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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The Portside Wharf development in Hamilton has released 14 two storey terraces, with construction to begin later this year.
The two bedroom, two bathroom terraces will each have river frontage, while some will have private entrances with direct access from the wharf. They will occupy the bottom two levels of the 16 storey Pinnacle apartment complex. Residents in the terraces will have access to the building’s rooftop terrace, which features a pool, barbecue, entertainment area and gymnasium.
Only 12 of the 14 terraces released remain available to purchase. Prices begin from $795,000, ranging in size from 92 square metres to 183 square metres.
Portside Wharf includes four completed residential buildings in addition to Pinnacle and another development, Link, which are awaiting construction. The total Portside Wharf development also includes retailers and dining spaces.
It is the first stage of the Northside Hamilton urban renewal project, which when completed is intended to house around 10,000 residents.
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
For the latest development listings, brought to you by Property Observer and partners, see our <a rel="nofollow" href="https://showcase.propertyobserver.com.au/">Investor Showcase</a>.
Images are artist impressions.
 
 
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New residential release from Portside Wharf development in Hamilton

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With cans of paint, pesticides, oil spills and a big, heavy, automated door, your garage is one of the most dangerous areas in your home. Given that we use garages to store our most hazardous household items, it makes sense to take steps to protect our families and pets from some of the more risky parts of a suburban garage. With that in mind, garage door manufacturer Merlin has come up with eight top tips for a safer garage.
Never allow children to play with the garage door
The garage door and opener are not toys and can be dangerous if misused. Children should never be allowed to play with the garage door, its automatic opener system or remote control. Children should never play under or near the garage door and should keep fingers and hands away from the door and opener to prevent any crushing or pinching of fingers and hands.
Keep tools out of reach of children and toxic items locked away
 Garages are home to a number of sharp, heavy and hazardous tools, so to ensure children can’t get their hands on these items, keep them on high shelves or up on pegboards, out of their reach. Highly toxic items such as chemical cleaners, pesticides and garden chemicals should be tightly sealed and stored in a locked cupboard at all times.
Always clean up sawdust and oil spills after working in the garage
As many garages are also used as workshops, ensure that all sawdust, woodchips and oil spills are immediately cleaned up after the work is complete, as these are not only a slipping hazard, but are also combustibles that can fuel a fire.
Ensure your automatic garage door opener has a safety reverse function
Garage doors – whether automatic or manually operated – are heavy and large objects that can potentially cause serious injury or even death. To reduce the likelihood of injury, ensure your garage door is installed with an automatic garage door opener equipped with an automatic safety reverse. 
Protect your child from vehicles
When reversing out of your garage, always conduct a thorough check of your surroundings and regularly scan the area for small children and pets. Avoid leaving your keys inside your vehicle to prevent children from accidently starting the vehicle in a closed garage. Ensure motorcycles and bicycles are secure to prevent them from falling on children.
Store flammable items in the correct location
Many house fires start in the garage due to the presence of the flammable items generally stored there. Fire requires three things: fuel, oxygen and heat, so if you keep incendiary items away from heat sources such as water heaters, fridges and battery chargers, you are taking the first preventative step in avoiding a garage fire.
Keep a fire extinguisher close by
A fire extinguisher is an essential item to have in a garage and should be kept close to an entry point to the garage. A CLASS 10B:E extinguisher is the most suitable for garages and uses a nontoxic dry powder extinguisher to combat fires involving oil, flammable liquids and electrical equipment.
Install a heat detector inside the garage
Due to the nature of garages (often filled with smoke fumes from the car or from the workshop) smoke detectors often give false alarms and a heat detector is a more suitable option for the garage space. A heat detector will detect rapid rises in temperature and alert you of a fire in your garage.
Source: <a target="_blank" href="https://www.gomerlin.com.au/">Merlin</a> 
<a href="https://mce_host/jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au </a>
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Top tips for a safer garage: Merlin

