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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Leading Sydney auctioneer Damien Cooley's own Sydney home in Naremburn sold at Friday night auction, kicking off the weekend with a bullish result.
His auctioneer brother, Andrew Cooley from Cooley Auctions, knocked down the Darvall Street house (pictured) at $1,707,000 after the Chinese/Australian underbidder unexpectedly declined the chance to go to $1,708,000.
Damien and his wife Peppi paid $775,000 for the corner home, renovating, extending and building up, so they had confident $1.4 million plus hopes.
The neighbours - and there must have been 150 plus at the onsite auction - had told Property Observer pre-auction that $1.6 million plus was in the neighbourhood's expectation. Bidding started at $1.2 million, with the second bid at $1.6 million, showing the firmness of buying intent. There were the three major bidders in the running from then onwards. 
The current Naremburn median is $1.26 million, according to RP Data.
It was sold by conjunctional agents, the LJ Hooker Willoughby agent John McManus and Peter Chauncey at McGrath who had more than 250 groups through during the marketing campaign and issued 30 plus contracts. 
<a href="/news">It's Valentine's Day timing was co-incidence</a>.
Sydney will have 470 auctions this weekend - some 200 more than the same weekend a year ago. Next weekend is a record 770 for a February Saturday.
Australian Property Monitors says the inner west is the most active region with 74 auctions followed by the upper north shore with 69, the south with 68 and the city and east with upper north shore with 61 auctions scheduled.
APM senior economist Dr Andrew Wilson says Beecroft and Eastwood on the upper north shore are the most popular suburbs for auctions each with eight listings.
Redfern is next with seven, followed by Birchgrove and then Epping, Ryde and St Ives each with six scheduled auctions.
Last weekend there were 296 auctions and 90 odd in the first weekend back in February.
So far this year the weekend clearance rate has been 77% and the preliminary 84% from last Saturday.
The year's success rate sits almost 20 percentage points higher than the 62 per cent recorded over the same time last February.
The top performing regions last weekend were the northern beaches and Canterbury Bankstown, each with 100 per cent clearance rates.
Last weekend's dearest was 6 Long St, Strathfield, a four bedroom house sold at $2,280,000.
The weekend's cheapest was at Arncliffe, when the one bedroom ground floor unit at 2/1 Stanley Street sold pre-auction for $285,000.
 
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jchancellor-FAypfDUnLy

DIY Cooley Auctions beckons Sydney's probably passionate Valentine's weekend auctions 

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To a limited extent inequality and the ‘rich/poor’ gap is tolerated within society. Economists have historically seen it as a necessary platform to stimulate ‘economic progress’, or even activate a sense of competitiveness within individuals in order to elevate themselves up the social ladder.  
Certainly in the housing market this is evident.  Who hasn’t aspired to their ‘dream’ home – or visualized some improvement similar to that of their neighbours?  
It’s what the success of programs such as Grand Designs thrive upon - the emotional aspect of ‘wanting’ bigger and better - and a proportion of <a target="_blank" href="https://www.news.com.au/finance/real-estate/ing-first-homes-buyers-increasingly-spending-a-million-dollars/story-fncq3era-1226820981579">home owners</a> will stretch their budget in order to achieve their desired property of choice, taking on a larger mortgage to do so.  
However, whilst a degree of inequality may be tolerated as an inevitable consequence of the benefits offered in a capitalist society, a widening gap can become disabling to progress, or even dangerous if items of basic need are perceived to be increasingly out of reach.  
In their 2012 ‘Global Risks’ annual report, the <a target="_blank" href="https://www.weforum.org/">Word Economic Forum</a> put it like this;  
“When ambitious and industrious young people start to feel that, no matter how hard they work, their prospects are constrained, then feelings of powerlessness, disconnectedness and disengagement can take root. The social unrest that occurred in 2011, from the United States to the Middle East, demonstrated how governments everywhere need to address the causes of discontent before it becomes a violent, destabilizing force.”  
The comments build on research undertaken by Andrew Berg and Jonathon Ostry, two senior staff in the <a target="_blank" href="https://www.imf.org/external/pubs/ft/fandd/2011/09/berg.htm">IMF’s Research Department</a>, who found that once a country had entered a period of economic growth, the more equal the distribution of wealth over the ensuing period and the longer it lasted. They conclude that: “sustainable economic reform is possible only when its benefits are widely shared.”
 
