth biggest CBD. An extra 838,000 square metres of commercial space and more than 3,700 apartments and townhouses have been approved.
This week’s announcement for a second Sydney airport at Badgerys Creek will add the largest construction growth spurt that NSW has ever seen – not surprisingly this will have a flow on effect to north and south coastal areas which will be watching the Sydney expansion with enormous interest – cue Newcastle and Wollongong.
Three graphs that will be of great interest not only to NSW but for every capital city in Australia will be:
<img class="aligncenter size-full wp-image-8505" src="https://www.rwm.com.au/files/2014/04/17-04-2014-11-17-08-AM.jpg" alt="17-04-2014 11-17-08 AM" width="599" height="401">
<img class="aligncenter size-full wp-image-8506" src="https://www.rwm.com.au/files/2014/04/17-04-2014-11-12-09-AM.jpg" alt="17-04-2014 11-12-09 AM" width="518" height="465">
<img class="aligncenter size-full wp-image-8507" src="https://www.rwm.com.au/files/2014/04/17-04-2014-11-15-26-AM.jpg" alt="17-04-2014 11-15-26 AM" width="525" height="453">
NSW has been stymied by a lack of direction which has been highlighted by elected politicians preferring their own vote protection over making crucial decisions that will guarantee growth, jobs and prosperity for NSW. Comparing the Olympic Games in Sydney in 2000 to the second airport announcement is like comparing a skateboard to a train. It is interesting to note that over the last 40 years Melbourne has increased its population by two thirds while Sydney has managed just a little over half.
So what will these announcements do to property prices? Well that’s pretty easy to answer as property prices are determined by supply v demand. For too long properties within a 15 kilometre radius of the Sydney CBD have attracted all the interest – this will now change significantly with the move by businesses in a westerly direction given that is where the workforces are (or will be). <a href="/news">Parramatta</a> and surrounding areas will flourish given that such infrastructure spending is unprecedented in an area outside the Sydney CBD region. Another bonus is that this construction boom will (in time) significantly bring down rents.
Australia is right in the middle of a housing affordability crisis which also has been conveniently ignored by politicians given this too is placed in the too hard basket. So it was interesting to note this week that New Zealand’s Housing Minister (yes, they have one and Australia does not) Nick Smith announced that he set an ambitious target to reduce housing affordability in NZ back to the long-run average of four times. Australia and NZ both share a median market of around 5.5%. Although this grand scheme lacks detail at least it has been tabled which is not the case in Australia given it’s not spoken about, and we don’t even have a designated minister.
Premier Barry O’Farrell fell on his sword last week and there is no denying he had to go. Brace yourself for plenty more revelations from ICAC and the Royal Commission into unions where I predict a record number of by-elections across Australia.
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robertsimeon-hRNTwJyXkQ

