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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Huang Shannian, a Chinese billionaire, was foundation chairman of the Zhouji Group, which became one of the top 20 shipbuilders in the world.
But in 2009 the Zhoushan Jinhaiwan Shipyard Co Ltd executive was queried by the CPC Central Commission for Discipline Inspection accused of constructing docks without National Development and Reform Commission approval.
Huang Shannian had been on the Huran Richest Chinese People 2008 list in 128th place, then in 2009, he ranked as the country's 88th-richest person, at 8,000,000,000 yuan in fortune. That was around A$3.5 billion.
But within a month of the list's 2009 publication, Huang Shannian, born October 1962, disappeared from public view.
Perhaps until now.
Last month Sydney's mystery purchaser of the $17 million penthouse in the Residence apartment complex over looking Hyde Park emerged as a Huang Shannian.
And Title Tattle can't but tempt the irresistible conclusion that they are the same tycoon, especially as the Sydney Huang Shannian directed an ASIC registered company, Zhouji Investments (Australia) Pty Ltd which was established in 2005.
He too was born in October 1962.
Title Tattle notes he has owned an apartment in Meriton's World Square since paying $1.3 million in 2006, with Min Lu, who was born in Zhejaing China.
Lu directs a series of companies under the Austino name which have invested at least $45 million in shopping centres, residential projects and offices. Min Lu and Zhou Ji Pty Ltd are behind the Austino property development group in Sydney.
But would such a high ranking Chinese tycoon really take a Westpac mortgage on the $17 million apartment?
The Sydney Huang Shannian did so, signing his name in Chinese (see below) with Jimmy Siu as his eligible witness. His lawyer was Derek Xu in the stamped signed paperwork showing the $1,130,000 stamp duty.
<img src="/images/stories/2014/03/06/signature-march-6.jpg" alt="signature-march-6" width="470" height="282">
And did he really operate initially out of a West Pennant Hills house on Mungarra Place when he first came from China? Title Tattle expects the answers will come from the cn internet chatrooms.
What makes Title Tattle really want to believe they are one and the same is the apartment was expressly marketed as number 88.
That's a lucky number hopefully even for Huang Shannian who in buying the penthouse would have bounced back quite nicely from the loss of his 88th place Huran rich list status.
 
<img src="/images/stories/flagtitletat.jpg" style="float: left; margin: 5px;">For a while in 2011 <a href="https://www.propertyobserver.com.au/residential/heather-ridout-%E2%80%93-now-on-the-reserve-bank-of-mosman-%E2%80%93-has-ridden-out-recessionary-downturns-title-tattle/2011120952768" target="_blank"> there was premature speculation</a> that Judith Neilson, the founder of the White Rabbit Collection, one of the world's most significant collections of Chinese contemporary art, had bought the penthouse. But it was not to happen.
Title Tattle wrote the sale of the penthouse of The Residence had become akin to pulling a rabbit out of a hat. The initial premature Australian Financial Reveiw September 2011 sale report even suggesting a very bullish $25 million. 
Back then Title Tattle envisaged any sale price as more likely to be somewhere around $18 million for the 810-square-metre two-level penthouse – known as apartment 88 at 18 College Street.  
The initial $25 million expectations purely came from when the penthouse was marketed to offshore Chinese buyers who the Australian developers hoped would pay a premium for the lucky number. 
There's no doubt the Hyde Park precinct, on the green fringe of the central business district, ranks among Sydney's priciest addresses. This 24-level Scott Carver designed College Street building – the gutted former NSW Police headquarters – has 87 five-star apartments with views across Hyde Park, the Opera House, St Mary’s Cathedral and Sydney Harbour. 
The facilities include a gymnasium, all-weather lap pool, sauna, spa and steam room, a residents’ lounge with a fully equipped kitchen and barbecue area and a 24-hour concierge service.The development also features a lockable, humidity-controlled wine room that can store a 100-bottle wine cellar for each resident.
The $350 million CBD tower was developed by Parmada in a venture with AMP Capital Investors, Galileo Group and Cbus Property, with the the sales through CBRE, Savills, Christie's International, Laing Real Estate, and Pagdens. The $17 million  sale of the Sulman penthouse was brokered through Nigel Napoli at Savills Residential Projects, according to the only offiicial comment to emerge from the sales network.
The lesser three-bedroom Archibald penthouse (pictured bewlow) in The Residence apartment tower remains on the market through CBRE.
{yoogallery src=[images/stories/2014/02/14/hyd]}
The last remaining penthouse in the complex comes with 690 square metre space designed by Sydney-based architectural firm Scott Carver with attention paid to its environmental efficiency. It was pulled from recent auction.
 
