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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All too often, real estate slanted commentary on interest rate decisions follows a line something like: "With dwelling prices in 'X' doing 'Y', then interest rates should fall..."
Which would be all well and good if we had a dwelling price targeting central bank. But we don't. We have an inflation targeting central bank.
The most recent inflation print from the Australian Bureau of Statistics at last showed what some commentators have been fearing of flagging for a while: signs of higher inflation.
In particular, some experts believe that a lower Australian dollar will be reflected in higher prices at the fuel pump, which is clearly bad news for motorists; we might see a petrol price of well above $1.50 per litre through 2014, although that remains to be seen.
The headline consumer price index (CPI) print was 0.8% for the quarter and the 'core' inflation came in at 0.9% for the quarter and 2.6% over the past year.
The Reserve Bank's own chart pack has shown for some time shown a notable split on where the inflation is coming from (non-tradables being items which are not readily exported or important - such as medical services or housing). Note the 'imported' tradables deflation, largely brought about by the rapidly climbing exchange rate at the end of 2011 and in 2012.
<img 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;" width="320" height="284" src="https://www.rba.gov.au/chart-pack/images/4-au-gdp-growth/4br-tradeinf-small.gif?accessed=2014-01-30-13-49-30" alt="Non-tradables and Tradables Inflation graph">
While there will no doubt be some discussion about 'looking through' the inflation to allow the economy to grow, there are a few reasons why a subsequent strong inflation print could cause interest rates to be hiked.
The challenge as ever facing the Reserve Bank, is to keep inflation under control while allowing the economy to flourish. Who'd be a central banker?
1) RBA policy
The Reserve Bank has a policy of targeting inflation and keeping CPI to within 2-3% over the medium term as part of its approach to price stability. In fact, here is the RBA's monetary policy in full:
"The Reserve Bank is responsible for Australia's monetary policy. Monetary policy involves setting the interest rate on overnight loans in the money market (‘the cash rate’). The cash rate influences other interest rates in the economy, affecting the behaviour of borrowers and lenders, economic activity and ultimately the rate of inflation.
"In determining monetary policy, the Bank has a duty to maintain price stability, full employment, and the economic prosperity and welfare of the Australian people. To achieve these statutory objectives, the Bank has an ‘inflation target’ and seeks to keep consumer price inflation in the economy to 2–3%, on average, over the medium term. Controlling inflation preserves the value of money and encourages strong and sustainable growth in the economy over the longer term."
So, in effect, the bank's hands are to some extent tied. If we want a Central Bank which overlooks inflation, then we need a new policy.
Interestingly, Australia's policy of a 2-3% target range of inflation reflects a higher target than our major trading partners. The US Federal Reserve has an inflation target of 2% and so does the Bank of England (not that the BoE has had much success in hitting its target in recent years!).
2) Credibility
I think the key point is credibility. It's all well and good a central bank attempting to imply that "we'll get tough on inflation next time around" but, like the boy who cried wolf, credibility can be quickly lost.
Therefore it is important that announcements are followed up with appropriate future policy. When credibility is lost, monetary policy may no longer have the desired effect and the system breaks down.
Moreover, where businesses don't believe policy announcements are credible, they tend to expect higher inflation and behave accordingly - wage-setting behaviour is adapted, wages tend to rise with inflation to follow, in all likelihood with little or no benefit from increased output.
Despite having 'missed' the inflation target band on occasions since 1993 as the chart below shows, the RBA notes that the inflation target is a medium term average of 2-3%. At times, CPI will inevitably run outside the target band, but broadly speaking markets seem to believe that the Reserve Bank is serious about its inflation target.
<img 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;" width="320" height="280" src="https://www.rba.gov.au/monetary-policy/images/inflation-long-run.gif">
As a result of this the Reserve Bank retains some power in its '<a target="_blank" href="https://petewargent.blogspot.co.uk/2012/10/jargon-busting-v-to-jawbone">jawboning</a>' - comments made in interviews concerning bringing the level of the Australian dollar down, for example, can have an effect while markets believe in the credibility of the central bank and its board.
Of course, one of the challenges for a central bank is that in order to continue to meet a medium term average inflation target of 2-3%, the board needs to look "out of the windscreen" and "not out the window". Not a great analogy, but one that is frequently applied in this case.
3) Human nature
Perhaps a slightly less important point, but although we tend to think of central bankers as aloof, like you and I they are human, and by and large they probably do care about what people think of them.
On any board, it stands to reason that some members will hold more sway than others (particularly the Governor, one would assume), leading some to suggest that central bankers can gain reputations for being 'tough' or 'soft' on inflation (or 'hawkish'/'dovish' as it is sometimes labelled).
This is led some academics to spend (too) much time discussing whether there should be some kind of automated monetary policy system i.e. "If X happens to inflation, then interest rates should be Y". I'm not even sure this is a good idea in theory, but it's certainly a terrible idea in practice.
In reality, economies are complex and human experience must play a part in attributing importance to the various sectors of the economy and the way in which they will interact with one another.
Summary
Of course, housing markets, and particularly dwelling construction, will be one element considered by the Reserve Bank at its meetings in 2014. Further, the financial crisis has shown the central banks would be foolish to turn a blind eye to asset price bubbles in order to concentrate solely on an inflation target.
If you take a read of the <a target="_blank" href="https://www.propertyobserver.com.au/https://www.rba.gov.au/monetary-policy/rba-board-minutes/2013/05112013">Minutes of a Monetary Policy meeting</a>, you will see that a broad range of issues are considered under the broad headings of 'International Economic Conditions', 'Domestic Economic Conditions' and 'Financial Markets'.
An inflation targeting Reserve Bank must consider the current and future trajectory of the inflation rate, and therefore if we have another strong core inflation print on April 23, one would have to assume that the top of the inflation target band would be in danger (the most recent prints are following an upwards trend) and therefore interest rate hikes may follow.
It will be interesting to see how 2014 pans out. Future markets seem torn, and on balance, suggest that perhaps a cash rate stuck at a generational low of 2.50% is the most likely outcome for some time to come yet.
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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pwargent-M4siyDbqQY

