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

<html><body>
GUEST OBSERVATION
Australia is allegedly in the midst of a <a href="https://www.gbca.org.au/revolution/" target="_blank">“green building revolution”</a>, powered by the awarding of ratings to developers who build sustainable buildings.
But this brave new world is only a reality in the high-end office blocks of Australia’s central business districts (CBDs). Everywhere else, the pace of progress is much slower. At least, that is what my research into <a href="https://www.envirovoluntarism.info/" target="_blank">more than 70 sustainability tools</a>, both in Australia and overseas, tells me. Let me explain this through one example.
In 2002, the <a href="https://www.gbca.org.au" target="_blank">Green Building Council of Australia</a> (GBCA) was established to “drive the adoption of green building practices through market-based solutions”.
Last week it hosted the <a href="https://www.greencities.org.au/" target="_blank">Green Cities Conference</a>, bringing together the construction industry, policy makers and academics to discuss the way forward in improving the environmental and resource sustainability of buildings and cities in Australia and elsewhere.
The GBCA is particularly proud of its <a href="https://www.gbca.org.au/green-star/" target="_blank">Green Star</a> system, which rates the environmental performance of buildings.
A Green Star revolution in Australia?
The ratings help the construction industry to showcase the environmental credentials of its buildings. In this respect, Green Star is a simple and elegant idea: it allows a building’s environmental performance (in terms of energy, water and material use) to be easily compared with that of other buildings – rather like the energy performance stickers you find on new fridges or cars.
This easy comparability makes these assessment tools very attractive. For developers, investors, owners and occupants alike, it is easy to grasp that a six-star building is somehow better than a four-star one.
The numbers the GBCA presents about its Green Star program are impressive. <a href="https://www.gbca.org.au/green-star/green-star-overview/" target="_blank">More than 7 million square metres</a> of Australia’s built-up space is rated as having high levels of environmental performance. This includes <a href="https://www.gbca.org.au/docs/evolution2013.pdf" target="_blank">18% of all office space</a> in the CBDs of major cities. But what do these numbers actually mean, and are these successes found everywhere, or are they concentrated in certain locations?
Central focus
Green Star is mainly used to label office space in the CBDs of Australia’s cities (those with populations of at least 20,000). Here it has indeed achieved considerable success.
Since the introduction of Green Star in 2003, some 5.3 million square metres of office space was added to the CBDs of Australia’s major cities. Of this, about <a href="https://www.gbca.org.au/green-star/green-star-overview/" target="_blank">2.9 million square metres</a> are now Green Star labelled. That is a success rate of about 50%, which may be considered a very successful outcome.
But what is labelled, exactly?
Green Star awards three levels of labels: “Best Practice” (4 stars), “Australian Excellence” (5 stars), and “World Leadership” (6 stars). Green Star does not report on how many buildings or square metres fit into each category, but some other labelling tools may give some insight. The partly mandatory <a href="https://www.nabers.gov.au/public/WebPages/Home.aspx" target="_blank">National Australian Built Environment Rating System</a> awards its highest labelling category to just <a href="https://www.nabers.gov.au/public/WebPages/DocumentHandler.ashx?docType=3&amp;id=105&amp;attId=0" target="_blank">8% of buildings</a>. Meanwhile, Green Star’s counterpart in the United States, <a href="https://www.usgbc.org/leed/" target="_blank">LEED</a> (Leadership in Energy and Environmental Design), only awards <a href="https://books.google.com.au/books?id=qCH00bF-4MYC&amp;printsec=frontcover&amp;dq=the+world%27s+greenest+buildings&amp;hl=en&amp;sa=X&amp;ei=yaUVU-y-NcTUkwWZjYHgCw&amp;ved=0CDYQ6AEwAA#v=onepage&amp;q=the%20world's%20greenest%20buildings&amp;f=false" target="_blank">6% of its labels</a> in its highest category.
If the vast majority of buildings are not hitting the highest sustainability standards, then are we really witnessing a revolution?
A levelling-out of growth
It should also be kept in mind that these are <a href="https://www.gbca.org.au/uploads/170/34474/A_decade_of_green_building_.pdf" target="_blank">accumulated numbers</a>. If they are unpacked as yearly “successes”, the picture presented by the GBCA changes a little more. The below figure gives some insight.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/44175/area14mp/g928847f-1395118670.jpg"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/44175/width668/g928847f-1395118670.jpg" alt=""></a>
Source: GBCA
Since 2008, the uptake of Green Star labelling has levelled out. Before then, it was increasingly sought by developers for buildings they would develop in the future, but this no longer seems to be happening.
This is not that surprising. With the introduction of a tool such as Green Star it is to be expected that many early adopters try it out in the first years when they can be pioneers, and be rewarded as such. It is much harder to get the later adopters on board.
If 18% of the office market represents the Green Star system’s saturation point, then this does not bode well for the revolution’s future. On the current trend we can expect the levelling-out of actually built Green Star buildings to begin in 2016.
This will leave more than 80% of the Australian office market untouched by well over a decade of “Green Star revolution”.
Outside the office
Australia, of course, has more than just office buildings. The total residential building stock is estimated at about 1.5 billion square metres, based on <a href="https://www.propertyobserver.com.au/https://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/0?opendocument&amp;navpos=220" target="_blank">9 million dwellings</a> at an average for new builds of around <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/featurearticlesbyCatalogue/8BB3F6B866BC35CECA2578A000153026?OpenDocument" target="_blank">220 square metres</a> (historical averages were lower, which brings down the total). This dwarfs the total commercial space, which is about <a href="https://www.nabers.gov.au/public/WebPages/DocumentHandler.ashx?docType=3&amp;id=105&amp;attId=0">27 million square metres</a>.
In this context, Green Star’s impact has been marginal at best. The 7 million square metres of Green Star labelled space represents less than 0.5% of the total.
In other words, outside Australia’s major business districts, green building labelling has not caught on, despite the GBCA’s attempts to move into these markets. The much-touted revolution has not spilled over from the CBDs to the rest of the country.
What makes a revolution?
Green Star is but one of the many tools that I have studied through which the construction industry seeks to foster more sustainable practice. This is a revolution in itself. Like Green Star, these tools have achieved some successes in niche markets, but have not achieved overall sweeping results.
Also like Green Star, these tools have received both <a href="https://urbansustainabilityresilience.wordpress.com/2014/02/08/trends-in-governance-for-urban-sustainability-and-resilience/#comments" target="_blank">accolades and criticisms</a>. The 7 million square metres of labelled office space undoubtedly represents a success for Green Star. But has it caused the revolution in the Australian construction industry that the GBCA claims?
It depends, of course, on your definition of “revolution”. In 2007 Apple introduced the iPhone, which clearly revolutionised communication. <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2013-02-01/half-of-australian-adults-now-own-a-smartphone/4494892" target="_blank">More than half of all Australians</a> now own a smartphone. In 2003, the GBCA introduced Green Star, which now covers 0.5% of Australia’s built environment. Clearly some revolutions happen faster than others.
To really kickstart the green building revolution in Australia, other market segments need their own tools like Green Star. This will require more leadership in the industry, in figuring out how to tempt the developers and owners of other building types to join in.
I hope that the Green Cities Conference inspires its participants to move the green building revolution beyond Australia’s CBDs, and past the commercially attractive top end of the construction market.
Jeroen van der Heijden is Assistant Professor of Environmental Governance at Australian National University.
Jeroen receives funding from the Netherlands Organisation for Scientific Research.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. 
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jheijden-cBMeUt3AbR