The announcement that finally had Sydney smiling

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Scott Pape's new television show is called Under The Hammer, which he says follows everyday people going through one of the most stressful events of their lives — buying and selling their family home at auction.
"Throughout the series you’ll see people who make huge sums of money — but importantly you’ll also see people who lose a fortune too — because that’s the truthful reality of real estate," he says.
The footage look captivating.
All the triumphs and terrors were filmed over the spring 2013 selling season. Last December, the filming by Scott Pape – better known as The Barefoot Investor - included a Surrey Hills, Melbourne auction through <a href="https://timheavyside.com/2013/12/13/under-the-hammer/" target="_blank">Tim Heavyside at Fletchers Real Estate</a>.
<img src="/images/2014/04/23/tim-heavyside_under-the-hammer.jpg" alt="">
Tim Heavyside (left) with The Barefoot Investor, Scott Pape (right). Picture courtesy of Tim Heavyside. 
They look pretty happy with themselves, but Property Observer won't share or spoil the auction outcome.
Scott Pape has come up with 12 tips for "not getting screwed" as a buyer or seller, with some analysis below by the Property Observer editor at large, Jonathan Chancellor.
<div><ol>
<li>
Don’t believe your bank  A pre-approval for a loan from a bank doesn’t mean they’ll give it to you. It’s a lot like getting a number from an attractive woman at a nightclub. You’re a long way from being invited back for coffee — and it may turn out she gave you a wrong number just to blow you off.  Jonathan Chancellor says Scott Pape is a overly cautious with this tip, and while pre-approval isn't always going to come through, especially the longer you leave the purchase, it does provide some comfort and an indication of your borrowing capacity. 
</li>
<li>
The agent is lying to you  An agent’s job is to drum up as many people to an auction as possible, which is why they under-quote what the price the property will sell for. Don’t fall for it. Instead, do your own research. For $25 you can order a property report online with RP Data that will estimate the value of the home based on recent sales.  Jonathan Chancellor says understanding estate agents and particularly step price auction marketing — with the estimate rising at successive open for inspections — is of key importance. It is not that the agent is lying, rather just coming to a better understanding of where and what the market place is at varying periods of time. There are obligations for the agent to tell the vendor and the buyer the same thing, but agents are of course working for the vendor. Research is crucial for buyers so start as early as you can. 
</li>
<li>
It’s street theatre, and you’re the lead actor.  Act as if you’re Donald Trump (who himself acts as if he’s really a billionaire). The best way to get into character is to stand next to the auctioneer and eyeball the crowd (and your competitors). Pay no attention to the auctioneer -- in fact, flick your comb-over like the Donald, and fire him up. Throw in randomly priced, hard to calculate bids that stop the auctioneer’s flow. Let everyone know that you’re in charge.  Jonathan Chancellor says don't act as if you are the Trumpster. Yes, do position yourself so you can watch the competition at the auction. But you don't need to let everyone know that you are in charge, unless there are other bidders with the same silly intimidation idea. 
</li>
<li>
Shut your mouth  When the agent announces that the property “is on the market”, you’re actually in the box seat. You now know the seller's lowest selling price — but they don’t know your highest price. If you’re bidding aggressively the agent’s representatives will rush over to you and try to work out your level of interest. Keep your mouth shut.  Jonathan Chancellor agrees that the on the market announcement is the pivotal moment in any auction, but it's best to just concentrate on beginning your bidding — and liaising with you partner — so you secure the prize. No time now to be cute about your intent, but definitely don't blow everyone else of the water with a huge offer, as none might follow you, and you will forever be left wondering. 
</li>
<li>
No peanuts, no monkeys  Make sure you cough up and pay to get good legal advice, before you sign anything. An experienced conveyancer is worth their weight in gold, and may suggest additions or variations to the agreement.  Jonathan Chancellor says having the contract checked pre-auction is the wise thing to do. And don't overlook the building inspection report. 
</li>
<li>
Just Walk Away, Renee  When the bidding goes over your limit, take your bat and ball and head home — the last thing you want to do is go over your limit. Don’t get sucked in, there’s plenty of fish-fingers in the sea.  Jonathan Chancellor agrees that you should walk away, although after possibly allowing a little leeway for your pre-supposed limit if it's really your dream home. Investors ought be showing no such similar emotion.  And for the sellers… 
</li>
<li>
Apply Some Lipstick  Buying a home is a lot like the Tinder dating app: a lot of snap judgments are made on looks alone. That’s why the best bang for your buck isn’t always in renovating. Spending a little time and money improving the curb side appeal of your home, can make people come inside and check it out.  Jonathan Chancellor agrees with Scott Pape that curb side appeal can often be crucial in getting potential buyers out of their cars. 
</li>
<li>
Ditch the Beauty Parade  When it comes time to sell, most homeowners ring up a couple of local real estate agents and arrange a time for them to come over and give a valuation. Don’t do it — not yet anyway. Most agents have spent many hours perfecting their listing pitch — they have all the right closing techniques designed to get you to sign on the dotted line. Keep them out of your home.  Jonathan Chancellor agrees, but when the time comes, make sure you work them down a tad on their sales commission or incentivise their commission with higher price hurdles. It's not a sign of their weak negotiating skills if the agent agrees to an altered commission from their submission, just the way the increasingly savvy vendors improve their cost situation. 
</li>
<li>
Catch them in the Act  Instead, find a similar home to yours that’s for sale in your area. Then, ring the agent and ask about buying the property. Do they pick up? Are they really enthusiastic about the home? If they pass that test, head off to one of their open-for-inspections. Are they on time? Do they take the time to get to know the prospective buyers — who are the potential buyers of your home?  Jonathan Chancellor says Scott has nailed it with this advice, though it only works if you have the time. I also think once the agent has been selected to also send someone into your own home open for inspection to get feedback on what is being advised to the potential buyers! 
</li>
<li>
Don’t Pay for Glossy Advertising  Once you’ve found the right real estate agent, don’t let them talk you into paying for advertising. The truth about glossy advertising is that it’s more about promoting the agency than it is about promoting the property. Honestly, to sell a house all you need is three things: a website<a href="redir.aspx?C=YEH-wRtNZEKpWiNkC3Li00qjg5MrL9EIXP1V3AhNaADtd7E5_LViAvxD4bJ_bVxzZLCD0nfXfAE.&amp;URL=https%3a%2f%2fbvs89594.infusionsoft.com%2fapp%2flinkClick%2f16231%2f9f6fdd5591ec792d%2f16225931%2f07526857f5b20392" target="_blank" style="line-height: 1.3em;"> </a>listing, a sign out the front of your house, and a good agent.  Jonathan Chancellor is inclined to agree with Scott Pape, as gone are the days of the oversized vendor paid print ads. There is a dwindling place for smaller glossy print presence in select localities, but let's face, it most buyers get their website alerts these days as the prompt to look further, rather than the randomness of coming across something in print. Vendors will still need to spend up on their website listing. 
</li>
<li>
Crunch or Be Crunched  After the agent has told you how much they believe they can sell your place for — and before you sign with them — look them straight in the eye and say: “if you make me lower my final price, do you agree to lower your final commission?  Good point, but Jonathan Chancellor says this goes back to the suggestion to incentivise the agent's commission. 
</li>
<li>
Sell, then Buy  Don’t buy a home before you’ve sold. It almost always ends badly.  Jonathan Chancellor says yes, this is the ideal scenario, but it is not always possible. Much depends on the individual circumstances surrounding your own situation, and how you cope with pressure. There's ertainly more pressure when buying first, but it doesn't have to end badly.
</li>
</ol></div>
<div>
Under the Hammer is on Channel 7 at 8pm on Thursday night.</div>
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Assessing Scott Pape's 12 tips for auction bidding and listings