Inequality in Housing  
The consequences of inequality in the housing market are painful and slow. The trend is increasingly evidenced over a lengthy period of years – not in the volatility of month to month first home buyer statistics - always marginalizing those at the bottom of the income stream, whilst advantaging those at the top.  
Effects include;
<ul>
<li>
<a target="_blank" href="https://www.ahuri.edu.au/housing_information/review/evrev035">Social polarization</a>,
</li>
<li>
A decrease in the number of <a target="_blank" href="https://www.ahuri.edu.au/housing_information/review/evrev014">low income buyers</a> obtaining ownership,
</li>
<li>
A drop in the number of affordable <a target="_blank" href="https://www.ahuri.edu.au/housing_information/review/evrev004">rental dwellings</a> with demand outstripping supply,
</li>
<li>
Greater requirements for <a target="_blank" href="https://www.ahuri.edu.au/housing_information/review/evrev008">public housing</a>,
</li>
<li>
A rise in <a target="_blank" href="https://www.ahuri.edu.au/publications/projects/p80516">homeless</a> percentages, and those who drift in and out of secure rental accommodation.
</li>
<li>
A rising percentage of <a target="_blank" href="https://web.archive.org/web/20130513194216/http:/nhsc.org.au/publications/">long term tenants</a>, and falling percentage of property owners, - across all demographics, – but particularly families with children.
</li>
<li>
Fewer Australians – across all demographics - owning their <a target="_blank" href="https://www.ahuri.edu.au/themes/home_ownership">homes outright</a>.
</li>
<li>
Evidence of <a target="_blank" href="https://web.archive.org/web/20130513194216/http:/nhsc.org.au/publications/">severely crowded</a> accommodation…. And so forth.
</li>
</ul>
  The list, which names only a few of the prevailing concerns, creates a growing body of evidence that we have more than an affordability issue in Australia which focuses overwhelmingly on first home buyer figures.  
We have a growing structural problem, which, if allowed to continue, with have a societal impact, chipping away at the future growth and stability of the property market, affecting the majority – not just a ‘few.’  
Why?  
The reason this has occurred is down to our property cycle – or perhaps better-termed a ‘land cycle’ – which has been further accentuated by poor housing policy, restrictive planning conditions and generous tax incentives, which are ultimately destructive.  
Rising prices and the expectation of such are initially seen as a ‘good’ thing, because they drive the economy, increasing consumption (the ‘wealth’ effect), stimulate economic growth, infrastructure investment, construction activity and demand for ‘durables’.  
This in turn flows through to wages – which advantage the workers at the top of the income stream, rather than the labourers at the bottom. Andrew Leigh’s <a target="_blank" href="https://www.blackincbooks.com/books/battlers-and-billionaires">Battlers and Billionaires: The Story of Inequality in Australia </a>(2013) points out that since the mid-1970s, earnings after inflation for the bottom tenth of the population has grown 15%, in comparison to 59% for the top tenth.  
The gains are subsequently capitalised into rising land values, as investors, buoyed on by inflationary expectations, easier lending conditions and ‘fear of missing out’, lead a bull market of speculative activity (such as we’re seeing in Sydney) - until reality eventually steps in and the trend inevitably turns.  
In other areas of the economy that suffer from inflation, some form of substitution can typically occur. However land - and the infrastructure that gives it its value - is fixed in supply and an absolute necessity to all business and personal needs. Therefore, as land values rise, there is an inevitable strain on <a target="_blank" href="https://press.anu.edu.au/wp-content/uploads/2011/06/14-1-A-4.pdf">productivity</a>, affecting job growth, private debt, small business, and unemployment (such as we’re seeing in Australia presently).  
Whilst monetary policy and the interest rate ‘lever’ are employed to moderate the damaging effects of a property cycle, at every step of the process, real estate has been used as collateral for further economic investment; a revenue generating machine for government; and ‘wealth’ fund for retirement. Therefore, whilst the aim is to prevent a ‘hard’ landing, the motivation is always bent on protecting existing values, rather than letting them fall.  
Hence why demand side subsidies are favoured as a ‘Band-Aid’ to affordability, rather than cure.  
The result  
Without direct political intervention to rectify the damage, the greater and more destabilising the divide becomes; not only placing pressure on the welfare system, but evidenced ‘vocally’ as rising numbers enter the housing market later, pay far more over the lifetime of their loan, and risk reaching retirement still servicing household debt – as is the case in Australia.  
This was noted back in 2012 in a CPA study entitled <a target="_blank" href="https://www.cpaaustralia.com.au/cps/rde/xbcr/cpa-site/household-savings-retirement-report.pdf">‘Household Savings and Retirement – where has all my super gone?’</a> And most recently by executive chairman of Yellow Brick Road, Mark Bouris, who ‘concerned’ about lump sum superannuation payments being used to pay off mortgages, made a submission to Joe Hockey’s parliamentary financial inquiry. He suggested we can ‘solve’ the above impacts, with additional tax breaks to allow people to pay down their housing debt faster.  
It doesn’t take much of an economist to understand that subsidies – no matter how attractive they may seem - are ultimately capitalised into prices, thereby raising the entry costs for first home ownership further and increasing the pain for the next generation of aspiring buyers.  
The self-perpetuating cycle  
To some extent, it's a self perpetuating cycle – after 30 years of mortgage repayments dedicated to paying off their principle place of residence, vendors obviously don't want to see the price of their biggest asset drop.  
Investors are similarly motivated; an <a target="_blank" href="https://www.ahuri.edu.au/">AHURI</a> study released in December 2013, identified the typical investor as one who expects their property to ‘double every 10 years’ as a strategy to finance retirement.  
Incidentally, the same study also noted that three-quarters of the investors surveyed, do not see negative gearing as a reason to purchase, but merely as 'an added bonus'.  This contrasts with the myth of an ‘investor lead exodus’ should the policy be scrapped.  
However a system that tries to both feed speculation, whist creating unaffordability through supply constraints, is ultimately set to fail, as low-income households are continually forced to the outskirts, whilst the higher income individuals get to purchase the front row seats.
Article continues on next page. Please click below.
 
