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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The former chief executive of West Australian hotel chain Compass Hotel Group has had his original sentence quashed by the NSW Court of Criminal Appeal and has received a tougher sentence of three years and six months’ imprisonment.
Bryan Northcote pleaded guilty to breaching directors’ duties and submitting false and misleading documents to the Australian Securities and Investments Commission after the <a href="https://www.smartcompany.com.au/growth/economy/19201-20110323-another-hotel-group-collapses-with--100-million-in-debt" target="_blank">Compass Hotel Group collapsed in 2011</a> with debts of $100 million.
The chain consisted of 12 hotels and taverns including the Carine Glades Tavern, the Belmont Hotel and the Albion Hotel.
Following an ASIC investigation, Northcote pleaded guilty to dishonestly withholding information from the Compass Hotels Group board and using his position to gain a financial advantage after he <a href="https://www.smartcompany.com.au/legal/28240-former-boss-of-collapsed-pub-group-charged-over-alleged-hotel-sale-kickbacks" target="_blank">siphoned more than $1.5 million in hotel broker commissions</a> into his own private company.
Northcote was initially sentenced by the Sydney District Court to two years’ imprisonment on the charge of breaching directors’ duties and one year for each of the two counts of submitting false and misleading documents to ASIC, with the sentence to be served by way of Intensive Correction Order.
The Commonwealth Director of Public Prosecutions, in consultation with ASIC, appealed the sentence on the basis that it was manifestly inadequate.
The NSW Court of Criminal Appeal agreed and quashed the sentences imposed by the District Court.
Northcote was re-sentenced to a term of imprisonment for a period of three years and six months for breaching his directors’ duties and one year imprisonment for each of the lodging false and misleading documents offences.
Northcote is now due to be released on September 26, 2015, upon entering a recognisance that he be of good behaviour for the balance of the term of his sentence.
The court said the original sentence was manifestly inadequate “because it did not reflect the seriousness of the offence, the extent to which the respondent personally was financially advantaged by the offence, the need for general deterrence and to the need to impose a sentence which both punished Mr Northcote and denounced his criminal conduct.”
ASIC Commissioner John Price said the regulator is committed to ensuring company directors act appropriately as this is integral to ensuring fair and efficient markets.
“Directors who step over the line by abusing their position for their own dishonest purposes need to know that they are risking jail time for their actions,” he said in a statement.
Ian Ramsay, professor of commercial law at the University of Melbourne, toldSmartCompany ASIC is likely to be happier with the tougher sentence.
“What’s clear is that the sentence of imprisonment has gone up significantly from a total of two years to three-and-a-half years, what is unclear is how it is to be served,” he says.
“The original sentence was an Intensive Correction Order, which is essentially serving it in the community, there’s a vast difference between an ICO and serving your time in jail.”
Ramsay says if the revised sentence is to be served in prison “then this is a very substantial repudiation of the original sentencing decision”.
He says it indicates a willingness on the part of ASIC, when it does believe sentences are significantly adequate, to work with the DPP to seek an appeal.
“The conduct here was obviously very significant, this was a very blatant conflict of interest, where Northcote personally profited by taking funds that otherwise belonged to the company of which he was CEO.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Court slaps former CEO of collapsed Compass Hotel Group with three-year jail sentence

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After a quite week for auctions the previous week, auction volumes across each capital city market increased last week with 2,289 auctions held across the combined capital cities, compared to just 1,520 over the previous week. Last week, the preliminary auction clearance rate increased to 72.4%, from 70.2% the previous week, meaning that current auction clearance rates remain much stronger than they were one year ago (64.4%). While overall, clearance rates increased over the week, it is interesting to note that in Australia’s two largest auction markets, Melbourne and Sydney, there was more than a 10 percentage point difference between the weekly results.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Capital-city-v2.jpg" target="_blank"><img class="alignnone size-full wp-image-3004" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Capital-city-v2.jpg" alt="20140316 Capital city v2" width="460" height="342"></a>
Last week, Sydney’s preliminary auction clearance rate was recorded at 82.7%, the second strongest result for the year so far. There were 857 Sydney properties taken to auction last week, with volumes remaining virtually unchanged when compared to the previous week when there were 859 Sydney auctions, but a lower clearance rate of 78.8%.
Currently, Sydney’s auction market continues to track at a much higher level when compared to one year ago. Over the same week last year, 650 Sydney properties were taken to auction with 70.4% clearing.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Sydney.jpg" target="_blank"><img class="alignnone size-full wp-image-3001" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Sydney.jpg" alt="20140316 Sydney" width="460" height="304"></a>
In Melbourne, the preliminary clearance rate of 67.9% was recorded this weekend from 885 auctions compared to 67.3% last weekend and 66.4% this time last year.
Listing volumes are now surging in both private and auction sale segments with 11% more new residential listings over the last month compared to this time last year. Prospective vendors are clearly being encouraged by market activity in the first quarter of the year.
If this listing activity is matched by sales over the rest of the year we are likely to reach a level of transactions that both exceeds last year and the average over the previous decade. Final numbers for last year saw 81,590 sales in Melbourne. This was 11% higher than 2012 but 5% lower than the average over the previous decade.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Melbourne-v2.jpg" target="_blank"><img class="alignnone size-full wp-image-3009" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Melbourne-v2.jpg" alt="20140316 Melbourne v2" width="460" height="297"></a>
Brisbane recorded a much stronger preliminary clearance rate last week (56.2%) when compared to the previous week (45.0%), however auction volumes have remained steady over the two week period, with 139 auctions held in the city last week, compared to 138 the previous week. Over the same week last year, 37.5% of the 109 Brisbane properties taken to auction recorded a successful result.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Brisbane.jpg" target="_blank"><img class="alignnone size-full wp-image-2998" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Brisbane.jpg" alt="20140316 Brisbane" width="460" height="302"></a>
Both auction clearance rates and the number of properties taken to auction in Adelaide increased last week, when the preliminary auction clearance rate was recorded at 69.6%, compared to 63.2% over the previous week and there were 94 auctions held in the city, up from 80 auctions the week prior. So far this year, there has only been one week where Adelaide’s auction clearance rate has fallen below the 60% mark, while one year ago, just 48.7% of the 82 properties taken to auction sold.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Adelaide.jpg" target="_blank"><img class="alignnone size-full wp-image-2997" src="https://blog.rpdata.com/wp-content/uploads/2014/03/20140316-Adelaide.jpg" alt="20140316 Adelaide" width="460" height="302"></a>
The number of auctions expected to be held across the capital cities this week will remain fairly steady, with RP Data currently tracking 2,297 auctions for the week.
