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

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

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

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

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

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Another 12 months of low interest rates are on the cards, with no increase expected until around February 2015, predicts Smartline Personal Mortgage Advisers.
With some lenders easing their fixed interest rates in recent weeks, the current prediction is that there is unlikely to be any change until next year.
Smartline’s executive director, Joe Sirianni, said that the indicators point to a long period of historically cheap variable rate home loans.
<blockquote>
“Those with an owner-occupier property have the opportunity to make some serious inroads into their outstanding mortgage...”
</blockquote>
“Even if rates do rise in early 2015, predictions are that this will be only a 0.25% increase, which will still mean rates will be at some of the lowest levels ever seen,” said Sirianni.
There have been some predictions that fixed rates would increase soon, however non-major lenders appear to be reducing their rates increasingly, outpacing the major banks.
“This is not an insignificant difference,” Sirianni said.
“Someone with a $300,000 mortgage would be more than $900 a year better off over the three year period simply by choosing 4.74% per annum rather than 5.09%.”
Sirianni said that these figures, such as variable rates available at 5% per annum, are allowing investors to find properties that provide a return greater than interest costs.
“Those with an owner-occupier property have the opportunity to make some serious inroads into their outstanding mortgage balance by paying off extra while rates are so low,” he said.
“Those who want to maximise the opportunities associated with the current economic environment should be seeking quality mortgage advice on the best approach for them.”
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jduke-EHk3XBmHkn

Interest rates to stay low for 12 months: Smartline

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Over the week, auction volumes remained relatively steady, with 2,431 capital city properties taken to auction, increasing only slightly from 2,293 the previous week.
Meanwhile, the weighted auction clearance rate across the combined capital cities improved slightly over the week, up from 70.8% the week prior to 71.2% last week. Unlike the previous week, the performance across Melbourne and Sydney was more aligned last week, with both cities recording a strong clearance rate. At the same time last year, auction volumes were at elevated levels as it was the week prior to the Easter long weekend.
Traditionally, the number of auctions that take place over this week each year increases by around 25% when compared to the week prior, last year however, volumes increased by over 40% leading up to the Easter weekend. Despite the high volume of auctions held the week before Easter last year (2,649), the auction clearance rate was recorded at 64.1%, which is much lower than we are currently seeing.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Capital-city.jpg" rel="wp-prettyPhoto[g3024]"><img class="alignnone size-full wp-image-3027" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Capital-city.jpg" alt="20140323 Capital city" width="992" height="733"></a>
There were 963 residential Sydney properties taken to auction over the week and the preliminary auction clearance rate was recorded at 77.9%, compared to a 79.8% clearance rate across 868 auctions over the previous week.
When we look at the Sydney auction market at the same time last year, auction volumes were lower (912) and a lower proportion of homes were selling successfully under auction conditions (68.6%). These results highlight just how strong current conditions are across the city. In line with the strong auction performance, Sydney home values over the past year have increased by 14.9%, reinstating the strong performance of the Sydney housing market.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Sydney.jpg" rel="wp-prettyPhoto[g3024]"><img class="alignnone size-full wp-image-3029" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Sydney.jpg" alt="20140323 Sydney" width="995" height="660"></a>
Across Melbourne, a preliminary clearance rate of 71.7% was recorded last week from 895 auction results compared to 67.0% recorded both last weekend and this time last year.
At the same time last year, there were slightly more auctions held across Melbourne (1,294) compared to the 1,149 held this week, and a marginally lower clearance rate. Currently, Melbourne home values are 12.2% higher than they were at the same time last year and with one week to go this month, early indications show Melbourne home values are on track to record solid growth through March despite the increasing levels of homes on offer for sale.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Melbourne.jpg" rel="wp-prettyPhoto[g3024]"><img class="alignnone size-full wp-image-3028" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Melbourne.jpg" alt="20140323 Melbourne" width="1005" height="661"></a>
Because Brisbane is a much smaller auction market than both Melbourne and Sydney, auction clearance rates across the city have the tendency to vary substantially from week to week. Last week, Brisbane’s preliminary auction clearance rate was recorded at 37.3%, down from 54.5% the week prior. Last week, 127 residential properties were taken to auction across the city, compared to 138 over the previous week.
Brisbane auction volumes are set to jump substantially over the coming week, with 214 properties across Brisbane set to go under the hammer, so it will be interesting to see if auction clearance rates improve over the coming week.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Brisbanejpg.jpg" rel="wp-prettyPhoto[g3024]"><img class="alignnone size-full wp-image-3026" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Brisbanejpg.jpg" alt="20140323 Brisbanejpg" width="994" height="657"></a>
Compared to the previous week, Adelaide’s clearance rate was recorded at a much lower level, with the preliminary clearance rate for the city coming in at 59.3%, compared to a final clearance rate of 70.0% over the preceding week. The number of auctions that took place across the city also dropped over the week, from 95 the week prior to 80 last week.
While this is the lowest clearance rate recorded across the city so far this year, at the same time last year, the auction clearance rate (53.3%) was lower, while there were more auctions held across the capital (110).
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Adelaide.jpg" rel="wp-prettyPhoto[g3024]"><img class="alignnone size-full wp-image-3025" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140323-Adelaide.jpg" alt="20140323 Adelaide" width="1002" height="659"></a>
Auction markets across the remaining capital cities (Perth, Hobart, Canberra and Darwin) tend to be very small with only a small number of auctions held each week. Last week we saw 30 auctions across Perth with a clearance rate of 57.1%, 25 auctions across Hobart with a clearance rate of 54.5% and 57 auctions in Canberra with a clearance rate of 53.3%. There were only three auctions recorded in Darwin last week, with no successful results.
Currently, RP Data is tracking 2,845 capital city properties that are scheduled to be taken to auction over the coming week, making this the busiest week for auctions so far this year.
Melbourne auction commentary provided by Robert Larocca, RP Data’s Victorian housing market specialist
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Strong clearance rates recorded in Sydney and Melbourne: RP Data's national weekend auction wrap

