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

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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A range of assistance measures have been put in place for those impacted by bushfires across Victoria who are ANZ customers.
ANZ is offering a number of assistance arrangements. These include reduced payments or suspending repayments on loans and credit cards for a period of time, considering applications for temporary adjustments to lending limits to assist with unexpected costs, the ability to access term deposits early without incurring penalty fees and the restructuring of finances or application for a new home or personal loan without incurring application fees.
Fees for businesses with damaged EFTPOS/credit card terminal replacements are also able to be waived.
ANZ managing director retail, Mark Hand, said that five years on from Black Saturday we’re being reminded that bushfires can be devastating.
“So far around 20 homes and properties are reported as being destroyed, with areas north east of Melbourne hardest hit over the weekend and fire still threatening property,” said Hand.
Customers can contact ANZ on 13 16 14, for ANZ Insurance, or 1800 149 549 for the hardship team.
<a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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po-LsXgBTHBmX

Bushfire victims offered helping hand with home finance: ANZ

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Australia could fall behind in the Asian Century if it does not <a href="https://www.smartcompany.com.au/growth/economy/33793-infrastructure-woes-as-sydney-cross-city-tunnel-placed-in-receivership" target="_blank">improve its infrastructure</a>, innovation and creativity, experts have warned.
Ken Henry, a former Treasury secretary and current director of the National Australia Bank and the Australian Securities Exchange told <a href="https://www.theaustralian.com.au/business/economics/former-treasury-secretary-ken-henry-warns-of-infrastructure-shortfall/story-e6frg926-1226821994365#mm-premium">The Australian</a> he thought Australia could be lacking in sufficient port, road and rail links to be an effective exporter during the Asian development boom.
"We do not have the infrastructure requirements for an economy and a society that is well connected with Asia," Henry said.
Henry was at the forefront of the Gillard government’s white paper into the Asian century and said there is “enormous potential” for Australia during Asia’s boom phase.
However he said “we simply don't have the infrastructure assets, the infrastructure services, to ensure that in the commercial space – but also the social space – we make the most of those connections”.
Henry is involved in a green paper by the SMART research group which is calling for “clearer decision-making to inform a national market for Australia’s infrastructure”.
He thinks lots of questions regarding our infrastructure should have been asked 10 or 20 years ago, not now, The Australian reports.
CPA Australian chief executive Alex Malley echoed Henry’s concerns in the accountancy body’s pre-budget submission to the federal government.
“With tentative signs of economic recovery in key global markets and a continued focus on Asia, Australia is uniquely positioned to take advantage of what has now become the Asian Century,” Malley said.
“However, despite our ‘open for business’ mantra, we are not the sole trader in our region. Across Asia, new and existing competitors are increasingly moving into areas Australia once regarded as areas of traditional advantage.
“This is not a time for complacency. It is the time to boldly step up.”
Malley said that as a nation, Australia must now make “brave choices” to secure our success in the Asian century.
“We must make sure that we do everything possible to support Australian businesses to be globally competitive.”
He said Australia is poised to take centre stage on a global level as we host the G20 Summit.
“Just as the strength of our economy made us an international example in weathering the worst excesses of the global financial crisis, this is a time when we should again demonstrate global leadership by making the tough decisions that will strengthen the global competitiveness of Australian business.”
The CPA Australia submission reiterates that Australia’s ability to compete will be “put at risk” unless action is taken to address the infrastructure deficit when it comes to road, rail, air and sea transport.
“Without the ability to safely, efficiently and effectively transport goods, data and people within Australia, our businesses face a significant disadvantage,” it said.
The group said funding of infrastructure should include user-pays principals, along with selling suitable public assets and investing the proceeds into new projects.
“CPA Australia calls on the government to consider providing a 40% or 50% discount on income earned from investment in infrastructure projects to attract more private capital to these major projects which will drive the future of Australian business.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany.</a>
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moliver-7qYWqnHmyR

