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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Offshore interest in Australia's office market has spilled into the metro market, with total sales hitting a six-year high last year.
Total metro office sales came in a $3.69 billion in 2013 - the highest level since 2007 when it reached $5.14 billion, according to the latest Colliers International first half Metropolitan Office Research &amp; Forecast report. Overseas buyer accounted for a lion's share of that transaction activity, at $1.22 billion.
While the figure was inflated by the $413.19 million sale of 177 Pacific Highway to Singapore's Suntec REIT, the report noted that the influx of offshore capital "does indicate that offshore investors are willing to look beyond the CBD markets for more strategic opportunities".
Sydney metro continued to be at the epicentre of sales activity in 2013, with nearly $2 billion of office stock changing hands, while a 10 % spike in transaction volume saw Melbourne Metro experience a record year at just under $1 billion. With the exception of Adelaide, all markets improved on sales volumes from 2012.
Sales were up 3% in Brisbane and 365% in Perth, albeit from a low base. Highlighted in the report was the yield compression in the Sydney and Melbourne metro markets.
Average A grade yields in Melbourne compressed by 14 basis points to 8.93% in the six months to March, with the Outer East market narrowing by 25 basis points. Sydney yields tightened by 14 basis points to 8.20%.
Yields in Brisbane and West Perth we're flat at 8.50% and 9.2%, respectively.
Colliers associate director of research, Anneke Thompson expect overseas buyers to again feature prominently in the metro market this year, "as players in the hotly contested CBD markets search for more generous yields further afield".
But Colliers managing director of capital markets and investment services, John Marasco, cautioned that not all metropolitan markets would be able to "absorb this demand however, as many have a distinct lack of institutional-grade stock".
“In Sydney, the North Sydney market has already proven itself a drawcard for both local institutional and offshore demand, while in Brisbane the Urban Renewal precinct is and will remain the preferred metro location for institutional investors,” Mr Marasco said.
“In Melbourne, St Kilda Road is one of the few metro markets with stock of sufficient scale and quality to attract CBD-type capital.”
Unlisted retail funds were expected to be one of the first groups with mandates to acquire property in that precinct, he added.
Colliers research also found that private buyers made up the bulk of the buyers across all markets and that institutional investors were only net buyers in Brisbane and Adelaide.
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Metro office sales hit six-year high, offshore interest credited

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GUEST OBSERVATION
The GFC impacted employment growth in all capital city markets — at the metropolitan level, the rate of employment growth slowed sharply, whilst in all CBD markets with the exception of Melbourne, employment actually fell.
The chart below shows the comparative growth in stand alone office employment amongst Australia’s major capital city markets up to and since the GFC. It highlights the sustained growth in employment that has occurred across Perth over the past 20 years and, most notably, the extraordinary boost to employment in stand alone office workforce — that is, people that work in freestanding office buildings — that occurred across the metropolitan region from mid 2011 to December 2012 associated with the mining investment boom. But, as highlighted in the chart, office employment in Perth has stalled over the last year.
Chart: Metropolitan stand-alone office workforce by city, index 2008=100
<img src="/images/2014/03/19/taylor%20march%2019%20one.jpg" width="460">
The recovery in employment across Australia’s major capital cities since the GFC has varied markedly, with growth to December 2013 ranging from just under 4% in Adelaide to almost 33% in Perth. The next closest rival, Melbourne, has seen growth of close to 17% over the same period, although the past two years have been weak. Brisbane and Sydney have achieved just 7.4% and 8% growth respectively — indeed, we’ve been waiting some time for the long-expected recovery in employment within Sydney.
Over a longer term horizon, after Perth, the strongest growth in stand alone office employment has occurred in Brisbane and Melbourne. Like Perth, Brisbane has benefitted from major phases of mining investment, as well as having a broad-based state economy, underpinned by rapid population growth and expansion in the financial services and government sectors. Whilst employment growth stalled with the advent of the GFC, it was quick to recover—rising by 9% to June 2012. Since then employment has been impacted sharply by a combination of efficiency drives amongst both government and private sectors and the setback to mining investment.