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Renovation and the great home improvement effort are close to the heart for investors. Everyone loves the concept of making money while using a flair for design and their own before and after project to share.
We regularly hear that there are many properties you can renovate across the country and that huge profits can be made. There are certainly opportunities, but don't go into any purchase thinking that you can throw money around and make a profit. Planning wisely is crucial, as is knowing what to avoid.
With this in mind, there are definitely some properties that you might want to consider steering clear of if it's a renovation project that you're considering. Here are five that you want to think twice about renovating.
<ol>
<li>
New, or new-ish, stock This one should be obvious. If you want to renovate to make money, then straight away ignore anything that has been around the traps for too short a period of time. If the property is new, or close to it, then you don't want to be wasting time trying to make improvements on what has already been improved. While you may not want to jump completely to the other end of the spectrum and find something that is completely falling apart, you certainly don't want to buy something where there isn't the option to update as much as possible. It's also important to note that properties in areas where new comparable properties are selling for the same as the amount you will need to sell for to make money may also not see a profit - when offered an equivalent price prospect, who wouldn't choose a new home? 
</li>
<li>
The money pit There's likely one of these in every area. It has something dramatically wrong with it, usually structural, and it tends to be something you can't see at a glance. It's the common mantra for renovators that you have to do things with visibility in mind - if it's not a visible update then it's money being sunk into the wrong area. Unless you can get the property for the discount it costs to fix this issue, perhaps extensive termite damage, then it's often worth skipping the challenge. For some properties, it might actually be a case that it's really a re-build that's required. 
</li>
<li>
Where the issue isn't the reno For some properties it's not the style of the property, or the state it is in that is dragging it down. Often, it's the specific location that will always put a cap on the price - think a busy road that no careful fencing can reduce the sound of. Other things you may not be able to improve are the neighbours (you can pick your friends...), pylons, positioning in a flood area, the worst street, an unsightly aspect and often the position of the house on the block. If you can't fix it through your renovation then you're already on the back foot and inheriting someone else's problem. 
</li>
<li>
SMSF properties Let's be clear with this, if you're buying in your self-managed super fund then there are some things you can, and many things you can't, do. If industry expertise is anything to go by, there are certainly repairs and alterations that can be made. However, if you want to be adding bedrooms or extensions, or doing anything significant, it's time to get the ATO involved from the beginning to ensure you remain compliant. You are also going to find yourself up against borrowing rules and limits on what you can contribute to the fund yourself. While <a href="/expert-insights/building/ato-ruling-specifies-allowable-repairs-and-renovations-for-smsf-property-investors">there may be opportunities here, be prepared to jump through some extra hoops</a>. 
</li>
<li>
Properties out of your budget Remember, just because you can score big on a property in terms of purchase price, it doesn't mean you'll be able to renovate it to the standard you were dreaming of. Properties in upmarket areas demand an upmarket renovation that, while you can definitely keep less expensive than an owner occupied renovation, will cost you more than when renovating smaller properties elsewhere. If you have a $40,000 renovation budget and are looking at buying a good deal but decrepit mansion, prepare to not be able to afford to renovate the home acceptably.</li>
</ol>
Renovate wisely!
Do you have any renovation nightmares or successes?
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Five types of properties you should think twice about before renovating