Three reasons why the RBA can't overlook signs of higher inflation

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The GST laws can apply to a weird and wonderful range of things, and some fine distinctions are often sought to be made by the Tax Office in applying those laws.
Feeling sleepy already (at the mention of distinctions in tax law)? I can't blame you, but a recent decision by the Administrative Appeals Tribunal showed how the law can work in favour of a business, although not as it may have thought.
The Tax Commissioner had made a decision that a sleep positioning system produced by a company which assists users to control sleep apnoea was subject to GST. The company objected and the matter came before the AAT.
The AAT set aside a decision by the Tax Commissioner and held that the system was GST-free under provisions of of the GST Act as it was a medical aid. This is good news for customers who won't have to pay GST on the item. But the way the AAT reached its conclusion is interesting.
The company in this case, Snugfit Australia, is registered for GST and supplies a sleep positioning product known as "SnoreBeGone", which assists users to control sleep apnoea. The product is designed to support the body when a person is sleeping in such a way as to prevent the person snoring. It is made of foam with a fabric cover, and is designed to be used in conjunction with a mattress to encourage side sleeping.
The Tax Commissioner issued a private ruling, sought by the company, which found the product was subject to GST. The company's objection to the ruling was disallowed. Before the AAT, the company argued that the product was GST-free as it was covered by Items 82 ("night-time positioning equipment modifications"), 64 (bed restraints), 67 (backrests, leg rests and footboards for bed use), or 87 (cushions specifically designed for people with disabilities) of Schedule 3 to s 38-45(1) of the GST Act. That's enough technicalities for the moment!
According to the AAT, it is the modifications to "night-time positioning equipment" (ie a mattress) that are exempted under Item 82, not the equipment itself. It said from the marketing material and from an examination of the product, it was clear that it was designed to be used in conjunction with another sleeping surface, thereby modifying it.
Therefore, the AAT held the product came within the description contained in Item 82 as the product modifies the shape of a mattress to accommodate the requirements of a person with a disability and is GST-free.
The Tax Office considers that the AAT's decision that the product modifies a mattress turned solely upon the facts of the case, and the description of the product forming part of the scheme set out in the private binding ruling made by the Commissioner. The ATO considers the AAT decision does not have any broader impact on the meaning of the term "modification" in other contexts.
However, the ATO said it is reviewing its view, given in a 2002 Interpretative Decision about the GST treatment of contoured pillows to determine whether it ought to be revised or withdrawn in light of the AAT's decision. The ATO noted that, in order to be GST-free under the GST laws, the relevant product must also be specifically designed for people with an illness or disability, and not widely used by people without an illness or disability.
As I said at the beginning, the GST laws deal with some weird and wonderful things. But it's not difficult to argue that the GST law itself is at times a weird and wonderful thing. The GST law, and the old sales tax that preceded it, were full of "fine line" distinctions on whether various products and services were or were not subject to tax. Those calling for simplification of tax and GST laws have a point.
Terry Hayes is the editor-in-chief of tax news reporting at <a target="_blank" href="https://www.thomsonreuters.com.au/">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
 
