High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

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For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

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<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

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The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

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For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

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The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

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Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

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.

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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.

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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]

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.

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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.

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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.

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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.

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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.

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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

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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Home owners in Sydney and Melbourne are holding onto their houses longer while owners in Melbourne and Hobart are doing the same with their units.
The average length of ownership for residential properties is continuing to increase. This indicates to us that home owners are moving less frequently. For houses, today’s results show that the average hold period across Australia’s capital cities was 10.1 years at the end of 2013, and for units it was 8.4 years. In the regional markets, the hold period was slightly less for houses at 9.5 years while for units it was longer at 8.6 years.
This highlights a consistent increase in the average hold period since about 2004/05. The rise coincides with the national surge in home values from 2001 to 2004 and the subsequent fall in sales volumes thereafter.
<img src="/images/2014/03/28/kusher-march-28-one.gif" alt="">
Across the individual capital city housing markets, the average hold period trended higher across each market over the past decade. The results also show that houses in particular tend to be held for much longer in Sydney and Melbourne than they do elsewhere.
By the end of 2013, Melbourne had the longest average hold period for houses and units recorded at 11.4 years and 9.4 years respectively. Sydney houses had the second longest average hold period at 11.0 years while for units Hobart held second longest hold period at 8.5 years. Each capital city has recorded an increase in the average hold period for houses and units over the past year.
<img src="/images/2014/03/28/kusher-march-28-two.gif" alt="">
Across the country’s council areas, Auburn in New South Wales is the area with the longest average period for houses at 15.5 years. For units, New South Wales and Victoria dominated the list; however, most of these areas are situated outside of the capital city.
Across the country, the shortest average hold periods are generally found in Western Australia for houses and in Queensland for units; Weipa in Far North Queensland has the shortest average hold period for both houses and units at 5.3 years for houses and 3.3 years for units. The regions with the shortest average hold periods are typically found outside of the capital cities.
<img src="/images/2014/03/28/kusher-march-28-three.gif" alt="">
The data shows that the typical hold period is increasing.
As we see a rise in property values rising, and the subsequent transactional cost of buying and selling properties increasing at the same time, it is no wonder home owners are choosing to move home less regularly.
The cost of agency fees and stamp duty acts as a disincentive to buy and sell property. Over the coming year we would expect that the trend towards longer period of home ownership will continue to be evident.
<img src="/images/2014/03/28/kusher-march-28-four.gif" alt="">
Research Notes:
An important figure to be aware of is the average length of property ownership, or the ‘hold period’ of a property. The typical hold period provides one of the best indicators about the likelihood as to whether a property will be brought to the market in the near future. RP Data measures the average hold period by looking at sales over the past year and determining the length of time each of those properties had been owned (i.e. the most recent contract date minus the previous purchase date).
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Home owners in Victoria & New South Wales hanging on to property longer