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AMP Capital’s Ocean Keys Shopping Centre in northern Perth’s Clarkson has seen the first stage open for the two year development and will also include 10 new residential apartments adjoining the centre.
The $105 million project is part of a $2.8 billion development pipeline for AMP Capital including redevelopments in northern Sydney’s Macquarie Centre, for $440 million, Pacific Fair on the Gold Coast, at $670 million and proposed developments at Perth’s Garden City and Karrinyup.
{qtube vid:=vugwgsnk9EM}
The redevelopment is a response to strong growth in the northern Perth suburbs, with Ocean Keys in what is called one of the faster growing regions in Australia. The trade area’s population is expected to grow at an annual 5.3% from 2016 to 2021.
This release is ahead of the official schedule for April, and has brought 30 stores, a dining area and a playground to fruition, which add to the recently opened undercover car park, announced AMP Capital Shopping Centres’ managing director Bryan Hynes.
“The redevelopment of Ocean Keys will provide our investors in the AMP Capital Shopping Centre Fund with enhanced risk adjusted returns by creating a first class shopping and leisure destinations,” said Hynes.
The redevelopment created 200 construction jobs and completion will offer 400 retail positions.
By the end of this year the redevelopment will be complete, with Target, Kmart, Coles and Woolworths in position with more than 120 shops and services in total.
<img src="/images/2014/03/24/ocean-key-march-24-plan.gif" alt="">_
The centre will be 37,000 square metres upon completion, and will include a new casual dining precinct and the 10 new residential apartments. There has also been the suggestion that a number of office spaces will be included.
The residential apartments were required by council, and proposals to council for the dwellings see them placed at the corner of Ocean Keys Boulevard and Key Largo Drive overlooking Key Largo Drive. Six of the dwellings planned for are one-bedroom units, with the remaining four being two-bedroom units. A residential lobby was also proposed for lift access and a flight of stairs.
<a href="https://www.oceankeys.net.au" target="_blank">Ocean Keys</a> is already used as an amenity selling point for a number of online residential property listings.
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First stage of $105 million Ocean Keys shopping centre development in Perth begins

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<div class="story-intro">
The INXS guitarist Tim Farriss secured $1.73 million for his Milsons Point apartment at weekend auction.
It was bought seven years ago off the plan for $1.65 million in 2007.
</div>
The apartment at <a href="https://www.belleproperty.com/8P1813" target="_blank">1003/118 Alfred St</a> was bought as an investment with intentions to have it as a city bolt-hole away from their Southern Highlands farm where they breed cattle.
It had been listed through Belle Property Neutral Bay agent, Mark Jackson with $1.6 million plus hopes.
Over the years its asking price rent has ranged between the initial $1,000 a week sought in late 2009 and the $1,250 weekly asking rental sought briefly earlier this year.
The 10th-floor apartment in the North Residences was briefly up for sale in 2010 with hopes of more than $1.7 million. It has 146 square metres internal space plus 20 square metres balcony, parking for one car and storage space.
It is in a converted office building which completed in 2009 with three bedrooms, two bathrooms, open plan interior and a gourmet kitchen.
Tim Farriss and his wife, Beth apparently envisage a move to the Northern Beaches.
Farris has been part of INXS since the beginning, playing with his brothers, Andrew and Jon Farris, and high school friend Kirk Pengilly, as featured in the Channel 7 mini-series in which he collaborated.
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INXS guitarist Tim Farriss secured $1.7 million for Milsons Point apartment