Following the early 1990s setback to employment caused by recession in that State, Melbourne has witnessed sustained growth off the back of a number of ‘structural positives’ that saw the state economy often benefit disproportionately. Rapid population growth and the ready availability of reasonably priced residential land underpinned strong dwelling investment. Indeed the overall construction sector experienced strong, consistent growth. Office and white collar employment were underpinned by competitive office rents and a strong finance and business services sector. Most importantly, Melbourne sustained an office rental cost advantage relative to most other capital city markets through most of the post-2004 period when it was undergoing strong expansion of its office stock — due largely to the availability of low cost sites in Docklands.
By contrast, Sydney’s stand alone office workforce experienced its fastest period of growth during the 1990s and since then growth has lagged most other capital cities. Since the GFC employment accelerated during 2010, with an expectation that it would be sustained ,but stalled again during 2011 as global economic weakness, low levels of business investment and poor business confidence conspired to hold back employment growth. Most impacted was the key finance and insurance sector.
What will happen going forward? Over the next five years, we expect the eastern seaboard cities will witness the strongest growth in stand alone office employment, with Sydney set to lead the way, underpinned by growing momentum in the construction sector, stronger public sector investment and a steady improvement in the state economy.
Beverley Taylor is director of property with <a href="https://www.bis.com.au/" target="_blank">BIS Shrapnel</a>.
 
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All capital cities have seen post-GFC employment recovery

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NAME: Cameron Taudevin<img src="/images/2014/03/19/taudevin-profile.jpg" alt="" style="float: right;">
POSITION: Senior negotiator of retail leasing
COMPANY: JLL
OFFICE LOCATION: Queensland
How long have you been in the industry?
Six years in April
What’s happening in the area you specialise in?
There has been a lot of activity from international brands seeking to enter the Brisbane market, which is something I expect to continue. The emergence of Edward Street as the high-end fashion destination within Brisbane will continue which is exciting for Brisbane locals and visitors. Over the longer term, the impact of the Queens Wharf precinct on the retail market within Brisbane will be interesting.
Describe the most interesting property you have sold?
Supporting French luxury retailer Cartier enter the Brisbane market through the lease of their largest Australian store at 170 Edward Street, Brisbane.
What are the ingredients to being successful in your job?
Being honest, approachable and enthusiastic. Never become complacent.
What aspects of your role do you enjoy the most?
Working within a dedicated and passionate team, and engaging with clients and tenants to help deliver good outcomes for them.
Where would you invest a spare $750,000?
I think that the Brisbane near-city residential market is a great place to invest at the moment. With the housing affordability gap between Brisbane and Melbourne/Sydney beginning to increase, I think that we will begin to see strong interstate population migration over the medium term leading to good house price growth.
Which football team do you support?
The Queensland Reds.
What’s your favourite app or techno gadget?
Instagram.
How do you use social media?
To stay in touch with people overseas.
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In profile: JLL's senior negotiator of retail leasing, Cameron Taudevin

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The National Rental Affordability Scheme (NRAS) is again under fire. Does it deserve to be scrapped?
Earlier this month, The Australian published a <a href="/expert-insights/investing/nras-don-t-throw-out-the-baby-with-the-bathwater-says-tunsw">series of pieces</a> drawing attention to developments that are marketing properties as “NRAS supported” while suggesting that they can accommodate international students. The News Limited articles largely suggest that the scheme’s failures are largely the fault of the previous Labor government, highlighting one development that had received $80 million in subsidies which, as is mentioned in more than one article, is located “just two blocks” from the electoral office of former housing minister Tanya Plibersek, who oversaw the implementation of the scheme.          
However, the Tenants Union of New South Wales (TUNSW) responded in defence of the scheme with a post on their blog claiming that while the NRAS has provided affordable housing for tenants, some of whom had previously been homeless, the government’s “other tax settings do nothing but encourage speculation and make housing unaffordable.”
The scheme certainly seems to illicit passionate reactions from its defenders and detractors alike. Buyers’ agent Todd Hunter <a href="/news/i-d-rather-stick-a-fork-in-my-eye-than-buy-nras-todd-hunter">once wrote</a> “I’d rather stick a fork in my eye than buy an NRAS property”, prompting a number of responses <a href="/expert-insights/investing/readers-respond-in-defence-of-nras">in defence of the NRAS</a> from our readers. Many have raised questions over the scheme’s regulations (and loopholes) – some are calling for the NRAS to be scrapped, while <a href="/expert-insights/what-do-we-need-to-see-from-the-federal-budget-the-experts-have-their-say">bodies such as SQM Research</a> and the Urban Development Institute of Australia (UDIA) support the scheme but say it requires improvements.