Australia could luck out in Asian Century due to poor infrastructure

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Auction clearances in Sydney and Melbourne continued to ride high on the weekend following a solid start to the selling year last week.
The news comes amid expert warnings of a <a target="_blank" href="https://www.smartcompany.com.au/finance/investment/35505-will-there-be-a-property-apocalypse-economists-warn-house-prices-will-plummet-if-interest-rate-stays-low">potential property bust</a>, if banks keep loaning increasing sums of money at low interest rates.
In Sydney 84.4% of properties that went to auction were sold, while in Melbourne the clearance rate was 75.6%.
The average price for houses sold by auction in Sydney was $970,000, up from $835,000 for the same weekend last year. For Sydney units, the average median price was $672,500, up from $622,000 last year.
The most expensive auction sale in Sydney was a four bedroom home in Strathfield at $2.28 million, while the most affordable was a two bedroom unit in Auburn, selling at auction for $400,000.
Australian Property Monitors senior economist Andrew Wilson told SmartCompany that in Sydney, it was the second week in a row of solid clearance rates, however last week there were small numbers of properties on the market.
“We need some more auction results to get a true sense of what is to happen…it is no surprise that the energy from last year is continuing into this year, at a higher level than where the market ended (in 2013),” he says.
He says as the property year warms up, the higher priced properties in the more exclusive areas will start to appear on the market, giving a better indication of the sorts of average median sales figures likely to dominate this year.
“We have anecdotal evidence to say that the sales in Sydney were above the reserves set,” he says.
In Melbourne, the average median house price was $695,000, up from $576,250 for the same weekend in 2013, while the average price for units sold at auctions was $430,000, up from $456,000 last year.
The most expensive auction in Melbourne was a three bedroom house in Elsternwick, selling for $1.22 million. The cheapest was a one bedroom apartment in Richmond, at $282,200.
Wilson says while the figures look solid for Melbourne, more time is needed to get a reliable indication of the trends. He says Melbourne’s outer east belt is proving a hot spot, with a strong clearance rate on the weekend, while the inner east was also performing well.
He expects to see a greater flood of properties on the Melbourne auction market throughout February as people try to get in before the Labour Day long weekend.
“With bank mortgage rates heading downwards and banks getting more competitive, there is more incentive for buyers,” he says.
However he warns with more job losses at factories in Victoria, confidence to borrow may wane as people become more concerned about their job security.
In Brisbane, where there are fewer auctions, the clearance rate was 57.7%, with the median house price at $626,000, up from $446,000 for the same weekend in 2013.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
 
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Property sales take off over the weekend, but expert warns time will tell

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The Reserve Bank has made its first decision of the year on interest rates. The 2.5% cash rate will remain, and according to the RBA Governor Glenn Stevens, our economy is suited to low interest rates for the time being.
Retirees and pre-retirees who prefer low-risk cash investments may have to look at higher yielding investments this year given that cash is earning them around 1% over inflation.
But those in the wealth-building phase have a chance to use the low rates to their advantage. Lower interest rates reduce the overall cost of capital, they allow you to accelerate debt repayment, meaning you can build equity and wealth faster.
The current interest rate environment has increased competition among lenders. So if you’re seeking a new mortgage, do not simply sign up with your current bank or building society.
Look around and use the comparison websites because you’ll see at least a 1% gap between the most expensive and most affordable home loans – a noticeable difference once you’re repaying the loan.
Also, when you get down to a short list of lenders, insist on knowing their ‘comparison rate’. This is a legal formula which gives you the true cost of a loan and allows you to compare apples with apples. And understand that a loan promising a ‘discount’ on an interest rate falls outside the comparison rate law. It could mean anything.
With low interest rates forcing competition among lenders, price is not the only factor: you might be able to get a mortgage with flexibility and options at the price of a ‘basic’ home loan. But you must ask.
And what about refinancing? If you have a mortgage you’ll be targeted by many organisations wanting you to refinance with them, and my advice is to get the loan offer in writing and then work out if all the pluses and minuses make it worth shifting. This is a decision you have to understand yourself and there’s no substitute for a pen, pad and a calculator.
And remember that refinancing doesn’t stop with mortgages: you can fold credit card debt and personal loans into your low-cost mortgage and be paying much less for the debt.
Finally, what to do with fixed versus variable?
It’s tempting to lock-in a mortgage at a low rate for three years. Some people like the certainty, and you can save money if variable interest rates rise above your fixed rate. But the banks don’t offer three-year fixed loans so close to their variable mortgage rates if they think the cash rate will rise soon. And don’t forget that most fixed-rate mortgages lack the flexibility to make extra repayments, thus removing an option to pay less interest.
Low interest rates are fantastic for home buyers and mortgage holders; but you must think through what the advantages are to you. Then you need a plan and then you have to act. 
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
 
 
 
