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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A building firm has taken out 425 square metres of office space at the Breakfast Creek Wharf in Brisbane's Newstead. 
Tantallon Construction secured a three year lease at the two level retail and commercial complex, at 192-194 Breakfast Creek Road.
The lease was struck at an initial rental of $350 gross per square metre. 
CBRE’s Michael Irvine negotiated the deal on behalf of vendor BMI Group.
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Building firm signs office lease at Newstead's Breakfast Creek Wharf 

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National retailer The Reject Shop has secured a seven year lease in a new retail development in Melbourne's Hastings.
The retailer has taken up 700 square metres, on a rental of $240,000 per annum. The deal is over seven years, with two further seven year terms.
The Hastings development is due to open in April and is being anchored by Aldi. It will house eight shops plus the supermarket.
Fitzroys agent Chris Kombi negotiated the lease. 
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Reject Shop accepts lease in new Hastings development

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One of the last remaining significant development opportunities in Melbourne's south-eastern industrial precinct of Pakenham has hit the market. 
The 2.183 hectare land holding, on three certificates of title, is expected to generate strong buyer interest from owner-occupiers and developers.  
The <a href="https://www.realcommercial.com.au/property-land+development-vic-pakenham-501058827" target="_blank">77-79 Bald Hill Road</a> property goes under the auctioneer's hammer on April 10. 
Colliers International’s Justin Fried and Gordon Code, in conjunction with Tony Miller of Ray White Pakenham, have been appointed selling agents. 
“Opportunities of this scale with this level of exposure in the Pakenham area are becoming increasingly rare, and this is one of the last remaining significant development opportunities on Bald Hill Road”, said Mr Fried. 
“In addition to an exciting development opportunity, this property will also appeal to a wide range of occupiers including trade/wholesale users (STNC) and warehousing/distribution businesses,” added Mr Code.
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Significant Pakenham industrial development opportunity hits the market

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A refurbished freehold hotel at Nambour in the tightly held Sunshine Coast region has been offered for sale. 
Known as The Commercial Hotel, the three-storey property includes a two level accommodation annexe and a drive through bottle shop which is all situated on a site area of about 1,419 square metres.  Leon Alaban and Tony Bargwanna of Ray White Hotels Australia are marketing the <a href="https://www.realcommercial.com.au/property-hotel+leisure-qld-nambour-501074031" target="_blank">35 Currie Street</a> hotel. 
It was extensively refurbished in 2007 and generated an annual turnover (exclusive of gaming revenue) of more than $6.5 million in the 2012-13 financial year. 
Mr Alaban said the property was a rare chance to secure a freehold hotel within the tightly held Sunshine Coast hinterland. 
Facilities in the hotel, he said, included a public/sports bar, dining area, alfresco dining/beer garden, function room, kitchen, drive through bottle shop, three detached bottle shops and accommodation areas.
“The hotel’s gaming room has 30 electronic gaming machines however there is an approval to operate up to 37 EGMs,” he said.
The hotel comprises of 12 hotels rooms all with en suites.
The bottle shop is independent of any liquor purchasing group. It also includes three detached bottle shops in Nambour, all within 8 kilometres of the hotel, said Mr Bargwanna. 
The tender campaign closes on April 16. 
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Refurbished freehold hotel on the Sunshine Coast offered for sale

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A cropping property in one of Australia's oldest wine regions, the Barossa Valley, has been listed for sale.
Located adjacent to the township of Shea-Oak Log, about 60 kilometres north-east of Adelaide, the aggregation comprises five separate titles totalling 249.48 hectares. The property is described as “highly productive land" and "suited to continuous cropping and minimum tillage practices”.
The vendor is the Brooks family and the properties are being <a href="https://www.realestate.com.au/property-other-sa-shea+oak+log-7630363" target="_blank">offered in one line or separately by tender closing April 18</a>.
CBRE’s Phil Schell, who is marketing the property, said "the Barossa Valley region is typically tightly held, therefore, the offer of cropping land such as this is expected to attract strong interest from a wide range of parties including owner occupiers and investors.”
“The current share-farming agreement that is in place for the 2014 season is testament to the aggregation’s future security as a profitable cropping operation.”  
The property features main road access to all titles, benefits from extensive water supply to all paddocks, and is supported by annual rainfall of about 520 millimeters. 
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Barossa Valley cropping property listed

