<p>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.</p>

<p>The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.</p>

<p>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.</p>

<p>Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=372394]</p>

<p>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.</p>

<p>Whether the development is already complete can also materially change what can be assessed.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=927]</p>

<p><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.</p>

<p>“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.</p>

<p>“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.”</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=375255]</p>

<p>The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.</p>

<p>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.</p>

<p>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.</p>

<p>Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.</p>

<p>“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.</p>

<p>“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.”</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=375281]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=925]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=5743]</p>


Joel Robinson

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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=145324 project_image_fid=372749]</p>

<p>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.</p>

<p>"Sites like this rarely become available," the developer said.</p>

<p>"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."</p>

<p>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.</p>

<p>[smartcode_project:default project_id=145324 project_image_fid=372748]</p>

<p>"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.</p>

<p>"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=145324 project_image_fid=354343]</p>

<p>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.</p>

<p>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.</p>

<p>Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.</p>

<p>[smartcode_project:default project_id=145324 project_image_fid=354347]</p>

<p>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.</p>

<p>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.</p>

<p>"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.</p>

<p>"The result is a building that feels uniquely connected to Melbourne."</p>

<p>[smartcode_project_cta:default project_id=145324]</p>


How Sterling Global designed 623 Collins from Melbourne's history

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=152069 project_image_fid=374394]</p>

<p>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.</p>

<p>Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=152069 project_image_fid=374399]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=152069 project_image_fid=374393]</p>

<p>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.</p>

<p><a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.</p>

<p>Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.</p>

<p>[smartcode_project_cta:default project_id=152069]</p>


Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>


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

<p><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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=95289 project_image_fid=366760]</p>

<p><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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=95289 project_image_fid=366769]</p>

<p>A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.</p>

<p>“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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=95289 project_image_fid=366762]</p>

<p>The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=95289]</p>


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

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>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;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>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.</p>

<p>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).</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<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>

<p>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.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

<p>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.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>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.</p>

<h2>What is NatHERS?</h2>

<p>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;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>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.</p>

<h2>How NatHERS Ratings Work</h2>

<p>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.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> 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.</p>

<p><strong>Cost Savings:</strong> 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.</p>

<p><strong>Environmental Impact:</strong> 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.</p>

<p><strong>Improved Comfort: </strong>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.</p>

<p><strong>Market Value and Desirability:</strong> 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.</p>

<p><strong>Compliance with Building Codes:</strong> 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.</p>


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?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>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.</p>

<h3>Convenience and accessibility</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>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.</p>

<h3>Vibrant lifestyle and community</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>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.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>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.</p>

<h3>Enhanced security and maintenance</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>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.</p>

<h3>Live-work-play balance</h3>

<p>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.</p>

<p>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.</p>


alisonwarters@gmail.com

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

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><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></p>

<h2>Who pays Stamp Duty?</h2>

<p>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.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>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.</p>

<p>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!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<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>

<p style="line-height:1.38">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.</p>


Ellen Walker

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

<p data-end="294" data-section-id="19m9s1w" data-start="191">For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make</p>

<p data-end="477" data-start="296">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?</p>

<p data-end="947" data-start="479">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.</p>

<p data-end="1099" data-start="949">As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.</p>

<p data-end="1490" data-start="1101">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.</p>

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

<p data-end="1593" data-start="1521">Most Australians are familiar with independent ratings in everyday life.</p>

<p data-end="1748" data-start="1595">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.</p>

<p data-end="1930" data-start="1750">Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.</p>

<p data-end="1979" data-start="1932">That gap is what iCIRT was designed to address.</p>

<p data-end="2559" data-start="1981">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.</p>

<p data-end="2822" data-start="2561">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>.</p>

<p data-end="3082" data-start="2824">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.</p>

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

<p data-end="3254" data-start="3128">For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.</p>

<p data-end="3388" data-start="3256">It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.</p>

<p data-end="3773" data-start="3390"><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.</p>

<p data-end="3837" data-start="3775">That doesn't mean buyers should rely on a single rating alone.</p>

<p data-end="3978" data-start="3839">Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.</p>

<p data-end="4092" data-start="3980">However, an independent assessment can provide another source of information alongside those traditional checks.</p>

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

<p data-end="4188" data-start="4140">The conversation isn't only changing for buyers.</p>

<p data-end="4296" data-start="4190">Developers are also recognising that trust has become an increasingly important part of the sales process.</p>

<p data-end="4389" data-start="4298">Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.</p>

<p data-end="4538" data-start="4391">Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.</p>

<p data-end="4734" data-start="4540">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.</p>

<p data-end="4910" data-start="4736">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>.</p>

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

<p data-end="5049" data-start="4964">The influence of independent construction ratings is also extending beyond consumers.</p>

<p data-end="5281" data-start="5051">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.</p>

<p data-end="5612" data-start="5283">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.</p>

<p data-end="5770" data-start="5614">As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.</p>

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

<p data-end="5855" data-start="5803">Victoria's apartment market is entering a new phase.</p>

<p data-end="6014" data-start="5857">The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.</p>

<p data-end="6131" data-start="6016">For buyers, that means there are more tools available than ever before to research the businesses behind a project.</p>

<p data-end="6261" data-start="6133">For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.</p>

<p data-end="6464" data-start="6263">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.</p>

<p data-end="6464" data-start="6263">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>.</p>