Green building revolution? Only in high-end new CBD offices

<html><body>
If you’re thinking of buying an investment property but don’t know much about where to start, my advice is to start at the end. Which is really the beginning. What do I mean? Read on, and I’ll explain.
I’m probably showing my age a bit here, but when I was a teenager, all the cool kids were listening to The Smashing Pumpkins in high school. My favourite song was one called ‘The End is the Beginning Is the End’. I liked the song and the name of it too.
Fast forward almost twenty years and I find myself applying this philosophy to my property investing career.
<blockquote>
Understanding your investor persona will help you get you growing towards your goals in the most efficient way possible.
</blockquote>
See, when you’re making your start in property investing, you should best begin by thinking about what the end result will be. What is your specific property goal?
A common end result, or goal, amongst many younger investors, is to build a portfolio that will pay its own way whilst you live your work/career life nine to five. Then when you stop working a couple of decades later and the properties have grown – both in value as well as rental income you receive – you’ll be able to quit work and have that extra revenue not only pay off the property mortgages, but also become your new salary.
So yes, the end is the beginning is the end. Start at the end result, which is really your beginning. Plan to work, then work the plan and that beginning becomes the end you originally hoped for. Make sense? Great!
The thing is once you’ve identified your goal, you’ll learn there’s more than one way to get you there. Depending on many variables – such as your income now versus your income in say five years, lifestyle factors and future projected cash-flow factors – different strategies will serve different purposes.
So today I thought I’d outline two main investor personas that I’ve affectionately called ‘cash-flow kings’ and ‘capital growth commandos’. I’ll cover what each means in growth terms, and the kind of investor each persona suits. I’ll then make quick mention of two more personas; who I’ve affectionately called ‘best of both barons’ and ‘flip and reno ringleaders’.
Understanding your investor persona will help you get you growing towards your goals in the most efficient way possible.
Cash-flow kings:
 
<ul>
<li>These investors chase either neutral or slightly positive gearing in their portfolio.</li>
<li>Whilst capital growth is important to them, they are in it for the medium-long term and favour balancing their books, effectively holding on to several properties where the rent covers all expenses for these properties each month, rather than immediate value growth.</li>
<li>This may mean that a cash-flow king will hold say three properties for several years before the property starts going up much in value.</li>
<li>This strategy can work well for low-middle income bracket earners and younger investors, who are unlikely to see as much benefit from say negative gearing strategies.</li>
<li>Key to mention is that this strategy needn’t be set in stone. During your younger ‘acquisition’ years, you may wish to procure a few properties that just pay for themselves. Then, as you start earning a higher salary you may want to pick up a property or two that has more capital-growth potential, but puts you out of pocket a little bit each month to hold.</li>
</ul>
 
Capital-growth commandos:
 