<hr class="system-pagebreak">
Social polarisation  
This results in social polarisation, which is clearly visible on the Melbourne map below, taken from the <a target="_blank" href="https://www.reiv.com.au/">REIV</a>, which illustrates the median house price by suburb, relative to the metro median.  
The colours coded with the darkest blue indicate house prices more than double the metro median, and orange, house prices that are more than 25% below the metro median (The white spaces are areas for which there is insufficient data).  
<img alt="cashmore_feb_14_one" height="477" width="470" src="/images/stories/2014/02/14/cashmore_feb_14_one.jpg">
Source: REIV
This aligns very closely to a map constructed using data from the <a target="_blank" href="https://www.abs.gov.au/websitedbs/censushome.nsf/home/seifa?opendocument&amp;navpos=260">ABS</a>, which ranks geographic areas in terms of their relative socio-economic advantage and disadvantage, highlighting diversities such as incomes, education levels, occupations, rent and mortgage payments, family structure and unemployment.  
Once again, the beetroot red and bright orange ‘fringe’ suburbs sit well away from the affluent dark blue vicinities, which contain the top schools, medical facilities, shopping strips, high paying jobs, train and tram networks, childcare centres, social amenities, and so forth - all of which our tax payer dollars collectively fund. Yet under the current structure, only the local home owners get to advantage.  
<img style="display: block; margin-left: auto; margin-right: auto;" alt="cashmore_feb_14_two" height="223" width="320" src="/images/stories/2014/02/14/cashmore_feb_14_two.png">
Source: ABS
This would include not just the various social benefits offered, but the additional on-flow of capital gains each property attracts from a squeeze of consistent market demand.  
The top performing government schools in Australia do not reserve places for those showing merit (with a few exceptions). Instead, the families both willing and able to pay the 20-50% premium are able to afford housing in a desirable school’s catchment zone.
In case you need further convincing, you can chart how the trend has evolved using the image below, which is taken from a previous <a target="_blank" href="https://www.ahuri.edu.au/housing_information/review/evrev014">AHURI</a> investigation, showing how the percentage of affordable dwellings available for low to moderate-income purchasers, has changed in Melbourne, between the years of 1981 and 2006.  
The darker areas are the ‘most’ affordable, whilst the white patches are the least.    
 <img alt="cashmore_feb_14_three" height="261" width="470" src="/images/stories/2014/02/14/cashmore_feb_14_three.jpg">
What of the ‘price’ ripple effect?  
Even heading 45 kilometres or so away from the CBD, low-income purchasers can only acquire affordable accommodation – in the range of $200,000 to $400,000 - if the lot size is much smaller than 600 square metres, which is still deemed ‘standard’ in many middle suburban regions of Melbourne.  
Further more, any hope of a game of backyard cricket is unlikely, as the new developments are littered with homes that have a footprint which extends to the boarders of each block.  
The graph below highlights why this is.  It was put together by a colleague, Steven Armstrong, using <a target="_blank" href="https://www.dtpli.vic.gov.au/property-and-land-titles/valuation/government-valuations/valuer-general-victoria">valuer general</a> statistics, and it charts the extraordinary rise in land values per square metre in Hume City - an outer metropolitan growth zone in north-western Melbourne – between the years 1983 to 2012.  
<img alt="cashmore_feb_14_four" height="241" width="470" src="/images/stories/2014/02/14/cashmore_feb_14_four.png">
Source: Steven Armstrong, Valuer-General Victoria
The remarkable escalation in prices had nothing to do with homeowners wanting the castle, when a modest suburban home would do. Rather the issues I outlined <a target="_blank" href="/news">last week</a> in regard to planning restrictions (false scarcity), tax and infrastructure overlays, land speculation (the underlying cause of ‘all’ bubbles), that are exasperated further by ineffective supply side policy.  
It’s important to make this point, because whilst most people assume the ‘price/ripple’ effect works outwards – under the current system, the causation works both ways.  
It’s the marginal price of land at the fringes of our capital cities that sets the ‘base’ value for the better-located plots further in.  
In other words - it’s not supply that ‘solves’ affordability for low income purchasers, but the cost at which that supply can be delivered to the home buyer (not speculator) market.  
Is property overvalued? A bubble? A concern?  
When I was recently <a target="_blank" href="https://www.propertyobserver.com.au/residential/is-australian-property-overvalued-the-experts-have-their-say/2014020667606">asked</a> comment on whether Australian real estate was overvalued or not, I sensed the intention was to take the traditional view and assess whether job growth, population expansion, demand for credit, housing turnover, wage growth, interest rates, mid-term supply were supportive of a future sustained increase.  
However, whilst the above data will give a mid-term indication over whether current process are ‘serviceable’ at existing rates, or if market turnover can maintain pace, it gives little indication as to the long-term effects I’ve highlighted above, which in my mind, present a far greater destabilizing force, as we bear witness to a slow generational shift, eating at the edges of home ownership in the months and years ahead.  
I’ll leave the reader to come to their own predictions on market movements as we traverse through 2014. Albeit, in light of the government’s response to previous housing ‘affordability’ enquiries, I think the above concerns will merely worsen rather than improve – and at some point, we’ll all feel the impact.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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catherinecashmore-6LXia3pPQj

The widening inequality and economic growth gap: What does this mean for housing?