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mbouris-tauSvXGAM2

Taking advantage of low interest rates

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New dwelling starts are, well...starting.  Approvals are near all time highs.  Actual commencements are on the rise.
The Australian economy is now at a stage where offsets to the downturn in mining capex are starting to come through.
It's great news (for now).
 <img alt="matusik_feb_10_one" height="353" width="470" src="/images/stories/2014/02/10/matusik_feb_10_one.jpg">
<img alt="matusik_feb_10_tweo" height="353" width="470" src="/images/stories/2014/02/10/matusik_feb_10_tweo.jpg">
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/02/dwelling-starts-1.jpg"></a>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/02/dwelling-starts-2.jpg"></a>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/02/dwelling-starts-3.jpg"></a>
<img alt="matusik_feb_10_three" height="353" width="470" src="/images/stories/2014/02/10/matusik_feb_10_three.jpg">
New dwelling approvals are close to a high point in Australia.  Dwelling commencements totalled 165,000 last year.  They are expected to reach 180,000 during 2014.  This is much higher than the 150,000 annual average over the last seven or so years.  This lift in new housing starts - my boffin friends tell me - will add significantly to the country's economic growth.  In short, more jobs.
The lift in new housing approvals is across most states and territories.  Victoria is coming off a very high base.  Tasmania has little need to build much, given its low population growth.
One chart that reads best if the lines head down is our 'dwellings yet commenced' graph.  The lines are now heading in the right direction.  Only one in 10 detached houses approved across Australia have yet to start construction.  This ratio is one in five for apartments and townhouses.  These ratios are dropping.  All smiles.
It takes, on average, about three months from approval to start building a detached house in Australia.  About five months for a townhouse, nine months for walk-up flats and 18 months for mid to highrise apartments.  Sadly, it takes years, more often than not, to actually get a new development approval. But enough whinge.
Dwelling prices are on the rise, up 10% over the last 12 months.  Australia's two largest cities are mostly driving this growth.
House price growth - despite <a target="_blank" href="https://www.propertyobserver.com.au/news/property-crash-is-like-popping-popcorn-especially-in-melbourne-harry-dent/2014020567560">Harry Dent's recent efforts</a> - is not showing any signs of slowing down.  And really, why would it?  Strong population growth, very low-interest rates (so far), an undersupply of stock and an expectation of further house price appreciation are fuelling demand. 
Yes, I do think that there is an element of 'irrational exuberance' now taking hold in Sydney and even Melbourne.  It may even find its way up north to South East Queensland by the end of this year.  We haven't had a party up this way for yonks and we look forward to a bit of cheer.
Until new dwelling supply now starts to respond - i.e. dwelling commencements rise in line with approvals - then upward pressure on dwelling prices will remain whilst interest rates are low.
An increase in new dwelling supply is now coming.  Given this trend, interest rates are now likely to remain steady.
<ul></ul>
History has a way of repeating - hence there is a property cycle - and this coming lift in new housing supply (which is great for job creation and actually housing people) will most likely peak when interest start to rise.  These twin lifts will see the housing market soften.  But for mine, that is some 18 to 24 months away.  And the 'soft' should be nothing like a fall of 30% to 50%!
Michael Matusik is the founder of <a style="font-size: 14px;" href="https://www.matusik.com.au/" target="_blank" rel="nofollow">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition. 
Read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
 