<ul>
<li>You guessed it; these investor types typically favour the security of buying properties in areas where the value of the property will likely grow in the medium to long-term.</li>
<li>With these property types however, it usually means that the rent coming in does not quite pay for all of the monthly expenses, which means you need to dip into your own pockets each month to make up the difference.</li>
<li>This strategy works well for investors earning higher salaries than the national average because oftentimes, their higher tax income bracket means the investor is able to claim back a bigger portion of claimable property expenses each financial year. For some investors, this annual tax return may offset most of that month to month top-up that they made.</li>
<li>This strategy works for  any age investor. However it can work well for those who start a little later in life, perhaps in the mid-late 30s. This is because their incomes are usually at their peak at this age and the investor can afford to chip-in each month on these properties.</li>
</ul>
So right now you’re probably thinking ‘why can’t I have it both ways?’, or ‘what about other ways to make a buck out of properties than just buying and holding on to them over time?’
Below are two more strategies to consider. Each has its challenges and advantages.
Best of both barons:
<ul>
<li>
Having your cake and eating it too is hard to do. Properties that genuinely present as possessing both high capital-growth potential and neutral-to-positive cash flow, are as rare as hen’s teeth.
</li>
<li>
Also, these are not for the faint of heart. Clever property spruikers, sales people and marketers will always market that brand new apartment tower as having high yield and high growth.
</li>
<li>The reality is very few properties actually do. Worse still, inexperienced investors or those who merely prospect (as opposed to those who use all of the paid and unpaid digital data tools available to them to draw their own cash-flow and capital-growth conclusions), can come unstuck purchasing properties that don’t quite turn out the way they’d hoped.</li>
<li>That said, these properties do pop up on rare occasions and should be snapped up when a genuine one presents itself. It’s just that you might be waiting around for a long time to find one.</li>
<li>This is why I mentioned these investor types usually need to pour in way more time and energy than passive investors do. They also need to be constantly up to speed with not only the tools that passive investors use, but the future council zoning and plans for their chosen property’s area (and yep, these plans are constantly changing and evolving too).</li>
<li>Another easier way to achieve this strategy is to procure a balanced portfolio. So, a couple of properties that are more cash-flow driven and a couple that are capital-growth driven.</li>
</ul>
Flip and reno ringleaders:
<ul>
<li>The strategies mentioned thus far assume that you are merely buying existing (or soon to be built off the plan) properties. However, flipping and renovating properties is another alternative way to drive faster growth out of residential property.</li>
<li>‘Flippers’ take run-down old properties, bought well below market value, then do a renovation to get them up to market value before selling the property on for a profit.</li>
<li>There are plenty of TV shows glamorising this approach; The Block, Property Ladder, Flip Men, and Flip This House to name but a few. Local property celebrities such as Nathan Birch and Cherie Barber have made their fame and fortune out of this approach.</li>
<li>When you take the glamour away, the reality is this: Unless you’ve got a tonne of existing industry contacts, possess some construction  know-how, and are a great project manager who can stick to budgets and timelines well, this strategy won’t work for you.</li>
<li>The more ‘toned-down’ alternative to flipping properties is renovation. This can work well as part of a buy and hold strategy for those who are a bit green in reno experience.</li>
<li>
Personally, I’ve developed basic reno skills when occupying my PPR (personal place of residence), then fostered those skills when one of my investment properties is between tenants (if you’ve got a couple of weeks between tenants, and you can take a few days of annual away from your job plus weekends too). 
</li>
</ul>
I would argue these latter two these strategies are require a much higher time investment than these first two more passive, investor personas. This is worth keeping in mind when starting out and you’re assessing not only how much money to put into property investing, but how much time.
Think about the type of investment strategy that is going to work best for you. You should then begin your due diligence and assess the feasibility of your strategy in comparison to your time and budget investment levels.
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cmcevoy-Go82SmsJA9

Cash flow kings and capital growth commandos: Which investor persona are you?