 
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The weird and wonderful applications of the GST law

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Retail giant David Jones has confirmed it received a merger offer from rival Myer in October last year.  
David Jones revealed it received the “confidential, conditional and non-binding and indicative” offer from its rival on October 28, which saw Myer offer 1.06 shares for every David Jones share.  
However the offer, investigated by the Australian Securities and Investments Commission, was rejected on the grounds it had “substantial commercial, market, and regulatory risks” including a review from the Australian Competition and Consumer Commission.  
“The board formed the view that the potential transaction did not have sufficient merit for David Jones shareholders to warrant engaging in discussions and providing the access and information requested by Myer,” David Jones said.
This article first appeared on <a href="https://www.StartUpSmart.com.au" target="_blank">StartUpSmart.</a>
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Myer discussed a merger with David Jones last year

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China’s manufacturing sector recorded its first decline in six months, according to the latest HSBC Purchasing Managers' Index (PMI) figures.  
The final PMI for January came in at 49.5, down from a score of 50.5 last month, where a reading below 50 points indicates a deterioration in conditions.  
“A soft start to China's manufacturing sectors in 2014, partly due to weaker new export orders and slower domestic business activities during January,” HSBC chief China economist Hongbin Qu says.  
“Policy makers should pay attention to downside risks and pre-emptively fine tune policy to <a rel="nofollow" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-01-30/final-hsbc-pmi-confirms-chinese-manufacturing-decline/5227892?section=business" target="_blank">steady the pace of growth if needed</a>.”
This article first appeared on <a href="https://www.StartUpSmart.com.au" target="_blank">StartUpSmart.</a>
 
 
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Chinese manufacturing declined in January

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The New South Wales and Victorian governments have recently released business cases for their pet motorway projects, <a target="_blank" href="https://www.westconnex.com.au/documents/westconnex-executive-summary-september-2013.pdf">WestConnex</a> in Sydney and <a target="_blank" href="https://www.linkingmelbourne.vic.gov.au/pages/pdfs/east-west-link-stage-one--short-form-business-case.pdf">East-West Link</a> in Melbourne. But will these projects, costing a combined $20 billion (with $3 billion being donated by the federal government), really generate the economic benefits promised?

