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

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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A tightening white collar employment market and weaker business conditions for the private sector saw leasing activity in the Adelaide CBD office market sink below the five year average last year.
The latest quarterly Savills Spotlight Adelaide Office market report revealed that 74,697 square metres of leasing activity took place in central Adelaide in the year to December - down 8.1% on 2012 and well down on the five year average of 125,590 square metres.
Of the 74,697 square metres reported leased in central Adelaide, the government and community sector was most active leasing about 45% of the stock reported leased.
Despite a positive contribution from the fringe precinct, overall net absorption across the city and fringe was 4,108 square metres.
Adelaide’s combined office market vacancy rate for the CBD and fringe markets stood at 11.8% as at December 2013. Of the two markets, the CBD has the highest vacancy rate at 12.4%, while the fringe is 8%.
Dissecting the results for the CBD market, Savills said that prime grade stock recorded positive absorption of 20,094 square metres over the period but noted that it was down 14,003 square metres on the previous year.
Secondary grade stock recorded negative absorption of -22,943 square metres. "These figures show that most demand for prime grade stock is coming from within the CBD, with only a small proportion of tenants moving into prime space from other office precincts," said the report.
The city fringe recorded net positive absorption of 2,030 square metres - down on the previous 12 months but up on the five year average of 1,835 square metres.
While Savills is tipping leasing activity to remain subdued in the short-term, it expects tenant demand to improve, predicting positive net absorption to return to the CBD market in the medium term.
Helping to drive that shift in leasing conditions, it says will be the introduction of newly refurbished office space onto the leasing market in late 2013 which "should provide a number of opportunities for existing and new tenants during 2014".
"The next 12 months are forecast to have an increase in lease expiries over the past 12 months which should help drive an increase in leasing activity in central Adelaide."
More stringent rules surrounding mandatory NABERS Energy rating disclosure, it adds, were also likely to have a negative impact on older office space in Adelaide, particularly for properties seeking to attract government tenants.
Average CBD net face rents remained steady in the final quarter of last year - ranging from $310 to $410 per square metre per annum.
Savills said incentives remained steady for premium grade buildings over the quarter due to relatively strong leasing demand. However, A and B grade incentives increased as a result of increased supply and the resulting increase in competition, it noted. 
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Leasing activity in Adelaide CBD market slips below five year average

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GUEST OBSERVATION
With businesses and government organisations seeking improved efficiencies, better technologies and more staff mobility, business leaders are recognising that activity based working (ABW) can have a large and positive impact on both cost efficiencies and improved productivity. Currently, approximately 50,000 employees in Australia work in various forms of ABW, including large corporate organisations like JLL, NAB, ANZ, CBA, Macquarie Bank, Microsoft, Cisco and Suncorp. As large leases expire over the next decade and businesses look to move or renew, ABW will be front of mind and new space take-up is likely to be moderated by 15 to 20%.
ABW is a workplace strategy aimed at providing people with the flexibility to undertake workplace activities in a variety of settings that best suit those tasks. It is designed to foster optimum productivity and streamline the workplace for cost and environmental efficiencies. There are various forms of it, and it’s likely that take-up will remain different for companies based on their needs.
ABW is currently still in its infancy, with the proportion of office tenants already committed to an ABW format still very low. Sydney has seen more tenants embrace the concept than other Australian markets, but this still only translates to a small portion of total CBD stock. 
Many industry participants have enthusiastically embraced the concept and believe its importance and impact on the market will only grow over time. However there also remains some scepticism. As much as non-believers recognise elements of ABW will have a lasting impact on the market, they do not believe the concept will survive long term. Instead, they think it will morph into something else as market conditions change.
From a tenant perspective, the evidence suggests that ABW and space utilisation is currently high on the corporate real estate agenda. According to Jones Lang LaSalle’s recent biennial corporate survey Corporate Real Estate at a Cross roads: Cost vs Value, occupiers surveyed both in Australia and globally point to an increased focus on ABW. Of the 52 respondents surveyed, 76% stated they expected an increased focus on utilisation and density over the next three years.