Under the NRAS, developers and investors are provided a tax free financial incentive for renting out approved properties to eligible tenants at at least 20% below current market rates. Developers receive subsidies, while investors who purchase and lease out NRAS supported properties receive annual payments that are indexed to CPI. The scheme only covers new developments in areas in which the government has identified a need for affordable housing.
To weigh up the costs and benefits of the NRAS, first one must distinguish the interested parties: tenants, buyers and developers.
For tenants
To rent NRAS properties, the first adult of household must earn no more than $45,956, with each additional adult earning no more than $17,579. This threshold is higher for sole parents, who must earn no more than $48,336 a year to be eligible. However, concern is mounting that the rental affordability scheme is being utilised by students, rather than low income families or workers. While it’s true that students require affordable housing just like everyone else, some have claimed that a significant proportion of students who lease NRAS properties are international students. These students are often subsidised by their family members, and are not the intended recipients of reduced rents, so the argument goes. Queensland thus far is the only state to restrict access to NRAS properties to tenants who are permanent Australian residents.
Market analyst Catherine Cashmore says there are doubts over whether the scheme is achieving its intended outcomes.
“The NRAS policy was design to alleviate the shortage of rental accommodation for key workers in the community through large scale investment, and to a fairly limited degree, it has achieved its purpose,” says Cashmore.
“However, unsurprisingly, as Grace Mutual Limited outline in their senate submission, not only have ‘unduly complex’ regulations disadvantaged investors, but ‘large numbers of NRAS incentives (at least 4,000) were awarded for the construction of student housing,’ yet ‘there appears little evidence that this has any positive impact on the middle to low-income families that were the target of the original policy.’”
The TUNSW has come out swinging for the NRAS, as has the UDIA, who say that scheme, while requiring improvements, is “fundamentally sound”.
UDIA national president Cameron Shephard says the scheme is integral in improving the supply of affordable housing.
“Australia has for many years suffered from a severe shortage of affordable housing, particularly at the lower end of the market,” said Shephard in a statement from the UDIA. “This is contributing to homelessness, and putting an increasing number of lower and moderate income households under undue financial strain. “It’s absolutely essential for the Federal government take action to improve the supply of affordable housing, and the National Rental Affordability scheme provides a cost effective way to achieve that. “In its 2011 State of Supply report, the National Housing Supply Council estimated that there was a national shortage of almost half a million dwellings affordable to low income households, and warned that the situation would worsen with inaction. “Since its establishment in 2008, NRAS has delivered 14,575 new homes for low and moderate income households, and is currently on track to provide 23,884 more,” Shephard noted. “It would be extremely disappointing to see the scheme end, considering how successful it has been to date, and also given the growing housing affordability problems facing Australian cities. “UDIA acknowledges that there is room for improvement in the administration of the scheme, however the program has been successful in delivering thousands of affordable new homes, and the government’s focus should be on ensuring that what is already a good scheme becomes even better.”
For buyers and developers
Given the substantial subsidies developers can receive for NRAS eligible projects, developers in general are likely to benefit from the NRAS scheme, so long as market conditions and financial incentives are strong enough to support demand from investors. The response to NRAS properties from investors and buyers agents thus far has been mixed.
As Cashmore notes, some buyers of NRAS properties have been “duped” into bad investments.
“Like every other scheme that's introduced to encourage investment into housing, it has been monopolised by a proportion of 'advisors' in sales industry who have built a model of business around encouraging small 'mum and dad' investors into poor acquisitions which hold little scope of the 'promise' they were sold with – significantly, the ability to achieve strong capital growth,” says Cashmore.
“In my own experience, buyers who were duped into the scheme paid too much for pre-assigned dwellings, which are now valued below the nominal amount, and are locked into a scheme where they are unable to sell prior to the ten year nominated period - or if they do, they must find a 'greater fool' willing to take on what was, in most cases, a poor investment in the first place.”