<img src="/images/stories/2013/08/511515.jpg" alt="511515" width="470" height="555">
<img src="/images/stories/flagtitletat.jpg" style="float: left; margin: 5px;">
It's not the first time there's been unravelling knowledge about the status of high ranking Chinese buyers of Sydney property.
Back in 2008 a Wolseley Road, Point Piper property sold for $32.4 million property.
Set high on a hill, above a towering sandstone wall and overlooking Sydney Harbour with picture postcard-perfect views of the bridge, Craig-y-Mor, the Point Piper non-waterfront residence  purchase was made just in the name of Jiang Mei.
Quietly during 2009, the name of the Wei Zeng was subsequently added to the title.
By late 2009 the couple were seeking its demolition, to be replaced by a $5 million new home, so they were both named for the first time in my much anticipated end-of-year Sydney Morning Herald Title Deeds Christmas party column.
Soon after the <a href="https://www.propertyobserver.com.au/residential/point-piper-on-the-chinese-tourist-route-for-insight-into-the-privileged-lives-of-communist-party-princelings/2011112852568" target="_blank">Chinese internet chat rooms had drawn the stunning conclusion</a> it was owned by a son of a former vice-president of China and his wife, Jiang noted for studying at the Beijing Dance Academy.
The proposed demolition hasn't taken place. But the buses of tourists from China seeking an insight into how the families of their leaders have made it in the outside world occasionally drive past. Title Tattle guesses College Street will soon be added to the itinerary.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
                        
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jchancellor-FAypfDUnLy

Chinese riddle unravelling over the lucky penthouse 88 in Sydney's The Residence

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QANTAS is dominating the headlines with results that are as bad as many expected, but nobody wanted to hear. Discussion has inevitably turned to how to save the airline, with the PM controversially advocating removing the restriction on foreign ownership of the airline. It is a debate that feels eerily familiar and I fear has no easy conclusion.
The connection between aviation and property isn’t immediately obvious, until you consider the heated debate that rages whenever the prospect of ‘foreign ownership’ looms large.
In real estate emotions run hot whenever reports emerge that Chinese buyers are outbidding Aussie mums and dads, driving domestic property prices out of reach of the masses. It seems that same level of emotion is bubbling around QANTAS, Australia’s national airline.
I have no problem with national pride and a desire to retain national assets, except often emotion and reality collide.
In property vendors are always seeking the best possible price. Naturally. In the global market these days there is a good possibility that might mean selling to an overseas investor. Let’s be clear -  I have never had a vendor stipulate the sale must only be to an Australian national.
In aviation travellers want to fly with an airline that is safe and inexpensive. But the reality is global competition has delivered a wide selection of airlines delivering equivalent service and safety to QANTAS. How many of us choose QANTAS because it is our national carrier if there is a more affordable alternative?
Perhaps that’s why the push is for governments to impose restrictions and regulations to restrict foreign ownership.  It removes the need for individuals to make those decisions.
Ewan Morton is managing director of the Sydney based <a rel="nofollow" href="https://www.mortonandmorton.com.au/" target="_blank">Morton &amp; Morton</a>. 
                           