Take WestConnex, for example. NSW Premier Barry O’Farrell <a target="_blank" href="https://www.rms.nsw.gov.au/newsevents/news_ministerial/2013/130919-biggest-transport-project-in-australia">claims</a> that this $11.5 billion motorway will “inject $20 billion into the economy”. But Infrastructure Australia has <a target="_blank" href="https://www.afr.com/p/national/infrastructure_boss_lashes_out_yoIxPWcyrNuiI0Ldqw60HJ">poured fresh doubt</a> on such claims, describing big-ticket road promises as electioneering with “only limited regard” for the underlying financial issues.
A glance at the <a target="_blank" href="https://www.westconnex.com.au/documents/westconnex-executive-summary-september-2013.pdf">WestConnex business case</a> reveals that some $18 billion of the claimed economic benefit is merely the value of expected “travel time savings” and “travel time reliability”. This is basically the amount of money that a team of economists (paid by the NSW government) has decided motorists would hypothetically be willing to pay for shorter and more reliable travel times. The actual calculations and underlying assumptions have not been made public.
But, except in the case of freight and business travel, there is unlikely to be any reduction in average travel times; and even if there were, this would not result in any real income or cost-savings for the economy.
For more than a century the average time humans spend travelling each day has been a <a target="_blank" href="https://assets.dft.gov.uk/publications/trunk-roads-and-the-generation-of-traffic/trunk-roads-traffic-report.pdf">constant 60-80 minutes</a>. Whenever we’ve been provided with faster transport options, we’ve simply opted to live further from work and travel longer distances, but keep our daily travel times the same.
This is why no previous motorway project, in Sydney, Melbourne, or any other city in the world, has ever succeeded in reducing average daily travel times. Rather, they have resulted in <a target="_blank" href="https://www.vtpi.org/gentraf.pdf">longer average travel distances, more traffic, more sprawl and therefore increased transportation costs</a>. There is no reason to believe that WestConnex or East-West Link will be any different.
Economic injection?
But let’s say, for the sake of argument, that these motorways will reduce average personal travel times. Will this then result in billions of dollars being “injected into the economy”?
Well, no. Basic <a target="_blank" href="https://www.sciencedirect.com/science/article/pii/S1366554500000132">utility theory</a> suggests that most of the time we save we would spend on other non-productive activities, such as watching TV or checking Facebook. This will not result in any money flowing into the economy, let alone A$18 billion. On the contrary, individual motorists will be financially worse off because of the new tolls - as much as <a target="_blank" href="https://smh.drive.com.au/roads-and-traffic/drivers-face-735-toll-on-new-115b-westconnex-20130919-2u2lo">$20 a day</a> for users of WestConnex.
And how confident can we be that the economists have correctly valued our willingness to pay for these “travel time savings”? They got it wrong with Sydney’s Cross City Tunnel, calculating that 70,000 drivers a day would be willing to pay the $4.90 toll to save time driving across the Sydney CBD. The actual number turned out to be only 40,000.
Furthermore, increasing the speed of the road network will <a target="_blank" href="https://www.vtpi.org/gentraf.pdf">encourage more people and freight to switch from rail to road</a>. We will end up with more traffic, congestion and toxic exhaust fumes, and calls to build yet more costly motorways through our neighbourhoods to “fix the congestion”, ad infinitum.
These motorway projects may provide some short-term economic stimulus in the form of construction jobs and bonuses for consultants and bankers, but then so could building a $20 billion giant white elephant on top of Parliament House. However, this short-term economic stimulus will be far outweighed by the long-term economic burden of increased sprawl and car-dependency in an age of increasing petrol prices. Sydney and Melbourne already spend about <a target="_blank" href="https://trid.trb.org/view.aspx?id=511932">13% of GDP on transport</a>, while the average European or Asian city spends only between 5% and 8%.
Much of the funding for WestConnex will come from the <a target="_blank" href="https://theconversation.com/are-we-selling-off-the-family-silver-by-privatising-australias-ports-13824">privatisation of Port Botany</a>. But selling revenue-generating public assets to invest in infrastructure only makes sense if the economic or social return on that infrastructure outweighs the forgone future revenue from the privatised assets. The NSW government is essentially depriving future taxpayers of revenue from Port Botany, and imposing more tolls on Sydney motorists, simply to make it possible for more of us to move further away from work and suffer longer and more expensive commutes. We will keep our average daily travel times the same, just as we always have done.
There are cheaper, <a target="_blank" href="https://www.sciencedirect.com/science/article/pii/S0966692303000607">more effective and more sustainable ways</a> of giving us better and more equitable access to jobs and services, and more pleasant daily commutes. The $20 billion being squandered on WestConnex and East-West Link could instead be used to create jobs in growth areas, build affordable family homes near existing employment centres, and construct new rail lines and busways. Such strategies would help to build and enhance local communities.
Urban motorways only ever succeed in destroying and severing them.
Chris Standen is a PhD candidate in Transport Economics at <a target="_blank" href="https://www.sydney.edu.au/?">University of Sydney</a>
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/big-road-projects-dont-really-save-time-or-boost-productivity-21560">original article</a>.
 
 
<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/21560/count.gif" width="1">
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Big road projects: Are they really worth it?