*Melbourne auction commentary provided by Robert Larocca, RP Data’s Victorian housing market specialist.
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Auction volumes bounce back, but results vary across capital cities: RP Data's weekend auction wrap

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A recent Administrative Appeals Tribunal decision has reminded rental property owners to be particularly careful with record keeping if they claim to be conducting a business of letting rental properties.
In <a href="https://www.propertyobserver.com.au/https://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/cth/AATA/2014/9?stem=0&amp;synonyms=0&amp;query=taxation%20and%20chemist%20and%20property" target="_blank">the AAT case</a>, a taxpayer appealed the Australian Taxation Office’s decision that she was not carrying on a business of letting properties and was not entitled to claim certain tax deductions.
The taxpayer worked full-time as an industrial chemist and owned rental properties with her husband. The couple had been investing in property since the 1990s and owned nine properties in the 2003-2005 income years, to which the dispute related.
The taxpayer declared a net rental loss for those years and argued that she carried on a business of letting rental properties.
The AAT sided with the taxpayer in agreeing that she was carrying on a business in letting properties and allowed claims including part of her telephone, computer and work-related expenses.
It refused several other deductions, including car and travel expenses, repairs and maintenance costs, and the costs of investment seminars, saying that either the link to the taxpayer’s income-producing activities was not strong enough, or that she had “insufficient or unsatisfactory substantiation” of the claims.
HLB Mann Judd tax partner Peter Bembrick said it was rare for someone who had another full time job to claim to be operating a business of letting properties. He said in this case, the number of properties and the fact that the taxpayer had a track record of letting rental properties would have affected the decision that she was carrying on a business.
The taxpayer in this case did not have a business plan, and the rental activities had never returned a profit but the AAT found that that she intended to make a profit by increasing rents and buying more properties.
“The general test of carrying on a business is that it all comes down to: Are you doing it in a business-like manner? The scale is important but exactly how are you going about it?” Bembrick said.
“It would be helpful to have a business plan that can show that you are serious about the enterprise and that you had set out to make money. The ATO often has a problem with loss-making ventures such as primary production and agribusiness operations that make losses year after year and can’t show how they are ever going to make a profit.”
Bembrick says rental properties could be negatively geared and still be part of a business but there would have to be proof that there were prospects of making an income from the operation. “If you’re solely dependent on making a capital gain the ATO might say it’s an investment not a business,” he said.
The main advantage in claiming to be conducting a business rather than holding investment properties is that more deductions are potentially available to people who are running a business.
Bembrick said that for most people who owned one, or a few, properties the deductions available to investors would be adequate.
The ATO may allow investors to claim deductions for home office and transport expenses relating to managing an investment property portfolio.
Both business operators and investors needed to maintain log books, diary notes and evidence of the expenses incurred in managing the properties, Bembrick said. Any training courses would have to have a clear link to the income-producing activities.
“People try to claim all sorts of courses, and maybe draw a long bow between the seminars and making investments. It would come down to the nature of the seminar,” Bembrick said.
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Landlords warned to keep careful records when claiming rental properties as business

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China data was out last week and it confirmed that there is a slowdown. Fixed asset investment grew at 17.9% in the first two months of the year, against a forecast of 19.4%.
<img src="https://pbs.twimg.com/media/BimW-kSCMAA6DtW.png" alt="Embedded image permalink" width="460" height="363" style="line-height: 1.3em;">
Source: Commsec
Meanwhile retail sales grew at 11.8% which was the weakest rate of growth in eight years. <img src="https://pbs.twimg.com/media/BimU7a1CEAAPFWB.png" alt="Embedded image permalink" width="460" height="325"> Industrial production also slowed to 8.6%, also the weakest rate of growth in almost half a decade.
Normally of course, these would be considered blistering rates of growth in other economies, but since China has been growing at breakneck speed these numbers are significantly weaker than have been seen in times past.
This decade, China is in the process of moving some 300 million rural dwellers into urban areas thus raising the urbanisation rate <a href="https://www.propertyobserver.com.au/https://english.peopledaily.com.cn/90882/8348321" target="_blank" style="line-height: 1.3em;">to around 60%</a>. By way of comparison, the population of the whole of Western Europe is around 400 million, depending on your source. It's a demographic shift on a scarcely believable scale.
<div>Like it or not, the stark truth is that Australia has a heavy reliance on our exports to China, so developments and data will be watched closely over the coming years.</div>
<div> </div>
<div>Demographics</div>
<div> </div>
<div>Economists and property pundits bang on about demographics continually, and not without good reason.</div>
<div> </div>
<div>It's often said that where a population does not grow then GDP growth may likely stall, in part because Australia, like many developed nations, has an ageing population.</div>
<div> </div>
<div>For this reason, Australia has a policy of targeted population growth and <a href="https://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population%20Pyramid%20-%20Australia" target="_blank">our population pyramid in 2060</a> is likely to have a very healthy shape to it. </div>
<div> </div>
<div>Unlike many other countries, we aren't expecting to see a so-termed demographic cliff, rather a rapidly growing population fuelled by immigration.</div>
<div> </div>
<div>ABS population pyramid</div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-3Tb38zZpzsM/UyIt0zS3KOI/AAAAAAAAL2o/nRyv-6WIXR4/s1600/ABS.jpg"><img src="https://2.bp.blogspot.com/-3Tb38zZpzsM/UyIt0zS3KOI/AAAAAAAAL2o/nRyv-6WIXR4/s1600/ABS.jpg" width="460" height="579"></a></div>
<div class="separator"> </div>
<div class="separator"><a href="https://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population%20Pyramid%20-%20Australia" target="_blank">Source: ABS</a></div>
Other developed countries have learned from the tribulations of countries like Japan, and Australia is expecting a huge population surge to more than 41.5 million by 2061 from just 23.4 million today.