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emorton-DecMjPQt5h

Domestic or international? The parallels between QANTAS and property

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More and more parents are helping their children get a kick start in the property market. This trend threatens to continue the upward trajectory of the market and make it almost impossible for average income earners – especially younger property seekers to buy their own homes with a kick start.
Late in 2013, I saw stories of parents buying their children properties outright. When asked why, they responded that the market will only get worse. If they don’t buy now, their child may never be able to afford their own house.
A property lawyer’s reasons for buying an apartment for his son’s sixth birthday were similar; even though the market is hot at the moment, there is a strong belief that the market will become ever more pricey.
Considered from another angle though; doesn’t this belief and such actions further drive up the market? If this trend continues, it is conceivable that only the children of high-income earners will be able to enter the market in areas of close proximity to the city.
The upward trajectory is not the only force behind this trend; the NSW government’s scrapping of the first home owner’s grant in favour of the first home – new home grant has also made it difficult for average income earners to enter the market around existing infrastructure.
Under the new scheme, grants are given to purchasers of new properties and those buying plots of land with the intention of building. The intention has been to promote investment in new developments. Since foreign investors are legally only able to purchase new developments, the competition is high. Many first home buyers are subsequently being forced out of the market.
Aside from buying the property outright or jointly, parents are helping in several ways. Some buy the house and rent it out to their children, who then effectively pay the mortgage repayments. Others help by providing guarantor support with either their home or help with the deposit.
I’d recommend entering into a written loan agreement to be protected via a second mortgage or caveat, so that in the event their child’s relationship with their spouse/partner breaks down, there is some protection for them.
Many others help by gifting or loaning their children the money for a deposit. Again, for protection, I’d recommend entering a binding financial agreement to ensure the gift or loan is repaid if the relationship fails.
What happens to those without parental support? If this trend continues, as it probably will, average income earners in search of their first home will struggle. They will most likely have to look to areas outside of Sydney, and continue to be pushed away from areas of employment and convenience.
Robert Projeski is the founder and managing director of <a href="https://www.amo.com.au/" rel="nofollow" target="_blank">Australian Mortgage Options</a>, winner of over 12 industry awards.
                                  
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rprojeski-4QFJisNwt8

How Baby Boomers support is becoming their baby’s boon

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A free trade agreement between Australia and China appears to be a step closer, after Chinese Premier Li Keqiang said his government would seek to “accelerate” an agreement with the Australian government.
Li made the comments during a speech to the Chinese parliament this week, in which he said the Chinese economy will grow at around 7.5% this year, according to reports in <a href="https://www.afr.com/p/world/li_warns_of_china_pc_growth_pains_w8xcQEDh7FTYwSsyDb7aPO" target="_blank">Fairfax</a>.
He also said China will look to speed up free trade agreements with South Korea and the Gulf states.
However, Li give no timeframe for the signing of an agreement, which would allow imports and exports to enter each country without paying duties.
An Australia-China free trade agreement has been in the works for more than nine years and Prime Minister Tony Abbott has previously said he is aiming to secure a free trade agreement with China and Japan <a href="https://www.smartcompany.com.au/growth/export/35043-crossbencher-s-bill-could-scuttle-china-free-trade-agreement" target="_blank">by the end of 2014</a>.
Peter Mace from the Australian Institute of Export told SmartCompany Li’s comments are a “positive sign” ahead of Abbott’s scheduled visit the China in April.
But he says “there is still some water to go under the bridge” before the parties can reach an agreement and it is unlikely that an agreement will be secured anytime soon.
Nevertheless, Mace is “hopeful” a deal can be nutted out by the end of the year.
Mace warns there are “still some sticking points” that will be need to be addressed for an Australia-China free trade agreement to proceed, including improved access to investment in Australian firms for Chinese companies and access to the Chinese agricultural market for Australian exporters.
He says based on the New Zealand experience, where agricultural exports to China rose “exponentially” after the country signed a free trade agreement with China, an Australian agreement presents significant opportunities for Australian companies.
University of New South Wales economics professor Tim Harcourt <a href="https://www.smartcompany.com.au/growth/export/32734-free-trade-agreement-back-on-the-table-with-china---good-news-for-smes" target="_parent">previously told SmartCompany</a> a free trade deal would make trading with China easier for Australian SMEs.
“Small and medium-sized enterprises are now more likely to go to China and south-east Asia than anywhere else in the North Atlantic,” said Harcourt.
“Opportunities exist particularly in regards to the urbanisation in China, which is opening up opportunities for architects and construction and services firms.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.     
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cwaters-YrtBR88nBe