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Last year (according to the RP Data-Rismark Home Value Index), capital city home values rose by 9.8%, creating further affordability pressures for those segments of the market who are most price sensitive; the younger aged cohorts and first time buyers.  Our daily index data shows that home values have continued their strong pace of growth through the first month of 2014 with our combined capitals index likely to end the month slightly more than 1% higher.
Based on homes sold over the December quarter, the median price of a house across Australia’s capital cities is now $575,000; ranging from $775,000 in Sydney through to $350,000 in Hobart.  In the most expensive capital cities the challenge to buy a detached house within close proximity to where they work or socialise is simply out of reach for the vast majority of younger buyers.
<img class="aligncenter size-full wp-image-2844" alt="Chart 1" src="https://blog.rpdata.com/wp-content/uploads/2014/01/Chart-12.jpg" width="470" height="171" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Housing finance data indicates that as a proportion of the owner occupier market, first home buyers are currently at a record low level, accounting for just 12.3% of all owner occupier finance commitments. 
If first home buyers aren’t entering the market now, at a time of historically low mortgage rates, one might consider how and when they will ever enter the market.  In my opinion it is not always a case of not being able to afford to enter the market, it is often that the sacrifices a potential buyer would have to make in order to enter the market are too great.
There are some clear reasons why housing in Australia is expensive, including::
<img src="/images/stories/2014/02/04/number-1.jpg" width="20" height="30" alt="number-1" style="float: left;"> Australian’s have high levels of personal wealth and high incomes relative to most other countries.
 <img src="/images/stories/2014/02/04/number-2.jpg" width="26" height="30" alt="number-2" style="float: left;">Australia’s population is heavily centralised with around 55% of the national population residing in either Sydney, Melbourne, Brisbane and Perth.
 <img src="/images/stories/2014/02/04/number-3.jpg" width="22" height="30" alt="number-3" style="float: left;">Job opportunities and employment availability tend to be most abundant within capital cities.
<img src="/images/stories/2014/02/04/number-4.jpg" width="22" height="30" alt="number-4" style="float: left;"> The supply of new housing within the capital cities has consistently been insufficient to meet the level of demand over the past decade or so.
<img src="/images/stories/2014/02/04/number-5.jpg" width="22" height="30" alt="number-5" style="float: left;"> Population growth is strong with relatively high levels of overseas migration and natural increase creating additional demand for housing.
<img src="/images/stories/2014/02/04/number-6.jpg" width="22" height="30" alt="number-6" style="float: left;"> The cost of vacant land has been driven to unaffordable heights due to the slow release of new residential land supply and the restrictions of urban growth boundaries in most capital cities.
<img src="/images/stories/2014/02/04/number-7.jpg" width="22" height="30" alt="number-7" style="float: left;"> Negative gearing (which is available on all asset classes) encourages many to invest in residential property as a way of reducing their tax liability which creates additional housing demand.
Although these factors all contribute to a relatively high cost of housing, it does not mean that purchasing a first home is unachievable.  An upcoming analysis which will be released by RP Data this month finds that as at the end of 2013, across the capital cities, 28.4% of all homes had a current value of less than $400,000. Even in a market which is considered significantly unaffordable such as Sydney, 17.5% (almost one in five homes) have a value below $400,000.  Of course most of these properties are not located in the desirable areas of the city, but they are available.
Many potential first home buyers either still live with their parents or rent within areas close to where they work and socialise. For those living with their parents, it’s likely that the home they are currently residing in was not their parents first home. I’m sure if you asked many of those parent’s they would say that their first home was vastly inferior to their current home (ie they upgraded when they could afford to). For those renting in inner city areas, the reason why property prices and rents are so high in these areas is that demand is very strong while supply is quite limited which in-turn results in the high prices you see within these areas.
Given this, the prospective first home buyer is, in most instances, going to have to make a sacrifice in order to enter into home ownership.  As I see it, first home buyers need to make one of two major sacrifices; either move away from their local area to an area where home values are more affordable in order to enter the market or buy something which is at the lower end of the local market (which will often be a unit rather than a house). The strategy for someone buying their first home should rarely be to buy at the  suburbs median selling price; it should be to buy an entry level property.  Of course varying levels of deposit and income will dictate what the purchaser can reasonably afford to borrow and repay.  Over time, the first home buyer should see some capital growth and it would also be reasonable to expect that they should also experience an improvement in their employment conditions (more pay/promotion/new role) which would eventually help in assisting them to upgrade.
Looking at my first home buying experience, the above scenario parallels my own. I have to admit, the home was pretty horrible but it was in the inner city location I wanted.
My first purchase was a two bedroom, one bathroom unit in Fortitude Valley in Brisbane.  The location was great but the unit was not so great.  The complex was largely utilised for short term accommodation and although the unit had two bedrooms and one bathroom, outside of those three rooms it had one further room which functioned as a kitchenette, lounge and dining room.  I purchased the property for $248,000 in July 2005 and sold the property in April 2010 for $334,000 effectively five years later.  At the time of purchase, the median unit price within the suburb was $309,240 and by the time of sale the median unit price in the suburb was $400,000.
The unit was purchased at a price well below the suburb median and upon sale the price had increased by 35%.  In comparison the median sale price across Fortitude Valley had increased by a lower 29%.  At the time I was single so I also had a friend come and live with me which assisted in making the mortgage repayments.
By the time I sold the property I had purchased a subsequent property which was a house, once again it was purchased at a price below the suburb’s median.  I had managed to make a profit on the sale of my first home and purchased a more expensive property, I had also benefitted from an increase in salary over the time which made repayments easier.
In my experience the choice to purchase a first home is never an easy one.  It is often the case that what you think you should be able to get for your money and what you actually can get are very different.  But having an understanding of your budget and doing your research to get a realistic expectation of what properties and in what location you can afford to purchase takes some of the pain out of the house hunting process and purchasing.
Undoubtedly some people will not be able or willing to purchase but bemoaning the high cost of housing in the local area is unlikely to change the situation outside of wide-spread changes to government policy(ies).
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
 