In Australia, Sydney’s CBD is likely to be the most exposed market nationally to the trend, which reflects the prevalence of finance and insurance tenants in the market and of larger tenants more generally. Survey responses suggested that ultimately between 20 and 25% of Sydney CBD tenants would adopt ABW.
Some survey respondents felt that there was a high risk associated with ABW being implemented purely for cost savings. As such, ABW may be unsuccessful and unpopular if implemented without appropriate change management plans, IT investment or provision of enough common space.
Research shows employees who work in ABW environments feel positive about the new way of working. A separate survey conducted by JLL following our adoption of ABW showed 87% of staff believed (strongly agreed or agreed) the new ABW office design provides an attractive environment to work in and contributes to their productivity.
Regardless of the size of the eventual impact of ABW on the property market, the rate of impact will be relatively slow over a period of 10 to 15 years. As such, this slow steady impact will be relative indiscernible from other market factors over the next decade. While ABW can theoretically be undertaken in older existing buildings, the concept is more compatible with some of the benefits new modern office stock offers. 
Rajiv Nagrath is director of corporate solutions with <a href="https://www.jll.com.au/australia/en-au" target="_blank">JLL</a>.
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Activity based working is here to stay

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<img src="/images/stories/2014/03/12/manuel-profile.png" alt="" style="float: right;">
Name: Jesse Manuel
Position: Manager – rural and agribusiness
Company: Colliers International
Office Location: Adelaide
How long have you been in the industry?
About 10 years. I started in residential real estate in a small country town. Given my farming background I moved to a boutique rural agency in Adelaide before joining Colliers International in 2007 as one of the original start-up members of the Rural &amp; Agribusiness specialisation.
What’s happening in the area you specialise in? 
Consolidation. Many of the well-positioned larger producers and long-standing industry participants with minimal debt have taken advantage of their position, acquiring neighbours and competitors. There is considerable interest in Australian agriculture from Chinese buyers such food companies and major private investors. Institutional investors from Europe and the US are also emerging as an important segment of the buyer market for large scale farming assets.
Describe the most interesting property you have sold?
By virtue of the asset class I deal with, nearly all of the assets seem ‘interesting’ to people from outside the industry. We have sold a vertically integrated oyster business comprising extensive water and land-based operations, chicken meat farms, large scale forestry plantations and country mansions.
What are the ingredients to being successful in your job? 
Be passionate, eager to learn and expand your network, and never ever give up.
What aspects of your role do you enjoy the most?
Dealing with new people and interesting properties on a daily basis, and the thrill of a deal!
Where would invest a spare $750,000?
$750,000 won’t go a long way in commercial farming but I would say the chicken meat sector is one of the best-performing agribusiness industries currently, so that would have to be a consideration. I would also invest in a vineyard in a renowned region such as the Barossa Valley because values are on the way up.
Which football team do you support?
The mighty Adelaide Crows! We’ll make top four this year.
What’s your favourite app or techno gadget?
Google maps.
How do you use social media? 
<a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/jesse-manuel/20/9b5/219" target="_blank">LinkedIn</a> is very helpful in finding contacts within organisations you don’t have relationships with. We also like promoting our deals and sharing research reports with our clients.
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In profile: Colliers International's manager - rural and agribusiness, Jesse Manuel

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The <a href="https://www.tenants.org.au/" target="_blank">Tenants Union of NSW </a>(TUNSW) has warned Australians against forgetting the benefits of the National Rental Affordability Scheme (NRAS) following a News Limited article claiming the scheme is being “abused” by developers.
The Australian yesterday published an article claiming that the Central Park development in Sydney is being targeted towards international students, with the article asserting that the phrase “international student” or “international students” was used almost 50 times. According to the article, the 34 page brochure issued by developers Frasers Property Australia and builders Sekisui House Australia in October 2012 also repeatedly describes the development’s main building as “NRAS advantaged.”
National Shelter executive officer Adrian Pisarki, one of the members of the Affordable Housing Summit Group that helped draft the NRAS is quoted in the article saying that although there is evidence that some international students faced affordability pressures, they were not the intended recipients of the NRAS. The scheme, launched by the previous Labor government in 2008, “seeks to address the shortage of affordable rental housing by offering financial incentives to persons or entities such as the business sector and community organisations to build and rent dwellings to low and moderate income households at a rate that is at least 20 per cent below the market value rent,” according to the Department of Social Services.