As with any property purchase, buyers of NRAS properties must go into their deals with clear eyes – many experts have noted that NRAS supported properties <a href="/news/nras-properties-overpriced-buyers-agent-patrick-bright">may be overvalued</a>, given high kickbacks for spruikers. Others argue that NRAS properties make sense for investors after good cash flow, not for capital gain potential.
However, whether the NRAS is continued or scrapped should ultimately come down to whether the scheme achieves its intended outcome – providing affordable housing at a reasonable public cost. As <a href="/expert-insights/investing/the-nras-nightmare-its-a-housing-scheme-not-one-for-investors">Mark Armstrong and Xavier Perronnet</a> have argued, the scheme is intended to address housing affordability, not benefit investors.
For Cashmore, on this account, the NRAS does not go far enough.
“As all who read my columns are aware, I am one of the strongest advocates for policy reform to enable Australia to move away from its hamstrung dependence on ever increasing house prices as the prime driver of economic growth.  
"But the NRAS scheme is simply tinkering at the edges of what needs to be wide spread and radical policy reform, on both the tax and supply side - as I and others, such as Prosper Australia, have addressed in our submissions to the Senate housing affordability enquiry. 
"Until this is achieved, the NRAS will make little impact for future generations of disillusioned Australians wanting affordable housing and good options without becoming a 30 year slave to servicing a dual income mortgage.”
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Scrapping NRAS: Should the affordability scheme continue?

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Bidding on one of Cronulla’s most admired homes, listed for auction last night after an eight month makeover, topped out on a $4.2 million bid.
Ray White Rockdale listing agent Con Economos told Property Observer there were five registered parties.
But the vendor builder Tony Bittar wants more for the the still futuristic Apollo Gate, an icon of the Sutherland Shire's waterfronts since the 1970s.
Nicknamed the Cronulla spaceship house, or the White House, it has a reputation that dates back to its completion, with its Reuben Lane design motivated by spiritual and architectural links to Mediterranean villages and with whitewashed buildings clinging to the coastlines.
It first changed hands for $185,000 in 1978 when sold by the Breen family who owned the Metropolitan Sand Company at Cronulla.
The house at <a href="https://www.raywhite.com/nsw/cronulla/1087356/" target="_blank">4-6 Cowra Place</a> has direct access to Salmon Haul Bay.
It featured in NSW Builder magazine, the official journal of the Master Builders' Association, in May 1975 (pictured below). It was built by CH &amp; CR Ellis with spiralling western red cedar ceiling.
<img src="/images/stories/2013/05/cronullamay3one.jpg" alt="cronullamay3one" width="470" height="391">
<img src="/images/stories/2013/05/cronullamay3two.jpg" alt="cronullamay3two" width="470" height="323">
<img src="/images/stories/2013/05/cronullamay3three.jpg" alt="cronullamay3three" width="470" height="343">
Reuben Lane, who died in 2012, was inspired by the work of his mentor Oscar Niemeyer, the architect of the capital city of Brazil, Brasilia.
Ray White listing agent Con Economos marketed the property as a "one-off’.
"A truly spectacular home with an unbeatable location,” said Con Economos.
The 6 Cowra Place, Cronulla property was initially marketed with  $3.5 million plus expectations having been renovated extensively since sold at $3.2 million last May.
It offers five bedrooms plus study, a double garage and two car spaces and guest quarters. There's an atrium lounge, an internal spa, and landscaped gardens. Its four bathrooms’ original tiles are sourced from the same suppliers as the Sydney Opera House.
 <img src="/images/2014/03/19/cronulla-march-17-one.jpg" alt="">
<img src="/images/2014/03/19/cronulla-march-17-two.jpg" alt="">
<img src="/images/2014/03/19/cronulla-march-17-three.jpg" alt="">
<img src="/images/2014/03/19/cronulla-march-17-four.jpg" alt="">
<img src="/images/2014/03/19/cronulla-march-17-five.jpg" alt="">
<img src="/images/2014/03/19/cronulla-march-17-six.jpg" alt="">
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Cronulla's Oscar Niemeyer inspired Apollo Gate waterfront seeking $4.2 million plus buyers

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A one-bedroom apartment in St Kilda’s The Face, which has a balcony facing on to Luna Park’s own iconic, if slightly eerie, face, is heading to auction next month.