Of course, just because GDP rises, this does not mean in turn that GDP per capita does so...our average standard of living may fall if things don't go according to plan.
Falling populations
I already alluded to Japan's demographic challenges and the disastrous impact on its own economy.
A little closer to home (for me anyway) I recently saw an article which said that house in parts of Stoke-on-Trent in England were selling for only one pound sterling.
As recently as a couple of decades ago the coal mines in Stoke were shattering production volume records, having undertaken a huge ramp-up through the post war years.
According to Census data the population of the town peaked back in 1931, while the 2011 Census confirmed the first <a href="https://www.stokesentinel.co.uk/Stoke-Trent-s-population-grows-time-1930/story-16548423-detail/story" target="_blank">rise in the Census population</a> in eight decades. Stoke may re-invent itself over time as a services industry town, but it's been a challenging period.
Other world cities with a heavy dependence of one industry have undergone similar fates.
<div class="separator"><a href="https://3.bp.blogspot.com/-bO2cgepmSe8/UyI0Srh8K1I/AAAAAAAAL24/IJnFO22rVhk/s1600/Detroit.jpg"><img src="https://3.bp.blogspot.com/-bO2cgepmSe8/UyI0Srh8K1I/AAAAAAAAL24/IJnFO22rVhk/s1600/Detroit.jpg" width="460" height="197"></a></div>
<div class="separator"> </div>
<div class="separator">Source: Census Data</div>
I don't have to go into great detail on the decline of Detroit's car industry, but as you can see, since the city population peaked at around 1.85 million in 1950, the headcount has plummeted by more than 1.1 million people - by more than a quarter in the last decade alone.
In total the population has fallen by a catastrophic 60%. 
The resulting challenges have included poverty, crime, very high unemployment rates and default's on the city's debts. In some areas, real estate prices <a href="https://www.nydailynews.com/life-style/real-estate/1-buy-house-detroit-article-1.1415014" target="_blank">collapsed to zero</a>.
Financial crisis and beyond 
We've been lucky in Australia in that we sailed through the financial crisis relatively unscathed. 
Last week I read Gordon Brown's account of how he attempted to deal with the collapse of Britain's banks and the ensuing fallout.
I found it to be an enthralling read, and also a somewhat alarming one. It is increasingly clear that global economies are far more inter-connected than we had thought before the crisis. 
Risks are not as well diversified across financial institutions as was widely believed (largely thanks to increasingly complex derivative transactions) and country's economies do not operate in a vacuum. 
Funds can also be shifted around the world to thriving economies at the click of a button, which is why despite the lack of hard evidence being produced, the news articles on Chinese property buyers in Australia continue to surface by the day. 
It's said that there are 60 million wealthy Chinese, many of who are looking to park their funds overseas, so there may be a significant impact in Australia, however difficult it is to produce statistical evidence.
It was also quite amazing to consider the financial crisis started back in 2007, which will soon be seven years ago!
When it comes to investing there are no rights or wrongs as such, only what is right for each person. I always try to take the approach of controlling the controllables. 
In the share markets we have learned that even giant, established companies are not immune from collapse, so it is wise to be well diversified, perhaps through equities products which achieve that instantly for the investor.
And while reading news articles over the past decade or two might certainly have turned the hairs of a few property investors grey (or perhaps just made them fall out), the reality has been that investors in cities like Sydney and London have done very well as the respective populations continue to grow (by around half a million persons per decade in Sydney's case).
As Chris Joye tackled <a href="https://www.afr.com/f/free/national/why_australia_needs_to_get_real_7hEC3IX0RZWitSkELPcJEI" target="_blank">in this article here</a>, Sydney and Melbourne are expected to grow in size by some 80% over the coming decades, with populations growing to more than 8 million. 
Of course, booming population growth does not guarantee higher real estate prices, but it appears eminently more sensible to me to be an owner of real estate in cities with that kind of population profile and a diversified range of industries rather than one-industry towns where cyclical forces too often apply. We know that supply in property tends to come in waves cyclically, but it appears wise to focus on areas where it is assured that demand from population growth will grow strongly over the long-term.
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Long-term population growth forecast makes Australia a sensible investment

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When it comes to purchasing a property, it’s easy to forget that there’s a vendor on the other end of the struggle who, ultimately, will determine the outcome to your offer. Their motivations, requirements and attachment to the home in question can all be crucial in getting the deal over the line.
Usually, the real estate agent will play the part of ‘go between’ for yourself and the vendor, leaving very little, if any, opportunity to meet and discuss in person. While this can do wonders for keeping emotions out of the transaction, it can also leave you completely unsure of who you are dealing with and what you can do to push the deal over the line.
There are a number of ways to determine what you can about the vendor.
Questioning the agent correctly
Upon your initial conversation with the real estate agent, you want to take things fairly easy. Remember that the selling agent is the vendor’s agent and is there to act in their best interest. For this reason, you do not want to be asking them to reveal personal information, or details that may limit the potential success for the vendor.
One way to structure your questions is to do so in terms of offers. You could say to them something like the following: “I’m interested in making an offer. Are there any favourable terms and conditions I could include that might make my offer more acceptable? Such as a longer or shorter settlement?”
You haven’t put your cards on the table in terms of a dollar figure, but you’ve alerted the real estate agent that you’re a serious contender for this property and you’ve put the ball into their court.
Don’t be scared to further question why they want those terms, for instance “Excellent, yes, I can certainly put that in. Do they already have their next home lined up?”
If this isn’t particularly revealing, you can ask questions framed in terms of the property itself. You may say “This is a beautiful home, why are they moving away from it?!”
These non-threatening exchanges may provide you a few snippets to get started with.
Checking the property’s history
Heading on to the past records, such as RP Data, can show you a number of important pieces of information. This could include:
<ul>
<li>How long the property has been on the market for</li>
<li>Whether the vendor has changed agents previously</li>
<li>If it is/has been rented or advertised as a rental</li>
<li>Whether the price has been decreased over the sales campaign (also known as ‘vendor discounting’)</li>
</ul>
You can use the area’s averages to get an understanding for how it looks on a comparative basis. You may even find the vendor’s name and a few details within these records, otherwise a land title can reveal the information necessary.