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Australian actor Portia de Rossi is known abroad not only for her turns on Arrested Development and Ally McBeal, but for her property prowess. With wife Ellen DeGeneres, de Rossi made news last month when the couple purchased the Brody House, a Los Angeles mansion designed by renowned architect A Quincy Jones.
The modernist masterpiece (pictured below) was constructed in 1949, with interiors by Billy Haine and Garrett Eckbo. In October last year, the mansion was updated by designer Stephen Stone to prepare it for market. Rumour has it the property, which has six bedrooms, nine baths and is set over a 4,118 square metre estate, was hardly on the market at all before DeGeneres and de Rossi snapped it up for a reported US$39.89 million (A$44.64 million) sum.
{yoogallery src=[images/stories/2014/02/17/ell]}
Photos courtesy of curbed.com
The house was commissioned by the late arts advocate Frances Lasker Brody and her husband, the late Sidney F Brody. After Frances Lasker Brody’s death in 2009, the property was sold for the first time for US$14.88 million (A$16.65 million) in 2010.
Portia de Rossi, legally known as Portia Lee James DeGeneres (born Amanda Lee Rogers), and DeGeneres have been involved in quite a few notable Los Angeles property transactions in recent years. Last year, the couple sold their ranch in Thousand Oaks, California. The 26 acre property was originally listed by the de Rossi and DeGeneres in 2011, with an asking price of US$16.5 million (A$18.5 million). It sat on the market for nine months after being pulled, and was relisted last year.
The eight bedroom, 11 bathroom ranch (pictured below) was <a target="_blank" href="https://www.propertyobserver.com.au/international/ellen-degeneres-and-portia-de-rossi-re-list-horse-ranch-for-%2410995-million/2013082663802">reportedly sold for US$10.95 million</a> (A$12.14 million). According to de Rossi, the ranch’s redesign was handled entirely by DeGeneres. In an interview with Elle Décor, the Geelong native said that the original property was a horse facility, with an unsalvageable main house. “I thought it might take five years for Ellen to finish the project,” she told the magazine. “And she did it in one! It was shocking.”
{yoogallery src=[images/stories/2013/08/aug27thousand]}
A number of other high profile properties have passed through Portia and Ellen’s capable hands. They purchased a US$26.5 million (A$29.45 million) <a target="_blank" href="https://www.propertyobserver.com.au/news/aussies-keeping-us-realtors-busy-olivia-newton-john-portia-de-rossi-and-frank-lowy/2013062661728">13 acre estate in Montecito</a> (pictured below), just outside of California’s Santa Barbara, in May 2013. Known locally as Saladino Villa, the six bedroom, seven bathroom home overlooks the Pacific ocean.
{yoogallery src=[images/stories/2013/06/june27saladino]}
The couple also sold their sprawling Beverly Hills estate (pictured below) in 2012 to US television personality Ryan Seacrest, for a whopping US$49 million (A$54.43 million).
{yoogallery src=[images/stories/EllenandPortia]}
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
 
 
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jrichardson-uRX5hFdKfN

Aussie Portia de Rossi and Ellen DeGeneres big players in the California prestige market