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Agent: Michael Wall<img src="/images/stories/2014/02/12/michael-wall-profile.jpg" alt="michael-wall-profile" width="125" height="150" style="float: right;">
Position: NSW head of industrial
Company: Jones Lang LaSalle
Office location: Sydney
How long have you been in the industry?
I’ve been in the industry for 13 years. I started working in property in New Zealand, before relocating to Sydney in 2004.
What’s happening in the area you specialise in?
With the security of income provided by long-term industrial leases and a low interest rate environment, industrial properties are currently highly sought after by all investor types, including privates, syndicators and institutional owners.
At present, the demand for these assets is exceeding supply, which has seen the sector witness good capital growth over the last 12 months.
On the leasing front, conditions remain tough however we have noted an increase in tenant activity following the federal election which we hope to see continue.
Describe the most interesting property you have sold/leased/developed.
The most interesting was the property I sold was at 38 Pine Road in Yennora – a 33,000 square metre warehouse facility.
This was both interesting and rewarding. This is because I’d bought the property off Jones Lang LaSalle for the vendor back in 2009 in my previous role as general manager of a private investment group.
What are the ingredients to being successful in your job?
I believe the key is: understanding your clients’ needs and being able to provide them with well-informed advice.
What aspects of your role do you enjoy the most?
Achieving results is always the most enjoyable, however the property industry is full of interesting characters which also makes the role enjoyable on a daily basis.
Where would you invest a spare $750,000?
Industrial property. 
 Which football team do you support?
All Blacks. No surprises there.
What’s your favourite app or techno gadget?
iPad
How do you use social media?
I used <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/michael-wall/7b/48/56" target="_blank">LinkedIn</a>.
This profile was originally published in February 2014.
 
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In profile: Jones Lang LaSalle's head of industrial, NSW, Michael Wall

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For the first time in 20 years, the historic Block Arcade on Collins Street in Melbourne’s CBD is being listed for sale.
The arcade was constructed in 1892 after a fire destroyed the site’s original building. Designed to replicate Milan’s Galleria Vittoria, the L-shaped arcade features mosaic-tile flooring, glass skylights, wrought iron features and a large dome. It has an entrance to Collins Street and another to Elizabeth Street, with a third entrance on Block Place.
Selling through Colliers International and Allard Shelton, the Block Arcade houses a number of boutique retailers (including the Hopetoun Tea Rooms, which has remained a tenant since the arcade’s opening in 1892) on the ground floor, with commercial tenants on the upper levels. There are currently 27 tenants in the arcade. Anchor tenants currently include Telstra, Haigh’s Chocolates and Crabtree &amp; Evelyn. The property has a net lettable area of 8,124 square metres.
Colliers International managing director of capital markets and investment services John Marasco expects interest from local and international buyers from Asia, Europe and the US.
“The Block Arcade is a blue chip Melbourne CBD investment,” Marasco said. “It also offers a number of exciting value-add opportunities including repositioning the asset to attract luxury retail brands to the precinct.”
Patrick Barnes, director of Allard Shelton, has managed the property for 20 years. He noted the historic significance of the Block Arcade, which is part of Melbourne’s “Golden Mile” heritage walk.
“The Block Arcade has an unprecedented 120-year successful retail trading history and there is a waiting list of tenants trying to secure space in the centre. It is much-loved by Melbournians and has a loyal following of local shoppers,” said Barnes.
“It is also a popular tourist destination for interstate and international tourists, attracting more than 3.5 million visitors during 2013.”
The Block Arcade is expected to achieve a sales price of about $100 million. Offers of interest are being accepted until 4pm on April 3.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
 
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Melbourne's Block Arcade on the market with $100 million price expectations

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Over 50% of the industries that advertise jobs on SEEK in 2013 offered job seekers a higher wage than in 2012, the employment site reports.
In New South Wales, 63% of employers offered job seekers higher salaries than in 2012 and in Victoria 60% offered higher salaries. In Western Australia, 58% offered <a target="_blank" href="https://www.smartcompany.com.au/people/34654-abc-staff-wages-revealed-what-to-do-if-your-team-learn-what-everyone-earns">higher salaries</a>, in Queensland it was 53% and in South Australia 52%.
The report found 40.7% of all industries listed on SEEK offered salary increases above the wage price index of 2.6%.
However, it found the average salary offered on the site was $81,055, slightly down from the 2012 average of $84,458.
SEEK human resources manager Rebecca Supierz said this national decrease in salary reflects a drop in salaries for candidates in high paying sectors, such as mining and construction which have softened in demand.
“Construction and engineering job seekers would have been disappointed to find salary decreases of up to 21% for some roles,” she said.
“However, these roles are coming off a high salary base and when we look nationally, the best paying jobs were still found in the mining resources and engineering sectors.”
The top role for salary growth in 2013 was for local government, up 20% from an average of $57,672 to $69,381.
The highest paying roles on average were for oil and gas geoscientists at $158,671, mining managers at $145,401, mining geoscientists at $139,616, oil and gas drillers at $138,951 and mining engineers at $137,800.
The five lowest paying roles were packers at $42,423, beauty therapists at $42,605, receptionists at $42,611, retail assistants at $44,519 and bakers at $45,162.
The report found wages in the insurance and superannuation sector, and sports and recreation sector were the highest for salary growth last year, up 6% nationally.
In sectors where there were fewer candidates, including healthcare and medicine, the salaries for experienced candidates were up 5%.
In retail, consumer products, community services and development, wages went up by 4%.
Only 9% of industries across Australia experienced no change in salaries, this included IT, financial services and property industries.
The report also found that wages for young people aged 18 to 24 years old were not meeting candidate expectations. 46% of employers think that young people want too much money due to their high standard of living expectations.
“With employers and younger employees divided on the salary debate it is clear the financial and generational chasm in the workplace is widening,” Supierz said.
SEEK spokesperson Sarah Macartney said that this could reflect that many young people who begin full-time work were leaving home for the first time, and realising that their wage did not stretch as far as they anticipated to cover rent and bills.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Average wage down, but big money still in mining: SEEK salary review 2013