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The cost burden of property ownership has fallen over the past three years as a series of interest rate cuts lowered the monthly mortgage repayments needed to buy a median-priced property, but the latest HIA-Commonwealth Bank Housing Affordability Index shows the trend is starting to turn.
Housing became progressively more affordable in each quarter from December 2010 to September 2013 amid falling interest rates and moderate house price growth, the HIA-Commonwealth Bank Housing Affordability Index showed.
But the latest reading of the Index found that in the December 2013 quarter affordability dropped for the first time in three years, by 0.4 percentage points.
<img src="/images/2014/03/31/zoe-march-31-one.jpg" alt="">
The Affordability Index fell in Hobart (-9.2%), Sydney (-4.4%), Perth (-2.5%), Brisbane (-1.0%) and the Australian Capital Territory (-1.2%). Meanwhile, affordability in Adelaide and Melbourne rose by 5.5% during the quarter.
The lower affordability measures were due to more rapid house price growth rather than interest rate movements.
Interest rates available from lenders are flat and still coming down in some cases. But in the last three months of 2013, the median property price rose by enough to outweigh the effect of lower borrowing costs.
Reserve Bank of Australia governor Glenn Stevens noted recently that dwelling prices had increased by 10% in the past year and were now about 5% above their previous peak in 2010.
The Affordability Index shows the dollar value of monthly mortgage repayments on a median priced property increased to $2,500 in December 2013 from $2,458 in the previous quarter as the median property price rose by $11,400 to $470,400.
HIA chief economist Harley Dale expects the housing market to continue to run for a while from here on price momentum.
“While the rate of growth will be slower in 2014 than in 2013, I don’t think it will grind to a halt. There will be more gains this year,” he told Property Observer. 
How much further the market could rise would depend on a range of factors such as unemployment and household earnings growth.
“There’s some uncertainty around those key determinants of how people view their housing decisions,” Dale said. “That’s all consistent with the rate of price growth slowing but how long it takes our labour and wage markets to reach the end of their cycle is going to be a big determinant of how soon we reach a peak in house prices this cycle.”
On the other side of the affordability equation, few economists believe interest rates will fall further.  Westpac chief economist Bill Evans, who had previously been predicting two extra rate cuts this year, changed his mind in mid-March saying the next movement would be up, but not until sometime in 2015.
HSBC’s Paul Bloxham is forecasting a rise in rates by the end of this year.
Dale said he also believes interest rates have stopped falling. “But it looks like they’re going to remain low for a period of time. The cost of borrowing will be at or near record lows through the rest of 2014,” he added.
With house prices expected to increase further, household earnings subdued and interest rates on hold or rising, housing is likely to become even less affordable through the year.
Ironically, Dale expects people who are already in the housing market to feel the change the most.
“The strong cyclical improvement to affordability for existing participants in the home ownership market has therefore run its course,” he said.
Home owners and investors who are already in the housing market have been able to take advantage of the much lower cost of borrowing by paying down mortgage debt more quickly than needed and upgrading their homes or investing in additional property.
The <a href="https://www.rba.gov.au/publications/fsr/2014/mar/pdf/household-business-finances.pdf" target="_blank">latest RBA figures</a> showing almost that in aggregate, households held 15% of their outstanding mortgage balances in mortgage offset and redraw facilities. That’s the equivalent of around 24 months of total scheduled repayments at current interest rates.
When interest rates rise, households will have less capacity to keep reducing their debts.
Investors, most of whom already own at least their home, have been the most active players in the property market. Existing owner occupiers have also been upgrading their homes.
But an <a href="https://www.westpac.com.au/docs/pdf/aw/economics-research/er20140312BullHousingFinanceJan.pdf" target="_blank">analysis of mortgage lending by Westpac</a> earlier this month suggests that those markets may be starting to slow. “After a robust 13.7% rise in 2013, owner occupier finance approvals may be starting to 'top out',” Westpac senior economist Matthew Hassan noted. Meanwhile investor finance reduced by 3.3% in January, following 40.4% growth over 2013.
The RBA is still concerned that investors are taking on too much debt and people are assuming prices can only go up.
“We need to be alert to the possibility that the past year of strong rises in dwelling prices leads people to assume that this is the norm,” Stevens said in a recent speech. “Were such an assumption to lead to increasing speculative activity, accompanied by a renewed increase in household leverage with all the associated risks to the housing market and the economy more generally, that would be unwelcome ... We are watching this closely, and we remind people that house prices can go down as well as up.”
Lower affordability will also affect first home buyers, of course, but those people have largely been out of the market anyway. They face bigger problems in getting a toehold in the market, such as raising enough for a deposit.
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Housing becoming progressively more affordable