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The Reserve Bank of Australia has a problem.
It is relying upon a United States recovery and hawkish Federal Reserve to bring down the Australian dollar. But although US bond markets are beginning to price interest rates rises in the US, they are only doing so at the short end of the curve. Longer duration bonds are the ones that determine carry trades from cheap US dollars into the higher interest rates of other nations and they aren’t buying what the Federal Reserve is selling.
Friday evening saw more bullish Australian dollar action. It was a night of subtle “risk off” but not for the Aussie, piling on 0.5% and threatening 91 cents again:
<img class="aligncenter size-full wp-image-430237" src="https://media.crikey.com.au/wp-content/uploads/2014/03/1.jpg" alt="" width="493" height="272">
The long-term chart is now unmistakably bullish, with an inverted head and shoulders bottom and ascending triangle forming:
<img class="aligncenter size-full wp-image-430239" src="https://media.crikey.com.au/wp-content/uploads/2014/03/2.jpg" alt="" width="490" height="272">
The recent commitment of traders report is also showing large and small speculators covering their shorts:
<img class="aligncenter size-full wp-image-430241" src="https://media.crikey.com.au/wp-content/uploads/2014/03/3.jpg" alt="" width="560" height="257">
Not yet net long but trending that way. So, what’s going on? Unusual moves in US bond markets is what. Last week saw lots of comment about the Fed’s hawkish shift and its effects on the US yield curve. <a href="https://soberlook.com/2014/03/shifting-focus-in-treasury-markets" target="_blank">Sober Look has a nice summary</a>.
Long bond yields still look more likely to fall than rise; indeed the 10- and 30-year yields both fell 1% and more Friday. The 30-year especially has a bearish chart:
<img class="aligncenter size-full wp-image-430242" src="https://media.crikey.com.au/wp-content/uploads/2014/03/41.png" alt="" width="593" height="247">
The 10-year not quite so much:
<img class="aligncenter size-full wp-image-430243" src="https://media.crikey.com.au/wp-content/uploads/2014/03/51.png" alt="" width="593" height="247">
The US bond market is paying attention to a hawkish Fed but is also dismissing its long-term forecasts. Last week the Fed raised its 2016 year-end forecast for the cash rate to 2.25%. The last time the US cash rate was at that level was in March 2008 and the 10- and 30-year yield were at 4%. The time before that, in 2005, both were at 4.5%. But right now, the 10-year and 30-year are only at 2.75% and 3.6% respectively.
US bond markets are pricing the Fed’s attempt to reach its tightening targets but they’re also pricing the failure to get there.
There are reasons to think that the Fed (and RBA) is right and that longer duration bonds will follow. But there is still considerable slack in the US economy — enough to contain inflation — and there is likely to be more dis-inflationary pressure from Chinese tightening and the steady deflation of the commodities complex that is underway as result.
Even if the recovery has enough momentum to reach the Fed’s growth targets there is unlikely to be much inflation. Hence the yield curve may remain flat.
Given the yield spread on the 10-year bond is the dominant benchmark for carry trades, that is the worst of both world’s for Australia because, even though the US tightens, its recalcitrant bond market won’t allow any compression in the yield spread with Australia:
<img class="aligncenter size-full wp-image-430244" src="https://media.crikey.com.au/wp-content/uploads/2014/03/61.png" alt="" width="405" height="293">
Meanwhile, in Australia, the RBA’s revitalised housing bubble has more and more folks looking “across the valley” of the mining capex cliff to rate hikes. They’re probably wrong, not least because the expectation is self-defeating in that without a lower dollar there’ll be no sustained recovery, but that’s not the point right now.
So long as the US long bond market flips the bird at the Fed then the Australian dollar is going to be under upwards pressure.
The answer is still the macroprudential tools mentioned obliquely in the RBA minutes last week. Temporary prudential controls on credit will allow interest rates to be cut and will bring down the dollar so that the Australian recovery can progress.
This article was originally published at <a href="https://www.macrobusiness.com.au/">MacroBusiness</a>.
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jake-cSmGT7VXVf

How US bonds are putting a rocket under the Australian dollar

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The government “paused” plans to immediately implement controversial changes to the Future of Financial Advice reforms yesterday following <a href="https://www.smartcompany.com.au/legal/politics/41219-fast-lane-why-we-need-to-make-a-fuss-about-fofa" target="_blank">fierce opposition</a>.
Finance Minister Mathias Cormann was handed back responsibility for the government’s planned changes to FoFA after assistant treasurer, <a href="https://www.smartcompany.com.au/growth/economy/41175-assistant-treasurer-steps-down-amid-icac-probe-accc-releases-product-safety-guide-for-online-businesses-midday-roundup" target="_blank">Arthur Sinodinos, stood aside</a>.
Cormann said in a statement the government “remains committed” to implementing its proposed changes to FoFA “as soon as possible”.
But while the legislation was before the Senate Economics Committee, Cormann said he decided to “pause” implementation of the regulations “to enable the government to consult in good faith with all relevant stakeholders”.
Cormann said the government is committed to restoring the balance between appropriate levels of consumer protection and access to affordable high-quality financial advice.
“The government is committed to the retention of the best interest duty and that we do not intend to reintroduce conflicted remuneration or sales commissions for financial advisers,” he said.
The FoFA reforms originally set out to ban commissions for financial advice, require financial advisers to ask clients whether they wish to continue receiving their service every two years and require financial advisers to act in the best interests of their clients.
But led by Sinodinos, <a href="https://www.smartcompany.com.au/legal/35388-burdensome-financial-advice-reforms-watered-down" target="_blank">the Abbott government moved to water down the “burdensome” reforms</a> and announced many of the changes would be made by regulation not legislation, meaning there would be no scrutiny by a parliamentary committee.
Cormann appears to have blinked in the face of increasing opposition to the watered down reforms from the Financial Planning Association, National Seniors, Council on the Ageing, Choice and Industry Super Australia.
John Hewison, managing director of Hewison Private Wealth, told SmartCompany he applauded the government’s decision to pause the changes. 
“I think the direction the government was heading in watering down the submissions was completely wrong,” he says.
“I’m hoping the government abandons the exclusion of general advice from products on commission and it retains the best interest duty.”
He says the system as it stands is broken and advice needs to be separated from product. 
“Frankly the Australian consumer deserves to be able to obtain un-conflicted opinions and advice from a professional adviser when they are talking about something as important as their life savings,” he says.  
Legislation to impose the changes was introduced into the House of Representatives as part of the <a href="https://www.smartcompany.com.au/legal/politics/41168-business-reacts-to-the-red-tape-repeal-what-s-missing" target="_blank">government’s repeal day</a>.
But now the reforms have been referred to the Senate economics committee, which will report on 16 June.
Even if the laws do not pass the upper house, waiting for that report still leaves the government two sitting weeks to table regulations to force through its changes before Labor’s existing FoFA laws come into effect on July 1.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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cwaters-YrtBR88nBe