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The Reserve Bank of Australia sold its redundant Kirribilli mansion, Eversley, for a bullish $5.2 million at weekend auction.
Its annual price appreciation during the RBA's 28 year ownership reflected a healthy 7.8% annual growth.
It was among the 670 properties that went to weekend auction with the initial Australian Property Monitors tally at another weekend clearance rate above 80% - of 81.5%.
 It represented the eighth weekend running that APM has recorded above 80% on initial results, although the prior weekend was revised down to 77.9%, which is about its true auction success tally.
With unconfirmed $4.5 million plus price hopes, the opening bid at the Ray White Lower North Shore auction was $4.1 million.
There were just the two reported bidders, who pushed the price of the duplex at 10 Carrabella Street up.
It last sold in April 1986 for $630,000 under Bob Johnston's governorship just before the Sydney market took off in its late 1980s record boom.
No reason for its sale has been given but Property Observer recently noted in recent years <a href="/news/nsw/no-more-landlord-niggles-as-rba-lists-excess-4-million-kirribilli-residential-property">the property has been beset with pesky landlord issues</a> taking up much of the central bank's time.
Issues including leaking taps, pathway descaling, problematic cistern, dangerous tree limb decay, low pressure hot and cold shower water, hazmat requirements, leaking roof tiles, balustrade compliance, damp kitchen ceiling, decaying front garden fencing, the back fence replacement, bathroom grouting issues, possums in the fiddlewood tree, beeping fire alarm on the first floor, and the failing light above the sandstone stairs that meant the steps were dangerous. 
At one point rental abatement was given.
The weekend's highest sale was $5.7 million in Mosman.
APM put Melbourne's initial weekend clearance rate at 73% an its revised prior weekend at 69.8%, indicating that slight softening in the Melbourne market. Its initial result last weekend was 73.9%.
Melbourne's highest weekend sale was $3,125,000 in Canterbury. 
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RBA sells Kirribilli mansion securing impressive 7.8% annual price growth

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Australian cricketer David Warner secured $1.88 million when his Little Bay home sold at weekend auction.
Initial reports suggested the coastal suburban Sydney house would fetch about $1.9 million.
Two buyers competed for the renovated four-bedroom Jenner Street home.
The 27-year-old opening batsman had purchased the property for $1.75 million in 2012.
The home, with Queenslander-style facade, had a contemporary rear extension with an open-plan living space of its 738 square metre block.
David Warner apparently will be trading up in Sydney's east, but the Sunday Telegraph Phil Rothfield's has recently written the test opener has denied he was looking to buy a property in the $4 million range in Bondi.
Warner and his fiance, Candice Falzon announced they are expecting a child earlier this month.
Warner also has an investment property in Maroubra, which cost $562,000 in late 2009. It is in a 1950s Maroubra Road block of four units.
Its rental performance appears patchy as available at a $620 a week rental in late 2011, by March 2012 it was still available at $560 a week.
It became available again in March 2013 at a $600 a week asking price, seemingly on a six month lease, as it was back briefly available for rent at $600 a week in late 2013.
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Cricketer David Warner sells in Little Bay as family home becomes necessary