China seeks to “accelerate” free trade agreement with Australia

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Technology company AWA Limited is up for sale after collapsing into administration last week.
AWA Limited services the technology needs of businesses and its website claims “where there is technology infrastructure that needs to be installed and maintained AWA will be there making it all work.”
The tech company started operations in 1909 as a radio manufacturer and radio broadcaster, but in recent years has focused on providing technology services to major businesses and government organisations.
It began as Australasian Wireless Limited, a Telefunken wireless agent, and since then has grown to employ 240 staff with a network of regional agents in over 700 locations around Australia.
It fields 15,000 service calls a month and 40,000 inventory transactions with a blue chip customer base which includes Flight Centre, Dimension Data, HP and NEC.
The business has been placed for sale by Andrew Spring and Roderick Sutherland of Jirsch Sutherland who were <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/34976-the-20-most-notable-collapses-of-2013">appointed as receivers</a> on February 28, 2014.
“We are continuing to seek expressions of interest in respect to the sale of the business/assets of the company,” Spring and Sutherland said in a sale advertisement placed today.
AWA Limited was placed in administration last week with Philip Carter, Daniel Walley and Alan Walker of PPB Advisory appointed as administrators.
Carter told <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-02-26/awa-appoints-administrators-after-105-years/5285602?section=business">ABC radio</a> that AWA's board had "run out of time" and "run out of options".
"The company was either about to become insolvent or already insolvent, so in this case they have acted at a time when it looked like they were shortly to become insolvent."
Expressions of interest in buying the business are open until March 10, 2014.
Jirsch Sutherland and PPB Advisory were contacted for comment but failed to respond prior to publication.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
                             
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Tech company with 240 staff collapses after 105 years