Looking for $415,000 plus buyers the April 5th auction, at 12.30pm, sits on Acland Street and Carlisle Street.
It features built-in robes, a Euro laundry, secure one-car parking and an entertaining balcony.
<img src="/images/2014/03/19/st-kilda-march-17-three.jpg" alt="">
At 204/72 Acland Street, St Kilda, it is one of around 30 apartments, which range from 39 square metre studios to 240 square metres for three bedroom terraces. There is 450 square metres of retail at the ground level.
The building itself is four storeys, and the ARM development websites explains that the Luna Park Mr Moon face is a metaphorical link to the Carlise Street façade, based on Salvador Dali’s 1937 painting ‘Sleep’ – an image of a face on crutches.
<img src="/images/2014/03/19/dali%20sleep%20march%2017.jpg" width="460">
Photo: 'Sleep' by Salvador Dali.
<img src="/images/2014/03/19/luna%20park%20march%2017.jpg" width="460">
Photo: The front entrance to Luna Park in St Kilda, source: Wikicommons
Meanwhile, the north-east and north-west facades are based on Dali’s 1936 ‘The Anthropomorphic Cabinet’ and 1937 ‘The Burning Giraffe’.
The development was completed in 2012 by ARNO Corporation, with a $12 million value, and designed by architect Ashton Raggat McDougall (ARM).
At the time of development there was significant resistance from locals, including Port Phillip Council, to the change in streetscape due to the demolition of eatery Freasy Joe’s and four adjacent heritage buildings, however VCAT ruled in favour of the development. There were 21 initial objections.
<img src="/images/2014/03/19/st-kilda-march-17-two.jpg" alt="">
St Kilda ward councillor Karen Sait was angered by the decision at the time. "The Face might be a high-quality design, but it comes at a terrible price - the demolition of five heritage-listed buildings which are part and parcel of the area's inter-war character" Sait said, calling it an “overdevelopment”.
Despite this, VCAT said that it actually enhanced the character of St Kilda, by enhancing the flamboyance and diversity of the area.
One of the two-bedroom apartments on Stayz asks for $160 to $220 per night for holiday bookings.
<img src="/images/2014/03/19/st-kilda-march-17-foru.jpg" alt="">
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St Kilda Dali-inspired The Face apartment set for auction

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Newly released Bondi apartment development, Maison Blanc, has sold 10 of its 16 apartments, with downsizers appearing to be some of the more active buyers.
The boutique development from Fiducia Property Group and Manning Property Development is a north facing block that includes views of the Royal Sydney Golf Course to the CBD, with 180 degrees of harbour views.
<a href="https://www.maisonblanc.com.au" target="_blank">Maison Blanc</a> is located on the corner of Old South Head Road and Roe Street in <a href="/news">Bondi</a>, with a street address of 403-405 Old South Head Road.
<img src="/images/2014/03/19/bondi-march-19-six.jpg" alt="">
Completion is expected for the development by early-2015, with the remaining apartments including two-bedroom, two-bedroom plus study, and split-level penthouses, with prices from $925,000 to $1.39 million. Initially there were also one bedroom properties on offer from $650,000.
<img src="/images/2014/03/19/bondi-march-19-two.jpg" alt="">
It appears initial expectations were for a late-2014 completion.
Each has an open plan style, whitewashed interiors and a balcony or terrace access.
Associate director CBRE, residential projects, Colin Griffin, said that it’s close to Bondi Beach, a café lifestyle and coastal walks with convenience and a good location.
<img src="/images/2014/03/19/bondi-march-19-three.jpg" alt="">
Secure parking and external storage is also included.
There was a ‘VIP’ launch for the development on the 1st March 2014. The sales display is currently open for other prospective buyers.
<img src="/images/2014/03/19/bondi-march-19-four.jpg" alt="">
There are currently several Bondi and Bondi Junction developments slated for the next couple of years, including <a href="/news/pacific-bondi-beach-the-lofts-to-launch-this-weekend">prestigious The Lofts development</a>.
The slick sales website for the Mason Blanc apartments comes from Sydney-based advertising and design agency ‘Made’.