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An influx of international retailers over the past 12 has been unable to curb the rising retail vacancy in Melbourne's CBD, with vacancies touching a seven year high last month. 
Knight Frank’s latest CBD retail survey found that the vacancy rate reached 3.9% in February  - the highest since 2007. That compares to the long-term average of 2.9% and is up on last year's 2.6%.
Shopping centre vacancies recorded the biggest jump up from 1% to 4.1%, while street front shops rose from 3.9% to 4.4%.
The bright spot in the results was prime retail vacancy levels in Bourke and Collins Streets, which narrowed from 5.4% to 4%. 
Despite the weaker numbers, Knight Frank retail leasing director, Gary Loo, suggests that the rise in international retailers seeking to enter the market should help bolster the take-up rate, as well as attracting other retail users.
“Well-known international brands such as Zara from Spain and Thomas Pink and Forever New from the UK have taken the lead in their entry in to the CBD while Uniqlo from Japan and H&amp;M are anticipating their flagship stores to start-up during the first half of 2014," he said. "Further, international fashion label Topshop UK is expected to make their first CBD entry while Max Mara will also expand its footprint in the Melbourne’s CBD sometime in 2014."
He also points to other big name international retailers such as Marks &amp; Spencer, Apple and Forever 21 as currently scouting prime CBD sites for store locations.
Going forward, strong competition from international retailers eyeing a slice of the Australian retail market was expected to cast a windfall on the occupancy levels, he said.   
Knight Frank research analyst, Monica Mondkar, added that many of Melbourne’s CBD arcades recorded a near to zero vacancy, thus retaining their popularity amongst boutique fashion retailers and food &amp; beverage outlets boosted by the large number of visitors and residents year after year.
But she noted that the combined vacancy rate of laneways and arcades modestly climbed to 2.3% in February, slightly up on the long-term average of 2.2% and from 2% in June 2013.
Equally significant in the findings was the overall churn factor, which almost doubled since June last year to 11.9%. Restaurants and cafes, fashion clothing and other goods retailing were the top churning categories.
Shopping centres had the highest churn factor of 17.1%, the report said, as more landlords took the opportunity of soft retail conditions to refurbish in order to compete with limited retail trade growth over the past two years.
One trend to emerge from the challenging and competitive environment, said Ms Mondkar was the "repositioning of centres by aggregating previous vacancies into large discount department stores in order to uplift their occupancy levels".
Examples include Japan’s discount department store Daiso, which has recently taken up over 1,000 square metres of retail space at QV, as well as the leasing of GPO to H&amp;M, as a single occupant.
Figures from the research showed that prime CBD retail rents currently range between $2,500 and $6,000 a square metre, while secondary rents range from $800 to $1,800 per square metre.
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Melbourne CBD vacancies hit seven-year high

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Name: Edward Bull<img src="/images/2014/03/25/edward-bull-profile.jpg" alt="" style="float: right;">
Position: Queensland director
Company: CBRE
Office location: Brisbane
How long have you been in the industry?
It will be 11 years this year.
What’s happening in the area you specialise in?
Industrial is experiencing a strong resurgence and is a very popular asset class amongst the institutions, right down to mum and dad SMSFs. We are seeing yields tighten as a result of the lack of stock available and the influx of capital. With the low interest rate environment, we expect this to be the case for the short to medium term.
Describe the most interesting property you have sold?
Industrial is not often referred to as interesting, so will have to go with the biggest and most challenging which was a pre-sale and fund through for Toll Property in Brisbane for $84.5 million. From start to finish, it will have been an 18 month process.
What are the ingredients to being successful in your job?
Product knowledge and the ability to pick up the phone and build rapport and trust with someone you may not have met before. Strong work ethic, because I believe you get out what you put in but sometimes you have to persevere in difficult times and you need to be able to pick yourself up and go again when things don’t go your way.
What aspects of your role do you enjoy the most?
The camaraderie of working with a great team and culture at CBRE and also the satisfaction of completing a deal no matter how big or small.
Where would you invest a spare $750,000?
A mix of REITs focussed on industrial, and also direct industrial property through some of the more active reputable syndications.
Which football team do you support?
The Sydney City Roosters – go the chookies!
What’s your favourite app or techno gadget?
What’s an app? 
How do you use social media?
I am active on <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/edward-bull/1b/116/443" target="_blank">Linkedin</a> and find it a good way to create brand awareness.
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In profile: CBRE's Queensland director, Edward Bull