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Unemployment is the highest it has been in a decade and consumers are gloomy about the local economic outlook. But most people still expect house prices to rise and think that now is a good time to buy.
General consumer confidence dropped in February, hitting its lowest point since last July, the <a target="_blank" href="https://www.westpac.com.au/docs/pdf/aw/economics-research/er20140212BullConsumerSentiment.pdf">Westpac Melbourne Institute Consumer Sentiment Index</a> revealed. The index, released last week, fell by 3% in February to 100.2 from the January reading of 103.3. 
Consumer expectations on the outlook for the economy over the next 12 months were at their lowest since March 2012, having fallen 17.9% since the same time last year. Expectations for the next five years were at their weakest since February 2009, the Index showed.
Westpac chief economist Bill Evans put the poor results down to a run of bad news on the motor vehicle industry, other manufacturers, and Qantas, as well as heightened concerns about what to expect from the May Budget. A larger group of people also expected interest rates to rise over the next 12 months compared with the last time the bank surveyed on that topic in August 2013.
Despite the negative views, the latest survey found consumer attitudes towards buying residential property have stabilised and are still firmly in positive territory.
The “Time to buy a dwelling” component of the index came in at 129.3 in February, just a fraction down on January’s 129.4 reading and the 129.8 result for December 2013.
<img width="470" height="276" src="/images/stories/2014/02/14/chart-feb-14-one.gif" alt="chart-feb-14-one">
Source: Westpac Melbourne Institute Consumer Sentiment Index
Westpac senior economist Matthew Hassan told Property Observer a reading of 129.3 was quite good, although it is down 10.8% from its recent peak in September. “It should also be noted that responses tend to be positive - the average reading since 1975 has been 123.5,” Hassan said.
Expectations on house prices were still 26.2% above where they were at the start of last year. That’s despite a 2.2% fall in the house price expectations component of the Index which left it 4.3% below its December peak.
<img width="470" height="324" src="/images/stories/2014/02/14/chart-feb-14-two.gif" alt="chart-feb-14-two">
Source: Westpac Melbourne Institute Consumer Sentiment Index
As to why attitudes towards housing were holding up while broader sentiment was weakening, Hassan said the main reason was likely to be that mortgage interest rates were near record lows and the market was showing strong gains.
“We tend to find the index is influenced by both affordability and expectations for capital gains,” Hassan said.
NAB’s Quarterly Australian Residential Property Survey <a target="_blank" href="/news">released last Thursday</a> showed similar expectations of price appreciation. 
Respondents to that survey anticipate price gains in the range of 2 to 4% over the next couple of years. NAB’s own forecasts are slightly higher. It predicts average capital city house prices will rise by 6% to end of 2014 and 5% to the end of 2015.
“The story is modest but slowing growth over the next couple of years,” NAB senior economist Robert De luce told Property Observer. “That boils down to the impact of low interest rates, affordability, population growth and long-standing supply issues.”
NAB’s survey considers foreign buyers’ impact on the market. These people are outside of the local economy so their demand is less influenced by conditions in Australia.
De luce said there was little hard data around foreign buyers but according to NAB’s analysis, 6.5% of established dwellings and 11% of new properties are bought by overseas buyers.
HSBC chief economist Paul Bloxham said consumer sentiment was usually a timely indicator of economic conditions, but it wasn’t uncommon for there to be a large discrepancy between sentiment and spending behaviour.
“Sentiment indicators can provide valuable signals of what to expect for the future, but not always,” Bloxham says. “When you’re summing up what’s going on in the economy not everything is always moving in the same direction.”
Bloxham and colleague HSBC economist Adam Richardson <a target="_blank" href="https://www.research.hsbc.com/midas/Res/RDV?p=pdf&amp;key=tLvTwP32vL&amp;n=403708.PDF">put out a report last week</a> examining unemployment, which hit 6% in January, its highest level in a decade.
Bloxham and Richardson argue that while the unemployment figure looks bad – like the headline consumer sentiment numbers – other economic indicators, such as retail sales, business conditions and building approvals have picked up in recent months, pointing to a strengthening economy. Booming house prices also showed the economy was more resilient than sentiment would suggest.
news@propertyobserver.com.au
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zfielding-GvX3Uq9KTa

Analysis – Why weak consumer sentiment hasn’t stopped demand for housing

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First home buyers will return to the property market as governments increase land supply, Stockland managing director Mark Steinert expects.
“We see a proactive focus from governments to improve the land supply that’s going to address the affordability issue,” Steinert said at the group’s half year results briefing last week.
Stockland, which produces small, high density residential properties at low price points, sells about half of the homes it builds to first-time buyers.
Despite low interest rates, first home buyer demand has been subdued as price rises and the removal of government grants for buying established dwellings have made it more difficult to save a deposit.
First home buyers accounted for 12.7% of total owner occupied housing finance commitments in December 2013, Australian Bureau of Statistics data shows.
<img alt="FHB-feb-14" src="/images/stories/2014/02/14/FHB-feb-14.gif" height="256" width="470">
Real Estate Institute of Australia president Peter Bushby said the figure was alarming compared with the long-run average of 19.9%. The REIA has called on governments to help first time buyers back into the market by allowing them to use superannuation savings to buy a home and by reinstating grants.
The Reserve Bank noted in its February Statement on Monetary Policy that demand for established housing was especially weak as changes in state government incentives for first home buyers toward new dwellings and away from established properties had shifted their purchases accordingly.
Housing Industry Association senior economist Shane Garrett said governments would have to further lift constraints on planning for new homes, land supply and infrastructure funding to maintain activity in the market.
“Addressing these issues will do much to improve longer term housing affordability,” Garrett said.
Steinert said there was a large amount of pent up demand from first home buyers for properties and rising prices in inner urban areas were encouraging people to look further out.
“There has been increased activity in the middle to outer rings as people search for a great lifestyle outcome at a competitive price,” Steinert said.
Stockland settled on 2,253 residential lots in the first half of 2014, an increase of 8.1% compared with the first half of 2013. Its revenue from residential property sales to consumers was up by 2.9% to $392 million, the group reported.
“We’ve seen a combination of price increases as well as volume [sales] increases,” Steinert said.
Prices for the group’s properties had increased by 8 to 10% in Sydney, and up to 5% elsewhere, he said. Packages that were previously on offer giving buyers extra such as landscaping included in the sale price were no longer widely available.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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As land supply increases, so will first home buyers: Mark Steinert