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ckusher-ujnxiKuFQs

Seven reasons Australia's housing is expensive; is it out of reach for first home buyers? 

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The Proximity Hamilton development in Brisbane has sold $4.6 million worth of apartments in 30 days. 
Developed by Oakstead Property Investments, Proximity Hamilton will have 127 one and two bedroom apartments over 14 storeys. Many of the Cottee Parker Architects designed apartments in the Portside Wharf development will have water views. The building will also include a pool and outdoor entertaining areas.
According to Urbis associate director John Rivera, the area has traditionally enjoyed strong residential growth, while apartments in the Hamilton catchment area were priced above Brisbane’s median sales price.
“Hamilton apartments have shown largely uninterrupted price growth since the early 1990s, with capital appreciation averaging 8.8% per annum over the previous decade,” said Rivera.
Currently selling off the plan, 39 apartments have so far been sold, with total sales reaching $17.9 million. Prices begin at $330,000 for a one bedroom, 60 square metre apartment, while a two bedroom, two bathroom, 104 square metre apartment in the complex is selling for $655,000.
Buyers will have a choice of two colour schemes for their apartments, which also include floor to ceiling windows and European appliances.
<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 href="https://showcase.propertyobserver.com.au/" rel="nofollow">Investor Showcase</a>.
Images are artist impressions.
 
 
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jrichardson-uRX5hFdKfN

Proximity Hamilton records $4.6 million in sales for January

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In my previous article, '<a href="https://www.propertyobserver.com.au/finance/australian-property-prices-explained-independent-analyst/2014011367181" target="_blank">Australian property prices explained</a>', I presented a chart that provided very accurate narrative on what has happened in the Australian property marketover the last three decades.  