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Anyone in who has searched though one of the online real estate websites recently, will understand the frustration experienced when price quotes are missing – and judging from Australia’s real estate obsession, it’s no meaningless amount. The REA group alone claim to get “8.8 million unique visitors each month”.
Putting a price on real estate, particularly with homes offered as private treaty, is not difficult.
Ideally, an assessment of the property is undertaken by the sales agent – one familiar with market sales in the immediate locality – and in conjunction with the vendor, a price is set that produces a happy balance between both vendor expectation and local comparable sales.
If interest is lagging in the two weeks following, the agent can negotiate with the vendor to reduce the range.
If sales enquiry is healthy – or an offer in excess of the range is achieved and subsequently rejected – the agent has the ability and ethical responsibility (in conjunction with their vendor) to change the quoted range to reflect the heightened level of interest.
For a proportion of agents acting within their “reasonable” duty of service, this still is the norm.
However, now it seems every second advertisement you click upon, whether auction or private treaty has “contact agent” or a similar term listed underneath the subheading “price”.
An enquiry then produces a roundabout of guessing games with somewhat wishy-washy lines totted out, such as “it’s too early to tell”.
In other words, the agent is indicating he has no idea where to place his price quote, because Joe Blogs buyer hasn’t yet walked through and in some occurrence of pure fiction, stopped to tell the agent exactly what he’s prepared to offer.
Whilst we all agree –in a free market - real estate can only be valued on what a willing buyer is prepared to pay; this is precisely why real estate agents appraise a property against recent comparable market sales in the first place.
When combined with good local knowledge, a market appraisal (not to be confused with a valuation,) will give the agent a very good indication of buyer demand – at least to the degree of being able to publish a negotiable price range that falls in line with vendor expectation at the outset.
I should pre-empt before going further that a proportion of agents I speak to will give me a realistic idea of vendor expectation upon enquiry – however, after years of complaints within the industry regarding those who still choose to lowball their ranges, or quote using a ‘plus’ price, (which in today’s terms, can mean anything from 5-30%) – there continues to be an overall lack of transparency within the sector, allowing a number of agencies (particularly when advertising for auction) to continue selling buyers “false hope” with no fear of reprimand.
To give an example, I recently attended an auction in the Balwyn High School zone.  The property was quoted at $700,000 plus, and later revised to $750,000 plus in the final week of the campaign.
A call to the agent indicated vendor expectation was “very reasonable,” they “hoped” to get over $800,000 I was told, but “who knows?” 
The comparable data told a different story.  A price in excess of $850,000 should have been expected.  This selling agent – (an expert in the area) – would have known this, and the auction merely confirmed it.
The opening bid was $800,000 - $50,000 above the price quote. 
The property did not reach its reserve until $900,000 - $150,000 above the price quote. 
With competition from seven bidders, it finally sold for $1,011,000 – but not before a neighbour I’d been casually chatting to, leaned across and revealed the ‘wish’ price, when she whispered: “I know the vendor, and she wants a million.”
It’s time we valued the ethical side of our sales industry with a little more seriousness than pricing an item on e-bay – with a “quote ‘em low, watch ‘em go” mantra.
The continual problem with different methods of quoting – or lack thereof – runs to the very base of mistrust most buyers have against the real estate industry as a whole - and it’s a brush that tars us all.
<blockquote>
It’s time vendors were required to take shared responsibility with the agency for their own paid advertising campaigns and ensured their reserves are published at the outset.
</blockquote>
Even in a buoyant market, recent data will give a good pinpoint of expectation for the agent to advise their vendor’s of an appropriate reserve at the outset – should market forces take over once the property has reached that reserve, so be it – it doesn’t change what should be a simple exercise.
It seems silly to point out the obvious, but no buyer likes to play guessing games when it comes to putting a price on an advertised listing – and neither should they have to.
Everyone understands real estate is a negotiated asset, however, the verbal game playing that now surrounds the sales industry is often laughable – ranging from “we don’t know yet” to “properties in the area are selling in the $400,000 and $500,000 range” – information a simple internet search could reveal.
When an enquiry is made regarding price, the one bit of information buyers require, is an accurate ‘ball park’ indication of vendor expectation. 
Whether it’s too high, or at a reasonable level for market demand doesn’t matter – the vendor is signing the contract and therefore interested buyers need evaluate if it falls in line with their own budget constraints.
As for an assessment of value - if we were operating in an ideal world, buyers would ignore price quotes altogether and do their own research to establish market value, prior to spending hundreds on a pest and building inspections or solicitor fees chasing an unobtainable dream. However, despite recent improvements, closely comparable sales data is not always readily available.  In Victoria, many are still listed with undisclosed prices.  
Computer-generated “estimates,” are just that - and more often than not, hopelessly inaccurate at providing the depth of information buyers require for effective negotiation.
Suburb reports are equally unhelpful, and while median data will give a clue of the dollars the majority market is spending, they are no help when evaluating individual property prices.
Using a buyer agent who has access to such information is all well and good – however, agents should not have a monopoly on data, and it’s reasonable to suggest buyers deserve a “hint” of vendor expectation by way of an accurate price quote before wasting time and money chasing a dream.
A handful of agencies dealing with the more volatile luxury end of the market, in which interest is discretionary, understandably choose to sell via ‘expressions of interest’. However, the decision to drop the quoted range all together, from a large percentage of real estate advertisements seems, in a good number of cases, to have been employed as “self-protection” from accusations of “underquoting” – a policy designed to protect the sales agent – and not one that’s necessarily in the best interests of their client.
Vendor expectation can often be inflated.  It’s made worst by the commission-based competition between real estate agents and their respective agencies – which can promote the need to “buy” a listing through selling false hope, or risk missing out to a competitor who promises they can achieve more.
Quoting low ‘legally’ is not difficult. In Victoria – which has fallen under more scrutiny that any other state - if the vendor does not disclose the reserve on the sales authority when assigning their listing to an agent, (which is the general practice and advised by most) the quote does not need to reflect vendor expectation.
Instead, an agent must provide a written estimate of market value, which if a range, should be no more than a 10%.  This range is theoretically based on comparable data, but finding near by results to establish a lower price is not difficult - should that be the intention.
For example, in the story I highlighted above – comparables on nearby streets outside the schools catchment area would have placed the listing closer to the quoted range.
Similar applies within the suburb - if you’re not familiar with the good and bad streets, which attract different levels of demand, the price differences can be stark.
Albeit only by quoting below the agents written estimate of market value on the authority is officially “underquoting”. Therefore, under current legislation, the written estimate does not necessarily need to reflect vendor expectation.
It may not be admitted as such, but when agents list a property it is common practice to encourage the vendor to withhold their reserve price. This enables a conservative estimate of value – as either a verbal or published quote range – to glean as much buyer enquiry as possible.
Once again I stress, that each agent has different ethics. I am talking generally across the industry – and unfortunately, there is enough evidence of the above practices to pollute an overall impression of the whole.
Furthermore, if one agent quotes low, and another in the same suburb quotes at a level more reflective of reality – guess which listing gathers the greatest enquiry? A catch- 22 for agents working to turn over business, in a very competitive commission based sector.
The only time an agent is required to adjust the range higher, is if a written offer in excess of the published figure is received. However, what typically happens in this scenario, is the number – (should there be one) – is removed altogether.
The above process of ‘quoting low,’ is sold to the vendor via an explanation of the “buyer pyramid” – it works a little like step quoting – get the lower priced bidders to build momentum during the auction, to fuel those bidding with healthier bank accounts to step in at the end.
In this scenario, during which emotions are strong, buyers tend to bid to win, rather than bid to buy. In a heated market, rational thinking is generally not employed, especially when competition is fierce and ‘fear of missing out’ ensues.
Without the lower budget bidders, auctions can pull up short lacking the usual frenzy that has - in our boom eras of growth - significantly contributed to pushing medians to unsustainable levels and exacerbating upward swings in the market cycle.
Furthermore, any gaping hole between the quote and reserve can be waved off with the excuse that the vendor ‘changed their mind’ – or ‘upped’ expectation.  Hence why it is so easy to get away with purposefully placing the price range below the level at which the vendor will sell – and when that quote is verbal, it’s arguably easier still.
To suggest that a property owner’s expectations fluctuate to such an extent so as to not be represented in the price quote is highly questionable. Having worked as a sales agent in previous years, I can categorically say there was never a time where I didn’t know my vendor’s approximate reserve well enough in advance of the auction, to place a reasonable quoted range on a listing from day one.
Furthermore, vendors are not without blame. Assuming the price quote is a estimate based on “recent comparable sales” and the vendor isn’t in the dark when it comes to the price quoted on his or her vendor-paid advertising, why would he or she agree to list the property and quote at a level they would not be willing to sell for in the first place?
In such instances, I would suggest this is a pretty good example of what should officially be termed “underquoting” – conservative at best, deceitful at worst.
There are many solutions to this puzzle, which would not be difficult to legislate. 
Some states have suggested banning quotes altogether – either verbal or otherwise - but this does not take us closer to an effective solution for buyers. Additionally, it makes it very hard for a good sales agent to interact with buyers to enable them to modify their vendor’s expectation as the campaign progresses.
With this in mind, I would suggest, it’s time vendors were required to take shared responsibility (with the agency) for their own paid advertising campaigns and ensured their reserves – or ranges in which they’re prepared to negotiate within – are published at the outset and provide an accurate indication of a price they are willing to consider.
If minds are changed, quotes should be changed, but leaving such a large question mark for buyers, who are increasingly frustrated at having their time, money, and energy wasted, is damaging for all concerned. 
Follow Catherine on <a href="https://twitter.com/CCASHMORE_BUYER" target="_blank">Twitter</a> or via her <a href="https://catherinecashmore.wordpress.com/" target="_blank">Blog</a>.
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Legally underquoting?  How agents get away with it  