With the vendor’s name, particularly for prestige properties, a quick Google may result in the reason for the move. High quality homes, with high price tags to match, can often be owned by the movers and shakers. Press releases and ‘about us’ staff pages may reveal whether they are moving for a new job offer, or perhaps heading overseas. You’d be surprised what information the internet holds about people – and their properties. Googling the street address can also be just as revealing.
You might just find that Property Observer has written about the home in the past. Here are <a href="/news/watch-your-tracks-the-digital-footprints-your-property-leaves-beind-peter-omalley">some of the digital footprints that properties might just leave behind</a>.
At the open home
Open homes can be good for multiple reasons. While it gives you an opportunity to have a thorough look around the property, you can also get an understanding of the people who lived here last. Children’s rooms, family pictures and new baby paraphernalia may suggest you’re dealing with an upsizer. Meanwhile, older and black and white photographs may indicate otherwise. Other clues can also be in what is displayed – are there certificates and trophies?
You may find that the entire house has already been cleaned out. If it’s the primary place of residence for the previous owners then this may suggest that they have already purchased their next home and that they are looking for a quick sale.
How well presented the home is, and whether it has been professionally staged or not, can also attest to how savvy the vendor is about property.
You may also find that the neighbours are poking around the open home as well, which may give you an opportunity to field some questions about the home and its occupiers as possible.
Speak to the agent again
Head back to the agent with this information. If it has been listed for a long time, you might want to ask questions like the following:
“Are the vendors actually interested in selling? It has been listed for five months, which is far longer than the area’s average.” If you look as though you might step away from purchasing, the real estate agent is likely to try a little harder.
You may also want to ask about any previous offers and the reasons they were not accepted.
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jduke-EHk3XBmHkn

How to: Find out as much about the vendor as possible

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The word 'hotspot' is heavily used by property investors when discussing the next capital growth area. While expectations vary in terms of performance, there are usually some pretty straightforward mechanisms that dictate price and price growth. Here are five of those items and some important pointers to know about these hot areas.
<ol>
<li>
It’s all about supply and demand You’ve no doubt heard this before, but it remains as true as ever. It’s all about supply and demand – the two basic premises of economics. Lower supply, or restrict it, and increase demand – and you’re on your way to success. When you’re undertaking your due diligence on an area it makes sense to look at how these two elements work in concert with each other and ensure you’re looking at possible injections of supply, land opening up, or downturns in demand or desirability. There are many different combinations that can ensure these two elements do, or do not, work favourably together and it is your job as an investor to seek them out. Remember, supply of apartments may not necessarily affect houses - you will need to ensure that you think through the effect any new developments may have on your next purchase. 
</li>
<li>
Infrastructure, infrastructure, infrastructure This is a favourite of observer Terry Ryder. Infrastructure is an <a href="/news/qld/infrastructure-creates-jobs-and-capital-growth-terry-ryder">absolutely critical part of any area’s growth</a>.<a href="/news/qld/infrastructure-creates-jobs-and-capital-growth-terry-ryder"> </a>“Transport infrastructure makes remote locations more accessible; medical infrastructure generates modern health services and long-term employment; and resources infrastructure can spread economic benefits and jobs over vast distances,” Ryder explains. Infrastructure comes in many different forms, and each has the potential to create employment, or make an area more desirable. “The more I chart the events in real estate around Australia the more I am convinced that the greatest creator of capital growth is infrastructure,” he explains. Keeping an eye out for upcoming projects, particularly in areas you have already identified as being of interest to you, can be another boost. 
</li>
<li>
It doesn’t matter how hot the area is, if you can’t afford it Regardless of how many good indicators an area has, no matter how much growth it is expecting, if you are pushing yourself to the financial limit to secure a property – you might just want to forget it and look somewhere else a little more within reach. No area comes without risk, and it doesn’t make good financial sense to risk it all on the potential of capital growth. If you are still adamant about purchasing in a particular area, see if there’s a lower-risk way in, such as a joint venture with someone you know well, a smaller dwelling or a suburb that’s cheaper but nearby. 
</li>
<li>
Historical performance is no indication of future growth Regardless of how well an area has done in the past, of how far the prices have been ticking up, you will want to assess it on its current and future merits. Markets can go down and you may have already missed the boat. While consistent upwards movement in the median value can be reassuring – never assume that this will continue. Similarly, downwards movement can be telling you that the market has further to sink, however further research can provide the reasons for any downturn. You’ll also want to be pretty clear on what the median price is tracking before using it as any sort of a judge of a market’s capital growth movements… it might not actually be recording what you think it is. If you want to have a look at your area of interest’s median price, then here’s some free suburb data (including charts on past growth) for you to begin with. 
</li>
<li>
Employment is one part of the equation Lastly, employment is critical for multiple reasons. Property Observer was previously told by Empower Wealth’s Ben Kingsley that <a href="/news/the-psychology-of-hotspotting-exclusive-interview-with-ben-kingsley">income growth is one of the indicators he looks at to determine capital growt</a>h. Without strong employment, this income growth is unlikely. Similarly, strong and diverse employment hubs ensure a steady stream of tenants and a steady stream of future home buyers who will bid against each other for your property. Decreases in employment, such as major companies shutting down, can have the reverse effect. Remember, if there are no jobs - no one can afford the properties.</li>
</ol>
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Five things you need to know about finding a hotspot

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The next development phase for Queensland’s Portside Wharf, residential stage Pinnacle, has commenced, with the 16 level luxury apartment building expecting completion for 2015.
<a href="https://www.portsidewharf.com.au/" target="_blank">Pinnacle</a> will include 162 one-, two- and three-bedroom apartments, terrace homes and penthouses, and is the only riverfront building at Portside Wharf. It has had $54 million of sales, with prices ranging from $390,000 to $2.4 million. Prices for those currently available start from $435,000, with a sales display currently open.
The apartments are sized from 58 square metres to 241 square metres and more than 70% of the offerings have river and city views.
Click to enlarge
<a href="/images/2014/03/17/portside-wharf-march-17-big.jpg" title="Click to enlarge" rel="shadowbox"><img src="/images/2014/03/17/portside-wharf-march-17-small.jpg"></a>
Photo: Indicative view from rooftop 
Portside Wharf is a mixed-use development, including the Brisbane Cruise Ship Terminal and a waterfront restaurant and retail hub. There are already 300 people in residence across the first four stages, called Promenade, Flare, Loft and Infinity.