Government puts Future of Financial Advice reforms on ice

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The Mosman weekend top seller fetched $5.7 million. But the marketing has suggested $6 million plus hopes.
But it represented only a small increase on its past two sales.
The five bedroom, four bathroom house had previously sold in 2008 at $5.25 million, reflecting 1.5% annual price growth during the past six years.
And it had been renovated in the meantime.
<img src="/images/2014/03/25/mosman-march-25-one.jpg" alt="">
<img src="/images/2014/03/25/mosman-march-25-two.jpg" alt="">
<img src="/images/2014/03/25/mosman-march-25-three.jpg" alt="">
<img src="/images/2014/03/25/mosman-march-25-four.jpg" alt="">
Photos: 18 Moruben Road, Mosman from its 2008 listing, prior to renovation
With views of Balmoral, The Heads and Manly, it had also sold at $5.1 million in 2007.
The five-bedroom house on 590 square metres at 18 Moruben Road fetched $5.7 million through Belle Property at weekend auction. 
<a href="/news">RP Data puts Mosman's median house price currently at $2.3 million</a>, just a tad under its $2.36 million median record achieved in 2012.
The $2.3 million median is however matching the peak achieved prior to the onsite of the global financial crisis.
It dipped to as low as $1.9 million in 2009.
After its 2012 recovery, it dipped to around $2.05 million.
Mosman agent Robert Simeon wrote today that the <a href="/expert-insights/buying/the-property-numbers-that-really-count-mosman-a-good-indicator-of-property-market-strength">Mosman house market was easily one of the most observed on the property catwalk</a>.
He presented some interesting stats on the sales volumes from Australian Property Monitors. 
<ul>
<li>2006 Number of Houses Sold 366 for a total value of $932,663,130</li>
<li>2007 Number of Houses Sold 373 for a total value of $1,130,325,667</li>
<li>2008 Number of Houses Sold 247 for a total value of $702,311,112 – GFC</li>
<li>2009 Number of Houses Sold 278 for a total value of $732,986,251 – GFC</li>
<li>2010 Number of Houses Sold 317 for a total value of $900,728,149 – GFC</li>
<li>2011 Number of Houses Sold 270 for a total value of $777,349,292</li>
<li>2012 Number of Houses Sold 284 for a total value of $789,400,700</li>
<li>2013 Number of Houses Sold 366 for a total value of $1,022,005,721*</li>
</ul>
 
Simeon noted the 2013 figure will rise significantly higher given a number of top end properties sold late in 2013 with long settlement periods.
 
 
 
The Moruben Road house topped RP Data's list of the week's top 10 sales. There were just the two entrants from Melbourne.
Top 10 sales of the week ending March 23, according to RP Data:
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/18_moruben_road_mosman_nsw_2088/4493552" target="_blank">18 Moruben Road, Mosman, NSW, 2088</a>, five-bedroom house, sold on March 22 by Belle Property Mosman for $5.7 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/21_wallis_avenue_strathfield_nsw_2135/6496668" target="_blank">21 Wallis Avenue, Strathfield, NSW, 2135</a>, six-bedroom house, sold prior to auction on March 22 by Georges Ellis &amp; Co for $4.525 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/24_beaver_street_malvern_east_vic_3145/11585509" target="_blank">24 Beaver Street, Malvern East, VIC, 3145</a>, five-bedroom house, sold at auction on March 22 by Jellis Craig Bennison Mackinnon for $4.1 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/67_georges_river_crescent_oyster_bay_nsw_2225/5258407" target="_blank">67 Georges River Crescent, Oyster Bay, NSW, 2225</a>, five-bedroom house, sold at auction on March 18 by Highland Property Agents for $3.45 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/233_o'sullivan_road_bellevue_hill_nsw_2023/1369906" target="_blank">233 O'Sullivan Road, Bellevue Hill, NSW, 2023</a>, five-bedroom house, sold on March 19 by Richardson &amp; Wrench Double Bay for $3.18 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/14_allenby_road_canterbury_vic_3126/10253153" target="_blank">14 Allenby Road, Canterbury, VIC, 3126</a>, five-bedroom house, sold at auction on March 22 by Kay &amp; Burton for $3.125 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/7_blake_street_rose_bay_nsw_2029/5915064" target="_blank">7 Blake Street, Rose Bay, NSW, 2029</a>, four-bedroom house, sold on March 18 by Ray White Double Bay for $3.1 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/5/32a_awaba_street_mosman_nsw_2088/4476065" target="_blank">5/32A Awaba Street, Mosman, NSW, 2088</a>, three-bedroom house, sold at auction on March 22 by Croll Real Estate for $3.065 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/10_spofforth_street_cremorne_nsw_2090/2002561" target="_blank">10 Spofforth Street, Cremorne, NSW, 2090</a>, five-bedroom house, sold on March 21 by Belle Property Neutral Bay Neutral Bay for $3 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/34d_latimer_road_bellevue_hill_nsw_2023/16760271" target="_blank">34D Latimer Road, Bellevue Hill, NSW, 2023</a>, four-bedroom house, sold prior to auction on March 17 by L J Levi Real Estate for $2.9 million
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jchancellor-FAypfDUnLy

Back at pre-GFC median highs, but Mosman top seller can only muster 1.5% annual price growth 