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michaelmatusik-49YzLvdmNv

Lift in dwelling approvals and commencements is great news... for now

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There are so many good agents out there. There are also some bad ones. So, how do you choose the agent that is right for you?
Choosing the right agent is especially important for investors whose real estate portfolios are a major portion of their wealth. You may have held onto an investment property for years, and done everything right in that time. 
Even so, your choice of real estate agent to help you exit the investment could still make a huge difference to your degree of financial success.
Vital for investors
That's a big statement, so let’s look at an example to understand it better. Let’s say you paid $500,000 for a unit in <a href="/news">Artarmon</a>, on Sydney’s north shore, some time ago. Perhaps you reasonably expect to sell it now for about $600,000. 
A good agent might be able to ensure you reach that target price. With a bad one, you might fall short by as much as $25,000. 
Could a bad agent really cut your potential profit by 20%? Of course they could. By failing to develop leads from potential buyers, a bad agent can reduce both the size and the number of offers you receive.
If your property hasn’t gained as much value as the example, the impact of a bad agent could conceivably consume your entire profit. In the worst case, it could put you into the red.
I have always been a big believer in real estate agents, and this calculation just reinforces that belief for me. A good agent can make the world of difference.
That’s why answering the question, “Which agent do I hire?” could be the most important single choice you make in the entire lifetime of your investment property. The only question that is more important is, “Which property do I buy?"
Is the rapping agent right for you?
So which agent do you choose? Maybe you want the hip hop agent, who filmed a rap video in one of his listings. The lyrics include these rhyming lines:
"To be the host with the most you don’t have to be rich,
"Come check my opens and meet with me, b____.”
Or, if rap isn’t your thing, maybe you would prefer an agent who takes excellent property photos.   The blog terriblerealestateagentphotos.com found this listing photo, which it says gives off a "vague sense of animosity". 
Look closely and see if you can guess why. 
<a href="https://24.media.tumblr.com/3c1e5033b3e850ec095302f57a6e677b/tumblr_mvdg8n96HV1rrqskho1_500.jpg"></a>
<img src="/images/stories/2014/02/11/agent_feb_11_one.jpg" width="470" height="352" alt="agent_feb_11_one">Seriously, it is vitally important to hire the right agent for your sale. I have worked with real estate agents professionally for most of my career and, year after year, there’s one piece of advice that I keep coming back to.
It’s simple and not even very clever. It’s certainly not difficult.
None the less, it is perhaps the last bit of advice regarding hiring real estate agents that you’ll ever need.
My advice is this:
Never choose an agent who talks over you. 
In any profession, if your efforts to say something only causes the other person to talk louder or faster, you should have serious concerns. Their behavior shows a lack of respect, sensitivity and professionalism.
When someone talks over you, you can assume one or both the of the following: 
• This person doesn't care what I have to say.
• Or, this person lacks the self-awareness and control to know when to be quiet and listen, and when to speak.
Either way, you don't want an agent like that representing you in a transaction that could mean the loss or gain of tens of thousands of dollars.
Hurting you and themselves
Perhaps you are willing to give talkative agents the benefit of the doubt. After all, you might tell yourself, "They do know more about real estate than I do. Maybe what they have to say about my home is more important than what I intended to say."
Certainly, a good agent will have important things to say. But in listings presentations, the best agents do more listening than talking. It is vitally important to them that they understand their client's state of mind, and that they learn all the important details about the property that only the vendor can know.
In this sense, a real estate agent who refuses to let you speak is doing a disservice not only to you, but also to themselves.
So, whether you prefer a rap artist or a photographic genius as your real estate agent, never choose one who talks over you.
Andrew Taylor is the Queensland-born co-CEO of <a style="font-size: 14px;" rel="nofollow" href="https://juwai.com/">Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world. 
He has almost a decade and a half of experience in Australian and Chinese real estate and managing print, TV, radio and online media. He also has bachelor and graduate degrees in classical music, and plays the diyin gehu (Chinese bass).
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Choosing the right agent: The one thing they should never, ever do