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Most first-time investors – and indeed established portfolio owners alike – will have apartments and units as part of their core investment property acquisition strategy.
From a public/tenant liability perspective, apartments are often thought of as a safer property type in this regard, in comparison to detached houses. However, this is not to say apartments and units aren’t without their own risks.
Here’s a short list of safety risks you need to know about, as a landlord, that might come back to hurt you, if left unchecked.
<ol>
<li>
Curtains and vertical blinds  Recent compliance changes in several states pertaining to curtain/blinds are very important. For most curtains and blinds; a rope-style pulley system is the commonplace curtain raising/lowering/opening mechanism. However, many older-style pulleys (say blinds older than four or five years), are a child safety hazard, and children can be at risk of choking if caught in the connected pulley strings. This risk is an easy and cheap fix; just Google ways to replace or cut and repair the pulley strings to make sure they are compliant. 
</li>
<li>
Safely opening windows  On to windows as opposed to blinds now, and the requirements per-state/territory change, so be sure to research the compliance rules specific to the state your property is in. In some states, the rules on the gap a window is able to open (for units where the windows are above a certain height from the ground – so, some ground floor units may be exempt) is undergoing change currently.  The safest thing to do is ensure your apartment’s windows are fully compliant with your state’s rules. This is again a child safety issue, and rules were introduced to prevent children falling out of high windows. For instance, in some states there are rules that require windows to open to no more than just 12 centremetres width. 
</li>
<li>
Fire alarms need to be tested regularly  This sounds like one of the most obvious unit and apartment safety issues, but I am constantly surprised by the number of investors I speak to who do not regularly check the working function of Smoke and fire alarms in their properties. The simplest way to regulate this is to ensure your managing property agent checks them for you (and signs off on the inspection report, having indicated they are in working order). However, this isn’t already an iron-clad guarantee that the devices are functional or have even been checked. From a legal standpoint, should any fires break out, the managing agent may not be held accountable to this either. Smoke alarms vary in price, from as low as a $9 K-Mart job, all the way to premium products that include regular servicing options to ensure compliance and safety is checked and maintained. These are the safest and most legally-liable solutions, though the cost is much higher for this piece of mind. 
</li>
<li>
Balcony balustrade heights  Balcony balustrade height requirements vary from state to state, however it is something to check in on for both newer and older apartments alike. If a balcony balustrade on a property you are considering purchasing as an investment appears to be quite low, it is work querying this with the selling agent. Also, investigate compliance issues that may result from a child (or adult!) balcony fall or accident as a result of a low-built balustrade. Again, ground floor apartments and units are often exempt from this requirement. 
</li>
<li>
Internal and external stairwell balustrade heights  Similarly to item number four above; be conscious of balustrades on stairwells both inside the unit and outside too. The exceptions of course are any ‘common property’ stairwells. Any accidents or deaths pertaining to incidents on these common-property stairwells are handled by the strata plan liability insurances, and not individual unit or apartment owners.  I was actually caught out on this in my most recent property purchase. The property featured a modern ‘floating’ internal stairwell that simply had a raised, open-air hand rail, with no connection to the steps below it. This meant that a child or infant could potentially make it half way up the stairwell, then fall off the steps over the side balustrade, and injure themselves. 
</li>
<li>
Get a building and pest inspections report and read it carefully The above stairwell discovery was only found when I had the building and pest inspection report completed, prior to cooling off period ending. I’d identified the issue and investigated a plan to resolve it, prior to the cooling off period ending, and I make the same recommendation to would-be investors out there reading this, to do just the same. A building and pest inspection is so valuable for this reason. Sure, it is a few hundred dollars extra expenditure on the property, however it can save thousands later on. Most investors and property buyers assume this report just reveals any structural faults and rodent/insect problems, however the real value lies in the ability to foresee liability issues early on, before you complete your cooling off (aka ‘back out of the deal!’) period.
</li>
</ol>
You can visit Cameron's blog at <a href="https://www.propertycorrespondent.com.au/" target="_blank" rel="nofollow">Property Correspondent.</a>
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cmcevoy-Go82SmsJA9