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Redeveloping parklands in the Gold Coast's Southport will be one of the most significant and largest urban renewal projects ever taken in the area, as part of the 2018 Commonwealth Games.
Premier Campbell Newman confirmed that an agreement had been made with Grocon to be the preferred developer of the 29 hectare site.
{qtube vid:=SkqNi2pr5jQ}
"The Commonwealth Games Village will provide essential services and accommodation for 6,500 athletes and officials in Games-mode and will be one of the Games’ most significant legacy projects," said Newman.
"This project will inject an estimated $500 million into the local economy over the next five years and will generate more than 1,500 jobs during its construction phase."
Newman released the Commonwealth Games Village Masterplan yesterday and the design includes more than 1,200 dwellings, including 1,171 one- and two-bedroom apartments and 82 townhouses, across more than 30 new buildings. These buildings will range from single to eight levels in height.
This community is expected to be retained after the Commonwealth Games.
"The developer’s approach is to create a tailored institutional investment vehicle to hold and rent the village dwellings after GC2018, with a gradual sell down over time. Approximately 12 hectares of land will be held by the state for future health and knowledge use," the <a href="https://www.edq.qld.gov.au/resources/plan/commonwealth-games-village/commonwealth-games-village-master-plan.pdf%20" target="_blank">masterplan details</a>.
Other features include seven hectares of total green and open space and gardens, including a community park, over 6,000 square metres retail precinct and 12 hectares for future health and knowledge development.
<img src="/images/2014/03/25/gold-coast-march-25-breakout.jpg" alt="">
Minister for Tourism, Small Business, Events and the Commonwealth Games, Jann Stuckey, said that it will be iconic after the games themselves have passed.
"It will create a great civic space that will no doubt become a focal point as the Gold Coast is propelled onto the international stage," said Stuckey.
"After the Games, Parklands will provide significant infrastructure as it becomes home to people and new businesses as part of a modern, mixed-used community which will include residential and a new business hub for health and knowledge, commercial and retail development."
Meanwhile, Grocon CEO, Carolyn Viney, said that they are thrilled to be part of the redevelopment and delivering value for the Gold Coast.
"Grocon’s design captures the essence of the sub-tropical environment of Queensland’s south coast with special attention being paid to sunlight, shading, natural air flows and water," said Viney.
"The urban and landscape design approach adopts the history and unique characteristics of the Gold Coast and its hinterland, intertwined with the role that water has played, and will continue to play, in shaping the Parklands site."
The masterplan has been submitted for development approval, with construction suggested to begin by early-2015.
For the latest development listings, brought to you by Property Observer and partners, see our <a href="https://showcase.propertyobserver.com.au/" rel="nofollow">INVESTOR SHOWCASE</a>.
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jduke-EHk3XBmHkn

Gold Coast Commonwealth Games Village urban renewal project underway

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RP Data has collated median unit values across Australia for December 2013 to bring us the 10 most affordable capital city suburbs for units.
As expected, South Australia, Tasmania and Queensland come out on top.
<ol>
<li>
<a href="/news">Elizabeth Vale</a>, South Australia. Median unit value: $143,425. 45.9% of homes in Elizabeth Vale are owner occupied, according to ABS data. Elizabeth Vale is a northern suburb of Adelaide.  
</li>
<li>
<a href="/news">Elizabeth North</a>, South Australia. Median unit value: $159, 348. Five minute's drive north of Elizabeth Vale, the suburb was established by the South Australian Housing Trust in 1955. 43.4% of homes in Elizabeth North were owner-occupied. This <a href="https://www.realestate.com.au/property-unit-sa-elizabeth+vale-114431015" target="_blank" style="line-height: 1.3em;">2 bedroom unit</a> (pictured below) in Elizabeth Vale is currently listed at $134,900. <img src="/images/2014/03/20/elizabeth%20vale.jpg" width="457" height="342" style="line-height: 1.3em;"> 
</li>
<li>
<a href="/news">Logan Central</a>, Queensland. Median unit value: $171,459. The CBD of Logan City, Logan Central showed 10% population growth between 2006 and 2011. 
</li>
<li>
<a href="/news">Woodridge</a>, Queensland. Median unit value: $182, 648. Also located in Logan, 39.4% of homes in Woodridge are owner occupied. 
</li>
<li>
<a href="/news">New Norfolk</a>, Tasmania. Median unit value: $183, 601. New Norfolk is located on Tasmania's Derwent River, with the majority of households primarily made up of couples with children. These <a href="https://www.realestate.com.au/property-unit-tas-new+norfolk-107687716" target="_blank" style="line-height: 1.3em;">new strata units</a> in New Norfolk (pictured below) are currently available from $195,000. <img src="/images/2014/03/21/image3.jpg" width="456" height="342" style="line-height: 1.3em;"> 
</li>
<li>
<a href="/news">Salisbury</a>, South Australia. Median value: $183,970. A northern suburb of Adelaide, Salisbury has a population of 7,551 according to the 2011 census. 
</li>
<li>
<a href="/news">Berriedale</a>, Tasmania. Median value: $184,217. Berriedale, in Hobart's north, is bisected by the Brooker Highway. 
</li>
<li>
<a href="/news">Beenleigh</a>, Queensland.  Median value: $186,159. Another Logan suburb, Beenleigh is located 34 kilometres south of the Brisbane CBD. This <a href="https://www.realestate.com.au/property-unit-qld-beenleigh-116355355" target="_blank" style="line-height: 1.3em;">two bedroom unit on Catherine Street</a> in Beenleigh (pictured below) is currently listed with an asking price of $149,000 plus. <img src="/images/2014/03/21/main.jpg" width="456" height="342" style="line-height: 1.3em;"> 
</li>
<li>
<a href="/news">Slacks Creek</a>, Queensland. Median value: $186,619. The fourth Logan suburb on the list, Slacks Creek had a population pf 10,418 in 2011. 
</li>
<li>
<a href="/news">Salisbury North</a>, South Australia. Median value: $188,262. A short trip up from Salisbury, sixth on the list, will bump prices up by roughly $4,000, according to RPData.
</li>
</ol>
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jrichardson-uRX5hFdKfN