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GUEST OBSERVATION
Property is a critical element in the construction of any diversified investment portfolio. With characteristics such as relative capital stability, generally higher income and, by the real nature of the asset, a hedge against inflation, property can balance out the volatility experienced through equities and other riskier assets.
When retail and SMSF investors think of property however, their minds immediately turn to residential property, after all this is the asset class they are most familiar with. By not broadening their investment horizon they may run the real risk of generating too much concentration to residential property, exposing themselves to the very risks they were trying to diversify away from.
With an investment in property still an important part of an investment portfolio, investors who wish to include property exposure would do well to consider commercial property.
Investors often dismiss commercial property, believing it isn’t suitable for retail or SMSF investors because of the size of investment required, the possible lack of liquidity and the difficulties in managing a commercial property. But these concerns may be overcome by taking advantage of pooled investment vehicles, such as listed and unlisted property trusts.
Investing into a pooled property trust provides access to experienced, professional property fund managers, is no different to an equities fund. Other benefits of investing in commercial property through a managed fund include obtaining diversity of asset type and geography, a regular valuation cycle, smaller capital requirement for buy-in, greater liquidity through withdrawal facilities and a stable income from a diversified tenancy base.
<blockquote>
With an investment in property still an important part of an investment portfolio, investors who wish to include property exposure would do well to consider commercial property.
</blockquote>
Unlisted property funds are not subject to the share market volatility that listed funds have experienced in recent years. Instead, they exhibit performance that is in line with the underlying investment properties – which is ideally what those investors looking to property for its diversification and performance benefits are seeking.
Unlisted non-residential property in Australia, in particular, has consistently achieved investment yields of around seven percent over the past two years, providing stable and regular returns for investors. This has been at a time when other asset classes have faced headwinds such as falling interest rates and weakness in the share market.
In addition, investors can also gain exposure to individual sectors of the Australian economy through unlisted property trusts, with healthcare property a prime example. The healthcare property sector has been less volatile than other commercial property sectors over the past few years, and has outperformed all property on a one, three and five year basis, driven primarily by strong income returns.
The reason for this is that healthcare properties are relatively scarce, operate in a regulated industry and are typically leased to large, stable and well-resourced operators. The ageing Australian population and increasing need for healthcare services helps ensure high occupancy levels w to higher income yields.
The options for property investment, for retail investors and SMSF trustees alike, are greater than simply looking to residential property. By ignoring a large segment of the property market, and staying with the familiar, investors not only run the risk of investing in residential property at the top of the market, they risk losing the benefits that come from investment in a professionally managed unlisted property trust.
Ryan Banting is head of portfolio management with <a href="https://www.australianunity.com.au/" target="_blank">Australian Unity</a> Real Estate Investment<a href="https://www.australianunity.com.au/" target="_blank"></a>.
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Investors overlook commercial property at their peril