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Smaller commercial properties are in demand from private investors looking for yield in the low interest rate environment.
Properties in the $1 million to $5 million price range are particularly sought after by self-managed superannuation funds, said Dean Venturato, director of Burgess Rawson, which specialises in selling commercial properties to investors.
“In the last 18 months there has been more activity from SMSFs and there’s more awareness of [commercial property]. There are more people getting advice from accountants and financial planners to [invest in] it,” Venturato said.
He estimates that as many as half of buyers of smaller commercial properties are investing through superannuation funds. These buyers favour lower risk properties.
“The better the tenant, the longer the lease, the better the location, the more interest we get,” he said.
There could be two to three times more enquiries and inspections on properties in prime locations with good tenants on long leases, even though these properties tended to deliver lower yields.
The markets in Sydney, Melbourne and Brisbane were seeing equally strong demand from investors.
In Melbourne, strip retail premises in prime locations delivered yields of around 4 to 5%. “That’s a reflection of the popularity of those areas,” Venturato said.
Strip retail in Sydney’s better locations such as Randwick, Newtown and Balmain could yield around 5 to 5.5%, Ventuarto said. In lesser retail areas in Western Sydney, yields could be up to 8%, depending on the tenant and the length of the lease.
Supermarkets leased to national tenants might offer yields of 6 to 6.5%.
Service stations and 7-11s sold under sale-and-lease-back arrangements were delivering yields of around 7.5%, or 6.5% for properties in prime spots.
For service stations in regional areas, investors could expect yields around 0.5% above those in metropolitan areas. “For 7.5% yield in Sydney, it might be 8% in Scone and Muswellbrook,” Venturato said.
Industrial buildings offered slightly higher returns. A modern, prefabricated concrete building with a secure tenant might deliver 7.5% yield, while an industrial shed might return around 9%.
High auction clearance rates of around 90% for smaller commercial properties have boosted vendor confidence and seen more properties come onto the market in the past four to six months, Venturato said.
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Smaller commercial properties seeing SMSF demand

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Construction at the 2,418 square metre site at 177 Pacific Highway in North Sydney has commenced. 
A groundbreaking ceremony was held for the 30 level Leighton Properties development, to be built by Leighton Contractors (artistic impression below). The $413 million, development, with 40,000 square metres of floor space, is set to become the Leighton Group’s new global hub.
<img alt="north-sydney-aug-21-one" height="517" width="470" src="/images/stories/2014/02/19/north-sydney-aug-21-one.gif">
At the ceremony, Leighton Holdings chief executive officer Hamish Tyrwhitt noted the date’s significance for the company.
“This is a great milestone to be celebrating today. For the Leighton Group this is a step towards creating the next generation workspace for our staff - one that fosters collaboration, innovation and performance and is an example of our corporate values,” Tyrwhitt said.
The development will be North Sydney’s first new commercial tower in six years, according to Leighton Properties managing director Mark Gray.
“177 Pacific Highway will add an entirely new dimension to the North Sydney skyline,” he said. “Being the first new ESD rated commercial tower in six years it will provide the market with much-needed A-grade accommodation. It signals an important next step in North Sydney’s continued development as a commercial CBD,” Gray said.
Gray expects that Leighton’s reputation will attract strong demand from commercial tenants.
“We expect the certainty of the completion date, and the commitment and involvement of Leighton, will make this a highly sought-after building for companies wanting to secure a noteworthy address,” said Gray.
10,000 square metres of the building’s top level space is still available for lease, with 76% of the tower’s total space leased by Leighton.
The building was designed by Bates Smart, and is scheduled for completion and occupancy in early 2016. The company is targeting a 5 Green Star and 5 Star NABERS energy rating for the building.
The ground levels of the building will include cafes and retail spaces.
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
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Construction begins at Pacific Highway, North Sydney commercial tower

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Just in case you haven't had the appropriate dose of romance this Valentine's day, Property Observer brings you three holiday rentals that are bound to bring a little loving your way.
Coonawarra Vineyard, South Australia
{yoogallery src=[images/stories/2014/02/14/coo]}
If the soft-focus didn't clue you in, the rose petals in the bathtub transmit the message loud and clear - this rental is all about romance. But in case you still haven't gotten it, the two champagne glasses and the long stemmed roses next to the tub should do the trick.
If you're after a bit of seclusion with your other half, Honeysuckle Lodge certainly looks like the place to get it. If you won't take our word for it, ask the couple casually sipping wine in front of the open fire.
 
Jacaranda at Jambaroo, New South Wales
{yoogallery src=[images/stories/2014/02/14/jam]}
This one bedroom self contained cottage on a rural estate has all the ingredients for a great romantic getaway - seclusion, beautiful landscapes and a great kitchen. And, at the right time of year, we bet that pond would generate some mist worthy of Wuthering Heights. Of course, the rental comes with the requisite red bedding.
 