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RP Data reported that housing momentum continues in 2014, with capital city dwelling prices increasing by 1.2% in January, the figure driven almost exclusively by gains in Melbourne (+3.2%, recovering from 'losses' in recent months), Sydney (+0.8%) and Brisbane (+0.7%).
But the interesting news will be to see how the media chooses to report the rebounding of first home buyers into the market.
There has been an awful lot of commentary about first home buyer numbers falling, with them never to return due to affordability issues and having alternative priorities.
However, soon to be released figures from the Australian Finance Group (AFG) will show first timers surging back into the market.
AFG processed more than $2.5 billion of home loans in January, a large jump of 14% on the prior year.
The percentage of first home buyers jumped from 8.7% to 11.2% in Victoria, while the figure jumped from 21.8% to 24.2% in Western Australia.
First home buyer numbers remain solid in South Australia at 15.5%, while the numbers are clearly lower in the states with no first home buyer grants.
No doubt the resident crash community will instead choose to focus on the nonsensical 3.4% reading for first home buyers in New South Wales; even though it's as clear as daylight that due to the lack of first home owner grant the actual numbers of first timers are not being correctly recorded.
And I say that as someone who is out there in the Sydney housing market every day.
In any case, increasing numbers of first time buyers are choosing to rent where they live and instead buy an investment or rental property as their first step on to the housing ladder. As such, are recorded as 'investors' rather than first time purchasers.
Given the high level of transaction costs in buying and selling property, this can certainly make plenty of sense, especially given that younger generations tend to change jobs (and even careers) far more regularly than was ever the case in decades gone by.
Instead of trading up several times, younger generations may instead elect to get a foothold on the ladder via an investment property, giving themselves to the freedom to rent in different suburbs or take time to travel or work overseas.
Meanwhile the share of fixed rate loans fell to 23.9%, the lowest level in a year, as borrowers anticipate that the interest rate cycle may at last have reached its nadir.
AFG will report that the share of loans for investment purposes in New South Wales has reached the highest level on record at 53.4%.
Demand for property in Sydney in particular is running extremely hot, which will be reflected in more strong capital gains in 2014.
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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First time buyers rebound into market with home loan surge

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Commercial property stands to benefit from the recent improved business trading figures — which have soared to a two-year high. These now fall into line with the NAB Survey's confidence levels.
As such, many forecasters believe these latest figures (together with the growth in house prices over the past 12 months) now reflect the underlying strength of Australia's post-mining economy.
Therefore, further interest rate reductions expected by the RBA are unlikely to occur any time soon — if at all.
The China factor
As you would be aware, China has just confirmed its annual growth figure at 7.5% for the December quarter.
While this may be down from the heady 10% plus during our mining boom, it clearly reflects a far more realistic and sustainable level of annual growth.
All this means is that the mining sector will now be operating in a more traditional supply phase — instead of the previous boom-time development phase.
You'll recall <a href="https://www.propertyobserver.com.au/commercial/don-t-be-put-off-by-negative-press-when-considering-commercial-property-prospects-chris-lang/2013043060890" target="_blank">an article last year</a> outlining China's potential demand for our iron ore over at least the next 20 years or so — where the underlying facts and logic remain rather persuasive.
If China continues along this path, it can only help in re-balancing the Australian economy.
Overseas demand for commercial property
Over the past five years, overseas buyers (mainly Asian) have accounted for more than half of the direct purchases in commercial property.
And yet over the past 12 months, savvy local investors have also re-entered the market in competition — and now account for 70% of direct commercial property purchases.
However, with our dollar falling below parity with the US the level of interest from overseas buyers will only escalate.
Even though many of these purchases may be at the higher end of the market, this effectively forces investors to seek out suitable property in a lower price bracket.
Bottom line
As the competition increases these higher prices will begin filtering down through the entire market, causing yields to firm. And that will inevitably result in solid growth for investors, over the next three to five years.
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. 
You can visit his website <a rel="nofollow" href="https://property-edge.com.au/" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
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Increasing overseas interest and surge in confidence are good signs for local investors