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The Australian Taxation Office is urging all taxpayers to declare their offshore income to avoid harsh penalties, as part of the ATO’s crackdown on multinational tax avoidance schemes.
The Tax Office has labelled the initiative ‘Project DO IT’, a “last chance” opportunity to come clean about tax avoidance, as it aims to bring billions of dollars back into Australia’s tax system.
In a speech to the Tax Institute of Australia’s National Convention on Wednesday, Tax Commissioner Chris Jordan said taking part in this initiative will allow people to “avoid steep penalties and the risk of criminal prosecution”.
“As governments around the world step up their data sharing and harness powerful technology to find tax cheats, the concept of the 'tax haven' is dying. It's just a matter of time before you'll be caught,” he said.
“If you’ve got international tax liabilities, act now and come forward and we’ll bring you back into the system with a heavily reduced penalty. If you don't declare your interests, you'll be caught and penalised.”
SmartCompany reported a <a href="https://www.smartcompany.com.au/finance/tax/35223-ato-considering-amnesty-for-people-with-hidden-offshore-assets" target="_blank">possible amnesty for tax dodgers</a> earlier this year when it was still being developed.
The amnesty will be open to taxpayers until December 19 this year and stipulates owed tax will be limited to offshore income and assets in the last four years.
People who come forward will also be liable for a shortfall penalty of 10% and for low-level disclosure there will only be minimal penalties, if any.
Eligible taxpayers will also be able to seek assurance regarding the ATO’s tax treatment of repatriated offshore assets and be able to enter a settlement deed to obtain additional certainty.
However, taxpayers will not be entitled to any losses that arose in years prior to the four years in which they will be assessed.
Thomson Reuters tax expert Terry Hayes previously toldSmartCompany similar amnesty initiatives have been successful.
“By and large they have been effective. They have been tried in other countries and the rationale is to get people on the books,” he says.
“People come forward and declare their hidden accounts and then the tax authority gives them a concession. They’re then back on the books and the Tax Office can keep tabs on them going forward. They don’t catch everyone, they never do, but it does give people a chance to own up.”
Hayes says amnesties have been used in the United States, Italy, Britain and other countries across Europe.
“Over time their success is quantifiable. It will bring in extra revenue and get people back on the system, although it’s never guaranteed,” he says.
“For the ATO it’s a matter of cost-benefit analysis. The cost of chasing these offshore assets is really high, both in time and cost of having investigators and lawyers chasing these people.”
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ATO asks tax dodgers to own up, declaring the ‘tax haven’ is dying