Six apartment safety risks every investor must know about

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Lend Lease have circulated an April newsletter for their forthcoming <a href="http://www.batmanshillcollinsstreet.com.au/">Batman's Hill</a> development which outlines plans for the two commercial buildings that will front Melbourne's premier locale: Collins Street. Included within the newsletter are images of the dual commercial buildings that as of last week were submitted to State planning body DTPLI for assessment.

Upon first glance last week - and up to this point - little has changed in my opinion of these two proposed buildings.

<h2>Why 695 Collins Street disappoints</h2>

<ul>
<li>In isolation the design has little architectural flair, befitting of a suburban office park rather than a Collins Street address. The duplicated design offers a sheer wall effect with little visual permeability to what lies behind.</li>
	<li>700 Collins Street directly opposite and AXA at 750 Collins Street nearby are prime examples of simplistic, uninviting early Docklands designs which have been roundly criticised. A decade later and 695 Collins displays little design progression.</li>
	<li>Lend Lease trumpet Sydney's Barangaroo as a "Once in a 200 year opportunity to create a bold new place to live, work and visit." If 695 Collins Street is a precursor to a 'bold' Batman's Hill precinct, we have a problem.</li>
	<li>Street level finishes at this point are lacking style and substance. What seem to be odd-sized, composite panel-clad boxes lining Collins Street; they look cheap although in fairness are infinitely more active than the monstrosity that is <a href="http://www.750collinsstreet.com.au/sites/750collins/files/1332_35.jpg">750 Collins Street</a>.</li>
</ul>
<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/llbh4.jpg" rel="gallery-all" title="Indicative Collins Street perspective. Image © Lend Lease"><img alt="" class="image-article-full-width-580px" height="720" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/llbh4.jpg?itok=HuHyg4qa" title="Indicative Collins Street perspective. Image © Lend Lease" width="580"></a>

<figcaption>Indicative Collins Street perspective. Image © Lend Lease</figcaption></figure>With a half deck covering Wurundjeri Way as envisaged below, poor old Bunjil, the 25 metre eaglehawk and Docklands sentinel will be relocated. Relocated between Towers C3 and C4 and for the most, lost out of view. I can't help but think the abbreviated deck over Wurundjeri Way has compressed the layout of the commercial buildings leading to maximising the available development envelope - in other words boxy designs fronting Collins Street with little if any setbacks.

The other aspect to note is that the C4 office tower that was expected to reach as high as 160 metres and now looks to be no more than 12 levels in height according to the above image. This pocket of Docklands is littered with boxy 10-15 level commercial buildings - one more to join the party!

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/llbh5.jpg" rel="gallery-all" title="Batman's Hill site overview. Image © Lend Lease"><img alt="" class="image-article-full-width-580px" height="693" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/llbh5.jpg?itok=7Rp6_CJ4" title="Batman's Hill site overview. Image © Lend Lease" width="580"></a>

<figcaption>Batman's Hill site overview. Image © Lend Lease</figcaption></figure>Not impressed with my assertion that 695 Collins Street as seen above is a hapless, ill conceived design? Ponder the following two designs.

Below left sees the Grocon/Mirvac/Hassell Studio concept for Batman's Hill. Aside from a signature high-rise that would define the precinct within Melbourne's skyline, Hassell's scheme carries far more open space by way of a larger deck over Wurundjeri Way and built form which is articulate yet uncluttered.

The other image below highlights ARM's ostentatious Collins Street frontage as part of their precinct design; unique, eye-catching and worthy of the address!

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/bhprop6.jpg" rel="gallery-all" title="Images © Hassell Studio and ARM Architecture"><img alt="" class="image-article-full-width-580px" height="271" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/bhprop6.jpg?itok=UQb7zrHG" title="Images © Hassell Studio and ARM Architecture" width="580"></a>

<figcaption>Images © Hassell Studio and ARM Architecture</figcaption></figure>In other words, both examples and their Collins Street frontage are precisely what Docklands requires and a polar opposite to what has been proposed.