<hr data-end="6469" data-start="6466" />
<p data-end="6861" data-start="6471"><em data-end="6861" data-start="6471">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.</em></p>

<p data-end="7088" data-start="6863"><em data-end="7088" data-start="6863">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.</em></p>

<p data-end="7191" data-start="7090"><em data-end="7191" data-start="7090">Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.</em></p>


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

<html><body>
<p>With home loan approvals falling once more, 1300HomeLoan said that this is yet another sign of the economy's fragility and the requirement for the Reserve Bank to hold interest rates.</p>
<p>Seasonally adjusted, the Australian Bureau of Statistics saw the number of home loan approvals in January fall 0.4%, and a 1.9% drop in December.</p>
<p>Managing director of 1300HomeLoan, John Kolenda, said that talk of a surging economy is coming off the mark and that any early increase of interest rates will see consumer sentiment rush towards conservatism.</p>
<p>“Demand for home loans remains flat and the longer the RBA maintains its cash rate at the record low of 2.5% the better as this has at least provided much needed stability for consumers,” Kolenda said.</p>
<p>“Unemployment also is likely to rise with many companies forced to make job cuts. The retail sector is still not showing sustained improvement, while the resources sector continues to slow," he said.</p>
<p>“Creating a more positive consumer sentiment has taken numerous rate decreases over the past few years. Pulling the trigger too quickly could have serious consequences for consumer confidence.”</p>
</body></html>

jduke-EHk3XBmHkn

Housing finance figures points to fragility of economy

<html><body>
<p>With <em>The Block: Fans v Faves </em>heating up, it seems that renovation fever is sweeping the country. Last Sunday, the teams revealed their newly renovated kitchens – a room which many believe will make or break a renovation.</p>
<p>The winning team, twins Alisa and Lysandra, were praised by the show’s judges for their spacious kitchen (pictured below) that made use of the apartment’s open plan layout. According to the judges, their offering was contemporary but not trendy, and would have timeless appeal.</p>
<p><img src="/images/lah3r5kitchen13.jpg" width="460" height="259"></p>
<p><em>Image courtesy of Channel 9</em></p>
<p>Meanwhile, Brad and Dale got the roughest treatment, with the judges deeming their kitchen “cold and dated”. It seemed they won no hearts among the judges with their curved bench, seen below, though the boys thought the bench would be a selling point come auction day.</p>
<p><img src="/images/bdh4r5kitchen03.jpg" width="460" height="259"></p>
<p><em>Image courtesy of Channel 9</em></p>
<p>And while renovating one’s home can be a rewarding adventure, with <a href="/expert-insights/building/pleasure-not-profit-the-reason-for-most-home-renovations-mortgage-choice-survey">most homeowners renovating for pleasure</a>, not profit, plenty of investors know that renovations, when done right,<a href="/expert-insights/building/pleasure-not-profit-the-reason-for-most-home-renovations-mortgage-choice-survey"> can make a tidy sum</a> when it comes time to sell the property.</p>
<p>Though many homeowners dream of reinvigorating their living areas or expanding their master bedroom, as host Scott Cam noted on Sunday’s episode: “Kitchens sell houses.”</p>
<p>Andrew Winter of <em>Selling Houses Australia </em><a href="/expert-insights/building/the-10-best-diy-renovation-tips-from-the-experts">says that</a> “quality bathrooms and kitchens will always add value to your home”, while stylist and author Amanda Talbot thinks that 5% of the value of your house should be in your kitchen.</p>
<p>Similarly, Cherie Barber of Renovating for Profit says that renovators should aim to spend between 1% to 1.5% their home’s value on the bathroom, which is “the second most important room in your house, besides your kitchen.”</p>
<p>Which room of the house do you think is the best to renovate to add value to a family home?</p>
</body></html>