Brisbane Lord Mayor, Graham Quirk, and Portside Wharf project director, Lee Butterworth, unveiled the construction at the end of last week.
 <img src="/images/2014/03/17/portside-wharf-march-17-one.jpg" alt="">
The Brisbane waterfront will be redeveloped under the greater Northshore Hamilton plan, with new retail precincts, residential options and green space all earmarked for the area.
"Pinnacle will be the first residential building constructed at Portside Wharf since works began on Promenade in late 2010, proving we have weathered the global financial crisis and are ready to move forward with the development of this iconic address," said Butterworth.
<img src="/images/2014/03/17/portside-wharf-march-17-two.jpg" alt=""> 
"With Pinnacle's strong off the plan sales, it is clear that confidence is returning to the market, with total sales at Portside Wharf now reaching more than $83 million.”
Currently, more than 250,000 visitors each year come to the area through the Cruise Ship Terminal.
 <img src="/images/2014/03/17/portside-wharf-march-17-three.jpg" alt="">
"Our vision for Portside Wharf is to be the beating heart of the entire Northshore Hamilton development.  We have so far achieved that vision and established Portside Wharf as a Brisbane landmark and a vibrant community that has reinvented this once overlooked part of the Brisbane River,” he said.
Pinnacle will have a rooftop terrace with a pool, BBQ, gym, entertainment area and onsite guards and management.
 <img src="/images/2014/03/17/portside-wharf-march-17-four.jpg" alt="">
Located six kilometres from the CBD, Butterworth is marketing it towards ‘high flyers and executives’ as well as ‘empty nesters’ and young couples.
Portside Wharf also houses big brand retailers such as Dendy Cinema, IGA, Jetts Fitness and a number of hairdressing and restaurant outlets.
 <img src="/images/2014/03/17/portside-wharf-march-17-five.jpg" alt="">
Photos are artistic impressions.
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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Construction commences on Brisbane waterfront Portside Wharf’s Pinnacle

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The price of vacant land across the capital cities continued to climb throughout 2013. At the end of the year, the median selling price was $249,000 which is an increase of 6.9% throughout the year with vacant land prices now at historic high levels.
The annual rate of growth in median selling prices was the largest annual change since they rose by 8.5% over the 12 months to August 2011.
Across each capital city, it’s easy to see an occurring disparity between the cost of land and the typical size across the cities.
<img src="/images/2014/03/17/kusher-march-14-four.gif" alt="">
Median selling prices of vacant land are highest in Sydney ($305,000) and lowest in Hobart ($150,000). Most cities have recorded a significant increase in selling prices over the past decade however; it is worth noting that growth in Sydney has been minimal.
Median lot sizes tend to be much larger in Hobart (828 square metres) than they are across the other capital cities. Typical vacant land areas are smallest in Adelaide at just 375 square metres. All capital cities have recorded a rise in median land sizes throughout 2013.
<img src="/images/2014/03/17/kusher-march-14-one.gif" alt="">
We’ve seen a large reduction in the median lot size of vacant land over recent years. When preparing today’s analysis, we were surprised to see a slight reversal of this trend throughout 2013. At the end of 2013, the average vacant lot size across the combined capital cities was 500 square metres, which is slightly higher than the 466 square metres at the end of 2012. The average lot size has reduced quite significantly over time; 20 years ago the typical lot size was a much larger 701 square metres.
Although vacant land median selling prices rose over the year, the rise in median land area has resulted in a slight fall in the median rate per square metre. Currently, the median rate per square metre for vacant land was recorded at $507.70/square metres at the end of 2013 compared to $509.39/square metres at the end of 2012.
<img src="/images/2014/03/17/kusher-march-14-two.gif" alt="">
This result highlights that as prices have risen and sizes have shrunk, there has been a sharp rise in the cost of land on a square metre basis. “Twenty years ago, the median rate per square metre for capital city vacant land was recorded at $76.47/square metre.
As a result of falling lot sizes and vacant land price increases we have seen significant rises in the rate per square metre for land across each city over the past decade. Perth land is the most expensive on this measure ($631.46/square metre) followed by Sydney ($608.27/square metre) . The rate per square metre for land in Hobart is significantly lower than all other capital cities at $147.82/square metres.
The ongoing trend across capital city vacant land markets has been diminishing lot sizes and rising prices. If you were to buy a piece of land today 701 square metres in size (which was the typical size 20 years ago) it would cost $355,896. Compare this to the current capital city median of $249,000 for 500square metres. A 500 square metre lot 20 years ago would’ve cost just $38,235.
<img src="/images/2014/03/17/kusher-march-14-three.gif" alt="">
With vacant land costs increasing over the past 20 years it is no wonder there has also been an ongoing increase in the overall cost of housing. With a starting point for land in the capital cities of $249,000 currently, when you add in build costs it is no wondering the size of land has trended so much lower as developers look to provide relatively affordable housing options for price sensitive buyers.
Overall, one of the solutions to housing affordability issues is to reduce the cost of land. The way to do this is to either greatly increase the supply (expand urban boundaries and grant approvals quicker) or reduce the built in costs of developing the land which includes taxes and government fees and charges.
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ckusher-ujnxiKuFQs

Cost of vacant land in capital cities continues to rise

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In our technological age, when so many of our social experiences are virtual, the role architecture can play in the experience of real-time situations is increasingly curious. How does architecture affect our emotions and what kind of design interventions can be made to help us survive the chaos of daily life?
In a recent conversation with a client, as director of the <a href="https://nordarchitecture.com/home/" target="_blank">Northern Office for Research and Design</a> (NORD) in Glasgow, Scotland, I suggested that architecture often forgets that one of its primary goals is to trigger an emotion.
We were discussing a new hospice and a <a href="https://www.maggiescentres.org/" target="_blank">Maggie’s Cancer Caring Centre</a>, part of a network of drop-in centres in the UK I’m working with that aim to help anyone who has been affected by cancer. While these buildings carry a weight of seriousness due to the circumstances of the people who arrive to inhabit them, we are mindful of the need to balance these serious issues and vital care provision alongside the social, spiritual and emotional needs of the patients as part of our design thinking.