It is safe to conclude that the same concept which allowed for the description of the past with such accuracy, should also be able to provide a reasonable guidance for the future.  
Of course, predicting exactly what will happen in 2014 and beyond is a tall order. Life is known to create such a variety of unanticipated scenarios that the reality will almost certainly play out differently to what everybody expects.  
Therefore, I prefer to think about the future in terms of a range of possible outcomes and likely probabilities of occurrence rather than as a single, definite result.  
The real benefit of such an approach is knowing how changes in economic conditions can potentially affect the outcome - not in picking the exact end result in advance.  
Since changes in some economic factors will have more profound effects than others, if you can identify in advance what are they, you can watch out for the tell-tale signs that a particular scenario is playing out – and act accordingly.  
You only need to be right about the direction property prices are heading to be able to benefit.
Please consider what follows with caution - in the “what if” category, rather than a certainty.  
Based on the income capacity of working Australians, residential property in this country is not overpriced and prices are far from bubble territory.  
The proof is in relative changes in the cost of buying over the last 27 years, which has been significantly below the relative changes in personal incomes over that time. Below is a slightly different representation of that information to highlight this point. 
<img src="/images/stories/2014/01/31/arek_jan_31_one.jpg" width="470" height="299" alt="arek_jan_31_one">
By rearranging the data we can create a chart that shows how much more property prices could increase at present and still be considered affordable (in relation to current incomes and as benchmarked to 1986). 
<img src="/images/stories/2014/01/31/arek_jan_31_two.jpg" width="470" height="301" alt="arek_jan_31_two">
The above chart indicates that current property prices are potentially undervalued by as much as 45%. Of course, this does not mean that prices will immediately move by this much but the potential for a substantial jump is there.  
Yet another perspective using the same underlying data reveals that conditions are now starting to resemble those in 2009. Although affordability in 2009 was not as extreme as in late 1990’s, it nevertheless led to a substantial price increase in 2010.
<img src="/images/stories/2014/01/31/arek_jan_31_three.png" width="470" height="277" alt="arek_jan_31_three">
Therefore, as history shows, if interest rates remain mostly unchanged and incomes keep growing, we can anticipate a significant jump in property prices in coming years.  
The increase could either be a rapid advancement of 10-20%, or even 30%, in the next 12-24 months if the 'good times' perspective prevails or, if pessimism dominates, it could result in an even more substantial jump but in the more distant future.  
Of course, this scenario can only play out on the proviso that there are no unexpected shocks applied to the system, such as a major international conflict, another economic calamity in the region, another collapse of world financial system, or a major natural disaster – to mention a few obvious cases.  
In terms of further outlook, if the relationship between costs of buying, incomes, rents and prices hold in the future, and the current rate of income growth continues, then it can be estimated that from now to the end of 2023 property prices could grow by as much as 140% under a historically low interest rate scenario (i.e. 5% per annum), or as little as 20% under a high interest rate scenario (i.e. 10% per annum).  
Under a more probable scenario of slower growth in incomes and interest rates averaging 7% per annum over the next decade, prices can still be expected to grow by 60% in the next 10 years.  
A much gloomier future is also possible but the probability of this scenario is rather small at this point in time.  
That is, a 40% drop in property prices is possible in the next decade but it would take extreme economic conditions for this scenario to play out. In particular, mortgage rates would have to persist at close to 20% per annum for a good part of the decade and income growth would have to drop to 2% per annum to bring prices down by this much.  
In conclusion, the outlook for property prices in Australia is positive - unless of course the world encounters another economic disaster of a magnitude that is hard to even imagine.  
Some insist that the next big event is 'just around the corner' so, it would be wise to keep an eye for the tell-tale signs of possible troubles brewing somewhere in the world but there is no obvious reason to panic just yet.    
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.
You can contact Arek on <a target="_blank" href="https://twitter.com/arekdrozda">Twitter</a>.
 
 
 
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adrozda-Nq9GwoWWBW

Australian property prices in 2014 and beyond - a peek into the future

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Last weekend a much loved restaurant on the waterfront of St Kilda was burnt to the ground. Fortunately no one was injured in the blaze which was reportedly caused by fat in the industrial exhaust system catching fire. It is no doubt a difficult time for the owners of the business and those employed by the Stokehouse, however as co-owner, Frank Van Haandel pointed out, they are far more fortunate than those in the Grampians who have suffered immeasurably worse in the recent bushfires.

<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/photo-17.jpg" rel="gallery-all" title="The site of the recently destroyed Stokehouse restaurant"><img alt="" class="image-article-full-width-580px" height="433" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/photo-17.jpg?itok=LqzzYExn" title="The site of the recently destroyed Stokehouse restaurant" width="580"></a>

The site has now been cleared and media attention has turned to what to do with the site. The land itself is crown land which is leased out the City of Port Phillip for long term uses. Consequently the local council and the State Government will be significantly involved in the planning and design stages.

<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/photo-22.jpg" rel="gallery-all" title="Empty site surrounded by palm trees"><img alt="" class="image-article-full-width-580px" height="433" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/photo-22.jpg?itok=6eEWnKTA" title="Empty site surrounded by palm trees" width="580"></a>

The original structure was constructed around 1904 and has been extended and renovated several times over its 110 year history. Despite its age, the building was not listed on the heritage register and from many accounts was not of significant architectural value.