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If there’s one thing which this country doesn’t have a shortage of it is property schemes and ‘gurus’ who promote these schemes to the vulnerable property investor. The defence housing scheme and National Rental Affordable Scheme (NRAS) now has competition from another scheme.
This scheme is sweeping places such as Sydney, Adelaide, Perth and Ipswich. It’s the granny flat (yes, the granny flat!); the next epidemic that will give plenty of property owners grey hair.
The logic of the granny flat goes like this: “Pick an area where the local government zoning permits granny flats, buy a house, spend $100,000 to build a granny flat on it, rent out both properties, and bring in a double-rent bonanza!”
Clever, right? Wrong!
I see it a lot where property investors get caught up in the higher than normal rental return of a property at the expense of the ultimate potential for capital growth. Don’t get me wrong, the rental income has importance however let’s not lose sight of why we are actually investing. For a majority of people, they invest so that one day they will have the financial freedom to exit the workforce with an income stream that will give them a significantly better lifestyle than they’d get on a taxpayer-funded pension.
At first glance, you’d think a granny flat with its capacity to bring in more rent from one property would be the perfect way to ratchet up those retirement funds. How close will you be to retiring by owning a property that is cash flow positive to the tune of (say) $2,000 per annum? How many granny flat properties will you need to acquire in order to sail the Bahamas? And, how will you fund future dual-living duds like this?
Sure, the granny flat property will grow in value over the years, but its growth will be directly influenced by the buyer demand for it. And this is where the rubber really hits the road.
Think about this scenario logically: who wants to buy a granny flat property? It has to be a buyer who doesn’t mind someone else living in their backyard and the various annoying behavioral traits of each new tenant. That buyer probably is not a young family, a baby boomer, or a young professional couple.
Most often, granny flat properties only appeal to investors. The number of owner-occupiers choosing a granny flat property over any other more conventional home is minuscule. According to the latest Census data, only 25% of all properties are investor-owned. So, to invest in a granny flat property is to sink a heap of money in to an asset with a very small basket of future buyers and to ignore the much bigger basket brimming with first home buyers, renovators, upgraders, downsizers and investors (75% of the market actually)!
Granny flats fall under Propertyology’s category of ‘specialised properties’: properties which only appeal to a very select population segment. These properties have lower demand than a more conventional property.
There’s been a rise in the number of property valuers not supporting purchase prices for properties with a granny flat. Spending $100,000 to build a granny flat on an existing detached house block rarely adds an extra $100,000 in value. Why? Because granny flats aren’t pretty and there are far less teetotalers than willing grannies (buyers).
There is a growing number of ‘property consulting’ companies out there spruiking new houses with granny flats on them to investors. With the gift of the gab and more glossy brochures than you can poke a stick at, these are often the same ‘consultants’ who ran out of NRAS stock and / or are suddenly struggling to make a buck from selling defence housing.
The extra rental income isn’t everything that’s it made out to be either. There is often a longer vacancy period between tenants because a lot of people are turned off at the thought of having a stranger live in their backyard. And those tenants who are interested will demand a lower rent. Property management and letting fees will be applicable to each dwelling and there is increased potential for tenant conflicts.
Banks have a more conservative credit policy for granny flats. When assessing a borrower’s affordability banks will often significantly discount the potential rental income. They often will also limit the amount that they will lend against granny flat properties. Think about why banks would do this.
If you are still um-ing and ar-ing about whether the cash flow positive granny flat is an ideal strategy for stopping work one day, think about this:
Property investor ‘A’ and property investor ‘B’ both have $500,000 to spend. Investor ‘A’ spends his money on a specialised property while investor ‘B’ spends hers on a conventional property. 10 years pass and the conventional property has grown in value in line with the broader Australian market at 6% a year and will then be worth $895,000. The smaller buyer pool for the specialised property has resulted in an increase in value by 4% a year for an end value of $740,000. It’s not rocket science figuring out which property will make a bigger contribution to that retirement nest egg.
On the surface, the dual rental income creates an allure that granny has become youthful again. But, take off the rose-coloured glasses and you’ll discover that, beneath all that botox and bottled-blonde hair is the genuine granny. My advice: keep your granny, but ditch the granny flat. It’ll save you years of grey hair!
Simon Pressley is managing director of <a href="https://www.propertyology.com.au/" target="_blank">Propertyology</a>, a full-time property market analyst, accredited property investment adviser, and the REIA's Buyer’s Agent of the Year (2012 and 2013).
                                     