Responses to the NRAS is has been <a href="/expert-insights/investing/readers-respond-in-defence-of-nras">mixed throughout the property industry</a>.
But in a <a href="https://tunswblog.blogspot.com.au/2014/03/nras-baby-in-bathwater" target="_blank">blog post yesterday</a>, the TUNSW drew readers’ attention to the scheme’s benefits, writing that although The Australian  has reported that 4,000 units constructed under the scheme are being let to university students, the NRAS has subsidised the construction of 14,500 dwellings. According to the TUNSW, there are another 24,000 dwellings in progress. Although the post acknowledges that the income thresholds required to qualify to let a NRAS subsidised property are higher than those for social housing, the TUNSW claims to know of one community housing provider “who reports that 15% of its NRAS tenants had previously been homeless.”
“There's actually an affordable housing baby in the NRAS bathwater!” writes the TUNSW.
“Would the government throw it out, while its other tax settings do nothing but encourage speculation and make housing unaffordable?”
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NRAS: Don’t throw out the baby with the bathwater, says TUNSW

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From today, lenders will have expanded access to information regarding your credit history. Under <a href="/expert-insights/a-new-credit-scoring-system-how-it-will-affect-you">new privacy regulations</a>, a comprehensive credit report will now include borrowers’ information such as when a credit account was opened and closed, account credit limits and repayment histories. Repayment history information will also include when a bill was due and the date it was paid. Currently, credit reports that are provided to lenders to assess whether a prospective borrower should receive a loan only includes 'negative' information, such as default events. Changes have also been made to the amount of time certain pieces of information may be retained by credit reporting agencies.
The more detailed new reporting system allows lenders to access ‘positive’ credit behaviour. According to some, the reforms will improve transparency, and may aid ‘good’ prospective borrowers who are seeking a loan. However, those with poor repayment histories may be hindered by the new system, and face more difficulties in attaining loans.
Smartline Personal Mortgage Advisers have compiled the following list of what can be covered in the new comprehensive credit report:
<ul>
<li>Information about your monthly repayment conduct (i.e. whether or not you have paid on time) over the past two years can now be reported.</li>
<li>If you apply for credit, the decision (declined or approved) by the credit provider can now be reported.</li>
<li>The current limit on all of your credit cards (and other credit facilities) can now be reported. This also means that if you get a limit increase, this can now be reported on your credit record.</li>
<li>The repayment term and repayment type on all of your credit facilities can now be reported.</li>
<li>A credit provider can now also provide an opinion that you have fraudulently attempted to get credit or fraudulently evaded your obligations to repay credit, or that you do not intend to comply with your repayment obligations.</li>
<li>Credit defaults can be lodged on any outstanding amounts over $150 if you are more than 60 days behind on your repayments.</li>
</ul>
Source: Smartline
According to the Office of the Australian Information Commissioner, the more comprehensive repayment history information will “only relate to payments you have made or missed from December 2012. Then from March 2014, licensed credit providers can pass your repayment history information on to credit reporting bodies.” Information on repayments cannot be held for more than two years after the payment's due date.
Credit providers have begun updating their terms and conditions to reflect changes to the Privacy Act, with the Commonwealth Bank notifying customers today that its property policy has been adjusted to reflect how the bank will now collect and exchange customers' information.
 
 
<hr class="system-pagebreak">
 
According to Michelle Hutchison of comparison website <a href="https://www.finder.com.au/">finder.com.au</a>, the new reform is a move towards "risk adjusted lending."
"Currently, interest rates are generally based on single pricing (particularly home loans), which averages an interest rate based on the lender's experience with good and bad borrowers. With access to more information about borrowers, lenders can use a risk adjusted model to base interest rates on more of an individual basis," said Hutchison.