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In the latest ABS results it was reported that the total value of housing finance commitments for investment purposes was recorded at $10.3 billion in January 2014.
While the value of investment finance commitments had fallen by -3.3% over the month, it is clear that there has been a very strong ramp-up in investment expenditure on housing over the past 18-24 months with a significant increase in lending to investors. Although this is the case, owner occupier purchases have also ramped up sharply over the same period.
<blockquote>
The proportion of activity by investors in the housing market currently is sitting at its highest levels since late 2003.
</blockquote>
While owner occupier purchases accounted for the greatest proportion of housing finance commitments, there was a distinct rise in investment lending where in January 2014, investment lending accounted for 38.5% of all lending; a drop from 39.6% in December 2013. The proportion of activity by investors in the housing market currently is sitting at its highest levels since late 2003. It’s important to remember that late 2003 was the peak in housing market activity and at that time and shortly afterwards, value growth went flat for a number of years.
<img src="/images/2014/03/24/kusher-march-24-one.gif" alt="">
Why is investment activity so significant in the current market? 
The combined capital city housing market recorded a low point in May 2012. Since that time, values have increased by 13.2%.
Although we’ve seen a broad rise in values, the magnitude of these has varied significantly on a city-by-city basis.
<img src="/images/2014/03/24/kusher-march-24-two.gif" alt="">
Since May 2012, home values in Sydney increased by 18.6%, in Melbourne by 14.4%, in Perth by 12.4% and in Darwin by 8.8%. On the other hand, Adelaide home values are up by 1.0%, Hobart by 2.6%, Canberra by 4.4% higher and Brisbane by 4.9%. Based on this it is clear that value growth has only been particularly strong within a handful of capital cities, albeit the two largest cities, Sydney and Melbourne, have been the primary drivers of capital gains over the current cycle.
Over the same 22 month period since May 2012, rental growth has significantly underperformed home value growth. Across the combined capital cities, rental rates have increased by a total of 4.9% which was significantly less than half the growth in home values. Darwin (11.7%), Perth (8.4%) and Sydney (5.6%) have recorded the strongest increases in rents however, only Darwin has recorded stronger levels of total rental growth than value growth. Every other city has recorded less than 5% growth in rental rates. Across the remaining cities the rental change has been recorded at: Melbourne (3.4%), Brisbane (4.3%), Adelaide (2.5%), and Hobart (0.6%) while Canberra rents are -3.1% lower.
<img src="/images/2014/03/24/kusher-march-24-three.gif" alt="">
With home value growth generally outperforming rental growth, it seems that most of the investment activity in the market is focussed on capital gains rather than rental return.
With investors clearly focussed on capital growth in the market, the potential for failure is when growth slows or falls - what then will happen to the investor segment?
<img src="/images/2014/03/24/kusher-march-24-four.gif" alt="">
There’ll be some investors who won’t be overly concerned as they may have negatively gearing their investment by design. However, some will be left with a low yielding asset coupled with potentially low medium term capital gain prospects as the market moves out of the growth phase.
Potentially a portion of these recent investors will look to exit the residential property asset class if and when value growth slows or falls and move into better performing and more liquid asset classes.
Note: Housing finance data is released by the Australian Bureau of Statistics (ABS) each month and provides valuable insight into residential lending. A key trend recently has been the heightened level of activity by investors. It is important to remember that the data is based on finance commitments by Australian Authorised Deposit-taking Institutions (ADIs). Finance sourced from overseas is not included in the data.
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ckusher-ujnxiKuFQs