By some miracle should the Lend Lease scheme shown above not be the intended design for 695 Collins Street, I'll be the first one to say the joke's on me. Otherwise the joke's on anyone expecting a quality outcome for an area that truly needs it!
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silvermb

Batman's Hill leaves much to be desired

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Close to 100 countries have signed up to a new set of tax principles to govern how goods and services are taxed across borders.
But local retailers are unsure as to what kind of pressure the international consensus will have in Australia, where state and territory governments are yet to reach an agreement about changing the $1000 <a href="https://www.smartcompany.com.au/finance/tax/35217-lowering-the-gst-import-threshold-will-require-careful-political-management" target="_blank">GST threshold for online purchases</a> from offshore suppliers.
Representatives from 86 countries endorsed the guidelines from the Organisation for Economic Co-operation and Development in Tokyo, Japan, on April 18 as part of the OECD Global Forum on VAT.
The <a href="https://www.oecd.org/ctp/consumption/governments-endorse-new-oecd-guidelines-on-applying-vat-across-borders.htm" target="_blank">guidelines</a>, which represent the first internationally agreed framework for applying value-added tax across national borders, aim to help countries avoid both double-taxation and under-taxation. The guidelines relate to two areas: VAT neutrality and ensuring taxes on business-to-business trade is services are destination-based.
The level at which GST is applied to online purchases from offshore suppliers in Australia is a hotly-contested issue, with many local retailers arguing that lowering the threshold from $1000 to a much smaller amount such as $20 would create a more even playing field.
The Productivity Commission <a href="https://www.smartcompany.com.au/growth/economy/23452-20111209-productivity-commission-shoots-down-online-gst-argument-but-pushes-for-changes-to-postal-costs--trading-hours-and-zoning-laws" target="_blank">examined the issue in 2011</a> but found that the cost of collecting GST on online purchases at a threshold of $20 would far outweigh the benefit.
Australian National Retailers Association executive director Russell Zimmerman told SmartCompany while there has been “robust discussion” on the topic between the federal government and retailers, he is unsure as to how much pressure the OECD guidelines will have added to the local debate.
However, Zimmerman said the endorsement “does show that every country is concerned” about international tax arrangements.
Zimmerman said the OECD guidelines may have more of an impact on multinational companies who use corporate structures across various territories to attempt to avoid their tax obligations.
State and territory ministers were <a href="https://www.smartcompany.com.au/legal/politics/41170-push-to-lower-online-gst-threshold-re-intensifies-as-pm-meets-with-retail-chiefs" target="_blank">due to make a decision about the threshold in March</a> but an agreement was hampered by the elections in Tasmania and South Australia. “It’s fair to say that the issue will go to another cabinet meeting,” says Zimmerman of the next step.
Zimmerman said the ARA hopes the recent elevation to NSW Premier of former treasurer Mike Baird, a strong supporter of lowering the GST threshold, will spur the debate.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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jake-cSmGT7VXVf

Almost 100 countries sign GST agreement: Pressure mounts on Australian government