The top 10 most affordable capital city suburbs for units: RP Data

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The recent public launch of Green House, a development in Waterloo from JPR Architects, Hecker Guthrie and Myles Baldwin Design saw 55% of the properties snapped up on the day.
The launch, on 15 March, followed an earlier pre-launch and showcased 161 apartments with one, two and three bedroom offerings each with private garden and terrace at 20 McEvoy Street, Waterloo.
The development, a $120 million creation of four low-rise buildings from Icon Co, is near to the $8 billion urban renewal project for Green Square and is one of a number of developments changing the nature of Sydney.
<img src="/images/2014/03/25/waterloo-march-25-one.jpg" alt="">
With a garden focus, Garden House includes architecture that is inspired by the outdoors, as well as water links externally and planted walkways with porte-cocheres.
JPR Architects brought a contemporary theme to the project, while Myles Baldwin Design took control of the garden plantings, paths, bridges and waterway features, with natural light being a focus.
The internal design, from Hecker Guthrie, focuses on paneled feature walls with timber shelves, timber flooring and planter boxes that are integrated into the construction.
<img src="/images/2014/03/25/waterloo-march-25-two.jpg" alt="">
There is a corner café also located on the site, and the entire development includes barbecue facilities, pergolas, outdoor lounge areas and rooftop terraces.
In total, 67 of the apartments are one-bedroom, 79 are two-bedroom, and tgere are 15 three-bedrooms at 52, 72 and 107 square metres respectively.
One bedroom homes can be purchased from $550,000, with two bedroom available from $750,000. Meanwhile, three bedroom apartments are selling from $1,250,000.
<img src="/images/2014/03/25/waterloo-march-25-three.jpg" alt="">
With 70 apartments already having sold at launch, including those from the earlier VIP launch for <a href="https://www.garden-house.com.au/" target="_blank">Garden House</a>, it’s notable that the majority of buyers had resided within 10 kilometres of the development already.
Selling agent, John Meagher, managing director 360 Property Group, said that the sales were mainly to owner occupiers.
“There was an excellent blend of sales from one-bedrooms through to penthouse offerings and we were delighted with the results. What really engaged potential purchasers was the unique private garden entries to all apartments. This was a major drawcard. In addition, Hecker Gutherie’s interior design was exceptionally well received,” said Meagher.
Garden House is expected to be completed for July to October 2016.
Icon Co is currently still developing <a href="https://botaniclanecove.com.au" target="_blank">The Botanic, in Sydney’s Lane Cove</a>, which expects to be completed in October 2014.
<img src="/images/2014/03/25/waterloo-march-25-four.jpg" alt="">
For the latest development listings, brought to you by Property Observer and partners, see our <a href="https://showcase.propertyobserver.com.au/" rel="nofollow">INVESTOR SHOWCASE</a>.
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More than half of stock sells at big-name Sydney Garden House launch

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GUEST OBSERVATION
With the demise of manufacturing and without a product to sell internationally, the argument goes that non-resource states such as Victoria are fated to fall into recession in the short run, or experience a long period of declining real incomes.
For some the answer is a much needed infrastructure program targeting improvements in economic productivity. This is valuable but hardly a long-term strategy, nor one to employ the capabilities of a services economy like Victoria.
Because, while the headlines are full of manufacturing job losses, the rest of the Victorian economy has been generating services jobs. In the decade to 2013, during which there was a net loss of 50,000 manufacturing jobs, there were an additional quarter of a million jobs in health, education and professional services. Manufacturing jobs have fallen to 9% of the total while services jobs have grown to 77%.
This will be exacerbated by the closure of the motor vehicle manufacturing sector and as <a href="https://theconversation.com/what-the-departure-of-toyota-holden-and-ford-really-means-for-workers-23137" target="_blank">Sally Weller pointed out</a>, dumping so many displaced workers on the labour market in a concentrated period is going to cause much misery amongst those retrenched. Hopefully there will government programs to assist them. With a lower dollar there will undoubtedly be other parts of the manufacturing industry that will find new export opportunities.
<blockquote>
While the headlines are full of manufacturing job losses, the rest of the Victorian economy has been generating services jobs. 
</blockquote>
Right now the economy seems not to be in such bad shape. Housing, retail sales and improved business confidence are all leading to a significant recovery in job ads listed by the jobsearch website seek.com, which are up 12% since September last year in Victoria compared with the national average of 9%. If sustained by accommodating monetary and fiscal policy this will help with the manufacturing adjustment.
But what are the prospects for the rest of us who are employed in services jobs? One of the things our Institute has been looking at for the Victorian government is the global trade in services.
Exporting services was once considered an oxymoron. Services needed to be delivered personally. There was no opportunity to deliver them remotely. The characteristics of services and the technology to deliver them have completely overtaken that notion.
What a wide-ranging study of the global services trade, delivered to the Victorian government last year, found is that exporting services is big business for everyone it would seem, except Australia and by implication, Victoria. In particular the developing economies of Asia, India and China have reached a stage of development where they have an increasing demand for sophisticated services, but currently lack the capacity to meet that demand domestically. Accordingly the imports of services by countries such as India and China are growing at 15-20% per annum. That may change, but right now there is an opportunity.
The prototype Australian services export entrepreneur is of course our humble underpaid academic cracking tough and unfamiliar markets rather than the bonus-driven management consultant. It is the universities that have established beach heads in culturally unfamiliar markets through partnerships with overseas institutions that have incorporated both offshore and onshore course delivery.
Education services have become a key component of our exports and in Victoria our universities are now some of the largest export organisations in the state.
As shown in the chart, the great success of Australian services exports to developing countries such as China and India has been in education. Travel services, of which education is the largest component, comprise about 90% of Australian exports to China and India (Victorian data for services exports to specific countries are not available).
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/42327/width668/tdpsz3xp-1393216410.jpg" width="470" style="font-size: 0.8em;">
While the export of education services, which until recently has been growing very rapidly (11.7% per annum between 2001 and its peak in 2009), exports of the strategically important professional services, in which as a service economy we have built a considerable capacity such as legal, accounting, management consulting, architectural, engineering and technical services represented in the trade statistics, as “other” business services is much lower. These are incorporated in “other” business services and make almost no impact on the chart.
While imports of other business services by China and India have grown at 17% and 12% per annum respectively over the period 2004-2012, Australian exports of other business services to China grew at only 3% over the same period. Australian exports of other business services to India were too small to generate a meaningful growth rate. While the data is far from complete, it appears that the United States has been successfully taking advantage of the opportunity presented by China. It is more difficult to identify the most successful services exporters to India, but Germany and the UK are prominent.
The poor local export performance has been exacerbated by the high Australian dollar but much of the explanation resides in non-price factors. There are many impediments to exporting services to Asian destinations, not the least are ones of cultural and language differences. However necessity is a great driver of determination and no more so in the education sector where the need for compensatory revenues has driven universities to become among the largest exporters in Victoria. The same may yet be so for a whole range of professional services.
Bruce Rasmussen is director of the Centre for Strategic Economic Studies at <a href="https://www.vu.edu.au/" target="_blank">Victoria University</a>.
This piece drew on Professor Rasmussen’s presentation to CEDA’s 2014 Political and Economic Overview.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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brasmussen-7RJVHLBsVr