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Yesterday the Australian Bureau of Statistics (ABS) released its quarterly demographic statistics for September 2013.  Unfortunately this data set has a significant reporting lag nevertheless it is still a valuable regular release.
<img class="aligncenter size-full wp-image-3045" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Chart-1.jpg" alt="Chart 1" width="500" height="183">
Over the September 2013 quarter, the national population increased by 100,556 persons or by 0.4%.  Throughout the 12 months to September 2013, the national population has increased by 1.8% from 22.8 million persons to 23.2 million persons (405,446 new residents).
<img class="aligncenter size-full wp-image-3046" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Chart-2.jpg" alt="Chart 2" width="500" height="184">
Looking at the components of national population growth, natural increase (or births minus deaths) was recorded at 164,428 persons over the past year and was 2.9% higher compared to September 2012. 
<blockquote>
While the rate of population growth is accelerating in New South Wales and Victoria it is slowing or stable across all other states. 
</blockquote>
In fact, the rate of natural increase is now at a record high level. 
The other component of population growth at a national level is net overseas migration.  Over the 12 months to September 2013, there were 241,018 net overseas migrants; the figure was 1.0% higher than over the previous year.  Although net overseas migration was higher over the year, it actually fell compared to June 2013.
<img class="aligncenter size-full wp-image-3047" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Chart-3.jpg" alt="Chart 3" width="500" height="185">
Looking across the individual states, population growth over the 12 months to September 2013 was greatest in Victoria (110,537), New South Wales (108,067), Queensland (83,737) and Western Australia (76,346). 
These four states accounted for 93.4% of total population growth over the year.  Annual population growth for New South Wales was at its highest level since June 2009 (110,294), in Victoria growth was at its highest level since September 2009 while in Queensland and Western Australia population growth was lower than in June 2013 (88,598 and 81,327 respectively).
<img class="aligncenter size-full wp-image-3048" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Chart-4.jpg" alt="Chart 4" width="500" height="186">
Looking at the rate of population growth over the year, it was fastest in Western Australia (3.1%), Victoria (2.0%) and Queensland and the Northern Territory (both 1.8%). 
At 1.5%, New South Wales’ rate of population growth was at its highest level since September 2009 and in Victoria population growth was at its highest level since December 2009.  While the rate of population growth is accelerating in New South Wales and Victoria it is slowing or stable across all other states. 
Most notably, the rate of population growth in Queensland is at its slowest pace since September 2011 and in Western Australia it is at its slowest pace since December 2011. 
The Australian Capital Territory has also been recording strong population growth recently however, the 1.6% growth over the past year is the slowest rate of growth since December 2006.
The data indicates that population growth is escalating into the two most populous states, New South Wales and Victoria, which, perhaps not so incidentally, are also showing the strongest housing market conditions. 
In each other state and territory the rate of population growth is generally waning. 
Overseas migration may have also peaked which is no surprise given that the mining investment peak may have already or is expected to shortly pass. 
We believe that population growth will remain at high levels on an historic basis however, it would not surprise us to see the rate of growth slow further over the coming quarters.
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ABS stats reveal population growth is escalating in NSW and Victoria