Investors continue to focus on property

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The protests that washed across major cities and towns a few days ago covered a wide variety of issues, yet underlying them all is dissatisfaction with both sides of politics and the frustration in the community that voices are going unheard.
We’ve been used to seeing similar demonstrations across the austerity-ridden countries of Europe and the USA and political clashes such as those in Russia and most recently Ukraine.
Yet since the fall out of the last economic crisis, a concentrated outcry of public anger has penetrated democratic society and it’s not limited by cause or segregated by age and status, but generated by the incredible impact of social media enabling a wide array of ordinary citizens to vent their concerns outside of sporadic government polls and the headline sensationalism of mainstream media.   
The natural limitation of government is the inability to please all.  In a democratic society, they’re elected to enact on the policies campaigned upon – asked to lead rather than follow and ensure citizens achieve a platform that assists in advancing equitable outcomes. 
Albeit, it’s a brave government that turns its head away from large vocal demonstrations, especially in an age where - through the connectedness of social media - they can be arranged at the drop of the hat, bypassing the usual bureaucratic process of writing to a local MP to highlight community disquiets, or publishing a letter in the local paper.
<blockquote>
The recent national protests were about community and social justice, of which housing forms an indivisible part.
</blockquote>
You can argue back and forth about the issues surrounding this latest public protest. Express outrage at the inconvenience incurred to the daily commute. Or even question its relevance considering we have not long elected the Coalition into power.  But when a wide makeup of individuals, from all sides of the political spectrum, takes to the streets – not on one agenda alone - but an array of disgruntlements.  It is no longer merely representative of a minority that sits on the fringes of society; it signifies a clear message of distrust - a potentially destabilising force.
Cone of silence
Tony Abbot’s government made it clear upon election, that they intended to control the flow of information available for public discussion. 
It wasn’t only displayed in the media restriction detailing daily boat arrivals, but in a large array of research undertaken by the previous administration, which has now been firmly locked into ‘archive’ status.
This would include two I’ve mentioned in recent columns – the National Housing Supply Council, and the year long study that formed the white paper into the “Asian Century”, which, outside of general criticism, remains a useful tool of reference for Australia’s future demographic makeup.
So you could say that listening to the public voice isn’t the current government’s priority – but then, neither was it for the last.
Little if anything came from those reports.  The were good on content, but lacking in <a href="/expert-insights/buying/the-real-question-the-senate-inquiry-must-ask-will-the-government-allow-land-prices-to-decrease">action</a> and much like the “2020” summit in 2008, the results can be summed up neatly by words from biographer, Nicholas Stuart in <a href="https://scribepublications.com.au/books-authors/title/rudd-s-way/" target="_blank">Rudd’s Way</a> – November 2007 – June 2010:
“His rhetoric inspired and enthused voters. And yet .... and yet .... nothing happened.” 
“Nothing happened” – because governments too often bend the knee to those with the ability to influence political leadership and public opinion, rather than acting democratically for all. 
Housing policy alone aptly demonstrates this. 
<ul>
<li>The tax and transfer system values <a href="https://grattan.edu.au/publications/reports/post/renovating-housing-policy/" target="_blank">owners over renters</a>;</li>
<li>Encourages and rewards those who use the land as a speculative investment for personal gain;</li>
<li>Advantages giant corporations over independent businesses;</li>
<li>Widens the ‘<a href="/expert-insights/buying/the-widening-inequality-and-economic-growth-gap-what-does-this-mean-for-housing">wealth</a>’ gap between rich and poor;</li>
<li>And hampers timely development of affordable housing; (to name only a few).</li>
</ul>
When concerns are raised, our leaders spend a few wasted millions on comprehensive enquiries to ask ‘why?’- like some clueless high school student.
“What do we want?”
These protests, whilst not directly about land prices, were about community and social justice, of which housing forms an indivisible part.
The list includes education – and as I’ve pointed out previously, high land prices directly contribute to what’s assessed to be the most <a href="/expert-insights/buying/the-tale-of-one-auction-what-it-really-says-about-australias-welfare-state">segregated schooling</a> system out of all members of the OECD countries. 
Some of the highest land values are found in the best government funded school catchment bands, and as an auctioneer proclaimed during his pre-amble in the McKinnon High School zone last week:
“There is no ceiling for house prices in this area!”  
A bullish spruik if ever you heard one - but not far from truth.  
Record prices continue to be regularly broken, affluent buyers continue to pay a premium.  Yet the price is effectively ‘free’, because as the zone’s future vendor’s ‘speculate’ – if they hold onto the family home long enough - they are likely to receive a windfall in unearned capital gains. 
Social justice? Hardly.
Unwonted robbery?  
The community produces the gains through the tax-funded facilities. Whilst market forces drive prices higher, the unearned profit does not flow back to maintaining or upgrading those services – which is where it arguably belongs. 
Instead it is privately capitalize, soaked into what is an irreplaceable, illiquid and unproductive asset, thereby giving free leave for mounting property prices to continue, which, under the current system, grants a ‘tax free’ unearned reward to the owner occupier upon sale.
The sell-off of public services was also highlighted.  This too can also be associated with high land values, which have dictated what is assessed to be the more profitable offloading of the Millers Point public housing estate, rather than retaining its use for long standing residents, which, by definition, drives social polarization and housing inequality. 
It seems in the land of a ‘fair go,’ only the affluent are allowed to advantage from a Sydney Harbor view.
Are they listening?
Yet the indicators government uses to measure their performance whilst in power are meaningless to protesters, and in many respects, a 21st century economy.
They are no measure of happiness, or signal the worrying rise of mental illnesses such as depression.
Only by hearing community voices, gives a clue to that.