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With Sydney and Melbourne’s rising dwelling prices across much of last year, Australia’s property commentators are again looking at the possibility that our price growth is due to a bubble.
The economic phase is largely characterised by prices that have inflated beyond fundamental property values.
Those who have diagnosed a bubble in our housing market are either realists or fear mongers, depending on who you ask. Property Observer took the issue to a panel of economists and industry analysts, asking:
<ul>
<li>What are the warning signs of a growing bubble in the housing market? 
</li>
<li>Is Australia experiencing a property bubble?</li>
</ul>
Arek Drozda – Independent property market analyst
Firstly, let’s define a bubble in more precise terms since there are many different approaches to describe this phenomenon.  I prefer the simple definition that a bubble is “trade in high volumes at prices that are considerably at variance with intrinsic values”.
By this measure, the Australian residential property market is far from bubble territory. In particular:
<ol>
<li>The last time we experienced really high volumes of residential property transactions was in late 2006 and 2007. Despite reports of the biggest ever number of weekend auctions, the total volume of property transactions in 2014 is still subdued in comparison. </li>
<li>This period (up to March 2008) also coincided with high prices and, most importantly, purchase affordability was at its lowest since early 1990’s.</li>
</ol>
The reason for low affordability was that the cost of buying (comprising of mortgage payments, council and water rates as well as other expenses associated with owning a property) ballooned to proportions far exceeding the pace of rises in personal incomes, making property prices at that time “considerably at variance with intrinsic values”. Simply, housing market was in a bubble then.
<blockquote>
"Australia's residential property market is far from bubble territory" - Arek Drozda
</blockquote>
Despite the recent gains in property prices, purchase affordability in 2014 remains at historically high level (not far from 2009 level when Australia and the world were in the depths of the global financial crisis). 
Therefore, there should not be any concern about the bubble until the volume of property transactions reaches 2007 levels and until there is a significant drop in affordability. Prices and interest rates still have a lot of room to move before this will happen.
<img src="/images/2014/04/22/shane-oliver-profile.jpg" alt="" style="float: right;">
Shane Oliver – Head of investment strategy and chief economist, AMP Capital 
The characteristics of a bubble in the housing market are a combination of overvaluation in terms of the prices relative to fundamentals, excessive credit growth, with signs that investors are piling in using borrowed money and finally self-perpetuated exuberance, where past price gains are feeding current price growth.
We saw that in the major capital cities in Australia going into 2000, 2003 and 2004. We had many years of strong price gain. Housing related credit growth was above 20%, and property spruikers like Henry Kay were out in force. The market had become well and truly overvalued.
Some of those indicators are in place now. Housing prices are overvalued in comparison to wages and rental income, both in comparison to Australia’s history and on an international basis.
But we’re not seeing the debt driven frenzy that we saw ten years ago. Credit growth is in single digits, and we’re not seeing the degree of exuberance we saw a decade ago. Cooking shows still out-rate the home development shows.
In Australia, two cities are in double digits but the other capital cities are seeing growth under 5%.
Sydney was perhaps the most bubbly of all the property markets a decade ago, and it’s the one that had the weakest experience in the last decade, starting with the western suburbs in 2004 and 2005. So there’s a degree of catch up going on in Sydney, which partly reflects a return to confidence.
Average capital city growth is above 10%, but that growth is dominated by Sydney, which is up around 15% or 16%.
There are several things investors need to be worried about with Sydney. Firstly, there are probably better opportunities in the states than in Sydney right now.
Secondly, we have seen a strong recovery triggered by a reduction in interest rates, and they’re likely to be raised again, probably later this year.
<blockquote>
"We’re not seeing the debt driven frenzy that we saw 10 years ago" - Shane Oliver
</blockquote>
Thirdly, rental yields are quite low, so investors getting into property need to accept that they are a lot more dependent on capital growth to get double digit returns, if that’s what they’re expecting.
The term ‘bubble’ conjures up images of some sort of crash, a la some parts of the US, Europe and Japan in recent times, particularly around the GFC. But I don’t think we’re at that point yet. Rates will go up, and capital growth will soften but prices probably won’t crash. The important thing is for investors to have realistic capital growth expectations.
<img src="/images/2014/04/22/soos-profile.jpg" alt="" style="float: right;">
Philip Soos – Property market economist and housing bubble researcher 
The first thing you’ve got to do is define what a bubble is. And with all property analysis it’s such a vacuous term.
I take the definition of economist Hyman Minsky. He defined an asset bubble as when the rent from an asset, or income from an investment, cannot pay down principal, interest and the running expenses. That means they’re making an income loss. The only way for an investor to make a profit is through capital gain.
That occurred in 2001 onwards when investors on aggregate became negatively geared in Australia. But it’s been worthwhile for most, because the capital gains have been enormous, especially in Melbourne.
There are three requirements of a housing bubble. Firstly, an increase in real housing prices. Secondly, an increase in the debt used to purchase houses, the mortgage debt to GDP [gross domestic product] ratio. That’s something that Steve Keen has popularised. And thirdly, net rental income losses.
<blockquote>
"Right now, we’re seeing the largest bubble on record" - Philip Soos
</blockquote>
You can also see a bubble through other indicators such as price to income, price to rent, total land values to GDP, the value of housing stock to GDP. There’s also the Kavanagh-Putland index – the total value of property sales on an annual basis relative to GDP – and the debt to cashflow ratio, which compares housing debt to income flows, or net rental income.
Right now, we’re seeing the largest bubble on record. In the post-war period we had two major bubbles. First was coming out of the war in 1974. That was a small housing bubble. It collapsed and gave us a severe recession.
In the late 80s, there was a massive commercial real estate bubble which gave us the early 90s recession. With those two bubbles, real prices and private debt moved up. The same trends are present today, but the trends are much greater now.
Housing prices began to lift off in 1996 and peaked in real terms in 2010 – we’ve never had such a sustained growth in housing prices.
If and when it the bubble bursts, it’s going to induce a pretty severe economic downturn. We’ve never had anything quite like a bubble of this size. The biggest one we’ve seen prior was in the 1880s, when there was a bubble in Melbourne and Sydney. When it burst in the 1890s, it destroyed the economy and produced a depression worse than the one seen in the 1930s.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
 