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Recent <a href="https://thempreport.com.au/2014/01/23/australian-homes-among-worlds-most-dear-fitch-report/">reports</a> have confirmed what many already know: the cost of housing in Australian cities is among the highest in the world.
The growth rate in Australian property prices over the last 15 years is the biggest sustained increase recorded anywhere. Australia also has the highest debt-to-income ratio – <a href="https://theconversation.com/renting-for-life-housing-shift-requires-rethink-of-renters-rights-20538" target="_blank">encouraged by generous tax incentives to the middle and upwards classes to invest in property</a> – meaning that as more households commit more of their incomes to mortgage repayments, so prices continue to rise.
High prices push out the arts
Sydney is <a href="https://www.smh.com.au/business/the-economy/sydney-melbourne-house-prices-lead-strong-growth-in-january-20140203-31w0u#ixzz2sQTNrouT" target="_blank">most expensive</a>, with a median dwelling price of A$660,000, followed by Melbourne with a median of A$553,000.
That these two cities lead the field is not surprising: Sydney is Australia’s financial capital, and Melbourne is commonly positioned as <a href="https://theconversation.com/melbourne-the-worlds-most-liveable-city-not-exactly-17677" target="_blank">the nation’s most liveable</a> and cultural capital.
Melbourne’s arts and live music scenes are indeed internationally renowned, and Sydney is now trying to revive its long-gone music scene, having taken guidance from Melbourne researchers on <a href="https://theconversation.com/a-live-music-scene-needs-a-live-music-policy-20140" target="_blank">the development of a Live Music Action Plan</a>.
Melbourne is not quite the exemplar it could be, however, and is already falling victim to its own success. In recognition of this, the Victorian state government has established <a href="https://www.premier.vic.gov.au/media-centre/media-releases/4417-live-music-roundtable-established" target="_blank">a live music roundtable</a>; and the inner-city councils of Yarra, Port Phillip and Melbourne have set up their own live music taskforces. Each is attempting to respond to the effects of the increasing property prices and residential population on local arts and cultural activities.
My research team has tracked the location of Melbourne’s arts and music scenes over the past 20 years.
The two maps below show the location of independent and community-based (ie. non-commercial) cinema, visual arts, performance and live music (for elaboration on these definitions see our recent paper <a href="https://www.tandfonline.com/doi/abs/10.1080/10286632.2013.788162#.UvQXhWS1aIg">here</a>) in 1991 and 2011.
The pattern they show is the pattern of gentrifying cities all over the world: low-yielding land uses get pushed into areas where land values are lower, as high-end residential and office buildings – the “highest and best” uses in most market economies – proliferate.
<img src="/images/stories/2014/02/17/nzxgkscw-1391743480.jpg" width="470" height="665" alt="nzxgkscw-1391743480">
Figure 1.
 <a href="https://c479107.ssl.cf2.rackcdn.com/files/41003/area14mp/h4h7bnpm-1391747974.jpg" style="font-size: 0.8em;"><img src="https://c479107.ssl.cf2.rackcdn.com/files/41003/width668/h4h7bnpm-1391747974.jpg" width="470"></a>
<a href="https://c479107.ssl.cf2.rackcdn.com/files/41003/area14mp/h4h7bnpm-1391747974.jpg" style="font-size: 0.8em;"></a>Figure 2.  
The displacement of the venues that host these activities from the wealthier south-eastern suburbs is expected. Interestingly, they are not fleeing to the city fringe where prices are much lower, but clustering where they can in the inner-city or heading north. The two intense clusters on the 2011 Melbourne map are in the CBD and Collingwood/Fitzroy, and the northward trajectories are in Brunswick/Coburg and Northcote/Preston.
It is these areas that have the greatest diversity in property prices in inner-Melbourne – some of the most expensive, to be sure, but also some of the cheapest and, importantly, smallest spaces available in the inner-city. The fact that these venues are not (yet) relocating to the outskirts is due partly to the need for centrality and good public transport for their audiences, and partly to the residential populations in these areas that largely support the presence of sometimes loud and messy activities.
The arts and live music scenes in Melbourne in 2011 (and now) are still strong and the number of small venues is increasing, but they are also increasingly precarious. At their core are the independent artists and musicians whose relative freedom to experiment – and to continue to feed more commercial or mainstream culture – has been sustained by low rents and the capacity to live relatively cheaply.
A <a href="/news">2010 report</a> by the Australia Council for the Arts shows that the financial position of practicing artists over the last 20 years has worsened. Titled <a href="/news">Do you really expect to get paid?</a>, the report shows that very few artists in Australia earn high incomes and most earn very low incomes. Most earn from their chosen profession less than A$10,000 a year.
The pressures of gentrification
Gentrification is placing all sorts of pressures on arts and cultural venues, and on the people who work and play in, and live around and support them.
Those inner south and eastern areas on the 2011 map of Melbourne that are being emptied of their arts and music scenes, and areas such as Docklands that never had (recognised) cultural activity and still don’t, were subject to urban regeneration strategies – those market or state-led economic development strategies so often inspired by notions of the “creative city”.
Intended to decrease vacancy rates and increase land values, these strategies bring revenue to local governments and capital gains to landowners, essentially by displacing lower than best economic uses – including low-cost housing and low- and non-profit cultural uses.
While lifestyle and property media features gush over the “hipness” of the latest district discovery, the scene tries to hang on or moves on. The doubling and tripling of rents is not “hip”, it’s a problem.
The “creative city” is a contradiction other cities have been grappling with for years. Local governments in San Francisco, New York, Portland, Amsterdam, Berlin and Hamburg, among others, unable or unwilling to curb gentrification, are at least ensuring that some of the financial returns are invested in rent controls, capital works and purchases for (sub)cultural uses, and more cautious and egalitarian urban regeneration programs.
Few Australian governments have come to terms with the depth of the dilemma, but some in Melbourne and Sydney are making a good start.
Now they must accord a place to independent arts and cultural uses in their planning policies, their zoning designations and their regeneration strategies.
Most importantly, they must make investment decisions not just in the interests of culture, but of those low-income people who put the social, cultural and economic diversity into gentrifying cities.
Kate Shaw is an Australian Research Council (ARC) Future Fellow in urban geography and planning at the University of Melbourne.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
 
<img width="1" height="1" alt="The Conversation" src="https://counter.theconversation.edu.au/content/21749/count.gif">
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High rents aren’t hip: the contradictions of the ‘creative city’