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The prime Glen Waverley restaurant retail premises at 88 Kingsway fetched $3.61 million when a disparate group of bidders sought the late March auction offering.
It has been conservatively expected by the Savills agency to fetch over $2.5 million with the 190 square metre property generating more than 150 inquiries mostly from Chinese Australian buyers. It was announced on the market at $3 million.
 <img src="/images/2014/03/28/glen-waverley-march-28-fifteen.jpg" alt="">
The interested parties had been attracted not only by the suburb's growth potential but the lucky street number 88. The rental income was $68,000 annually, reflecting an initial 1.88% rental yield.
Some 80 plus contracts had been issued, but there were just the eight bidder at the onsite auction attended by a large crowd on the footpath. Bidding opened at $2 million.
<img src="/images/2014/03/28/glen-waverley-march-28-eleven.jpg" alt="">
It was knocked down to a Chinese Australian buyer by Savills agents Joseph Catanese and Clinton Baxter. The retail property investor (pictured with smile below) migrated 27 years ago from Macau.
<img src="/images/2014/03/28/glen-waverley-march-28-thirteen.jpg" alt="">
<img src="/images/2014/03/28/glen-waverley-march-28-fourteen.jpg" alt="">
Adjoining the Century City Walk entertainment centre, it is a short walk from Glen Waverley railway station and its newly completed high rise residential.
Next door, 86 Kingsway fetched $1.2 million in 2011 for its 198 square metre space, reflecting $6,060 a square metre compared to today's $19,000 a square metre.
With 250 square metres, 101 Kingsway fetched $2.76 million 2011. There had been a $1.9 million sale in 2007 of 186 square metre premises at 106 Kingsway. There had been a $1.15 million sale in 2009 of 98 Kingsway which was 256 square metres. 69 Kingsway fetched $2.15 million in early 2012 for its 179 square metre holding.
The lease to Piatella Cafe runs until August 2016, with two five-year options to ­extend. 
The property has been held by the same couple for more than five decades.
The couple originally owned seven on the same street, but have sold them off gradually and this is their last holding.
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Lucky 1.88% rental yield as 88 Kingsway, Glen Waverley shop fetches $3.61 million at Savills auction