jrichardson-uRX5hFdKfN

Kitchens the key to adding value for teams on The Block

<html><body>
<p><span style="line-height: 1.3em;">Let's face it, most property market commentary is at best reactive and at worst starts with the headline and works back through a smattering of evidence to support the preconceived conclusion.</span></p>
<div>Hence the large number of 2012 and 2013 articles which argued that in spite of falling interest rates Sydney, prices couldn't increase in this cycle since prices were already too high and that, it seemed, was that.</div>
<div> </div>
<div>However, if you ignore one half of the equation - supply - in order to focus only on demand, the conclusions are always likely to be to some extent ill-informed.</div>
<div><span> </span></div>
<div>
<span>Simply put, with appropriate housing supply in the city so weak for so long - almost an entire decade of unpropitious su</span>pply failure - low interest rates were destined to force upwards pressure onto the market and as prices ticked up the herd mentality followed.<br><br>Also in the simplest terms, developers needed prices to go up to justify building more stock, and while prices remained flat the dwelling shortage became more and more acute.<br><br>This is precisely why I confidently predicted the surge in prices.</div>
<div> </div>
<div>Basic housing economics dictates that in a functioning market a material jump in dwelling prices combined with a lower cost of financing should result in a worthy supply response. And at last the data is starting to flow through which shows that we should now see a big uplift in Sydney dwelling construction.<br><br>Let's take a more in-depth look at the levels of supply due to come online and where it will be located.</div>
<div> </div>
<div><strong>Demand: population growth</strong></div>
<div> </div>
<div>In order to ascertain the adequacy or otherwise of supply, we first have to acknowledge the likely level of demand.<br><br>Australia's population is very heavily urbanised, with close to 40% of the population living in Sydney and Melbourne.</div>
<p> </p>
<div>
<img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph6-small.gif" alt="Graph 6: Urban Population" width="470" height="491"><br><span><br></span><br><div>
<span>The latest ABS population data showed that at the state level New South Wales has a population of 7.4 million people </span><a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/3101.0" target="_blank">increasing by 102,200</a><span> persons per annum. </span><br><br>Meanwhile, the the population of Sydney, depending on where you draw the boundaries, is around 4.6 million, and is growing at about 1.6% or 63,700 persons per annum as neatly charted in this <a href="https://matusikmissive.com.au/2014/01/14/stats-1000-club/" target="_blank">Matusik Missive</a>.</div>
</div>
<p> </p>
<div class="separator"><a href="https://3.bp.blogspot.com/-xa8fEv_mloE/UxuaJzGkQPI/AAAAAAAALzE/-neLPNbk91E/s1600/MM.png"><img src="https://3.bp.blogspot.com/-xa8fEv_mloE/UxuaJzGkQPI/AAAAAAAALzE/-neLPNbk91E/s1600/MM.png" width="460" height="343"></a></div>
<div class="separator"> </div>
<div class="separator"><em>Source: Matusik Missive</em></div>
<p><strong>Demand: Sydney persons per household</strong><br><span><br></span><span>After a century of declines, the number of people per household is now expected to stop falling. </span><br><span><br></span><span>Previous projections in 2008 saw the </span><a href="https://www.planning.nsw.gov.au/population/pdfs/mrel_081020_nsw_state_regional_population_projections.pdf" target="_blank">Sydney household size forecast to drop from 2.61 people</a><span> per dwelling to 2.51 by 2031 (already well above the 2005 projections of 2.36 people per house by 2031).</span><br><span><br></span><span>Based on recent indicators it seems to be a fair assumption that the number of persons per dwelling will stop or already has stopped falling, in part due to affordability constraints in the harbour city.</span></p>
<div>If we take a figure of 2.6 persons per dwelling this implies that NSW needs around 40,000 dwellings per annum to house the expansion of the population and Sydney needs around 25,000 dwellings per annum.<br><br>When further allowances are made for obsolete stock and the need to address the currently existing ugly supply/demand imbalance <a href="https://petewargent.blogspot.com.au/2014/03/sydney-property-prices-2014-appreciate" target="_blank">which I discussed in detail here</a>, then it can be said that the city would want to see significantly higher completions in order to take the pressure of dwelling prices.<br><br>Previous estimations have ranged from around a required <a href="https://www.planning.nsw.gov.au/population/pdfs/mrel_081020_nsw_state_regional_population_projections.pdf" target="_blank">27,500 dwellings per annum</a> for Sydney through to 2031 up to <a href="https://petewargent.blogspot.com.au/2012/12/demographic-shifts" target="_blank">30,000 per annum</a>. Given the chronic shortage of stock on the market, clearly the latter number would be far more effective in addressing the imbalance.<br><br><strong>The rise of apartment stock</strong><br><br>It is to be expected, with a rapidly growing city population in a constrained area such as Sydney, that more than ever before, the new dwellings will be of the apartment and medium-density type.<br><br>
</div>
<div>
<div><img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph9-small.gif" alt="Graph 9: Apartment and Medium-density Housing" width="470" height="415"></div>
<div> </div>
</div>
<div>
<strong>Sizeable uplift in building approvals in Sydney and NSW</strong><br><br>The most recent data from the ABS showed <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0" target="_blank">17,500 dwellings approved</a> in the month for the whole of Australia, split between private sector houses (about 95,00) and other dwellings (about 7,800).<br><br>This is welcome news for the economy, and represents a huge annual uplift for private sectors houses (+26.4% year on year) and for other dwellings +46.3% year on year). <span style="line-height: 1.3em;">In NSW, the three month moving average monthly building approvals figure is now hitting at around 4,500 dwellings, which is a very solid figure.</span>
</div>
<div><span style="line-height: 1.3em;"> </span></div>
<div>
<span style="line-height: 1.3em;">And, more specifically, what for Greater Sydney? Well, we can certainly now see </span><a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0" target="_blank" style="line-height: 1.3em;">a huge uplift</a><span style="line-height: 1.3em;"> in building approvals particularly over the second half of 2013. The monthly data is necessarily volatile, but over the year to January 2014, there were 36,100 dwellings approved which is the highest level of approvals seen this century (since 1999). </span>
</div>
<div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-lX4t7ydFCjU/UxwGHSn2KcI/AAAAAAAAL0U/Dy_wKgStmT4/s1600/Greater+Sydney.jpg"><img src="https://4.bp.blogspot.com/-lX4t7ydFCjU/UxwGHSn2KcI/AAAAAAAAL0U/Dy_wKgStmT4/s1600/Greater+Sydney.jpg" width="460" height="239"></a></div>