She warns that borrowers should prepare themselves for the impact of the new credit history system, listing the following possible impacts:
<ul>
<li>[A] risk adjusted model could mean people will receive higher interest rates than the former model if they are deemed to have bad credit. For instance, borrowers will be exposed to higher rates being offered if they have high credit limits which they don't use or can't afford in the eyes of the lender.</li>
<li>With a risk adjusted model, it could lead to potentially more predatory lending, which lower income borrowers with poor credit files are most at risk</li>
<li>In the US, banks advertise rates based on 'excellent credit' which is something Australian lenders could adopt. This could make interest rates even less transparent for borrowers who don't know their credit file status</li>
<li>Interest rates available could widen: currently variable interest rates start from 4.49% by <a href="https://loans.com.au/" target="_blank">Loans.com.au</a> and range up to almost 9 percent. We could see this range widen if lenders label borrowers as higher risk</li>
<li>More aggressive marketing: lenders will capture more data about customers and can use this to market their products. They will be able to see what products applicants applied for in the past, amount of credit they applied for, credit limits, date account were opened</li>
<li>Reselling information: in the US, it's reported that major credit reporting agencies report detailed information about individuals' credit accounts</li>
<li>Less privacy: with more data being captured, there's more risk of security breaches and accuracy</li>
</ul>
As the new reforms are introduced Financial Counselling Australia is urging individuals to seek out their credit report. While credit reports can be accessed for free under the new scheme, but the organisation claims that major reporting agencies are obscuring borrowers' option to access free reports. 
Financial Counselling Australia says that although the new code requires credit reporting agencies to make the free report option as available and easy to access as the fee based service, Australia's two largest credit reporting agencies, Veda and Dun &amp; Bradstreet prominently promote their fee based reports on their websites, but finding information regarding the free option is more difficult. 
For more information on the new comprehensive credit reporting system, see the Office of the Australian Information Commissioner's <a href="https://www.oaic.gov.au/privacy/privacy-resources/privacy-fact-sheets/credit-and-finance/privacy-fact-sheet-16-credit-reporting-repayment-history-information" target="_blank">website.</a>
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Lenders will have more information about your credit history from now on

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LandCorp and Lend Lease have announced the launch of redevelopment project The Playground, a 4.16 hectare site that will see buyers chosen through an electronic random selection process.
The project, called <a href="https://www.theplaygroundcoolbellup.com.au" target="_blank">The Playground</a> after its previous use as former North Lake Primary School in Coolbellup, has already seen hundreds of expressions of interest and offers 54 lots ranging from 275 square metres to 448 square metres.
The first release is expected for April, with the electronic process to sort through interested buyers.
The Primary, the redevelopment of former Coolbellup Primary School site by the same developers, saw strong demand that is expected at The Playground as a result, said LandCorp general manager metropolitan Luke Willcock.
There was a sell out of land in The Primary during 2013.
“We expect significant demand for the land at The Playground following sales at The Primary. An electronic random selection process is the fairest method to ensure all interested purchasers have the same chance of buying in this popular area,” he said.
Lend Lease general manager of communities in Western Australia, Anthony Rowbottam, said that the design will blend into the Collebellup community.
“The name of the development is inspired by the children's playground that was central to the former North Lake Primary School. The Playground will deliver amazing play and exercise spaces, facilities and parks, delivered through the evolution of the site," said Rowbottam.
The outdoor focus of the site is set to be extended in conjunction with community feedback. Current features suggested include a fitness trail with exercise equipment through the public open sapce, walkways and play areas.
“We are delivering an innovative product that will offer a range of high quality homes to meet many different lifestyles and budgets,” Willcock said.
“The Playground will showcase innovation in planning and design by developing new homes and amenities in harmony with an established suburb, just as we successfully did at The Primary.”
For the latest development listings, brought to you by Property Observer and partners, see our <a href="https://showcase.propertyobserver.com.au/" rel="nofollow">Investor Showcase</a>.
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Redevelopment project The Playground launched in Coolbellup, WA

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A former Westpac Bank home finance manager has been banned from engaging in credit activities and providing financial services by ASIC after he had allowed elderly, disabled and other vulnerable people to access loans they would be unable to repay. This was for his own financial advantage.
David St Pierre, of Mount Nathan, Queensland, has been given a permanent ban. He was a home finance manager at Westpac from September 2000 to April 2011.
An investigation into St Pierre found that, between July 2008 and June 2010, he engaged in the following:
Submitting loan applications for approval that he was aware included false information. They were supported by falsified documents.