<img src="/images/2014/03/19/bondi-march-19-five.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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Boutique Bondi development Maison Blanc sells 10 of 16 apartments

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I’ve spent considerable amount of time in the US in the last six months; both as a holiday-renter in Hawaii and as a short-term-stay, ‘business-traveller’ in Los Angeles. During these visits I’ve had some great exposure to the self-managed holiday rental property market not as an investor, but as a tourist renter.
The time spent got me to thinking about self-managed rental investment properties and produced a list of pros and cons if you are considering this leasing strategy for your rental property.
Pros
<ul>
<li>Gross returns can be lucratively higher than residential home property investment.</li>
<li>Property types that can achieve this aren’t just restricted to ‘holiday rentals’, whereby you buy into a scheme such as a time-share condo, or as part of a resort investment, but also well-located, private properties.</li>
<li>You are the ‘direct manager’ of your property, enabling you to save money on management fees. This can create a greater chance of a property being positively geared and returning better revenue.</li>
<li>Online services such as AirBnb and TripAdvisor enable you to affordably find short-term tenants easily and securely. This means that investors could consider coastal properties that are not part of any specific resort complex as potentially high-return short-term-stay, self-managed, investment properties.</li>
</ul>
Cons
<ul>
<li>Though gross returns are higher, sometimes net returns are not as great due to increased management fees eating away the revenue. For some properties the returns might even be less than a traditional domestic investment property, but with more management work (i.e. your spare time) required.</li>
<li>Seasonality. In Australia this is a big deal. Take for example holiday properties in the south or Tasmania. Demand may be great in summer, but those returns achieved in summer may not average out over a financial year to be very good, when accounting for the quiet times during winter.</li>
<li>Running costs. One of the biggest challenges in Australian holiday property is that most properties are part of complexes with extortionately expensive management costs. So, above and beyond the standard strata, council, and water rates you’d need to pay, there are cleaning/housekeeping costs, higher owners strata rates to pay for pools, additional staff, and so on, to be aware of.</li>
<li>Seaside property maintenance. Unlike residential housing on the coast, where the sea air eats away and the pretty paint work yet the property can still be rented as-is, seaside holiday resorts need to look immaculate at all times, to ensure the resort remains desirable for future guests and this comes at a significant cost to owners.</li>
</ul>
Further Considerations
Taking Hawaii as an example/case study; I believe some locations offer solid investment potential for those open to the concept of remote self-management and some different options both in terms of ownership structure and costs, as well as supply and demand. Here’s just a short list of observations I made, through asking some locals and concierge staff some questions:
<blockquote>
Some locations offer solid investment potential for those open to the concept of remote self-management
</blockquote>
Climate
Climate plays a huge part to the overall financial success or failure of a rental property of this type. The beauty of a place like Hawaii is that for almost every month of the year the climate is pretty much the same, year-round. This means that demand for holiday property is consistent all year long, with no real dry-spells; i.e. very low vacancy rates. Australian holiday rental properties in a year-round climate are harder to source.
Demand for the area
With a domestic population of 350 million and growing, Hawaii is highly appealing for domestic US holidaymakers. This is an important area to pause on. Solid domestic tourism participation is important in any country – Australia included – because these holiday makers aren’t affected by currency exchange variations when they travel. This makes travelling in your own backyard constantly feasible.
Australia on the other hand has a small domestic population, making holiday rentals higher risk because of our reliance on international tourists to rent the properties. Our fluctuating currency suddenly becomes an unknown that is difficult to account for in your investment.
Exclusivity:
A place like Hawaii is expensive to fly in to from any location in the world, not just Australia. This isolation mixed with strong desirability creates a near-unique opportunity for Hawaii more-so than Australia to attract only affluent holiday-makers.
With a more affluent audience occupying the properties there is reduced risk of damage to properties and other problems that can occur when a location is not as exclusive. Insurances of course always need to be considered for any property investment; however, policies are often more affordable when an affluent rental tenant occupant (even short term ones) are quoted on.
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The pros and cons of self-managed holiday rentals

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Have you noticed how people are generally now acting in a far more positive manner and that's simply because they are starting to feel "wealthy" again.