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Many people express the opinion that residential property is first and foremost a shelter and therefore should only be considered from a social perspective. Many believe that it is a given right of every citizen of this country to have a roof over the head – rather than as a financial asset that can potentially make money for its owners.
Although it seems like a righteous position to hold, it cannot be denied that, in addition to offering a physical protection from the elements, residential property is, and always has been, an attractive investment option.
The old saying “property is the biggest investments one will ever make” has not been coined without reason. Besides, even when people say they are buying a “home and not an investment” they do not necessarily equate this statement with not making any money on their purchase in the future.
It would therefore be more pragmatic to consider residential real estate as “long-term accommodation” rather than just a “shelter”. It is both a  roof over the head, as well as a money making asset.
Property ownership is quite popular in <country-region>Australia</country-region>. According to the Australian Bureau of Statistics, as at August 2011, 67% of all residential dwellings were owner occupied. Although this proportion is slightly down since the previous Census in 2006, it has remained relatively unchanged for the past 50 years.
Those Australians who had a stake in residential property did quite well over the last six decades, as the following chart demonstrates.
 <img alt="seven_decades_of_prices" src="/images/stories/2014/02/10/seven_decades_of_prices.png" height="261" width="470">
Source: Based on ABS data and Stapledon 2007
Returns varied from decade to decade as property prices rose at different paces, but they have always remained positive. So will property owners be seventh time lucky? Chances are they will, given the <a href="https://www.propertyobserver.com.au/residential/australian-property-prices-in-2014-and-beyond-a-peek-into-the-future/2014013167457" target="_blank">past history of property prices in this country</a> .
What the above chart does not show is that property owners also had an opportunity to make substantial savings in the ongoing costs of accommodation (i.e. rent) once they had paid off their initial loan. This increased the actual returns to owners quite substantially.
The following chart compares estimated total returns on residential property from capital appreciation and reinvestment of imputed rents, which is conceptually equivalent to S&amp;P/ASX 200 Accumulation Index.
 <img alt="property_vs_shares" src="/images/stories/2014/02/10/property_vs_shares.png" height="275" width="470">
 
Sources: based on ASX and ABS data
The chart indicates that, over the long run, returns from residential real estate match returns from share market investments. This conclusion is also supported by a study undertaken by Russel Investments and published by the Australian Stock Exchange, the <a href="https://www.asx.com.au/documents/resources/ASX_Report_2013.pdf" target="_blank">Long-term Investing Report, July 2013.</a>
It is important to stress that residential property is a long term investment option – it delivers, but requires patience. Consequently, this means it can be outperformed over a short-term by other types of investments.
Take gold for example:
 <img alt="property_prices_vs_gold" src="/images/stories/2014/02/10/property_prices_vs_gold.png" height="299" width="470">
Sources: based on ABS and Perth Mint data
Over the long run, residential property outperformed gold. However, over a short-term, those investors who piled into gold in 2005 would have experienced a much greater rate of return than property owners - even after the 2012 and 2013 falls in gold price are factored in.
 <img alt="property_prices_vs_gold_short_term" src="/images/stories/2014/02/10/property_prices_vs_gold_short_term.png" height="299" width="470">
Sources: based on ABS and Perth Mint data
Just a note of caution: Do not take the above comment literaraly – property owners could still come on top, despite the proportionately smaller increases in prices compared to gold because of the leverage that is usually applied when buying a property.
For example, a $100,000 cash investment in gold in 2005 would now be worth $250,000 (i.e. $150,000 increase). That amount invested in the right property worth $400,000 in 2005 (i.e. as 25% deposit) would deliver by now $200,000 extra in owner’s equity.
There is one more reason why property should be treated as an investment. In particular, if you believe in the merits of diversification, individuals should always aim to spread their wealth across a wide range of assets to minimise financial risk.
Residential property is an asset class with proven long-term security, hence should be considered as a part of well diversified financial portfolio.
All working Australians already participate in local and overseas stock markets, various cash instruments and/or commercial property market via the superannuation funds they belong to. However, these funds do not invest in residential property.
Dixon Advisory was the first Australian company to offer individuals the opportunity to invest in residential property in the <country-region>USA</country-region> via its <country-region>US</country-region> Masters Residential Property Fund, but not in Australian property. So, diversification into Australian residential real estate is only possible via direct investment in your own home or in the investment property (as an individual or via self-managed super fund).
All in all, residential property is an investment regardless of whether it can be morally justified, or whether those buying the property do it with full consciousness of this fact or not. It is simply because the returns are too good and too consistent to treat it otherwise.
The social aspect of housing, that is, as an “affordable shelter”, is very important and should be widely debated. However, in my opinion, the issue stands a much better chance of being addressed properly with tailored solutions aimed at assisting specific sections of the community; rather than with Robin Hood like polices advocated by some commentators, that can potentially destroy the investment value of property in Australia.
Residential property constitutes a significant part of the wealth of this nation. There is merit in the aspiration to own a property as a way of building and accumulating wealth, and therefore, there is a good reason to keep the 'Australian dream' alive.
Undermining this aspiration and shaking confidence of Australians in property will not end well – either fif it leads to destruction of national wealth, or for those who are persuaded to opt out of participation if history continues unchanged. 
Arek Drozda is an independent analyst who has worked in the public and private sectors for over 20 years in business development, data analysis and in building geographic information systems.
 
<hr>
 RELATED ARTICLES BY AREK DROZDA:
<a target="_blank" href="/news">Putting property investment losses into perspective</a>
<a target="_blank" href="/news"></a><a target="_blank" href="https://www.propertyobserver.com.au/finance/australian-property-prices-explained-independent-analyst/2014011367181">Australian property prices explained</a>
 
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adrozda-Nq9GwoWWBW

An investment or just a roof over your head: How should we treat residential property?