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ASIC has issued a permanent ban to West Australian former accountant Arden Rodrick Wittensleger, 44, of Menora, disallowing him from providing financial services and engaging in credit activity.
Wittensleger was investigated by the Western Australia Police and subsequently found guilty of submitting fraudulent loan applications, which resulted in a benefit of $6.5 million.
He was convicted on 23 August 2013, on 86 counts of gaining a benefit by fraud, and in October 2013 was sentenced to an eight-year imprisonment term.
The West Australian previously reported that he submitted 86 fraudulent fee-funding loan applications between 2009 and 2010. This was to short-term provider Hunter Premium Funding. They noted that of the $6.5 million involved, more than $2.5 million remains missing. These were business loans.
ASIC noted a persistent pattern of deception to gain a financial advantage, with commissioner Greg Tanzer noting that the functions and duties of a person providing financial services and engaging in credit activity require honesty and integrity of a high standard. “Those who engage in serious, repeated fraud have no place in the financial services industry,” he said.
Wittensleger has the right to appeal to tribunal for a review. Mr Wittensleger has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
In 1994, Wittensleger was also found to have been soliciting funds from clients for the purpose of share and property deals through a separate company who did not look into his dealings. The company, Personal &amp; Business Financial Planning Pty Ltd had provided authority to Wittensleger to act as a representative between 1993 and 1995.
His business collapsed in 1995, owing debts of more than $700,000. He advised a number of clients to pay funds directly to himself, which he then misappropriated or used for failed investments. He was then sentenced to four years in prison in September 1996. At this time, 36 people had lost money.
The company said they didn’t know what he was doing, and so did not accept responsibility.
“Securities dealers and advisers have a high responsibility to know what their representatives are doing. Personal &amp; Business, as a Victorian-based company, should never have appointed a Western Australian representative if it was not able to oversee his activities,” ASIC WA Regional Commissioner Jamie Ogilvie said at the time.
More recently, Wittensleger was involved in a development application to the City of Swan under, now liquidated, Nirranda Pty Ltd, of which he was director.
He had also sat on the Surveys QA board, a company that picked up clients of telephone marketing campaigner Vocon who were placed in liquidiation in 2004 with debt levels at more than $2 million. There were plans to investigate this situation in 2004, particularly as another call centre he was involved in, called AWDM, had also ended up in liquidation previously in 2003.
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ASIC bans former accountant with long history of dodgy property and share deals

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Moderate growth in office stock take-ups from government related leases in Sydney and Melbourne and demand from smaller private tenants has not been enough to overcome slowing tenant demand, according to Knight Frank’s Annual Eastern Seaboard Suburban Office Report.
However, in spite of the understated performance in leasing markets, the report noted that east coast investment sales activity reached record levels over 2013, with $1.15 billion worth of sales greater than $10 million, a result that was up 62% from 2012 level and that exceeded the previous record in 2007 by 12%.
The report cites sluggish labour market as a primary factor in decelerated demand in the suburban office market. The east coast suburban vacancy rate for January was at 8.2%, up from 7.5% the year prior, said Knight Frank head of research and consulting, Matt Whitby.
 “The only market to buck the upward trend in vacancy rates over the past year was Brisbane (9.3% down from 10.2%), albeit this was solely driven by the improved performance and take up which occurred in the inner north eastern precinct, including suburbs such as Lutwyche, Nundah, Eagle Farm and Hamilton,” said Whitby.
“Over the past year, the suburban vacancy rate in Melbourne increased from 6.1% to 7.5%, whilst Sydney’s suburban vacancy reached 8.7%, up from 8.4% a year earlier.”
Frank Knight reports that supply levels have remained relatively benign, with gross office supply levels in all markets over 2012 and 2013 below the historical average. In 2012 the total east coast office supply was at 87,996 square metres, while in 2013 84,527 square metres were supplied.
“Development activity in the suburban market is expected to pick up in 2014, with just over 100,000 square metres expected to be completed, driven by larger developments in Melbourne and Sydney,” noted Whitby.
“These projects are underpinned by government/public sector entities such as the Australian Taxation Office (two buildings), South East Water, Australia Post and the CFA. The suburban markets are expected to remain largely pre-commitment led for the larger projects, attracting cost sensitive but location indifferent entities which seek modern, large floor plate accommodation. In addition, some smaller speculative construction in the office parks is expected to continue.”
Average east coast suburban office gross face rentals have recorded approximately 0.4% growth for A-grade assets over the past 12 months. Weighted average A-grade gross face rents are currently $403 per square metre, ranging on average from $441 per square metre in Brisbane to $396 per square metre in Melbourne.
<img src="/images/2014/03/28/kf-chart-two-march-28.jpg" alt="">
However, gross effective rents (rents averaged over the full term and taking into account incentives or rent-free periods) fell by 1.9%, as incentive levels over the year. Prime incentives were up over the year, according to Knight Frank, averaging 22%, from 20% a year ago on a weighted basis.
The eastern seaboard suburban market’s highest average face rentals were found in Brisbane’s inner north precinct, at $475 per square metre.
“Although the majority of sub-markets recorded flat to negative rental growth over the past 12 months, the exceptions were the relatively strong performing markets of the outer east in Melbourne along with the south and inner west in Sydney,” Whitby commented.
“Gross face rental growth was highest in the outer east precinct in Melbourne at 4.1% and the majority of which came from the lift in prime rents associated with the development of new generation projects built over the past two years.
“In Sydney, the south region, which recorded gross face rental growth of 2.4%, has been one of the better performing markets in terms of leasing activity as a result of relatively firm enquiry levels seeking creative style accommodation along with access to the improving amenities of the area. In the Sydney Inner West, face rental growth of 2.4% has been recorded on the back of the steady momentum in the Sydney Olympic Park and Rhodes markets, albeit the rise in A-grade incentive levels to 24% from 22% offset the growth on an effective basis.”
Of the suburban market’s performance in comparison to results from the CBD, Whitby noted that the suburban market continues to trail behind.
“The suburban market continues to lag the yield compression being experienced in the CBD and core markets. However an average 20 basis points of firming occurred over the past year, driven by Melbourne which recorded a 40 basis point compression in prime and 50 basis point of firming in secondary assets,” he said.
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Labour market headwinds see east coast suburban office vacancies up: Knight Frank