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spressley-sBoeMhannA

Keep granny, ditch the flat

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Saving
Household saving ratios have been high since the financial crisis, but data out yesterday from the Australian Bureau of Statistics showed that at last people may be gradually opening their wallets again.
Retail sales data will provide us with more evidence.
There is a bit of a lag in the Reserve Bank's Chart Pack figures, but let's see what we can deduce.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Household Saving Ratio graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/5tr-hhsaving-small.gif?accessed=2014-03-05-20-18-31" height="282" width="320">
Sill elevated, as compared to the levels seen over the last two decades, but low interest rates should see Aussies starting to loose the purse strings a bit.
Building approvals
By the time next month's charts are in the total residential building approvals data will show approvals at their highest level in a decade.
A good thing or a bad thing?
A great thing for the economy.
And for housing prices? Well, we'll get an oversupply in pockets, of course.
But nationally?
The Digital Finance Analytics blog attempts  <a href="https://www.digitalfinanceanalytics.com/blog/how-big-is-the-property-demand-supply-gap/" target="_blank">here</a> to  explain the shortfall in our construction and concludes we need to more than double dwelling construction to meet demand.
I'm not sure about the exact nature of the conclusion, since different cities and regions have different demands and requirements.
But with the population growing at 400,000 per annum and household sizes far lower than they used to be then, yes we desperately need to get more building supply, and quickly.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Private Residential Building Approvals graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/5bl-privbapp-small.gif?accessed=2014-03-05-20-18-31" height="257" width="320">
Household finances
The third chart below on household finance shows the first signs that household debt levels as a percentage of disposable income - which have been flat or falling slightly for the last nine ears - may again be turning up, just a slight notch.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Household Finances graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6tl-hhfin-small.gif?accessed=2014-03-05-20-18-31" height="286" width="320">
Housing loan approvals
Housing loan approvals are by aggregate dollar value are heading to the moon, blasting through the $20 billion barrier and heading well beyond.
It's property market boomtime.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Housing Loan Approvals graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6br-hla-small.gif?accessed=2014-03-05-20-18-31" height="256" width="320">
Dwelling prices
Prices are heading sharply upwards in all major capital cities except for Adelaide.
The red line indicates that some regional markets must have picked up also, although this is best judged on a region by region basis.
Sydney property market commentary over the years has morphed from crash, to bust, to a bull trap and then to a slow melt. But finally there seems to be an acceptance of what we forecast here long ago: we're into a sharp property upturn, with very little stock on the market.
In our estimation the cost of production was too high for this to be otherwise and only now are we at last seeing any meaningful supply response.
In the future I'll look at whether SQM's prediction of 15-20% Sydney price growth in 2014 will play out.
In any case, sweeping city-wide commentary adds very little value to anyone who can read a chart.
I'll have a look in a bit more detail at which sectors of the Sydney market are now risky (plenty of those) and which we consider to be significantly less so.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Housing Prices graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6bl-dwelpri-small.gif?accessed=2014-03-05-20-18-31" height="254" width="320">
Household wealth, household debt
With share markets driving up to a six year high yesterday, Aussies' net worth is now in a pleasing uptrend, while household debt levels have been flat for around a decade, which is good news for Aussie households.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="Household Wealth and Liabilities graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6tr-hhwl-small.gif?accessed=2014-03-05-20-18-31" height="278" width="320">
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
                                  