GDP – the total value of all products and services bought and sold, a basic measure of money changing hands, does not distinguish between;
<ul>
<li>Productive or destructive activities;</li>
<li>Show who’s getting the lion’s share of wage increases; Or</li>
<li>Assess where those increases are being invested (Which considering housing (land) is currently estimated to be 300% of Australia’s GDP, gives some indication).</li>
</ul>
Equally it gives no clue to the foundations of societal health – such as environmental concerns, access to education, or wealth inequality. 
Yet these are the issues community wants to address – because these are the barometers that directly impact our quality of living.
Whilst GDP is an excellent measure of the amount of arguably unneeded ‘stuff’ changing hands, it’s also not up to the task of adequately measuring intellectual property, innovation and invention for example – such as the creation of a free app. 
It may be concerned with the health of the economy, but as for the well-being of our 21st century community – it’s simply not up to the task.
Equally, unemployment figures are based on theoretical estimates, formulated by way of an extensive ABS survey, which aims to correlate the percentage of the labor force not actively employed, underemployed, or ‘participating.’ 
They are rolled out monthly, with the widely held ‘text book’ assumption (known as <a href="https://en.wikipedia.org/wiki/NAIRU" target="_blank">NAIRU</a>) that, regardless of how many actually want to work, should government pro actively attempt to lower the rate of unemployment below the desired level of “full employment” - which in Australia, is assessed to be and ‘unemployment rate’ of roughly 5% - it would unwontedly induce inflation and destroy price stability. 
A purported ‘fact’ that offers no comfort to those living on the poverty line of job seekers allowance.
This is also largely due to our flawed system of taxation – which places a levy on productivity (such as income and payroll taxes), unwontedly impeding the supply of goods and services, which in turn raises prices, feeding inflation and increasing the unemployment rate arguably required to lower wages sufficiently to stabilize inflation.
If we instead moved toward a system – and one, which was, at least in part, advocated by the Henry Tax review, and not withstanding, numerous other submissions from community advocates such as <a href="https://www.prosper.org.au/2014/02/27/the-senate-housing-affordability-inquiry-prospers-submission/" target="_blank">Prosper Australia</a>, or the <a href="https://blog.lvrg.org.au/" target="_blank">Land Values Research Group</a> to various senate enquiries over the years, and taxed the unearned gains from land rather than the earned gains from productivity.
It would (as has been proven <a href="/expert-insights/buying/is-a-land-value-tax-the-solution-to-our-housing-affordability-problem">historically</a>) influence:
<ul>
<li>A reduction of social polarization – and therefore inequality;</li>
<li>Remove the needed ‘sell off’ of public services due to high land values;</li>
<li>Boost productive investment, assisting the job market and advancing competitiveness for small business;</li>
<li>Reduce the speculative element that drives land prices ever higher;</li>
<li>Provide a steady base of revenue to invest in public services as well as affordable housing, and;</li>
<li>Ensure infrastructure is built for need – full utilization of land encouraged – and land banking reduced.</li>
</ul>
Productivity paradox
In light of all the above - it is remarkable that back in the 60s and 70s, discussion in the university lecture halls was centred on the ‘productivity paradox’ - correctly assuming it only a matter of time before all mankind’s basic needs could be largely fulfilled by robots.
Economists were deliberating what we’d do with all our leisure time when a full working week was no longer necessary!   
A stark change from the current mode of discussion, which is consumed with how long past the age of 65, individuals will need to work in order to retire mortgage free, with enough left in the pot to afford the basic necessities of life, which in most cases, is inadequately funded by superannuation alone. 
If it were possible to send the dog to work, we’d have already done so.
Community
Indeed our economy is not founded on the pillars of community and social justice, of which the protests are so concerned.
As admirable as numerous recommendations made to various senate inquiries into issues of inequality, affordability, finance, and environmental concerns have been, nothing has changed, because we have a lopsided economy, built on a $5.02 trillion housing market ($4.1 trillion of which is land) – and on this, and many other matters alone, a new generation of enlightened folk have clearly had enough.
High land values have played an important part in all the issues of social inequality highlighted above, of which I’ve provided ample evidence in previous columns. 
Our major cities now exhibit what’s considered to be a very ‘non-Australian’ style ‘English’ cultural class divide - as polarization between the asset rich and income poor expands.
The roll on effect impacts the environment, employment, education, and mental illness - as residents are forced into areas lacking in essential amenities – once again due to a flawed system of finance and housing policy.
To conclude…
And so, when you start to see what is so beautifully highlighted using the <a href="https://www.natsem.canberra.edu.au/publications/?publication=the-great-australian-dream-just-a-dream" target="_blank">maps below</a>, which show where the affordable property was located in 2001 for low and middle income buyers, compared to 2011 in our major capitals, which hold the lion’s share of population. 
(The yellow patches being affordable, and blue patches unaffordable.)  
 <img src="/images/2014/03/24/cashmore%20march%2024%20one.jpg" alt="">
<img src="/images/2014/03/24/cashmore%20march%2024%20two.png" alt="">
<img src="/images/2014/03/24/cashmore%20march%2024%20three.png" alt="">
And you read quotes from a long standing resident advocates, at the soon to be forced out Millers Point public housing facility, who rightly <a href="https://www.theguardian.com/world/2014/mar/20/millers-point-public-housing-residents-campaign-nsw-sell-off?CMP=soc_568">question</a>:
“The government says their core business is not housing. But surely their core business must be communities.”
Then you start to get a grip on the central issues this protests represents.
 <img src="/images/2014/03/24/cashmore%20march%2024%20two.jpg" alt="">
And I would suggest - (as expressed on their <a href="https://marchinmarch.com.au/">website</a>) – it really is “only the beginning”.
Follow Catherine on <a href="https://twitter.com/CCASHMORE_BUYER" target="_blank">Twitter</a> or via her <a href="https://catherinecashmore.wordpress.com/" style="line-height: 1.3em;">Blog</a>.
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catherinecashmore-6LXia3pPQj