Failing to prepare an authority accurately identifying the payee of a cheque. This resulted in a customer's cheque for $215,000 being paid into a personal trading account of non-office holder of Capital Growth International Club Pty Ltd (CGIC). During his Westpac employment, he was involved in providing loans to All About Property Developments Pty Ltd (AAPD), which is the real estate arm of CGIC, for part of a property development scheme.
Enabling and encouraging customers to borrow funds, from Westpac, despite knowing they would be unable to repay the loan if the scheme failed. This included loans to the elderly, carers and those suffering from disabilities. He earned a financial benefit from these arrangements in the form of cash bonuses on the loans, which were additional to his salary. ASIC notes that there were 12 customers under this section, who had limited financial means.
Despite this, St Pierre encouraged them to borrow against their homes, some of which were owned oturight by the customer, and to invest in a scheme promising returns of 15% to 25% per annum to investors. These customers received monthly payments from the scheme, however these stopped just before a liquidator was appointed to both CGIC and AAPD in February 2011. This left them without enough income to repay their Westpac loans.
ASIC commissioner Peter Kell said this misconduct was very serious in nature.
"ASIC will ban people from the finance industry who act dishonestly and place personal interests ahead of those they service. Mr St Pierre's actions exposed vulnerable members of the community to severe financial loss and hardship," said Kell. ASIC acknowledged Westpac's cooperation in the matter, and said that they had been working to compensate the customers appropriately. This is ongoing.
St Pierre has the right to seek review.
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Former Westpac home finance manager banned after preying on the vulnerable

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I’ve said it time and again that the residential investment property is a long-term proposition. The property market takes around seven to 10 years to move through a full cycle, from low capital growth/high rental yield to high growth/low yield and back again. 
Despite this, many property investors choose locations and property styles with little potential to survive and thrive throughout market fluctuations. Some investors choose locations that lack the long-term underlying demand to drive capital growth, while others choose property styles that don’t reflect trends in the way people want to live. 
In other words, the property investment decisions that look good today may not prove so attractive in five, 10 or 20 years’ time. It’s essential to understand the nature of long-term economic and demographic trends, then select assets accordingly. 
Interest rates rise and fall, but in the long term, dwindling oil reserves and rising petrol prices will be a key economic trend influencing the property market. In the coming years, rising prices at the pump will make outer-suburban living and commuting less feasible and less appealing. This will curtail the urban sprawl and increase demand among home buyers for property in the middle suburbs close to public transport corridors, shops and schools. 
At the same time, rising property prices in the inner and middle suburbs will put home ownership beyond the reach of more Australians, or at the very least, delay it significantly. Figures from the Bureau of Statistics tell us that the proportion of households renting from private landlords in Melbourne has increased from 22.8% in 2001 to 27.2% in 2011. Almost 32% of Sydney’s property market is inhabited by tenants. 
The increase in tenant demand is not unique to Australian cities. Major global cities such as London and New York have 50% or more of their property tenanted. I am not suggesting we are a London or New York just yet, but we are following a similar path, and there’s every reason to expect that this trend will continue.
Because many tenants want to maintain the trappings of an urban lifestyle, the trend away from home ownership will increase demand for rental properties within walking or short driving distance from trams, trains, shops, cafes and entertainment precincts. For those who can afford to buy, these areas will also be their preferred choice. This two-pronged demand from home buyers and investors will further boost capital growth prospects in the inner and middle suburbs. 
Delaying having children is another trend set to influence the residential market well into the future. The median age for parents is 28.9 for women and 33.1 for men, and women currently have an average of 1.9 children, compared with 2.8 in 1981. 
This trend has resulted in the average number of people per house almost halving over the last 100 years from 4.5 in people to 2.6. In addition, single-person households have jumped from 22.9% to 24.4% over the last 10 years. 
The shrinking size of the family unit means that demand for low-maintenance, compact dwellings will increase, while demand for the conventional sprawling home on a quarter-acre outer-suburban block will soften. 
When you look at all these trends in their entirety, it’s clear that pockets of the middle suburbs close to public transport, shops and schools will provide feasible long-term opportunities for residential property investment, particularly for investors who have been priced out of the tightly held inner suburbs.