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pwargent-M4siyDbqQY

Latest RBA stats show that the property market is in good shape

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There is a distinct housing cycle.  Much of it driven by things that repeat – liquidity; the economy; rising demand; relative investment returns; scarcity and confidence – but there is always an ' X factor' which builds influence and is often the key ingredient/s that causes imbalance.
But first things first – <a href="https://www.propertyobserver.com.au/australian-capital-territory/despite-auction-heat-dwelling-values-were-tepid-in-february-rp-data-rismark/2014030468153" target="_blank">Australian house price growth has paused</a> (well, at least during February) after rising for eight consecutive months.  House prices are up 9.5% over the year.
I am not surprised, as there are natural limits to any market, regardless as to how strong an influence the 'X factor' is and eventually dwelling prices and rents are determined by the local market’s capacity to pay.
This property cycle – and especially for those Queensland markets entering a recovery or just about to – should have several years to go before reaching a market peak.
But high house price inflation now will see a much quicker market peak and potentially, a larger correction in years to come.  For mine, this Queensland residential recovery should be more about increasing sales volumes and clearing excess resale supply and little to do with price or rent escalation.  Appreciation yes, rampant increases no.
In my presentations of late, I outline that past residential cycles have shown an 8.5% average annual return.  But I also go into some detail to explain why I think the next residential cycle – between now and 2021 – will be much milder - averaging 5% per annum on average.  And this assumes that nothing really unforeseen happens.
I am dourer about the future for several reasons, including the limited impulse of future interest rates; no likely new government assistance packages (i.e. FHOG or NRAS); aging and changing demographics; budget deficits; more frugal governments; geopolitical shifts (the Russian periphery is only part of a wider changing picture); low housing affordability and structural changes to local/overseas employment.
Housing is affordable if you have good equity, a well-paid, full-time job or a well-stocked superannuation fund.  But if you are starting out, or have limited equity, or work several part-time jobs, then Australia’s housing market is very expensive indeed.
Also, whilst jobs are being created, most of late are part-time.  Three out of 10 people are now employed part-time across the country.  Nearly 2 million workers are ‘underemployed’ – meaning they are working but would like more of it.  Things are expensive.  We just got our quarterly energy bill, I am still in stock!
At present, this cycle’s 'factor X' – well it should really be 'factors X' – are having a very inflationary impact.  These include SMSFs' push towards property, Chinese direct and indirect buying, loose FIRB rules and the lower Aussie dollar.
So far this has been largely confined to Sydney and Melbourne.  But many Queensland developers and local agents are doing their level best to attract these influences north.  I wish them luck, as God knows it has been tough making sales over the last five years, but I don't want them to be all that successful.  We cannot afford its inflationary impact.
The graphic below suggests that these influences have already caused Sydney and Melbourne, by and large, to become unhinged for local reality.
Dwelling prices are over or approaching 10 times the disposable family household incomes in both cities. When the music stops – and it always does – then values must fall in both cities.  At best, values would plateau for a very long time.  Think five years.  Maybe 10.  It happened in the late 1980s.  History seems to repeat.
<img alt="matusik_march_4_one" height="353" width="470" src="/images/stories/2014/03/04/matusik_march_4_one.png"> 
You see, interest rates will eventually rise, Chinese interest will wane, changes may happen to SMSFs or FIRB or the dollar will stabilise/increase.  Worse still would be a hiccup or two regarding employment.
Both Sydney and Melbourne have now painted themselves into a corner, so to speak.  Price-wise, there is very little wriggle room.
I do hope the current pause in house prices continues.  I wrote late last year that values in both Sydney and Melbourne could fall this year.  If they don’t pause, then both cities face a serious correction.
As for South East Queensland (SEQ), well I am writing this much earlier than I anticipated, too.  I pencilled in this type of post for later this year, even early 2015, as it was at that stage that I anticipated the term “irrational exuberance” might best describe the local market’s general mindset.  But alas, I am covering this now.
Many I talk to - which is quite wondrous really, as only three months ago these same people described the local housing market as "dead" - are in a mad rush to buy something.  Anything.  They just don't want to miss out on the price rush.
True, SEQ price points are much lower than Sydney’s, Melbourne’s and even Perth’s.  SEQ’s gross rental returns are also higher, especially at present, at least for attached product.  Yet current dwelling prices are already at 6.9 times earnings in Brisbane.  Vacancy rates – especially in inner Brisbane – are already starting to rise.
The state has been through a lot in recent years, much of it bad from an economic point of view.  SEQ cannot stomach a run on dwelling prices like we have recently seen in Sydney and Melbourne.
Asset appreciation of between 5% and 8% over the next 12 months, with a smaller price/rent top-up during 2015, would be welcome.  Anything beyond that – for mine – is potentially breaking the bank.
I would be joining the chorus if Queensland's dwelling price to household income ratio was lower.  But it isn't.  We come a distant third, some will argue, fourth behind Perth, when it comes to international buying interest.  Interstate migration is very low these days to Queensland.  This might change, as southerners are forced out of Sydney and Melbourne.  But we need jobs to attract this movement.  A warm climate alone these days isn't enough.  Our dwellings, whilst still cheaper than Sydney and Melbourne, aren't as cheap as they once were.  Well not cheap enough for some to sell-up and take a punt in sunny Queensland.
Slow price/rent growth, much more sales and thereby reducing resale supply - now that’s want we need over the next couple of years.  A mild cycle, not a rampant one.
I hope I am right.
Michael Matusik is the founder of <a rel="nofollow" target="_blank" href="https://www.matusik.com.au/" style="font-size: 14px;">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.
Read <a rel="nofollow" target="_blank" href="https://www.matusikmissive.com.au/">Michael’s Blog</a> or follow him on <a rel="nofollow" target="_blank" href="https://www.facebook.com/ThinkMatusik?fref=ts">Facebook</a> and <a rel="nofollow" target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a rel="nofollow" href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
                                   
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michaelmatusik-49YzLvdmNv

What's going to be the 'X factor' in this property cycle?