<div class="separator"><em>Source: ABS</em></div>
</div>
<div> </div>
<div>These numbers tend to make far more sense when put into a rolling annual number of approvals chart. Cameron Kusher chart of RP Data deserves a gold medal (or at least a cold beer) for slogging through the hard yakka below. Incidentally, just look at the rolling approvals figures for Melbourne since 2008!</div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-jbVKiSolivg/UxufqYEtehI/AAAAAAAALzc/q6ijVvwk7pY/s1600/CK1.jpg"><img src="https://3.bp.blogspot.com/-jbVKiSolivg/UxufqYEtehI/AAAAAAAALzc/q6ijVvwk7pY/s1600/CK1.jpg" width="460" height="172"></a></div>
<div class="separator"> </div>
<div class="separator"><em>Source: RP Data</em></div>
<div class="separator"> </div>
<div>
<div class="separator"><span>The chart shows Sydney's supply failure over the last decade.</span></div>
<div class="separator"><span> </span></div>
<div class="separator"><span>Yet new apartment approvals in Sydney will now go on to eclipse their previous peak of 2003 when annual approvals hit 23,000.</span></div>
<div class="separator"> </div>
<div class="separator"><span>BIS Shrapnel has forecast that Sydney will comfortably break new record for apartment approvals in 2014 and project that the figure will peak at around 25,000 in 2016.</span></div>
<div class="separator"> </div>
<div class="separator"><strong>Completion times</strong></div>
<div class="separator"><span><strong><span style="text-decoration: underline;"> </span></strong></span></div>
<div class="separator"><span>The Reserve Bank has highlighted its concerns about a possible lag between approvals and construction <a href="https://www.rba.gov.au/speeches/2013/sp-so-230413" target="_blank">in a speech last year</a>:</span></div>
<div class="separator"> </div>
<div>"...if average household sizes are no longer falling, the relationship between population growth and growth in the number of dwellings will change. </div>
<div> </div>
<div>"And if I am right in expecting the share of high-density housing to increase, the dynamics of construction will also change. </div>
<div> </div>
<div>"It takes longer to build a block of apartments on a brownfield site than the same number of dwellings as detached houses at the fringe. Dwelling investment has already become less cyclical in the past 10 years than it was in the previous 20 years.</div>
<div> </div>
<div>"It might well be that construction lags – and concerns about supply – will become even more acute."</div>
<div class="separator"> </div>
<div class="separator">The ABS has presented its own data showing that completions are slower than they have been in times past.</div>
</div>
<div>
<br><div><img src="https://www.abs.gov.au/ausstats/abs@.nsf/91f72cb52e908514ca25709f0000a6a8/bef19e4062997fefca25759a001a1e49/Body/0.FE4!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Graph 1: Average completion time of new houses and new townhouses, Australia" width="460" height="263"></div>
</div>
<div> </div>
<div>
<img src="https://www.abs.gov.au/ausstats/abs@.nsf/91f72cb52e908514ca25709f0000a6a8/bef19e4062997fefca25759a001a1e49/Body/0.3CB4!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Graph 3: Completion time of new townhouses, five year average, States, Territories and Australia" width="460" height="263"><br><br><em>Source: ABS</em>
</div>
<p><strong>Dwelling commencements</strong></p>
<div>Of course dwelling approvals are not the same as dwelling commencements, but the most recent data has shown that dwelling commencements in NSW are finally starting to punch at around 10,000 per quarter and look set to head higher, and thus should begin to redress the supply imbalance in due course.</div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-Kmk8-uh08Y0/UxwLqvOdEXI/AAAAAAAAL0k/8XvSKMecoeg/s1600/commence.jpg"><img src="https://4.bp.blogspot.com/-Kmk8-uh08Y0/UxwLqvOdEXI/AAAAAAAAL0k/8XvSKMecoeg/s1600/commence.jpg" width="400" height="228"></a></div>
<p><strong>Conclusions</strong></p>
<div>The data shows that dwelling commencements will begin ramp up quite sharply from now. Indeed, you can now witness this happening around the city with your own eyes. </div>
<div> </div>
<div>The ABS average completion times suggest that over the next two to three years the apartment supply will really start to flow before reaching a peak around 2018-2019. </div>
<div> </div>
<div>Naturally a greater supply of apartments introduces an elevated risk of a price correction in certain areas, which will be most heavily focussed upon a number of key sectors of the market.</div>
<div> </div>
<div>In particular, buyers should take great care when buying off the plan since such developments tend to demand a material newness premium.</div>
<div> </div>
<div>When it comes to the risk of oversupply, it is crucial to consider substitutability and there are a number of higher risk areas which stand out as likely candidates. </div>
<div> </div>
<div>I don't have space to list all the areas where I personally would and would not be comfortable buying but the central business district (and indeed other business districts in the city with few height restrictions on developments) tends to suffer from a perennial oversupply risk, as higher residential prices see more and more former office blocks being demolished to be replaced by apartment towers.<br><br>Stand by for a flood of media articles on this topic.</div>
<div> </div>
<div><span>There will also be many thousands of new apartments located in certain inner suburbs where former industrial sites have now been rezoned. </span></div>
<div><span> </span></div>
<div><span>These suburbs variously include Waterloo, Mascot, Zetland, Rosebery and Botany, among others. 25,000 new apartments are expected to be built in the inner south by 2018.</span></div>
<div><span> </span></div>
<div><span>I note that a number of the new developments appear to consist of very small apartments, some of which look to be phenomenally expensive. <em>Caveat emptor.</em></span></div>
<div><span> </span></div>
<div>
<span>Conversely, there are a number of well-located leafy lifestyle suburbs where new supply has been almost completely capped over the past decade and these will continue to represent a far superior selection. Substitutability is significantly lower.</span><br><span><br></span>
</div>
<div><span>Buyers of apartments would likely do well to focus on those with a relatively high value value content in boutique blocks, rather than those in larger developments.</span></div>
<div><span> </span></div>
<div><span style="line-height: 1.3em;">The Melbourne market in recent years appears to have experienced a period of overbuilding and oversupply in certain sectors (e.g. Docklands), resulting in significantly more stock on the market than Sydney and significantly higher than average vacancy rates.</span></div>
<div> </div>
<div><span style="line-height: 1.3em;">Yet median prices in Melbourne are also seemingly defying all logic by continuing to grow at a phenomenal pace (+7% quarter on quarter) implying that buying the right property in the right location continues to be of vital importance.</span></div>
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pwargent-M4siyDbqQY