Reid's Place, Redcliffe, Queensland
{yoogallery src=[images/stories/2014/02/14/red3]}
If there's any lesson to learn this Valentine's Day, it's that nothing says 'I love you' like bathrobes. Thankfully, on this front, Reid's Place delivers. The listing shows couples eating breakfast in bathrobes, eating another meal in their bathrobes, and putting away dishes in bathrobes.
There's even a shot of two bathrobes hanging side by side, just for good measure. All this bathrobe wearing is thankfully explained by two shots of two different (but eerily similar looking) couples enjoying bubble baths at Reid's Place. Only one gets the red petal treatment, but both get to crack into some champagne.
While it might be a little late to book one of these romantic getaways for you and your special someone, keep them in mind for the next time you need to escape for the weekend. And if you're on the other side, and thinking of renting out your property for a short term holiday rental, take a look at our <a href="https://www.propertyobserver.com.au/landlords/holiday-and-short-term-rentals-do-the-finances-stack-up-in-a-real-life-case-study/2014021167712">Airbnb case study</a>.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_parent">jrichardson@propertyobserver.com.au</a>
 
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We'll always have Coonawarra: Three romantic Valentine's Day rentals

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February is one of the busiest months for prospective tenants searching for rentals, according to REA Group. For investors, this may mean one of two things. Either you can easily snap up a new tenant for your vacant rental, or you may see your tenant looking to move elsewhere.
While the <a href="/news">trend is increasingly to marry and have children later in life</a>, realestate.com.au has surveyed and found that 55% of those they spoke to would be more than happy to move in with their partner within 12 months of dating.
Just one in 10 will wait until they are married to move in together, with two-thirds noting they’d rather set up an entirely new home with their significant other than try to move into the others’ space.
General manager of sales and operations, Arthur Charlaftis, said that a change in life stage is one of the biggest triggers for those looking to move rental properties.
“The decision to move in with a partner, or away from a housemate, often prompts people to re-enter the property market. The suburb profile pages on realestate.com.au help tenants and buyers to understand the demographic of the suburb they are considering, helping them to make a more informed decision,” Charlaftis said.
And with February being “the month” for tenants to be shopping around, it’s time to take advantage of the increased number of eyeballs looking at your listing.
If your property has been vacant for some time, then you need to identify what the problem is.
There are three factors that you need to look at:
Demand
Price
Presentation
Tips on tenanting your vacant rental on the next page. Please click below.
 
<hr class="system-pagebreak">
Getting that vacant rental tenanted
DEMAND
Firstly, check the demand in your suburb. A quick way to do this is to head onto SQM Research and look for the vacancy rate. The lower it is, the higher the demand for rentals, and the more likely this isn’t the problem.
However, in a suburb where dwelling types are mixed, it’s worth working out whether this blanket rate of demand applies to your property. Head onto a listings website and find out how many properties there are for that suburb – then check how many there are that are comparable to your property.
As you do this, make sure you’re keeping careful watch on how many are superior and how many are inferior to your property.
You then want to call a property manager – it might be worth calling one that isn’t your own if they can’t seem to provide any new information on why your property isn’t seeing much interest – and ask about the tenant demand on their books.
 
Five questions to ask:
1) How quickly are my type of property e.g. three bedroom, two bathroom units, being rented out?
2) What number of applications do you tend to get? (And what type of people are they – students, families etc?)
3) How much are tenants paying for them?
4) Are there any features they are looking for more than others?
5) How often do these properties come up for rent?
Ensure you’re comparing apples with apples – if your block is on a main road, or doesn’t have air conditioning when others do, you’d do well to mention this to the property manager. Your <a href="https://www.propertyobserver.com.au/news/your-property-type-will-dictate-your-tenant-terri-scheer-insurance/2014012867402" target="_blank">property type is also likely to dictate your tenant, according to Terri Scheer Insurance</a>, so you need to know what type of person will be looking to rent this home.
For instance, if you have a ‘top dollar’ apartment, then your tenant is going to be expecting ‘top dollar’ amenities. Observer <a href="https://www.propertyobserver.com.au/landlords/the-10-things-a-tenant-wants-in-a-top-dollar-apartment-cameron-mcevoy/2013100865565" target="_blank">Cameron McEvoy explains what the 10 things are that they will be searching for</a>.
Low demand means you’re going to need to be more competitive.
If demand is or isn’t favourable, then it’s still time to look at aspect number two.
 
PRICE
For many tenants, price is the top factor that they consider when renting a home. As an investor sitting with a vacant property that’s likely proving to be a drain on your bank account, you might find that a $5 or $10 drop in asking rent will stop the bleed in the short term.
You can head to RP Data for free and check what median asking rents are within a suburb, but by now, you will have looked at a number of comparable properties in the area, including some that are and are not being rented quickly. If your headlining figure is not in line with those doing well, or if you found that demand was soft in the example above, then it may be time to offer a rent discount or a “week’s free” incentive to get a tenant locked in.
Price is likely to be the aspect holding you back from your secure income.
 
PRESENTATION
Seeing how your property appears to a tenant who is looking at it for the first time can be difficult. It’s important to remember that presentation covers both how the property is advertised, as well as how it appears when the tenant attends an open home.
Have a look at your online listing (this should be on the major listings websites, and potentially on other sites such as Gumtree if you are comfortable with this strategy).
 