This article first appeared on Property Observer in November 2012.
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Current trends can point to the best places to invest in the future

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Median prices are an often discussed dollar figure that many use to determine growth across markets or to mark down changes. However, it may not be as simple as you think.
If you want to quickly have a look at the median price in an area that interests you, as well as the recent changes in this figure, you can search your suburb here.
Here are four easy things you must know about this number if you're reading about it, or intending to use them as a gauge for market performance.
1) How to determine the number
Firstly, it's worth knowing how median prices are determined in the first place. The Real Estate Institute of Victoria's Enzo Raimondo previously provided us with <a href="/expert-insights/investing/how-to-determine-the-median-house-price">this quick guide to working the figure out</a>. While, usually, you will rely on a data provider to give you the latest statistics, it's important to understand how they are put together.
"The median value is the middle price in a series of sales, where half of the sales are of lower value and half are of higher value. For example, if 15 sales are recorded in a suburb and arranged in order from lowest to highest value, the eighth sale price is the median price," explains Raimondo.
To get an understanding of how this works, compare it to other measures such as averages and means. The mathematical median is not the same as the average - which is all the prices added up and divided by the total number of sales - nor the mean, which is another word for average. The mode is the number within a set that occurs most often. Median prices in property are based on the homes that have recently transacted, and are most often divided into units and houses.
2) A sudden increase in median is not an increase in capital gains
While median prices are a useful tool for understanding the price changes within a suburb - notably, when growth happens or declines - a 10% increase does not necessarily mean that your property is worth 10% more.
In fact, your property could have dropped in value during this time. What it does reflect, however, is activity in the market. Consider what would happen to the median price if, for instance, a number of multi-million dollar homes came onto the market at once, a new development was created or if first home buyer activity surged into a suburb.
You will need to look deeper into the sales that did go through to really understand what this activity is - are stale listings being chewed through or are new properties coming online? What is the difference in the data set between the last two months? Having a look at the types of properties that sold the previous month compared to the new record can be very helpful - you might notice that those selling last month were primarily four bedroom brick houses, where now they are two bedroom fibro houses. This may suggest that the downturn in price isn't a sign of your property's value tanking.
Despite it not necessarily being an indication of capital growth, what it can lead you to discover is often far more powerful - significant changes in an area. This could include blocks suddenly subdivided or opened up to different zoning, or new supply coming online.
3) Median prices mean more in some areas than others
Certain areas will see their median price statistics working out to be more useful and meaningful than others in determining growth. For instance, suburbs where the properties are largely homogenous, that is with similar numbers of rooms, layouts and block sizes, are likely to see the median price as more of a reflection of value. And suburbs where many properties transact on a regular basis will also be more statistically reliable than tightly held areas where a home may only sell once every 10 years and each is significantly different from another.
Similarly, some suburbs are far too large for the number to be meaningful - with good and bad sides that don't perform the same.  Some investors will rely on median price changes at a state or city level that may not be specific enough for some of the more important applications.
4) The statistics are best looked at over a longer period of time
Lastly, and importantly, median prices are more useful when viewed at over a longer time frame and not at over a month to month period. This helps you to truly get an understanding of growth and the area's performance. Spreading out the data set by time periods can help iron out some of the unusual activity in certain months and quickly point to where the outliers in the data are.
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Four things to know about median prices

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As August moves closer and <a href="/news/nsw/changes-to-nsw-strata-laws-delayed-after-stakeholders-demand-more-time">NSW strata laws look to be revised</a>, there has been much coverage of one controversial proposed change in particular. This is around a proposed law to require that only 75% of strata unit owners in a block need to consent to its demolition, compared to the current law that states 100% of strata unit title owners that must consent to the block being sold to a developer and demolished to make way for a new construction.
The proposed change will include guidelines to ensure that any unit owners not wishing to sell, but are the minority in disagreement, will be as comfortably compensated as possible and assisted with relocation within their new area. Even if the proposed change does not get passed it is interesting to see such a change to strata unit laws being put forward.