Sydney - the housing supply response

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<p>Many property owners have considered moving out and turning their original home into an investment property - and there are a number of benefits to this. You can avoid hefty selling and buying costs if you want to purchase another property, you can attain the flexibility of a renting lifestyle, perhaps in a more affordable area and you already know the area so well.</p>
<p>However, is this really the right approach for you? Here are five questions you need to be asking yourself if you want to convert your home into an investment.</p>
<ol>
<li>
<strong>Are you willing to 'let go' emotionally?<br><br></strong>If your heart and soul are in that home and you're intending to put it on the rental market, then you need to ensure you are going to be able to handle any tenant damage, wear and tear or other issues that could make you the landlord from hell. You also want to ensure that you're not just keeping the property due to this inability to 'let go' that may cloud your judgement about its future potential.<br><br>
</li>
<li>
<strong>Did you buy your current home as an investment in the first place?<br><br></strong>If you did not - then does it stack up in terms of investment fundamentals? You may have purchased well, but it might not necessarily be the best place to park your money. Perhaps you bought there as it was close to your friends or family, or near to your workplace. Remember that what attracts you, might not attract other people. If you can't justify why the area is a good investment, then stop right now and reconsider - you might be missing out on the opportunities elsewhere by holding on to a lemon.<br><br>
</li>
<li>
<strong>What is the reason you are moving?<br><br></strong>You may be moving for a specific, unrelated reason or because it has always been the plan. But it might also be something about the property or area that you dislike. If the neighbours or the noise is driving you out then it might prompt you to ask yourself whether this is something that will keep the price down into the future.<br><br>
</li>
<li>
<strong>Can you afford to hold it as an investment?<br><br></strong>If you're looking to buy elsewhere and hold onto this current property, then you need to step back and look at the affordability equation. How long can that property stay vacant until you start feeling the pressure? Is it actually financially better for you to rent another property instead of buying? How much debt will you be in? What sort of rent will the property achieve? Speak to your accountant and your broker and have a think about what happens if you lose your job or the worst happens. You will also want to see what funds you need to pay to get the property "investment ready". This may include necessary renovations or upgrades, cleaning, new smoke alarms or other costs that many do not consider.<br><br>
</li>
<li>
<strong>Are you willing to lose your PPOR benefits, such as CGT exemption?<br><br></strong>There are a number of benefits to owning a primary place of residence rather than converting it into an investment. One of these is an exemption on Capital Gains Tax. <span style="line-height: 1.3em;">You will still potentially achieve a partial exemption, but depending on how long it takes for you to sell and the proportion of ownership time compared to renting will dictate much of what you will pay. </span>Similarly, if you received a government grant - have you fulfilled your obligations under that grant, such as length of time you need to have lived in the home?</li>
</ol>
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Should you turn your home into an investment property? Ask yourself these five questions

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<p>While criticism of the National Rental Affordability Scheme (NRAS) has been seeing headlines recently, the Green Building Council of Australia (GBCA) is still urging the government to re-commit.</p>
<p>The GBCA's chief operating officer, Robin Mellon, applauded NRAS for driving affordable housing projects across the country, with many of them reaching Green Star benchmarks. NRAS has delivered a total of 14,500 dwellings, with allocations for another 23,000.</p>
<p>“Rather than scrapping the scheme, the Abbott government has the opportunity to make a good scheme even better," said Mellon.</p>
<p>The first NRAS project to achieve 5 Star Green Star - Multi Unit Residential As Built v1 certification was Monash University's Briggs Hall &amp; Jackomos Hall. The University of Tasmania also has projects registered to achieve the certification.</p>
<p>“These NRAS projects demonstrate that well-designed and well-constructed, sustainable developments are more efficient buildings – with lower energy consumption and lower energy bills the result,” said Mellon.</p>
<p>He pointed to recent comments from executive director of the Residential Development Council, Nick Proud, that ditching NRAS would be throwing the baby out with the bathwater.</p>
<p>“Increasing housing affordability in Australia requires a range of complementary measures, together with commitment from industry and all levels of government. NRAS is a vital piece of the jigsaw – one that we can't afford to lose,” said Mellon.</p>
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Despite NRAS criticism, government should commit to scheme: GBCA