Power (and housing) to the people

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GUEST OBSERVATION
Cairns is right on the change of times and fortunes - it is still really unclear exactly what will happen over the next few years. 
I personally believe it will change, but the answer I don't have is just how quickly or to what extent.  The big thing is Aquis and if this goes ahead this will be a game changer for Cairns.  It will not just be restricted to the area immediately surrounding Aquis - Cairns just isn't like that.  
We are still a regional city and Cairns, to us locals, extends down to Gordonvale, up to Palm Cove.  It isn't like the area of Smithfield is booming with business, but Bungalow near the City isn't.  It is too small for that - the whole town either is working or isn't.  
If Aquis is built then the immediate surrounding area will boom, but it won't be like a house there is $800,000 and a similar house in the rest of the city will be $400,000.
<blockquote>
Cairns may not be for everyone - you need to work out if Cairns is the right place for you to invest in.
</blockquote>
The State government seems to be behind the Aquis project, now all we have to do it is get it approved and work to start on it. This is a big step in the right direction. The Foreign Review Investment Board has also given the green light for <a href="https://www.cairnspost.com.au/business/foreign-investment-review-board-gives-fungs-green-light-to-yorkeys-knob-land-buy-for-aquis-mega-resort-and-casino/story-fnjpusdv-1226844517155" target="_blank" style="line-height: 1.3em;">Aquis to purchase the land at Yorkeys Knob</a>.
Without being to dramatic, if Aquis does get the go ahead and work starts this year, we will see a huge movement in the market and very quickly. This could really be the very last chance to get into the property market in Cairns before it takes off.  
To highlight this, I looked at duplex pairs for sale.  Just over two years ago I was lucky to find anything that was listed for over $400,000.  Now there is just one duplex pair that is under $400,000.  The rest have sold - this shows you that the market is on the move. 
The <a href="https://www.cairnspost.com.au/business/full-steam-ahead-for-bunnings-warehouse-in-portsmith-cairns/story-fnjpusdv-1226840282363" target="_blank">building numbers for new houses has increased</a>, but let’s not get too excited.  The numbers are fairly small.  The number of high density developments is minimal, which on one hand is not good for the building industry, it will be a good thing for those of us with investment properties. With no building of any significance for almost seven years now, the vacancy rate is low. As things pick up we will be able to push rents up - it is a simple case of supply and demand. 
Cairns may not be for everyone - you need to work out if Cairns is the right place for you to invest in.
LINDA TUCK is director of <a href="https://www.plrealty.com.au/index" target="_blank">Cairns Property Ladder Realty</a>, an independent real estate agency in specialising in property management, investment and sales expertise in the tropical Cairns region.  
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