The significance of this change is really quite reflective of the scarcity and expense of land in the Sydney metropolitan region. The Department of Fair Trading is really thinking ahead with this proposed law change with a shift towards building ‘upwards’ versus ‘outwards’ – more apartments and units versus detached houses. It’ll effectively make it easier for developers to scoop up older unit blocks, demolish and redevelop them to make newer, prettier and higher density blocks.
Opinions have been heavily polarised by both industry experts and everyday Australians across blogs and news articles commentaries. So I thought I’d sum-up of the more significant community perspectives – both positive and negatives – on this proposed law.
<ul>
<li>Negative – Developers profiteering from artificially increasing suburb median unit values</li>
</ul>
The role of developers in acquiring these older blocks for demolition will always focus on their own profitability. Should a suburb see substantial knock-down-rebuild developments go up, prices may artificially increase and some existing area citizens may be pushed out of the postcode entirely.
<ul>
<li>Positive – Can encourage a more efficient use of well-located land space</li>
</ul>
Some argue that Sydney runs the risk of becoming like Los Angeles where the urban sprawl creates havoc for commuting and the overall liveability for metropolitan citizens. Sydney has an inefficient road network/design and does not offer the public transport connectivity across the metropolitan area that cities like Melbourne and Brisbane do. Encouraging higher density re-purposing of existing land spaces could help to curb this.
<ul>
<li>Negative – Overseas investors may create ownership monopolies</li>
</ul>
This could have serious consequences for the cost of living for Sydney unit renters. If it becomes easier for older blocks are to be redeveloped with greater unit density and these become open to foreign investors from day one, off the plan. Some opponents suggest overseas investors may create strangleholds on certain suburbs and this could again artificially increase both unit values and rental asking prices in these suburbs.
<ul>
<li>Positive – The 25% of unit owners in opposition could benefit more than they realise</li>
</ul>
If this law is passed, it’ll mean that unit owners and strata managers will need to work more closely together when tabling developer offers. Those who are resistant to selling out to developers may benefit from the groundwork done by the 75% of owners who are for it. All offers would need to be meticulously investigated both in terms of fair price and sellout gain potential, but also the risk of not selling out sooner and having less flexibility later on.
One example of this is if a developer was interested in two blocks side by side so they could redevelop the site into one large development. If the neighbouring block wants to sell and your block does not, the dual sale won’t go ahead. However, the non-selling block may suffer because future developers can now only develop one of the sites as opposed to two. Future offers may not be as great. In these situations, the 75% who want to sell can highlight the higher gain potential of selling now versus later to the 25% against it.
<ul>
<li>Negative – Where can the 25% who are forced out, afford to live?</li>
</ul>
Opponents to the 75% majority will be forced to sell regardless. If they are owner-occupiers and wish to maintain a similar lifestyle by living in the same postcode, they may lose out. It is likely that many blocks in that area are also being bought out, meaning there is less rental stock or affordable older stock for sale, that this 25% can find for a new home. Prices would increase due to the scarcity of stock available and the 25% may be in a worse financial position than staying where they are.
<ul>
<li>Positive – Replacing blocks with higher density could promote better infrastructure in an area</li>
</ul>
Some argue that if this law is passed a postcode may then experience a few years of mass knock down rebuilds which will make for a higher population coming in to a postcode. The local government will be capturing more council rates and spending it on the same geographic area of projects. This could result in upgraded sporting grounds, parks, libraries, and public schools, community halls and community/local disability programs; thus improving services and facilities for everyone in these postcodes.
<ul>
<li>Negative – Say goodbye to strata cost affordability</li>
</ul>
Even if an unwilling unit owner sells their unit and finds something in a newer block that they can afford based on the payout sum offered for their current unit, they may still struggle. This is due to strata costs. In my experience older blocks, even with their sometimes expensive maintenance costs, still offer strata fees much cheaper than newer blocks. Older unit owners often pay in the realm of $300 – $800 in strata quarterly, versus newer blocks which are typically $1000 – $1500 per quarter. Pensioners and older Australians who are not working full time could suffer, because whilst they may have no mortgage overhead any more, they may struggle to repay higher strata costs each quarter.
As for my view on the law: I do not have one yet. Currently the proposals are still only speculation and it will be interesting to see if the law is passed and what the final parameters will look like. 
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