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<p>After frequent flooding and subsequent increases in insurance costs, levees were proposed for towns such as Roma in Queensland. These levees saw insurance companies predict a drop of up to 80% for premiums in these areas. But will it happen?</p>
<p>Inspecting the new levees, Community Recovery and Resilience Minister, David Crisafulli, said that he is calling insurance companies on their word, and asking them to reduce insurance premiums as a result of the new construction.</p>
<p>He is also getting unidentified homeowners to compare their bills before and after the installation of the levee. There has been more than $20 million spent in <a href="/news">Roma</a> and <a href="/news">St George</a> to protect many homes from flooding, and there's more to come.</p>
<p>“These communities have for too long endured the double whammy of frequent floods and sky-rocketing insurance costs,” Crisafulli said.</p>
<p>“Through our partnerships with local councils, we promised to protect these towns from further heartache and we have delivered."</p>
<p>He encouraged property owners in the area to seek revised quotes and to find the best deal, saying that insurers who drop their premiums are to be applauded, and those that do not should be avoided.</p>
<p>“There is no reason why a local whose home is now protected by a levee in either of these towns should be paying inflated premiums,” he said.</p>
<p>“While we will never flood-proof Queensland, these projects show we can come up with viable and responsible plans to protect communities that make sense and provide lasting benefit.”</p>
</body></html>

Insurers' promises to slash Queensland premiums by 80% under scrutiny

<html><body>
<p>Booking holiday accommodation online can be cheap and convenient, but Consumer Affairs Victoria believes it's much riskier than traditional methods - and this goes for both consumers and accommodation providers.</p>
<p>These are called "advance fee" fraudulent activity and as at March there had been 220 complaints and inquiries about these scams.</p>
<p>It's <em>caveat emptor</em>, or rather renter beware, all round - being the responsibility of the person booking to ensure the individual or business is legitimate.</p>
<p>Some of the recent accommodation scams look like the following:</p>
<p>Intercepted emails from prospective renters to genuine overseas providers. The hackers then have email exchanges with the consumers, get them to pay and upon arriving the consumer then realises they have been duped with the provider unaware of their booking.</p>
<p>Fake accommodation details on booking websites posted by scammers. Consumers pay - often by direct transfer to the scammers' account - and then find the accommodation does not exist upon arrival.</p>
<p>Cheap flight and accommodation vouchers than end up difficult to redeem, subject to extensive terms and conditions, often only redeemed by purchasing expensive holidays.</p>
<p>Investors can help their prospective renters protect themselves from online scam artists, and there is much consumers can do also.</p>
<p><strong>CONSUMERS</strong></p>
<ol>
<li>
<p>Never agree immediately to unsolicited offers or deals.</p>
</li>
<li>
<p>Search for the provider online, compare feedback from a number of review sites and consider a range of options.</p>
</li>
<li>
<p>Be wary of pixelated photos, poor use of English and grammar, or limited payment acceptance such as solely direct debit or overseas payment facilities.</p>
</li>
<li>
<p>Upon making an enquiry, keep a hold of the contract, accommodation details, exact web and email address. Do not trust anyone with a response from an address that is even slightly different.</p>
</li>
<li>
<p>Always speak to the provider before paying, and be cautious of excuses for not speaking with you.</p>
</li>
<li>
<p>Never provide credit card details to someone you do not trust or know.</p>
</li>
<li>
<p>Transfer funds through secure facilities, such as PayPal.</p>
</li>
<li>
<p>If in doubt, consider using a travel agent or reputable hotel chain.</p>
</li>
</ol>
<p><strong>INVESTORS</strong></p>
<ol>
<li>
<p>Do not send unsolicited deals.</p>
</li>
<li>
<p>Have a professional website, with full contact details provided and fees explained upfront. If there will be any other person contacting the client, be sure to explain this.</p>
</li>
<li>
<p>Ensure you email with correct grammar, and that your website is copy edited. Consider an official signature for your email and those of your staff.</p>
</li>
<li>
<p>Use many, decent photographs and include as much information as possible about the accommodation.</p>
</li>
<li>
<p>Provide your background if possible.</p>
</li>
<li>
<p>Provide testimonials, and encourage previous visitors to leave feedback and reviews.</p>
</li>
<li>
<p>Offer PayPal and similar facilities for payment.</p>
</li>
<li>
<p>Try to get in touch with your upcoming visitors.</p>
</li>
<li>
<p>Provide the appropriate company numbers, and even include links to authority listings where necessary.</p>
</li>
<li>
<p>Look for accreditation online, or consider joining some sort of association.</p>
</li>
</ol>
<p>If you have been scammed by overseas accommodation, you do have options. You should speak to your bank, who may be able to assist if you have paid through a secure transfer from your credit card, and report them to Consumer Affairs Victoria or ScamWatch. You should also report large amounts of lost or stolen money to the police as fraud.<br><br></p>
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What holiday accommodation scams look like