Where to after manufacturing? The economic future of Victoria

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Once the very definition of a boom town, Broken Hill is a historic community pulling out all the stops to fight sluggish buyer interest.
Located in far west outback New South Wales, Broken Hill has a population of 18,517 as of 2011, with a total of 9,570 dwellings.
The border town’s economy has a rich heritage. The Broken Hill Proprietary Company incorporated in 1885, operating a silver and lead and zinc mine in the town. After merging with Dutch mining company Billiton, BHP Billiton is now arguably the biggest mining company in the world.
However, like other mining towns, the economy of Broken Hill is vulnerable to changes in commodity prices and the performance of the mining sector. In recent years, the residents of Broken Hill have seen the effects of the resources downturn, with CBH Resources sacking a third of its 150-odd strong workforce at Broken Hill’s Rasp Mine in September last year. The end of NSW’s ban on uranium mining may offer some economic growth for the region, but the closure Uranium One’s Honeymoon mine, 75 kilometres north-west of Broken Hill, may temper expectations.
The 2011 census showed that Broken Hill had the greatest population decline of anywhere in Australia for the five years prior; with the population down 120 people from 2006. At the time of the census, unemployment in the outback town was recorded at 8.3%, compared with the national average of 5.3%.
According to RP Data, the current median sales price of a home in Broken Hill in $120,000. Median prices last peaked in the region in 2008, at $135,000. Price comparisons with neighbouring areas are largely redundant – the nearby Silverton has fewer than 100 inhabitants, while towns of similar populations are hours away.
The majority of Broken Hill’s dwellings are stand-alone single storey houses. Housing research firm Residex provides a two bedroom, one bedroom single storey home, such as this one at <a href="https://www.realestate.com.au/property-house-nsw-broken+hill-116269135" target="_blank">639 Lane Street</a> (pictured below), as a typical property for the town. 
<img src="/images/2014/03/24/main%201.jpg" width="456" height="343">
This five bedroom heritage listed home at <a href="https://www.realestate.com.au/property-house-nsw-broken+hill-116496223" target="_blank">181 Sulphate Street</a> (pictured below) is currently listed at $270,000, more than double the median price for the town.
<img src="/images/2014/03/24/image3.jpg" width="460" height="345">
Broken Hill’s residents, businesses and local council are hoping to turn things around for the slowing outback economy. In September last year, Broken Hill real estate agent Clifford Wren spoke to the ABC, calling on the local and state governments to offload unused land to developers for free to boost the local economy and drive population growth.
The town is increasingly marketing itself as a tourist destination in a bid to reduce its exposure to the mining sector. In 2010, Broken Hill launched the Broken Hill Strategic Tourism Plan for 2010 to 2010. Strategies include the development of a film studio and the push to make Broken Hill the first city to receive a National Heritage Listing, to acknowledge its historical and touristic value.
Meanwhile, mining activity continues in the city. In 2013, a $13m upgraded rail system was launched, providing Cristal Mining (CMA) with the ability to transport its products from Broken Hill to Port Adelaide, giving it global access. Cristal Mining employs 45 Broken Hill residents. Perilya Limited also continues to operate a zinc, lead and silver mine in Broken Hill.
However, it is yet to be seen whether the town’s efforts to revamp its economy will have long-term, sustainable effects on its property market. 
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