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Some interesting data suggests that low interest rates are working their magic and consumers are enjoying the spoils of low mortgage repayments.
Retail trade punchy
<img alt="Graph: Monthly Turnover, Current Prices, Trend Estimate" src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/3dda13ecdc094b1cca257734002042f2/Body/0.1928!OpenElement&amp;FieldElemFormat=gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: ABS
Very nice results, as trend retail sales rose by 0.6% month on month in December or 0.5% month on month seasonally adjusted.
Reported the ABS: "The seasonally adjusted estimate rose 0.5% in December 2013. This follows a rise of 0.7% in November 2013 and a rise of 0.5% in October 2013."
This is another punchy retail print which suggests that consumers are getting into the swing of things.
As you can see, things were pretty slow in early 2013, but over the past six months retails sales are humming along at an annualised pace of 6.5%, which is a very solid rate of growth.
Note that we have had five straight months of growth at 0.5% or above, which hasn't happened since 2003, when we were in property boom-time.
Michael Pascoe made some <a target="_blank" href="https://www.smh.com.au/business/comment-and-analysis/forget-bananas-were-a-coffee-republic-20140206-3238w">interesting observations</a> over at the Sydney Morning Herald where he advises that rather than listen to the complaints about Aussies 'doing it tough', we should look at the story that the actual numbers are telling:
"Instead of nervously counting our pennies in the face of 'cost of living' headlines, what we’re doing is eating out much more and keeping baristas employed. The star sector within retail continues to be restaurants, cafes and fast food outlets, as the accompanying graph shows.
"On the raw original number, we spent $3,523 million eating out in December, 10% more than in December, 2012. On the trend series, the growth was 8.2 per cent and the seasonally adjusted series scored 8.3 per cent growth."
He's not wrong.
Here is the chart showing the growth in the cafe, restaurant and takeaway food services sector (I like to think that I have contributed here in own my small way!).
<img alt="Cafes, restaurants and takeaway food services sector. Source: ABS" height="188" src="https://images.smh.com.au/2014/02/06/5136373/nar-abs-cafe-300x0.png" width="320" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: ABS
Exports flying
Then came a pleasant surprise with the trade data – a second month of surplus for the Aussie economy.
No prizes for guessing where the surplus was sourced from: a large surge in iron ore exports to China, with export values roaring up to a new record high, both for iron ore and for China exports in aggregate.
Let's hope those commodity prices stay healthy as we continue to move into the production phase of the mining boom and the economy can really start to pick up.
Only a mug tries to pick the GDP result, but throw in a a pick up in housing construction and you might start to be looking at a decent result when Q4 print is released in March.
Markets
And what of the impact on markets?
Well, share markets were cheered at last, the XJO (ASX 200) jumping into the green by more than 1.1% at the time of writing.
Currency markets seem increasingly certain that the economy is picking up, the unemployment rate will start to fall, and that we have seen the last of the interest rate cuts for the cycle.
The Aussie dollar is all the way back up at 89.7 cents.
As for property markets, well, they have not really shown any signs of cooling at all.
In fact, if you drill into the data, you will be able to identify some of the trademark signs of an imbalanced market.
SQM Research's Louis Christopher <a href="https://propertyupdate.com.au/sydney-records-lowest-number-of-listings-since-2008-louis-christopher/" target="_blank">has highlighted</a> how Sydney's stock on market has collapsed by 17% year on year to its lowest level since the stock on market index was created.
Boom-time looks set to continue in the harbour city.
On the flip side, Darwin has 25% more stock on market than a year ago, which is likely to stall the market, says Christopher.
<img alt="sq1" height="125" src="https://dev.propertyupdate.com.au/wp-content/uploads/2014/02/sq1.jpg" width="400" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: SQM
Meanwhile, RP Data's Cameron Kusher updated his time on market index, and found that time on market has fallen to the lowest levels on record.
Dwellings not sold at auction are selling faster than we have seen recorded before (28 days for houses and 35 days for units).
Sydney has led the way in this index in recent history too.
<img alt="TOM" height="145" src="https://ci5.googleusercontent.com/proxy/nw2AS3w5o_Szf920cBksV80z9zx6IICeSnL10WJnbOhojkzR4CaeuXAAwNhtl2Y5JkrlNf6eNT5hK4NpBjAnkYx_mrCYYbK_5nrD7F-l_w=s0-d-e1-ft#https://blog.rpdata.com/wp-content/uploads/2014/02/TOM.jpg" width="400" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: RP Data
All in all, the evidence suggests that no more interest rate cuts appear necessary. Now, we just need to employment figures to pick up an the economy could be off and running.
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' is out now.
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pwargent-M4siyDbqQY