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<p>Live pub theatre the Old Fitzroy Hotel in Sydney’s inner-east is for sale by expressions of interest as the hospitality sector faces consolidation and increased transaction activity.</p>
<p>The iconic pub in Woolloomooloo, about 2 kilometres from Sydney’s CBD, is <a href="/expert-insights/investing/old-fitzroy-hotel-in-woolloomooloo-put-on-sales-block">being sold as a freehold</a> going concern by private owner Garry Pasfield.</p>
<p>Transaction activity for freehold pubs rose in 2013, with the cost of debt low and lenders competing for market share. Experienced hoteliers such as Arthur Laundy and private equity and institutional funds including the John Singleton and Mark Carnegie-led Australian Pub Fund were active buyers.</p>
<p>Other pubs, including <a href="https://www.propertyobserver.com.au/victoria/the-espy-hotel-up-for-sale-four-things-you-didnt-know-about-the-melbourne-landmark/2014022567907" target="_blank">Melbourne live music icon The Esplanade Hotel</a> and <a href="/expert-insights/investing/emeralds-mayfair-ridge-tavern-leasehold-interest-listed-for-sale">Emerald's Mayfair Ridge Tavern</a>, are also on the market.</p>
<p>Specialist accounting firm Ferrier Hodgson, in a report into the hospitality sector released in February, predicted further growth in the volume of freehold transactions in 2014, as confidence returned to the sector and access to well-priced debt and equity finance improved.</p>
<p>The report cautioned that the Sydney market could be subdued in the first half of 2014 as investors waited to assess the effects of strict new lock-out laws, which came into force on February 24 in certain precincts.</p>
<p>Ferrier Hodgson said gaming venues may suffer revenue drops of up to 30% as a result of the new laws, and yields on affected pubs could soften by 0.25 to 1.5%.</p>
<p>“This has the potential to affect the sector as a whole as investor demand increasingly shifts towards assets with truly diverse product offerings, revenue streams and lower operational risk profiles,” the report noted.</p>
<p>The Old Fitzroy falls within the Sydney CBD Entertainment Precinct and has a gaming room with 15 poker machine entitlements, but its business is diversified, being Australia’s only live pub theatre.</p>
<p>Last April, Sydney Independent Theatre Company took up residence at the pub and uses the space six days per week, following the relocation in February 2013 of performance group Tamarama Rock Surfers which had been based at the venue for the previous 16 years.</p>
<p>The pub has been operating on the site since around 1910. It has a public bar, ground floor restaurant, beer garden, function room, commercial kitchen and accommodation rooms and offices on its second floor.</p>
<p>It received <em>TimeOut Sydney</em>’s Best Pub Award in 2012 and Hall of Fame Award in 2011.</p>
<p>CBRE’s Peter Vines and Daniel Dragicevich have been appointed to sell the property.</p>
<p>“We expect this iconic hotel will attract strong interest from a range of potential buyers including experienced operators looking to drive revenue in the already successful ground floor areas and further establish the underutilised first and second floor areas to achieve strong growth in profitability,” Dragicevich said.</p>
<p>The hotel’s public bar features vintage interiors, while the recently refurbished upstairs bar is more modern.</p>
<p>Dragicevich said the hotel held redevelopment potential and would benefit from further refurbishment, “particularly the upstairs bar which is currently underutilised, but would be perfectly suited to a cocktail, whisky or craft beer bar”.</p>
<p>Expressions of interest close March 27. </p>
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zfielding-GvX3Uq9KTa

Iconic pubs for sale as freehold transaction activity increases

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<p><span style="line-height: 1.3em;">Sydney's Barangaroo has seen its first publicly advertised property sale, C602 Globe Street, for $2.2 million. Set to be built in 2015, the two-bedroom, two-bathroom one-car space apartment spans 113 square metres and was marketed as the highest positioned property of its floor plan type.</span></p>
<p>Located on level six of the nine storey 77-apartment <a href="/expert-insights/buying/every-apartments-has-harbour-views-as-lend-lease-unveils-two-barangaroo-apartment-blocks">Alexander Building</a>, the first release sold out within four hours.</p>
<p>It boasts views across Sydney Harbour and, of course, Barangaroo, and has a balcony designed for year-round entertaining, with 15 of its total square metreage being external.</p>
<p>Security access, video and audio intercom, optical fibre backboning cable and dual zoned air conditioning will be installed in the home.</p>
<p>It will be created with reconstituted stone bench tops and splashback, Miele appliances, including stainless steel cooktop, 60 centremetre pyrolytic stainless steel oven, 60 centremetre microwave oven, externally ducted range hood and an integrated dishwasher.</p>
<p>Sold by Tolga Ozer from Wilson Property Agents it also comes with Jonathon Richards interiors from SJB Architects.</p>
<p>Advertising material suggested it was under offer at $2.25 million.</p>
<p>Globe Street is located between George Street and Harrington Street. </p>
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Barangaroo's first publicly advertised property sells for $2.2 million as market heats up

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<p>In our previous article on expressions of interest (EOIs), we described this form of property sale as being <a href="https://www.google.com/url?q=https://www.propertyobserver.com.au/residential/the-high-stakes-poker-game-of-expressions-of-interest/2014021967905&amp;sa=U&amp;ei=hNsgU5DfGJDqoASAloLQCQ&amp;ved=0CAYQFjAA&amp;client=internal-uds-cse&amp;usg=AFQjCNGhJuGFLvqV_VYBXtRh5uCw1aeSkg" target="_blank">a bit like a game of poker with high stakes and few or no rules</a>.  EOIs can also unfold very differently depending on the agency involved and on the dynamics of the situation making them a challenge for the unprepared buyer.</p>

<p>Here are a couple of examples that show just how differently EOIs can pan out:</p>

<p><strong>22 Rowland Street, Kew</strong></p>

<p><strong><img alt="" src="/images/stories/2014/03/13/kew-march-13-one.jpg"></strong></p>

<p>22 Rowland Street, <a href="/news">Kew</a> (pictured above) was a quite extraordinary property and we were curious as to what its eventual value would be.</p>