<img src="/images/2014/04/22/cashmore-proifle.jpg" alt="" style="float: right;">
Catherine Cashmore - Independent market analyst
People buy property based on expectations of future growth. 
The prices buyers are paying in some areas of Melbourne indicate a sense of exuberance – a bullish expectation that the good times will continue. 
This is not just evident in the residential sector, but the commercial sector also. Time on market has reduced, reserves are being surpassed, auction clearance rates are holding up despite the increased number of listings, lending data is still indicating we're on an upward trajectory – the list goes on.
As is the case in any cycle, the tide is quick to change if purchasers feel growth prospects will not be realised for the period of time they intend to hold the investment – and we do face significant headwinds in the local economy. 
This could be the result of a number of economic forces which usually act in combination – i.e., not one rate change alone but rather a series of projected rate hikes, job insecurity, fluctuations in the stock market, a report indicating a change to housing policy, restrictions on lending, lower wage growth, and so forth.  
<blockquote>
"Inevitably, the tide will turn" - Catherine Cashmore
</blockquote>
Buyers will move in sentiment faster than vendors.  Vendors have typically gone through a period of conditioning prior to placing their dwelling on the market. Therefore they are 'set' on achieving a price. Hence the market often stagnates at the turn of a cycle, and housing data can often miss the true drop in prices should vendors be forced to sell. 
This growth phase has a number of forces behind it.  In Sydney and Melbourne (not so much other states), wealth coming into the country from Asia (by way of migrants and off shore lending) is significant and should not be overlooked. I go into further detail <a href="/expert-insights/investing/we-need-to-direct-foreign-investment-in-real-estate-effectively-not-stop-it">here</a>. Our loan data doesn’t pick this up. 
However, money being poured into infrastructure by the current administration, and the boom in building activity, will also bear an upward influence on land prices, although not necessarily on individual unit prices, which are subject to oversupply in city areas.
Inevitably the tide will turn. However, if you're asking me for a 'crash' prediction, while I have no doubt we will experience one, we are, in my opinion, a way from it yet. 
As for why prices are as high as they are, and the impacts this has on society as those on the fringes are increasingly forced out (as I point out <a href="/expert-insights/buying/the-widening-inequality-and-economic-growth-gap-what-does-this-mean-for-housing">here</a>),  I would advise reading <a href="/expert-insights/investing/looking-at-our-housing-market-through-foreign-eyes">my latest article</a>, which addresses the matter in detail.  
Harley Dale – Chief economist, Housing Industry Association <img src="/images/2014/04/22/harley-dale-profile.jpg" alt="" style="float: right;">
Price increases for residential property are being driven by Sydney and Melbourne. There is evidence that the price recovery is broadening, but overall growth outside our two largest capitals is modest. We don’t have a classic bubble scenario in Australia where a frenzy of speculative activity is rife and widespread.
Price increases in Sydney reflect the response to what was a severely supply-constrained market for nearly a decade, although we wouldn’t want to see current rates of growth sustained for a long period. The rate of growth in Melbourne should ease.
<blockquote>
"We exaggerate price weakness when it occurs, but then lament a reversal to price growth" - Harley Dale
</blockquote>
In general our population is increasing and our economy is growing, albeit not at the trend pace we would prefer.
We will see some broadening of dwelling price growth relative to that which is currently evident.
We don’t want to see the situation get out of control, but it isn’t.
We exaggerate price weakness when it occurs, but then lament a reversal to price growth. Let’s just carefully assess how prices behave over the course of this year and stop sensationalising the issue.
<img src="/images/2014/04/22/wilson-profile.jpg" alt="" style="float: right;">
Andrew Wilson – Senior economist, Australian Property Monitors 
A bubble is certainly a nebulous concept because it is something that’s not really defined – other than the fact it ranks with other nightmare bedtime stories as a frightening concept for investors.
The reality is a lot different from the fear. The perception is that unsustainable growth leads to a collapse in housing prices.
That’s not the experience of the Australian housing market. In Australia, our market has been characterised by strong periods of growth, followed by moderate price corrections.
We’ve rarely seen any period of annualised price decline, and when we do it’s at very minor levels, with decline rarely over 5% in any year, while we see double figure growth at times.
We about the housing market in cycles, like the business market. And of course they’re very closely related in terms of their underlying drivers.
<blockquote>
"As Mr Clinton once said, 'It’s the economy, stupid'.” - Andrew Wilson
</blockquote>
If we look at the bottom of a cycle, in Australia the trough is always higher than the previous trough point. So the underlying trend is always upwards.
If the trough point is lower than the previous one, we should be concerned, because we’d be seeing a more exaggerated bubble shape.
So we actually have moderation in the correction phase - we have more of a “wave” shape rather than a bubble shape, and the thing that drives that is the underlying upward trend in our economic cycles.
We have income growth, with competition for labour putting upward pressure on income, which gives us the capacity to pay for houses, and we’ll continue to have that with a healthy economy.
That pattern will continue unless there is some catastrophic economic event. But we’ve had very strong downturns in economic activity before and we didn’t see that any bubbles burst.  
We have a rigid financial environment, which reflects risk aversion from banks. We don’t have a market for lending like the U.S. had, with a lot of speculative lending, which can give us that bubble shape.
As long as our economy continues to grow and as long as we have a rigid and risk adverse financial system, we won’t see a housing bubble.
We also have an underlying shortage of property in most centres. Those that have the biggest property shortages tend to have the more modest corrections, and don’t have the same peaks and troughs of those markets that have a more abundant supply line.
As Mr Clinton once said, “It’s the economy, stupid”.
And as long as the economy continues to be a strong performer in terms of economic growth, we’ll avoid any steep declines in housing prices.
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jrichardson-uRX5hFdKfN

Exclusive: How can we spot a housing bubble?