In both projects a small library space becomes a familiar anchor to root the experience of the building around a quiet place to think.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/43280/area14mp/w8t5db3t-1394084147.jpg" style="font-size: 0.8em;"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/43280/width668/w8t5db3t-1394084147.jpg" width="460"></a>
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/43280/area14mp/w8t5db3t-1394084147.jpg" style="font-size: 0.8em;"></a>NORD’s planning designs for new Maggie’s Centre in Forth Valley, Scotland. NORD
Quiet space architecture
"The noblest architecture can sometimes do less for us than a siesta or an aspirin … Even if we could spend the rest of our lives in the Villa Rotunda or the Glass House, we would still often be in a bad mood." - <a href="https://alaindebotton.com/" target="_blank">Alain de Botton</a>, <a href="https://alaindebotton.com/architecture/" target="_blank">The Architecture of Happiness</a>
We cluster round Wi-Fi zones, power sockets and screens and have so many of our social exchanges online. “<a href="https://www.c2c-online.co.uk/travel-info/on-board/quiet-zones/index" target="_blank">Quiet zones</a>”, such as that on the train ride from Glasgow to London, where electronic and human noise is kept low, are a telling sign that the technological assault on our senses and on our public sphere is coming under scrutiny.
On a recent train ride in Melbourne, everyone in the train carriage looked up in synchronised frustration when their phone or tablet signal was lost as the train went into a tunnel. Their gaze had been fixed on miniature screens for the journey and only a mass concrete structure could bring them back to the reality of the social surroundings of the carriage.
Wi-Fi and online networking are here to stay but the future may herald the rise of the architecture of quiet spaces or the library – which, <a href="https://theconversation.com/state-libraries-need-our-support-and-participation-to-survive-23420" target="_blank">as many have argued</a>, are under threat from online archiving and information searching.
Libraries are serious spaces; usually the older ones have an aura of dignity and restraint. Historically, the idea was very clear: the library would form part of the civic infrastructure of a place and the community it served.
In Berlin recently I experienced Swiss architect <a href="https://www.maxdudler.com/">Max Dudler</a>’s new <a href="https://www.grimm-zentrum.hu-berlin.de/">Jacob und Wilhelm Grimm Zentrum</a>, the new central library of Humboldt University. The atmosphere of the hall breathes a similar spirit as the <a href="https://en.wikipedia.org/wiki/File:Salle_de_lecture_Bibliotheque_Sainte-Genevieve_n03.jpg">big reading hall</a> by French architect <a href="https://en.wikipedia.org/wiki/Henri_Labrouste">Henri Labrouste</a> in Sainte-Geneviève Library, Paris. It’s also similar to entering the <a href="https://www.slv.vic.gov.au/">State Library of Victoria</a>’s main hall.
These are spaces that make you feel like a child who has discovered something for the very first time.
Libraries are all about atmosphere – which is difficult to sense in so much of what we experience in the contemporary city. They are spaces that seem in opposition to the world outside. Sound is always amplified in a library space and we can experience a heightened appreciation of the quality of light, the materials, the smell of the books, the temperature, the furniture, and the people around us.
The library has survived as a particular type of space when so many others have merged or morphed into each other. The hybrid space, where many different media converge, has emerged as a flexible and adaptable space - one where use is extended to the changing demands of the time-poor citizen of the 21st century.
Living in an homogenised environment
Train stations have become shopping malls, shopping malls have become town squares, churches have become pubs and crèches, schools have become community centres, homes have become offices and universities are moving online.
Aesthetics have been stretched to encapsulate so many uses that we now live in a homogenised environment and find it hard to distinguish one building’s use from its neighbour’s.
In fact, we barely see most of the architecture that surrounds us, as it becomes a kind of background hum, to be noticed only when it is exceptionally big, exceptionally ugly, or exceptionally beautiful.
Architecture, I think, should still strive to move us, to make us feel a particular way. Like a piece of music, architecture has the ability to influence mood, yet so much of the foreground to our streets lacks emotional sensibility.
The craft and the graft of architecture have succumbed to cost-effective, risk averse, quick and generic solutions. Experimentation – the freedom to explore and take risks – is a condition for which people will have to fight in modern society.
Architecture of the future
Architecture faces many challenges. Technological advancement brings with it endless opportunities but we still need to understand and continue the important conversation about how architecture affects us.
What types of spaces will we need in the future? What is the role of architecture as a physical object in the physical world? How do we deal with the crafting of interior space in a world of hybridisation and endless change?
Buildings change over time and so do our attitudes towards them.
Consider the hospital, which was such a familiar piece of urban infrastructure exuding both civic and spiritual meaning. It is now an industrial mega-structure, which will probably, because of its industrial size, resist an architecture of atmosphere and emotion.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/43279/area14mp/6jnxscx3-1394083164.jpg" style="font-size: 0.8em;"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/43279/width668/6jnxscx3-1394083164.jpg" width="470"></a>
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/43279/area14mp/6jnxscx3-1394083164.jpg" style="font-size: 0.8em;"></a>Maggie’s Centre, Ninewells, Dundee, designed by Frank Gehry. Alan Pert
Yet the emergence of the Maggie’s Cancer Caring Centres in Edinburgh in 1996 as a counterpoint to these large institutional machines shows a partial alternative. There is now evidence of room for hybrid buildings, existing as a kind of interface between the city, the mega-hospital and the human.
"Such a hybrid could bridge the divide between the purely functional and the symbolic and give back the institution a civic architecture of meaning." - Charles Jenks, <a href="https://www.propertyobserver.com.au/https://www.amazon.co.uk/The-Architecture-Hope-Maggies-Centres/dp/0711225974" target="_blank">The Architecture of Hope</a>.
Maggie’s Centres have implications beyond their modest size and origins. Complementary to the large hospital and the huge National Health Service, they present a face that is welcoming, risk-taking, aesthetic and spiritual: and with their commitment to the other arts, including landscape, they bring in the full panoply of constructive means and emotions.
Maggie’s Centres are a model for what might soon become a standard building type – and already discussions are underway about opening one in Melbourne.
We know architecture can create emotions and change the way we experience spaces. Now we need to keep talking about the kinds of emotions we want to create.