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There are mixed signals coming from the market, with some facts in isolation perhaps suggesting that there could be a rise from the Reserve Bank in coming months.
However the overall picture is one that demands a stable rate, according to HSBC Australia and New Zealand chief economist Paul Bloxham.
Bloxham’s latest market report The RBA Observer, discussed a mixed bag of indicators. On the one hand, local activity indicators showing growth, such as GDP picking up pace in the last quarter of 2013, strong consumption and exports, retail sales at their fastest rate since 2010, are suggesting that rates could see a lift.
This is further supported by a strong housing market that Bloxham notes “continues to boom” and strong forward-indicators of residential construction.
Looked at in isolation, many would be suspecting an increase on Tuesday.
“These facts alone might suggest that the current very low cash rate may not be the appropriate monetary policy setting and that rates should be lifted soon. But two key caveats remain,” Bloxham explained.
<blockquote>
Looked at in isolation, many would be suspecting an increase on Tuesday.
</blockquote>
The labour market still struggles – unemployment is currently at its highest rate in 10 and a half years – and mining investment is set to fall further.
While Bloxham avoids doomsdaying about the labour market, noting that they are “more sanguine than many other commentators” on both these issues, they still do not expect the RBA to move due to the factors.
“We see the labour market as merely lagging the pick-up in activity that has already begun,” he said.
“We have long been arguing that as the economy shifts to being more driven by the non-mining sectors, employment growth should lift. After all, that is where most of the jobs are! The mining sector employs only a small number of people. This month brought support for our view with strong employment numbers in February.”
He noted that he believes the next RBA move will be as a result of two key focuses – inflation and jobs.
“We expect the RBA to be on hold for the next few months, but for rates to rise before year-end,” he said.
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Paul Bloxham expects RBA to keep rates on hold next week

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Trends shaping the property market are a fascination for anyone looking to find the next area to see capital growth, or to predict where demand may lie.
Interestingly enough, it’s not the ‘ageing’ population that has demographer Mark McCrindle’s interest – but ‘downageing’.
This is a concept where people live the typical lives of those that would usually be younger and is what McCrindle says is the next cultural trend to shape the country, interstate migration and the property markets.
While McCrindle doesn’t necessarily mean that we’ll see those in their 50s turn to a lifestyle of two minute noodles and two minute relationships, he does suggest that we’ll see Australians retire later in their lives, working into their 70s, and moving into areas that have better employment opportunities. This may go some way to debunking the tree-change, sea-change culture that is the commonly expected next shift of the ageing population.
Presenting the trend to the Urban Development Institute’s National Congress in Brisbane, he announced that the property sector needs to rapidly change to react and accommodate to the downagers.
“Because we are, overall, living longer, we recognise the financial need to also work for more years and set ourselves up better from the start,” he said.
McCrindle’s own research, in conjunction with Australian Bureau of Statistics data, saw Australians working longer and also moving more frequently across the country.
“The states with the highest population growth rates WA, ACT and QLD (3.4%, 2.2% and 2.0% respectively) are also the states with the nation’s lowest unemployment rates 5.9%, 3.4% and 6.2%,” he said.
However, downageing is across market sectors and age groups.
“As a direct result of the downageing pattern, young Australians are less inclined to rush into employment or marriage, choosing instead to expand their tertiary education and save money whilst living at home with family members,” he said.
These delays in achieving ‘traditional’ milestones, such as starting a family or getting a job, is causing more mobility across communities, he said, noting this means that transient populations are more common.
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