<p>So what happened in the end?</p>

<p>[smartcode_project:default project_id=31282]</p>

<p>Well, by March 1, the agents Kay and Burton had received expressions from four interested parties. Three of these were invited to a Boardroom discussion. This was a little unusual in that the seller’s reserve had not already been met.</p>

<p>The three parties competed at this Boardroom discussion at the mid $4 millions level, until the highest bidder was established. That party was then negotiated with exclusively until an agreement was reached. The final purchase price is confidential but it was in the ballpark of $5 million.</p>

<p><strong>38 Cochrane Street, Brighton</strong></p>

<p><strong><img alt="" src="/images/stories/2014/03/13/brighton-march-13-one.jpg"></strong></p>

<p>A quite different scenario unfolded with another EOI campaign that we were involved in, for 38 Cochrane Street (pictured above), which came to a conclusion the following day.</p>

<p>This property shared some similarities with Rowland Street – it too was <a href="https://www.james.net.au/rating/38-Cochrane-Street-BRIGHTON" target="_blank">an excellent and unusual home</a> and the vendors had decided to sell it through an EOI campaign with Kay and Burton as the agency.</p>

<p>It too had four bidders. But beyond that, the way things unfolded at Cochrane Street was very, very different.</p>

<p>[smartcode_project:default project_id=25425]</p>

<p>For a start Cochrane Street had a quote, of $3.25 million plus, whereas 22 Rowland did not.</p>

<p>More importantly this EOI campaign did not go the distance. The closing date was March 11, but an offer of $3.5m was put forward two weekends before the closing date.</p>

<p>Another difference is that in this case the buyer offer was acceptable to the vendor. The home was therefore declared by the agents as being “on the market”.</p>

<p>[smartcode_project:default project_id=29974]</p>

<p>It also triggered a faster resolution process than 22 Rowland St Kew. While the Boardroom auction had initially been set down for Monday, after some behind-the-scenes discussions mid way through Sunday afternoon, that was changed to Sunday evening.</p>

<p>At 8.00 pm on Sunday evening, in the home, four interested parties – including us – turned up and all bid until 38 Cochrane was sold “under the hammer” for a confidential amount in the ball park of $4 million.</p>

<p><strong>Implications for buyers</strong></p>

<p>As you can see then, just in these two examples we have two very different methods within the EOI via the boardroom auction resolution concept. These have important ramifications for buyers.</p>

<ul>
<li>One was “on the market” before the bidding started, and one was not. When a home is not “on the market” there can be traps for new players.</li>
</ul>
<ul>
<li>One was concluded well before the EOI closing date and one was concluded two days before. The difference here was the element of surprise from the buyer versus the planned strategies from the seller.</li>
</ul>
<ul>
<li>One was sold publicly in front of all bidders and one was not. Both would have put incredible pressures on people not used to this form of dealing. Try sitting around a table or in the same room with three others who are politely trying to beat you to a pulp and you will start to get the feeling of what a boardroom auction is designed to do.</li>
</ul>
<p>[smartcode_project:default project_id=94079]</p>

<p>And there are other ways of conducting EOIs</p>

<ul>
<li>EOIs can work via inviting best offers, which means you all put in your offers in writing and the highest wins. It doesn’t always quite pan out quite like that, however, which is where it gets tricky.</li>
</ul>
<ul>
<li>You can also have EOI via a private negotiation</li>
</ul>
<ul>
<li>And of course plenty of EOIs don’t actually sell.</li>
</ul>
<p>We have been involved since last year with another EOI Kay and Burton campaign on a totally different property at around the same $5 million price point – and no resolution has taken place yet. As late as last week we were in discussions across the table with both the seller and the “attempting buyers”. This is not a criticism of the process, this is a fact of life. This last meeting took place on a Saturday evening with directors of James Buyer Advocates and Kay and Burton present – so at least both agents and advocates are still trying.</p>

<p>But wait there is more</p>

<p>These are examples of EOIs conducted by Kay and Burton. That’s just one agency. Other agencies we have been involved, such as Fletcher’s, Jellis Craig, RT Edgar, and Hocking Stuart, operate EOIs very differently again. They all have different methods for EOI and the large majority of them are not in writing.</p>

<p>So in summary, expressions of interest are subject to:</p>

<ol>
<li>Big variances within the agency</li>
	<li>Big variations across different agencies</li>
	<li>Changes in the “rules” as you go through the process</li>
</ol>
<p>If you think this process is designed to be transparent and fair to the buyer then you completely misunderstand the concepts behind the process. Not that this is a criticism; after all, the selling agents are not working for you the buyer, they are working for the seller – and whatever works for them is doing the job.</p>

<p>So why would a seller or a buyer get involved in an EOI anyway?</p>

<p><strong>Seller</strong></p>

<p>Often in a sale – auction or otherwise – there is one standout buyer. Conducting an auction campaign with a skilled lone buyer (or buyers’ agent) doesn’t always get the best result for the seller. An auction works best when there are multiple buyers at a certain level. But because an EOI is not transparent – you can’t see any other buyers in action – and there is no real time limit, that can work well for the seller as long as a skilled selling agent is involved.</p>

<p><strong>Buyer</strong></p>

<p>If the home you want is for sale by EOI you have no choice but to be involved. But hopefully you can read between the lines to see some of the strategies of the buyers who eventually won 22 Rowland and 38 Cochrane. Those strategies were very clear and distinct and planned and well-executed, resulting in the desired result.</p>
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