Alan Pert is professor in architecture and director of the Melbourne School of Design at University of Melbourne.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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apert-UXMKNsCwuG

Build me up: How architecture can affect emotions

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Investment bank <a href="https://www.credit-suisse.com/au/">Credit Suisse</a> couldn’t have coined it better when they asserted:
"The marginal buyer of Sydney and Melbourne real estate has changed, as have the drivers of property prices."
The words are taken from their recent report on international investment into the Australian residential real estate sector, with the intention to highlight potential opportunities for future speculation. And the statement is correct.
Anyone, who is in the business of buying or selling property, is acutely aware how the push and pull of both supply and demand in our property markets, has been markedly shaped by both a change in the local demographics of our nation, along with international competiveness in recent years.
The roll over influence on values in concentrated regions of our largest capital cities has, in some cases, been significant. And whilst it remains the subject of much angst for those priced out, I have yet to meet a seller who did not welcome this increased competition.
However, heated debate in the mainstream media around what has long been known in the industry as little more than a ‘tick box’ formalit, designed to detract from what remains a largely unaudited system of ‘non-resident’ investment in Australian property – residential or otherwise - by the Foreign Investment Review Board, has been going on since 2008.
As property editor, Robert Harley recently pointed out in the <a href="https://www.afr.com/p/business/property/the_year_of_the_chinese_developer_KtqoIDtcggT8KGAMXv8OgKhttp:/www.afr.com/p/business/property/the_year_of_the_chinese_developer_KtqoIDtcggT8KGAMXv8OgK">AFR</a>;
“Even the ‘experts’ find the FIRB annual report.... tardy, lacking in meaningful detail and hard to reconcile with their own experience…”
And as the fictional character "<a href="https://news.domain.com.au/domain/nonexistent-man-granted-leave-to-buy-598000-house-20130327-2gu0p">Chodley Wontok</a>" discovered last year, claims in the foreign policy document that applications are reviewed against the “national interest,” on “a case-by-case” level, do not go so far as a mere passport or visa check!
However, the sheer hysteria around this subject needs to be bought under control.  And if we’re to make sure policies are correctly regulated and work in the national interest as ‘spruiked,’ the blame needs to be carefully targeted to areas of influence – namely, policy.
Something the government has to date, repeatedly failed to do.
A policy disaster
Following the 2008 crisis, Kevin Rudd decided to put in place measures to prevent any major deleveraging of household debt. One of these was to openly advertise ‘relaxed’ regulations around the acquisition of residential real estate for temporary residents, companies and developers selling solely to overseas buyers.
Whilst the wisdom of such a move was debateable, what followed was a truly disastrous state of affairs.
Attempts by Walkley Award winning journalist Chris Vedelago to obtain accurate data under the freedom of information act, to monitor the level of increased demand being widely asserted by industry advocates - was repeatedly frustrated.
According to the then Assistant Treasurer, Senator Nick Sherry, any effort to establish a greater understanding of the FIRB’s compliance system, was not in the <a href="https://theage.domain.com.au/home-investor-centre/blogs/domain-investor-centre-blog/secret-government-business-part-ii-20120202-1quse">public's</a> “best interest.”
Instead, the government, then panicking over the consequential effect to their ratings in the polls, came up with the incredibly smart idea of a ‘dob-in’ hotline. 
The hotline was designed to enable worried locals, to report those dubious looking foreign nationals, who were cleverly disguising themselves as local buyers and naughtily ‘bidding up’ neighbourhood prices. 
“That would put a stop to it!” thought Kevin.
Unsurprisingly, from the limited number of calls received (although, once again, probably not from those vendor’s who were happily selling their properties in the rapid run up to the market peak of 2010), most turned out to be Australian citizens and long standing permanent residents.  So, it did little - if anything - to stem the core of concern still prevalent within the community.
It is therefore of little surprise that anecdotal stories from agents, who maintain official figures that are under reported and rules are being flouted, continue to carry more weight. And a debate, which now walks a fine line between being termed racist or otherwise - continues unabated.
What’s going on?
Rising property prices - the product of the plot of land that sits underneath the structure - are unashamedly promoted in most modern economies as the key driver to boost the privatised wealth of its nation, with the hope the payoff effect will feed other areas of consumption.   
They are no longer just national affairs, but open to international speculation and investment, of which Australia is by no means immune.
When the federal government states in its policy document that it “welcomes foreign investment” which:
 “Has helped build Australia’s economy and will continue to enhance the wellbeing of Australians, by supporting economic growth and prosperity.”
You can assume toward the top of that list is the investment into the land market – residential or otherwise.  And as official figures <a href="https://www.firb.gov.au/content/Publications/AnnualReports/2012-2013/index.asp">show</a>, few – if any - applications are ever turned down and real estate captures the majority interest.
The recent recessions that have occurred in other countries as a result of their own residential speculative booms, have merely accentuated these international patterns of investment and migration.
For example, following the GFC, the number of foreign-born workers leaving Britain rose by nearly 30% as the government set about removing 300,000 skilled jobs from the list of positions open to workers from outside the European Union - evidently fearing political backlash from somewhat unsubstantiated claims, that this was significantly ‘harming’ British jobs and thus not aiding rising unemployment or the economy as a whole.
At the same time, distressed nations opened their doors to opportune investors from around the globe, who were encouraged to take advantage of now uniquely ‘cheap’ real estate markets, in a vain attempt to kick off a recovery in their own local terrains.  
It was only a few years ago, stories were littering the main stream media highlighting the surge of demand for USA properties, as spruikers made benefit of our strong Aussie dollar to lure local investors to purchase previously owner-occupied foreclosures and instead turn them into investor owned speculative rentals.  
None of this has assisted the home buying sector in America’s property market. 
Ownership rates continue to fall and local buyers remain priced out.
But the government cares little – the gains in property are the silver lining Obama needs to maintain popularity. And he had no hesitation in boasting as such when he <a href="https://blogs.wsj.com/washwire/2013/08/06/text-of-obama-speech-on-homeownership/">recently</a> stated:
”Today, our housing market is healing!” (Healing!) “Home prices are rising at the fastest pace in seven years.”
Faster even than incomes it seems, with first home buyers at their lowest level since the crisis began.