Low interest rates are working as economy clicks into gear

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Just like many others I have been trying to make some sense of our property markets – so I went back to 1990 (yes I was selling way back then) to look at what the market was doing.
Why, you might ask?
Well, back then the Reserve Bank of Australia (RBA) had the cash rate at 17.50% (today, it's at 2.50%). Back then we were selling un-renovated mansions on Prince Albert Street for $1,050,000 (that was the top-end back then) with semi-detacheds on Dalton Road fetching $275,000. A nice home on Wolseley Road with Balmoral views would set you back $485,000 and an apartment on Mandolong Road sold for $125,000; and yes, all these homes were in <a target="_blank" href="/news">Mosman</a>.
Pause for a moment and your attention would be diverted to the prices of the real estate – with little attention to the highest ever cash rate in Australia’s history – 17.50%. A cash rate seven times higher than the cash rate today – and even more frightening, it was just before the “recession we had to have”. This saw the cash rate in January 1990 drop from 17.50% to 4.75% in July 1993.
My point being that with a cash rate of 2.50%, why are there not more sellers in the market engaging in their long-term real estate strategies? <a title="Sydney property listings reach post – GFC low: SQM Research" href="https://www.propertyobserver.com.au/news/sydney-property-listings-reach-post-gfc-low-sqm-research/2014020567578" target="_blank">Sydney property listings reach post-GFC low, according to SQM Research</a> – January saw 20,080 listings in the city, a decrease of 3–4% from December. The previous low in listings for Sydney was recorded by SQM in January 2010, when 20,687 properties were listed. So the mystery is that the market in January 2014 is much stronger than back in January 2010 – so why are there fewer vendors?
The cash rate in January 2010 was 3.75% then in March it went to 4.00% to then peak in November 2010 at 4.75% with the RBA then easing the cash rate down in November 2011 to 4.50% to now where it sits at 2.50%.
Only when one actually extrapolates this data that the question is just how much attention the consumer pays to the cash rate – given it does not appear to be reflective in market sentiment. Based on that analysis it is clear that there is not a strong argument/interest for which direction the RBA will go when they next meet. Rather why are property owners ignoring the strongest selling conditions we have seen (in Sydney) since 2004?
Now there are a thousand upon thousand conspiracy theories – I prefer to call them myths, mysteries and market manipulations. The dominant buyer appears to be very high on the discussion index at the moment and that is the Chinese buyer. I looked at our deal book for 2013 and our sales to Chinese buyers made up less than 5% of our total transactions in that year. We don’t do any project marketing of new blocks of apartments, where in that demographic they make up over 80% of the transactions.
Maybe we should take a closer examination of the Significant Investor Visa (SIV) that was launched on November 24, 2012? 
From an article entitled "<a title="China’s Great Wall of visa money " href="https://www.businessspectator.com.au/article/2014/2/5/china/chinas-great-wall-visa-money" target="_blank">China’s great wall of visa money </a>"– "new analysis from real estate advisory arm of Korda Mentha has revealed that the government’s significant investment visa scheme is booming, with the numbers of approved visas growing exponentially in the second half of 2013."
There has been a significant spike in the number of SIV approvals since the Coalition government came into power last September. There were only 15 approvals in the first eight months of 2013 under the Labor government. The number of approvals surged nearly 600% in the first two months of the new government. Is it a mystery or a myth that this is because the Abbott government does not have a Housing Minister and these statistics will go unchecked?
In 2013, the highest house sale was Altona – Wunulla Road Point Piper for $52 million. For the first time in years the only other property to sell outside the Eastern Suburbs for Sydney’s Top 20 sales in 2013 was Julian Street, Mosman which was sold by Richardson &amp; Wrench Mosman &amp; Neutral Bay (RWM) for $13.9 million. From the Sydney Top 20 sales in 2013 just four went to Chinese buyers – so don’t believe everything you read in the newspapers, or hear from real estate agents for that matter. I would call that market manipulation.
In 2014, we have seen three houses listed with 60 million plus price expectations in Sydney’s Eastern Suburbs with a common theme in the media that they are chasing the Chinese buyers.
Nobody knows with any great certainty what lies ahead for our property markets in 2014. Rest assured there will be plenty of myths, mysteries and market manipulations. We do know from anecdotal evidence that at the top-end they don’t pay any attention to the cash rate either. On the other end of the market spectrum the lower end of the markets are fixated by the cash rate for obvious financial reasons.
Nothing can still explain why what should be a feast market has ended up as a famine.
Robert Simeon is a director of <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/" title="RWM" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
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