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Longitude 131°, overlooking Uluru, is at Australia’s spiritual heart.
The Philip Cox -designed <a href="https://longitude131.com.au" target="_blank">Longitude 131° luxury wilderness camp at Uluru</a> has won acclaim for its eco-friendly intention, with tent-like suites dotted across the red dirt in the Northern Territory.
Its ownership sits within the indigenous-owned Ayers Rock Resort, that comprises five hotels bought by the Indigenous Land Corp from the listed GPT Group in late 2010 for $300 million.
It wasn't a straight sale but rather by instalments:
<ul>
<li>$81 million payment on settlement; 
</li>
<li>$81 million 12 months after settlement; and 
</li>
<li>$138 million five years after settlement.</li>
</ul>
The additional terms of the sale included GPT contributing $25 million towards capital expenditure to assist in the achievement of a higher value in which GPT may share. GPT will share in 46% of the increase in capital value of Ayers Rock Resort over $300 million.
GPT had opened it in 2002, with 12 of the 15 tents at the $9.4 million safari-style camp, then lost in a bushfire just 15 months after its launch.
Longitude 131°, on the edge of the Uluru-Kata Tjuta National Park (UKTNP), 10 kilometres from Uluru, had just been named by US magazine The Robb Report as among the world's top 10 new hotels.
It is now on a long-term management lease deal with Baillie Lodges, owned by entrepreneur Dick Smith’s daughter Hayley and her husband, James Baillie.
Prices have been at $2,200 per couple for a two-night food, drinks and accommodation package
Last year the Indigenous Land Corp’s tourism management arm managing director, Voyages' Koos Klein, the former Hilton executive, told the AFR that the Baillies "can do it better than we can do it. This gives us the opportunity to concentrate on our main resort where we employ 700 to 800 people, and where our focus is on indigenous employment and training."
After a downturn in tourism into the Northern Territory, the value of the resort was cut by $62 million last year, prompting the head of the Indigenous Land Corporation Dawn Casey to question the purchase of the Ayers Rock Resort telling Fairfax Media it was ''perhaps the largest single evaporation of public money in the indigenous policy domain, ever''.
Statistics from Parks Australia show visitors to Uluru declined by about nine per cent in 2011 to about 273,000 people. 
<div title="Page 1">
<div>
<div>
The majority of visitors to UKTNP surveyed were domestic visitors, while 31% of visitors were from overseas. 
<div title="Page 4">
<div>
<div>
International visitors were predominately from Germany; USA; other European markets including the United Kingdom, Netherlands and Switzerland; and New Zealand. 
</div>
</div>
</div>
</div>
</div>
</div>
Before the Windsors visit, Longitude has hosted celebrities, including Oprah Winfrey. 
<div title="Page 1">
<div>Tourism to Ayers Rock began as an informal activity around the mid 1950s , when a series of unofficial camps evolved at the base, followed by a rough airstrip and eventually some low quality hotels and hostels. By the early 1970's visitor numbers were estimated to be close to 50,000 a year.</div>
<div> </div>
<div>Visitor numbers hits over 75,000 per annum around the early 1980s when construction of Ayers Rock Resort commenced under the direction of the Conservation Commission of the Northern Territory.</div>
<div>
The existing hotels were compulsorily acquired by the Commonwealth Government, replaced on the new site by the new hotel.
The estimated costs of development were $600 million.
By 1984, visitor numbers had reached in excess of 130,000 a year.
Despite being operated by Sheraton and Four Seasons, the properties traded poorly.
In late 1997, General Property Trust purchased Ayers Rock Resort for $220 million. 
</div>
</div>
The Baillie Lodges collection of luxury lodges in wilderness destinations includes Capella Lodge on Lord Howe Island which launched the portfolio.
SA's Southern Ocean Lodge is also in the Baillie stable.
Last month James and Hayley Baillie abandoned plans to <a href="/expert-insights/investing/baillie-lodges-reveal-ribbed-modernist-addition-to-proposed-boutique-hotel-in-victorian-era-the-rocks-in-sydney">develop a $1400-a-night hotel in The Rocks in Sydney</a>, citing a threefold increase in construction costs.
Construction costs had an initial quote of $8 million but we tipped to blow out to up $23 million, making it impossible to make the nine-suite hotel stack up financially.
“The hard, sad reality is we have become such an expensive country, where the cost of construction has gone through the roof, especially at the quality end of the market,” he told The Australian.
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