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There have been few Google searches for the term “first home buyer” over the past few years with that segment of buyers increasingly dropping out of the market.
<img width="470" height="196" src="/images/stories/2014/02/28/fhb-analysis-chart-feb-28.gif" alt="fhb-analysis-chart-feb-28"> 
Plotting Google searches on the term “first home buyer” compared with Australian Bureau of Statistics data on the proportion of home mortgages taken out by first-time buyers shows a fall in interest in the search term corresponding to the drop in buyers. Related phrases such as first home owner grant yield similar results.
The peak in first home buyer activity in 2009 was preceded by a clear spike in internet searches on the subject.
There was a minor lift in the number of searches on first home buyers around mid-2012, in line with a slight lift in buyer numbers, but aside from that blip, the term has been as absent from Google searches as the buyers have been from the market.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
                                     
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zfielding-GvX3Uq9KTa

Amount of first home buyers searches dropping in more ways than one

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Macquarie Park in Sydney, as well as Southbank and the Docklands in Melbourne, are three of the most productive areas in Australia when it comes to driving the economy, a report published yesterday by accountancy firm PwC shows.
The Geospatial Economic Model has recorded an “on the ground” economic review of 2214 Australian locations in terms of economic contribution. It found that in the 2012-13 financial year, one square metre of Sydney’s central businesses district generated $15,004 of economic output, which was the highest in Australia.
The report reveals economic activity is highly concentrated, with an area about the size of Tasmania generating 85% of the value of Australia’s $1.5 trillion economy last year. It found that 221 locations generated 51% of the country’s economic output.
The top 10 locations for economic output in 2013 were responsible for 18.4% of GDP, however, they employed just 12.1% of the population. These areas were the Sydney CBD generating $64.2 million, Melbourne CBD at $55.3 million and Perth CBD at $28.5 million.
Next were resources-rich areas in Western Australia – Roebourne at $28.72 million, Ashburton at $24.4 million and East Pilbara at $24.2 million.
Then Adelaide CBD came in at $16.2 million, North Sydney at $10.9 million and Macquarie Park in Sydney’s north-west at $9.1 million.
PwC economist and partner Jeremy Thorpe toldSmartCompany that while the CBD areas may have many staff compared to mining areas, they were not necessarily as productive in terms of economic contribution.
“Mining is not a huge employer, but it is phenomenal for output,” he says.
Areas that were on the top 10 list in 2001-02 that dropped off this time were Churchill in the LaTrobe Valley, Victoria, and Dandenong in Victoria. Thorpe says Churchill relies largely on brown coal production, while Dandenong is a general manufacturing area that could have been hit by the manufacturing downturn.
While Australia’s economy grew by 2.6% in the 2012-13 financial year, the report found that 35% of locations actually shrank. Thorpe explains this was countered by higher growth in other areas.
PwC found that while state capitals account for a disproportionate amount of Australia’s total economic output, the CBDs are actually idling and becoming less productive. Since 2007-08, the productivity has either stagnated or declined across all of the major CBDs.
Thorpe says while the CBDs will always play a significant role, “it’s the CBD fringe areas such as Docklands in Melbourne, Pyrmont in Sydney and Fortitude Valley in Brisbane where we are seeing significant growth”.
“In Sydney, we also see interesting dynamics playing out beyond the CBD, with the economy of North Sydney having not grown over the past 13 years, while the economy of Macquarie Park has doubled over this period.”
He says Macquarie Park, which generated $9.1 million for the economy has benefited from the inclusion of train access, and many tech start-ups are embracing the space.
In Melbourne, CBD fringe area Southbank generated $7.433 million, while the Docklands generated $8.99 million.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
                     
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