But you need to look deeper
With share and property prices rising, consumer confidence has finally returned — which was confirmed by the improved retail sales during December and January.
Plus, you saw GDP exceed expectations — by rising 2.8% for the December quarter.
This increased spending is also being supported by high household savings.
A clear indication of renewed confidence
And this has shown now up in spending for entertainment and eating out — which historically, has been recognised as a clear indication of renewed confidence.
New housing approvals have improved by 35% over the past 12 months. And once complete, these homes will also need to be fully furnished — which is great news for all the homemaker centres.
Furthermore, Coles will be investing more than $1 billion to construct 70 new supermarkets, over the next three years.
<blockquote>
All of those workers who contribute to this surge in exports will all need to be housed somewhere.
</blockquote>
In its May Budget, the government intends to curb wasteful recurrent expenditure inherited from Labor. While it also plans to embark upon significant infrastructure projects — to start boosting employment around the country.
A surge in exports
For the first time in most people's memory, Australia will be enjoying a positive balance of trade.
In other words, for the next decade or so, you should be seeing our exports exceeding imports. And this will further help in reducing Australia's overall debt.
Even though the boom in mining expenditure may have come to an end, the resultant export of raw materials will now continue for years to come.
Furthermore, our exports in education, tourism and business services will all grow dramatically — as the global economy improves.
All of those workers who contribute to this surge in exports will all need to be housed somewhere. And that will open up opportunities for new suburban office and warehouse facilities around Australia over the next three to five years.
Further evidence of an underlying strength in the commercial property market is now provided by the latest IPD/Property Council index.
During 2013, you saw investors (both local and overseas) stride out from the shadows of the global financial crisis. And as this graph confirms, every sector has displayed a healthy improvement in selling yields.
Both the US and UK commercial property sectors have responded slightly ahead of Australia, because their labour markets (and therefore demand for space) have been improving at a faster rate.
Savvy investors are already in the market
Investors have already sought out solid opportunities.
Nevertheless, there has been significant (and consistent) Asian money pouring into Australia over the past 12 to 18 months — as investors have already sought out solid opportunities in the $100 million plus bracket.
This has effectively forced local buyers to bid up prices for lower-valued properties — or simply miss out on securing a position, before the expected upsurge gets fully underway.
The effect of this strong activity won't take very long to filter down through to the lower price brackets and then, out into the wider suburban markets around Australia.
Bottom line: They say that no one rings a bell at the bottom of the market. However, what's occurring is probably the closest you'll likely get.
Therefore, observe the signs and make sure you act accordingly if you've been at all hesitant about stepping into the market.
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Commercial property benefiting from economic upturn

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Kerry Packer once said ‘Cash is king’.  That was easy for him to say after Alan Bond had just given him $1 billion.
For the majority of us who do not have the luxury of a Bond we need to invest our money so we can accumulate the cash at some future date.
As property investors begin to return to the market many will be enticed by the lure of cash tax benefits such as depreciation and stamp duty savings.
While these benefits are an important consideration in your overall investment strategy, they should never be the driving factor in asset selection. This is because they are short-term tax benefits that have very little impact on the future performance of the investment.
<blockquote>
Yes it maybe is true that cash is king for those that have it, but for the rest of us the long-term viability of the investment is ‘King’
</blockquote>
Stamp duty savings are a one off benefit at the time of purchasing off the plan. At the same time most of the depreciation allowance an investors receives is used up in the first five to 10 years.
Investors need to be wary that these tax benefits are often used as marketing tools to sell property but because they are only short-term the investor will not be able to use the same marketing tools when it comes time to sell their investment.
When selecting investment property it is important to focus on the long term economic drivers that will underpin its performance and will continue to be there in years to come. These factors include the underlying land value, supply relative to demand and the evolving demographic trends. 
While there is nothing wrong with investing for tax benefits investors need to consider the overall investment. In other words if in the end the investment does not make any money or even worse looses money were the tax benefits alone worthwhile.
My understanding of investing is to invest to make money at some date in the future. The benefits should come at the end not at the start.
Yes it maybe is true that cash is king for those that have it, but for the rest of us the long-term viability of the investment is ‘King’. Everything else is just a bonus.
As property investors return to the market they would be wise not loose sight of that fact.
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