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Recently I was speaking with an investor who was facing a major dilemma. He had bought an apartment in Abbotsford off the plan and now that the property was due to settle he was having problems getting finance approved.
This was causing him significant stress, as the penalties for not settling are significant. They include losing his deposit and the risk of being sued by the vendor to cover any out of pocket expenses.
As we discussed his situation it soon became clear how murky his position had become.
The sales person told him the property had originally been purchased 12 months earlier for $450,000 and was now being on-sold prior to completion. Due to the fact the property had never been settled there was no way to confirm this was correct.  On the surface, to this individual, it appeared  that the asking price of $406,000 was a bargain to good to refuse and he signed a contract to purchase the property.  
Prior to signing the contract he had put in place a loan preapproval so he was confident getting a loan would not be an issue and as a result did not buy subject to finance. The next hurdle to clear was to get unconditionally approved. To do this his bank ordered a valuation and this is where his problems started.  
The valuation came back a long way below the contract price at $340,000 and he was being forced into a position where he would be unable to settle. The real estate mantra of caveat emptor, buyer beware, meant severe penalties were looming.      
However, not all was lost and like going to a doctor for a second opinion, he approached a different bank. Sure enough the valuation came back at the purchase price and his loan was approved.
So how can one bank value a property so much less than another? The answer lies in the individual banks tolerance for risk and the kind of property they view as being a safe security.
The Abbotsford apartment had one bedroom and was only 37 square metres. Although one-bedroom apartments can make great investments if they are under 50 square metres, at many banks alarm bells start ringing. A small apartment size is a signal the property may be a serviced apartment or student accommodation, which most banks approach with trepidation.
In addition, banks have postcode restrictions in place that determine their lending policies and these vary from bank to bank. Established apartment markets such as <a href="/news">South Yarra</a> and <a href="/news">Port Melbourne</a> are more likely to get the nod. However, an apartment under 50 square metres in an emerging market like <a href="/news">Abbotsford</a> is more likely to face harsher lending policies.  
Although the valuation is independent, the valuer will have an understanding of the banks policy and you should take this into account. Remember if a valuation comes in too high and the bank loses money on the loan then the valuer maybe legally liable.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
       
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The murky waters of bank valuations: Don't get caught out on your finance approval

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According to home loans database <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a>, 20 lenders have cut their interest rates since the start of 2014.
Despite <a target="_blank" href="/news">predictions that the RBA will leave rates on hold</a>, lenders including NAB and Westpac have cut their rates in the past month, perhaps signalling a new level of competition in the lending market for 2014.
Out-of-cycle rate movements have been confirmed by loan comparison website <a target="_blank" href="https://www.ratecity.com.au/">Ratecity.com.au</a>, which noted a number of rate hikes by lenders late last year. Ratecity.com.au chief executive Alex Parsons said that  since October 2013, 73 variable home loan rates have increased by as much as 0.52 percentage points, with 550 fixed rates increasing in that time.
Parsons agrees that rate cuts early this year signal aggressive competition. “Home loan lenders are competing aggressively for business and rates are at historical lows,” he said.
“Five smaller lenders have dropped some of their variable home loan rates in the past month, and 66 variable rates have been lowered since October,” said Parsons.
news@propertyobserver.com.au
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Lenders make out of cycle rate cuts ahead of RBA announcement

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With agencies fiercely competing on their marketing expertise, it is remarkable that the majority of real estate advertising remains so poorly written.
While a growing number of agencies are now hiring professional writers, mostly the task is still left to agents who have never been properly trained to write an ad. Despite having the gift of the gab, their way with words is often challenged when it comes to creating effective advertising.
Endless entertainment can always be had by flicking through the real estate section and picking out the most calamitous advertising disasters. For agents who’d prefer their ads stand out for the right reasons, there are some very basic measures they can take.
1. Keep it real
Most home buyers have at one point had to stand on tippy-toes to spot a “fabulous water view” or visited a “spacious apartment” only to discover cat-swinging would be extremely hazardous. This tendency towards exaggeration is perhaps why real estate agents are ranked near used car salesmen on the scale of least trusted professions.
While it makes sense to point out the best features of the property, there is little value in fudging the truth. As soon as prospective buyers walk through the door they will discover that “charming cottage” is actually a dilapidated wreck, leaving the agent with all the credibility of Milli Vanilli.
Advice to agents: Don’t lead buyers on with an amazing description only to disappoint them at the open house. When buyers can trust your ads they are far more likely to trust you.
 