Premium localities in the cities of New York and London are openly marketed as ‘safe havens’ for the internationally wealthy.  Isolated from the local economy as local workers are forced out and rumours of homes laying vacant for much of year provoke neighbourhood outrage.
It’s now reported that in London for every <a href="https://www.ft.com/intl/cms/s/2/aeb87918-e560-11e2-ad1a-00144feabdc0">minute</a> you spend on the three Underground stops between Earls Court and Sloane Square, property prices rise by £96,647.
However (as with Australia), outside of half-hearted central bank ‘don’t spend too much’ warnings, there is little rush to limit the inflationary rises. 
This pattern is always the same.  It’s allowable to let productivity and industry fail whilst small businesses suffer, but woe to the government who allows the privatised wealth fund of its aging population endure any such demise.
Australia’s changing landscape
Australia is internationally marketed as the ‘lucky country’, an economic star on the world stage from which we derive much benefit. 
Population growth throughout the GFC was barely dented – and like every other country, we tow away the poor, whilst targeting skilled migrants, or those with dollars to invest.
Over the last census period alone, Melbourne’s population expanded by nearly 355,000 new residents and continues to grow at pace of roughly 2% per year.
Additionally, its population has grown in diversity, with the traditional European migrants of Greece and Italy falling as a proportion, whilst the growing number to our shores now comes from both China and India.
 <img src="/images/2014/03/17/cashmore-march-17-one.jpg" width="460">
Note: Settlers = skilled and family reunion migrants, along with humanitarian visas and refugees
The same trend is mirrored in NSW – projected to reach 8.4 million by 2060. Migrations to the harbour town also come increasingly from both China and India, as demonstrated below.  
<img src="/images/2014/03/17/cashmore%20march%2017%20two.jpg" width="460">
When, under Julia Gillard, the Government commissioned a white paper on ‘The Asian Century’ designed to:
“Generate a set of general propositions to guide policy development over the long-term.”
The importance and potential magnitude of Asia’s dominance on the world stage was emphasised, by Julia Gillard when in a speech she asserted:
“We are now seeing the most profound rebalancing of global wealth and power in the period since the United States emerged as a major power in the world.”
No kidding!
Indeed, it would be hard to over-estimate the economic force Asia holds for our local economy.
It will shape the most important social, cultural, business, domestic and foreign policy implications we will face in the decades to come.
By 2025 the Asian region will account for almost half of the world’s output and also be the world’s largest consumer – and if we play our cards right, Australia is best placed to advantage.
It’s not just the 1% of billionaires seeking out safe havens abroad in what’s been termed the “largest and most rapid wealth migrations of our time.” But the rise of China’s consumer class – middle income individuals, discretionary spenders, whose wealth goes largely under-reported in a  “grey economy” of illegal and quasi-legal activities.
If trend continues, in a few years, China will become the world’s richest country, and India won’t be far in its wake.
The number of Asian students studying on our shores is at record highs.
Trade flows, research and business development, education, tourism, and increased levels of migration have benefitted us significantly in recent years - and the potential to capitalise on the productive sectors of our economy remain.
Whilst the Gillard government’s white paper - now firmly locked into <a href="https://asiancentury.dpmc.gov.au/">“archive status,”</a> - remains a useful form of reference.  It was widely criticised at the time, for its vague approach as yet another study, which like a PHD paper is good in content, but lacks any hint of direct action.
It claimed that Australian manufacturing was expected to ‘grow,’ with wishy-washy advice on how firms must:
 “Adapt by anticipating changes in their markets, building the talents of their people and constantly innovating and lifting their productivity.”
Claims which now seem laughable.
We allowed the profits from the ‘once in a century’ mining boom to fall into private hands.
As Sydney Morning Herald's economics editor <a href="https://www.smh.com.au/business/comment-and-analysis/whos-taxing-who-and-who-pays-the-rent-20140228-33rb1">Ross Griffiths</a> recently clarified in his commentary on Abbott’s efforts to remove the mining tax: 
“There is a lot of ‘unearned’ economic rent associated with the exploitation of limited mineral deposits,” and countries like Australia would be “mugs not to tax much of that rent rather than letting largely foreign companies walk away with most of it.”
‘Mugs’ we are.
But what about land?
Asia’s influence is marketed as positive news; however, the one area that receives the most overwhelming negativity is its influence on our real estate market, precisely because of the some of the issues hinted in the paragraph above.
We have little, if any, understanding of the accumulated wealth is brought into the country and recent settlers have little experience with the local market, or misleading practices surrounding real estate price quoting.
This lack of transparency and education within the industry itself needs addressing; however, it’s a subject I’ll explore further in another column.
The geographical location of land is fixed and limited in supply. Therefore we can’t all benefit from economic advantage gained from ownership of the best seats in town without effective taxation of the resource.
A correctly administered broad based land value tax (as explained <a href="https://www.macrobusiness.com.au/2013/11/land-tax-must-kill-negative-gearing-stamp-duty/">here</a> – reducing taxes on productivity) would not only encourage the good utilisation of land, but if handled efficiently, gains could be fed back into the community to assist increased investment into infrastructure and social services.
This would further aid both the expansion and development of our cities, with the flow on effect ideally taking the speculative element out of the housing market and assist in reducing its destructive influence on prices. 
This alone, would go a long way to reducing the wealth <a href="https://www.macrobusiness.com.au/2014/02/housing-and-the-inequality-divide/">inequality</a> currently experienced in our big cities.
Presently, we’re doing a great job of building an abundance of cheap, high density, and no so inexpensive apartment blocks, full of small one and two bedroom flats, often no more than 60 square metres inside. Great for student renters - but do little to meet the needs of our biggest residential sector – family buyers with children. 
Therefore, the above issues need to be tackled from ground up policy reform – significantly on the <a href="https://www.macrobusiness.com.au/2013/11/urban-zoning-and-affordable-housing-are-opposites/">supply side</a>.
Offshore investment must be solely channelled into creating new supply – and audited to ensure the conditions stated in current laws are being adhered to.  
I’m not holding my breath, but hopefully some of these will be explored in detail and ‘maybe’ go so far as being implemented following the Senate inquiry later this year.     
We can’t – and wouldn’t want to - stop migration.  But we can ensure wealth invested in our established real estate market, is utilised effectively.
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