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GUEST OBSERVATION
It is true that the main culprits for housing prices in Australia are taxation and regulation regimes, as <a href="https://www.theage.com.au/comment/dont-blame-foreigners-for-rising-house-prices-20140319-352nn" target="_blank">argued</a> by Stephen Kirchner last week. But this is more because of their impact on demand than supply.
Generous incentives including negative gearing and concessions on capital gains tax encourage investment in housing, to the extent that around one in seven Australian taxpayers now owns one or more investment properties.
As there is no limit to how many properties local investors can negatively gear, and with share markets volatile, investment properties are looking increasingly attractive. Australia already has one of the highest levels of household debt in the OECD due to borrowings for property purchases, and this is growing fast.
Overseas investors are adding to that demand. The Foreign Investment Review Board enables global investors to buy new housing in Australia. Along with Canada, Australia has emerged from the 2008 global financial crisis as a stable economy and good investment prospect, with one of the strongest property markets in the world.
Infinite demand
The upshot is that local and global investor markets are combining to create what is essentially an infinite level of demand. Intense competition at sale is a major contributor to Australia’s declining housing affordability.
The rationale for new high-rise housing in the inner city is that an increase in supply will eventually meet demand. It follows then that as demand is satisfied, prices will come down and affordability will increase. In addition, this form of housing is supposed to be the most environmentally sustainable. On all three counts, unfortunately, the rationale is not borne out.
It is true, however, that the high-density, high-rise, high-security housing currently being built in the inner city is the preferred form and location for both local and global investment markets.
Australian governments need to come to terms with the prospect that no amount of increase in housing supply will meet demand if there is no limit to that demand. The relation is complicated further by the fact that investment properties are often left vacant.
There is no reliable source of data on whether the more than 20,000 high-rise apartments built in inner-Melbourne in the last decade are owner-occupied, rented or vacant, but unofficial estimates from the City of Melbourne indicate that up to 90% are owned by investors and that a large number are unoccupied.
As Kirchner observes, this is a rational response when prospective capital gains provide sufficient return on the investment. As local investors can negatively gear a property with only a few weeks of rental income, and as global investors have their eyes on the capital return on sale, keeping the apartment empty for most of the year can be preferable to dealing with tenants and real estate agents.
Lessons from Canada
Recent experience in Canadian cities is similar. Multiple clusters of 30 to 50 storey condominium towers have sprung up in Vancouver’s downtown and major centres, and the rate of construction is showing no sign of slowing.
Last year the BC Globe and Mail ran a <a href="https://www.theglobeandmail.com/life/home-and-garden/real-estate/at-vancouvers-cold-harbour-a-neighbourhood-hollows-out/article11713598/">story</a> about the closure of a two-year-old store called Green Design in Coal Harbour. The proprietors’ dream of supplying all those condo balconies in need of greening with space-saving wall planters, herbs and pot plants had come to naught, they said, because “a hefty share” of the condos were empty most of the year round.
There are two main classes of owners, the proprietors said: overseas investors, and American and Canadian holiday-condo owners, none of whom are there for more than a couple of months a year. The City of Vancouver estimates that at least 25% of new condos are owned by non-resident investors from less stable economies looking to park their wealth in a safe environment. The Green Design proprietors say these apartments are permanently empty. When the holiday-condos are included, many buildings are more than half empty.
And affordability loses again
It is clear that in both Melbourne and Vancouver the dramatic increase in housing supply is not only not meeting demand, but not increasing affordability. There is simply no evidence, after more than a decade of high-rise apartment construction in both cities, that housing prices have moderated even in the most relative of terms.
No amount of flash inner-city apartments will bring the price of housing down in the suburbs and on the fringe. In both Melbourne and Vancouver, the greatest housing need is for low- to medium-income housing. Even if the new inner-city apartments were available for rent, this is not the market for which they are built.
Finally, there’s the ecological <a href="https://onlinelibrary.wiley.com/doi/10.1111/j.1745-5871.2011.00728.x/abstract;jsessionid=B2F80ACCF51792C994C99A085306B796.f02t04?deniedAccessCustomisedMessage=&amp;userIsAuthenticated=false" target="_blank">fallacy</a>: that high-density housing is the most environmentally sustainable form. A strong case has been made by a number of Australian <a href="https://www.publish.csiro.au/pid/6784.htm" target="_blank">researchers</a> that per capita levels of consumption are actually lower in medium-density housing than in inner-city residential towers. This is not taking into account the materials involved in high-rise construction, nor the local environmental and amenity impacts of the towers and their multi-storey car-parks.
International and local research shows that government visions for Melbourne and Vancouver are not meeting their basic policy objectives. High-density, high-rise, high-security and high-cost apartment towers are not meeting local housing demand. They are not increasing affordability. They are not more environmentally sustainable.
They are increasing housing supply, mainly for local and global elites to accumulate capital. A major consequence of the Australian government’s taxation and regulatory regimes regarding housing has been to increase prices by encouraging demand for housing as a commodity, rather than a place to live.
The various inquiries into the state of the Australian housing market should look at not just the regulations on foreign investment, but at the taxation regimes that encourage the home-grown approach.
Most importantly the inquiries should ask: what is the effect of Australian regulation and taxation regimes on what is being built, and for whom?
Kate Shaw is an Australian Research Council (ARC) Future Fellow in Urban Geography and Planning. Her current research focuses on urban renewal in the 21st Century.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. 
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Housing blame game here to stay in world of infinite demand

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In May 2011, all new homes were required to be built to meet a nationally implemented 6 Star standard energy rating. However, what constitutes a 6 Star rating differs from state to state and this has provoked nationwide challenges.
The Building Thermal Performance Assessment system was introduced by the Building Code of Australia, and is enforced by state governments. According to the Building Commission of Victoria, a home with a 6 Star rating are projected to use 24% less energy for heating and cooling than 5 Star rated homes.
Although the ratings are applied nationally, the requirements for a six star rating are not universal. The system is designed to be flexible, and is “performance based rather than prescriptive”. As the Star rating system is designed to tackle thermal performance, it is site specific – a home’s orientation on a block (whether it faces north, south, east or west) or its surrounding climate can influence the design factors required to meet a 6 Star rating. In the Northern Territory, for example, homes in certain areas require a breezeway for airflow, while homes in colder climates may not.
According to Natalie O’Shea, a designer at building franchise Hotondo Homes: “It’s challenging to design homes on a national level as each state has its own particular standards and differing requirements.”
“One of the biggest things affecting the energy rating of a home which is consistent across the country is the orientation of the block [of land] and the home,” said O’Shea.
“When you have the right design on the right block there are minimal additions that need to be made. The home will naturally stay warmer in winter and cooler in summer.
“Materials are getting better with their thermal qualities, but extra insulation, double glazed windows and wider eaves may be necessary to add in order to achieve the desired energy rating, but they come at an additional cost.”
A popular home design by Hotondo Homes achieved a 6 Star rating for all orientations in Hobart, Melbourne, Canberra, Adelaide and Perth, according to a 2012 report by Sustainability House, contracted by the Department Climate Change and Energy Efficiency.
The home also achieved a 6 Star rating in three orientations in Sydney, two orientations in Brisbane but only a single orientation in Darwin, despite consistent floor plans (pictured below) and building materials.
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Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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Latest Expert Insights

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

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Editor's Picks

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Guides

Developments

New apartments

New townhouses

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