Check for the following:
<ul>
<li>
An effectively written advertisement (does it sell the home’s best features and location benefits?)
</li>
<li>
As much information as possible about the home.
</li>
<li>
Good photographs – well lit, neat, clean, tidy and professional-looking photographs are absolutely crucial. It is worth getting these re-done if they are below standard.
</li>
<li>
Then have a look at the property itself (or the last inspection photographs if you are not close by). Some landlords even spend a night and a day in the home seeing if there’s anything that needs sorting out.
</li>
</ul>
 
You need to ensure that:
<ul>
<li>
Everything is in working order (no dripping taps, dodgy doors or similar).
</li>
<li>
Everything is clean – and by clean, it means really clean. Steam cleaning the carpets is important.
</li>
<li>
Your agent is prepared to maximise the home for its open (lights on, blinds open – just as you would when selling)
</li>
<li>
You’ve considered all of the senses – does something smell, look, feel or sound bad. Is the traffic noise too much? Is there anything you can do about it (such as timing your open homes carefully)?
</li>
<li>
The outside of the home has had as much attention as the inside – the yards should be tidy, and the front needs to be as presentable as possible. This is your first impression.
</li>
</ul>
If you still have questions, see if you can find out why your last tenant left.
If your property is still looking a bit lacklustre, it might be worth considering some cosmetic renovations or getting the property professionally staged to provide it the ‘uplift’ it needs at an open home. A lick of paint, some new handles or taps and a bit of attention to the front of the property can really go a long way.
If you are still struggling after this point, it might be time to check how well your property manager is performing in terms of following tenant leads. If your property manager isn’t performing, it will become pretty clear when you have gone through the above steps.
This step-by-step guide to securing tenants will really <a href="/news">help you get an understanding of the process</a> a property manager should be going through.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
 
 
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jduke-EHk3XBmHkn

Vacant investment property? February is the month to get it tenanted

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If I told you that a regional NSW city - only a two hour drive from Sydney - has predicted population growth of 42% over the next 20 years, would you believe me?
NSW Planning has released some interesting statistics. They say that the population of NSW will increase by two million people to reach 9.2 million by 2031.
There is a special release of preliminary population projections for 2011-2031 which reveal that many of the states regions will grow – some faster than others.
Some of you reading this will know that I’m a big fan of the Hunter Region of NSW. It’s where I’ve been developing property since 2001. I love the area and continue to study and research it. It’s a vibrant region with a diverse economy. Over time, I’ve narrowed down my focus for property developing to a few cities within the very large Hunter Region.  The areas we work in are very affordable, with good growth prospects.
This week I thought I’d share a great research tool on the NSW Department of Planning’s website.
The NSW Department of Planning and Infrastructure is the key source of population analysis and policy-orientated advice for the NSW government. It’s responsible for the development and regular review of NSW official population projections, incorporating information from its Metropolitan Development Program, the Australian Bureau of Statistics, Federal Department of Immigration and Citizenship and NSW Health. It also develops household and dwelling projections, which are informed by the future population size and age structure as indicated by the population projections.
In a nutshell, they’ve worked out that NSW is growing.
Their projections show that the state will grow by 100,000 people on average each year until 2031. They have regional growth plans in place for all parts of NSW to better cater for, and support, growth and population change in the regional areas.
The measures being taken by the NSW government to encourage regional development include:
<ul>
<li>
Identifying 1,500 more public sector jobs for relocation from metropolitan Sydney to regional areas by 2021, as part of the Decade of Decentralisation vision
</li>
<li>
Creating regional growth plans as part of our new planning system
</li>
<li>
Extending eligibility for the Regional Relocation Grant to long-term renters in metropolitan
</li>
<li>
Increasing NSW government funding to promote regional tourism, boost frontline services and support hospital upgrades in regional communities
</li>
<li>
Providing more than $160 million over four years to mining communities through the Resources for Regions program
</li>
<li>
Supporting new investment in regional NSW through the Regional Industries Investment Fund, which in 2011-12 helped generate more than 1,000 new jobs
</li>
<li>
Furthering efforts to attract people to regional NSW for work through a new $10,000 Skilled Regional Relocation Incentive
</li>
<li>
Extending the Jobs Action Plan, which offers a payroll tax rebate to businesses employing additional staff, to 30 June 2015
</li>
<li>
Allocating 30% of funding from the state’s infrastructure fund, Restart NSW, to regional communities
</li>
</ul>
Check out <a target="_blank" href="https://www.planning.nsw.gov.au/en-au/deliveringhomes/populationandhousingprojections.aspx">this link</a>; you can click on any NSW region and it will give you the current population, predicted growth, the main drivers of the growth and a breakdown of the age changers. Let me know if you work out which city I’m referring to.
If history is anything to go by, the Hunter lags the Sydney market. Last cycle, I watched as the Sydney market went crazy with demand, prices increased and investors were priced out. They started looking for more affordable areas to invest in. That triggered the last major growth spurt in the outskirts of Sydney. Indicators show that this time may be looming.
If you combine purchasing and then adding value to property through development - as the market swings upwards - then you’ve hit the nail on the head and can create some good equity in your property.
I’m not the only one touting the benefits of the Hunter Region and agree wholeheartedly with Bernard Salt, leading commentator and advisor on consumer, cultural and demographic trends:
“The Hunter has it all: critical mass in population; a diverse economic base; first-class tertiary institutions; military representation; airport connectivity; local media production and broadcasting; as well as proximity to Sydney.” 
I couldn’t have said it better myself, thanks Bernard.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Property Bloom</a>, which manages property development.
 
 
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