2. Refrain from writing over the top flowery nonsense
Language is much like make-up – lay it on too thick and you end up looking like a clown. So extravagant is the language used in many real estate ads that the agents may as well rock up to the open house on a unicycle while wearing oversized shoes, baggy pants and a red nose.
Example: Elegantly dress circle positioned on a big block, this sun-splashed hideaway has been restored/renovated for poolside entertaining. With significant frontage yet incredible privacy amidst low maintenance gardens, this remarkable home combines grand classic traditions with modern essentials &amp; large proportions.
When flicking through countless advertisements home buyers want information, not confusing waffle regarding how some “sun-splashed hideaway” is “elegantly dress circle positioned”. It really does pay to keep it simple.
Advice to agents: If you feel the urge to write something flowery it may be time to compose a love note to your spouse. Most home hunters would much prefer you show a little restraint.
3. Stop composing ridiculously long and confusing sentences
The way many agents attempt desperately to cram everything into a single sentence, you might wonder whether someone was charging them for full stops. The results are often so bewildering that even lawyers who are expertly trained in gobbledygook have little chance of deciphering them.
Example: Serenely and privately tucked away in one of Randwick's most exclusive pockets and awash with natural northern light, this exceptional semi on a large 304sqm of land ensures a lifestyle of character, space and quality over one well proportioned level. 
While this attempt to convey nine selling points in a single sentence may be considered valiant, it is still more than a tad confusing. Were the same selling points broken down into two sentences the ad would become infinitely more coherent and easy to read.
Advice to agents: There is a sure method to work out whether your sentences are running too long. Simply read your draft out loud. If you can’t comfortably get through the whole sentence in a single breath it’s time you threw in a full stop.
Article continues on next page. Please click below.
 
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4. Avoid awful headlines
All agents know the importance of creating the right first impression. That’s why they drive flash European cars and wear expensive suits. Inexplicably many still choose awful headlines for their ads.
One of the most common traps agents fall into is an overenthusiastic use of exclamation marks.
QUALITY! SIZE! LOCATION! INVESTORS TAKE NOTE!!!!!!!!!!!!
 
Others opt for headlines which are convoluted and nonsensical.
BRAND NEW TIMBER FLOOR AND FRESH PAINTED Large size 2 bra
Some are just plain boring.
A home to suit your needs
 
There are also agents who believe it best to cram every single feature of the property into a ridiculously long headline.
"The Odeon" Due-North Penthouse Lifestyle, State-of-the-Art Finishes, World-class View, Double Terrace, Double Parking
 
Rather than aggravating their audience from the start, agents should try their best to craft a headline that is short, sharp and focused on the property’s key selling points.
Advice to agents: Avoid long-winded, boring or clichéd headlines and try with all your might to avoid using more than a dozen exclamation marks.
5. Get the basics right
There are few better ways someone can demonstrate their incompetence to the world than to publishing an ad riddled with mistakes. As well as irritating the audience, this is sure to anger the vendor who has just laid out thousands of dollars for their campaign. At the very least vendors should be able to expect a lack of spelling errors and something resembling correct grammar.
Example: lUXURY LOCATION &amp; A SUPER LUXURY PROPERTY 
This beautiful and super luxury 3 stories house located in the sough-after street of Castle Cove, which is closed to anywhere and takes minutes drive to city CBD. Its features offer you more than what you can imagine and request. 
Clearly this agent has a tenuous grasp of the English language and could benefit from calling in a professional. For others a simple spelling and grammar check could work wonders.
Advice to agents: Don’t ignore all those red and green squiggly lines on your computer screen and make sure someone else reads over your ad before it is put out there for the entire world to see.
Jamie Watson is one of Sydney’s most experienced real estate writers. His newly launched <a target="_parent" href="https://www.meteorwrite.com.au/index.php">REwrite workshop</a> teaches agency staff how to write better real estate ads.
You can contact Jamie via <a target="_blank" href="mailto:jamie@meteorwrite.com.au">email</a>. 
 
 
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