<blockquote>
The community is mourning … the special place that they celebrated is now gone.
<cite>Cr Amanda Stevens, City of Port Phillip Mayor</cite>
</blockquote>

Very early in the piece, the State Planning Minister Matthew Guy went <a href="http://www.3aw.com.au/displayPopUpPlayerAction.action?&amp;url=http://media.mytalk.com.au/3AW/AUDIO/Guy.mp3">on radio</a> to voice his view that an architectural competition should be held to create an architecturally significant design to replace the original. This was later contradicted by <a href="http://www.theage.com.au/victoria/design-competition-for-razed-stokehouse-ruled-out-by-government-20140120-314ve">The Age</a> in a subsequent media piece however by then the community debate had started, replica or new design, a restaurant or something more?

<blockquote>
It would appear to me to be a great shame if a building that has been so much in the public consciousness as a favourite St Kilda destination is not vested with some greater ideals of public good.
<cite>Professor Philip Goad, University of Melbourne</cite>
</blockquote>

<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/photo-23.jpg" rel="gallery-all" title="Empty site with the Palais Theatrein the distance"><img alt="" class="image-article-full-width-580px" height="433" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/photo-23.jpg?itok=TMoXvXSf" title="Empty site with the Palais Theatrein the distance" width="580"></a>

<dl>
<dt><a href="http://theredandblackarchitect.files.wordpress.com/2014/01/photo-18.jpg"><img alt="St Kilda Pier Kiosk replica built 2006" class="size-medium wp-image-700" height="224" src="http://theredandblackarchitect.files.wordpress.com/2014/01/photo-18.jpg?w=300&amp;h=224" width="300"></a></dt>
	<dd>St Kilda Pier Kiosk replica built 2006</dd>
</dl>
There are many people, it seems, who are advocating for the building of a replica or a copy of what was destroyed. This position has some precedent in the more historically significant St Kilda Pier Kiosk, which also met its demise in flames back in 2003. The Kiosk had been standing at the end of the pier since 1904 and had subsequently made a very large impression on the hearts of locals. After much political and professional argument, it was decided to rebuild a replica from the original design. At the same time an addition to the rear of the building was completed in a contemporary style to increase the floor space. This act in a way re-wrote history in an attempt to claim back something that was gone.

As discussed in a <a href="http://theredandblackarchitect.wordpress.com/2012/07/08/heritage-round-new-is-old-again/" target="_blank" title="Heritage round, New is old again.">previous post on heritage</a>, there is a document which has been developed to assist with making ethical choices about our built heritage called the <a href="http://australia.icomos.org/wp-content/uploads/The-Burra-Charter-2013-Adopted-31.10.2013.pdf">Burra Charter</a>.

Below is an extract from the relevant section:

<blockquote>
Reconstruction

20.1 Reconstruction is appropriate only where a place is incomplete through damage or alteration, and only where there is sufficient evidence to reproduce an earlier state of the fabric. In some cases, reconstruction may also be appropriate as part of a use or practice that retains the cultural significance of the place.

Places with social or spiritual value may warrant reconstruction, even though very little may remain (e.g. only building footings or tree stumps following fire, flood or storm).

The requirement for sufficient evidence to reproduce an earlier state still applies.

20.2 Reconstruction should be identifiable on close inspection or through additional interpretation.
<cite>The Burra Charter, The Australia ICOMOS Charter for Places of Cultural Significance 2013, International Council on Monuments and Sites</cite>
</blockquote>

The charter sets out two key requirements to determine if a replica rebuild process will provide an acceptable outcome. Firstly does the building in question hold historical, social or spiritual value to the community? Without holding any value a replica rebuild is pointless. Once it has been determined that the building held significant value to the community the next requirement is to access the feasibility of reconstructing a finished product such that it doesn’t look like a poor quality caricature of the original. One of the most important aspects of this is accessing the documentation of the deceased building, to determine if there is enough DNA to successfully bring it back to life.

In the specific case of the Stokehouse I would argue that whilst there is clearly some social value placed by a small section of the community, these memories seem to be more in response to the experience of the people, food and atmosphere rather than the building itself. I have no doubt that those most familiar with the building will still have a strong attachment to the materiality of the place as it used to be. I would also argue however that these people are a small group likely limited to the staff and very frequent patrons, rather than the community at large.

Even if I am wrong and the community at large does have a strong emotional attachment to the building that was, an assessment must be made to determine if there is sufficient documentation to reconstruct the Stokehouse. Further to that, decisions will need to be made as to what year it should be modelled off as the building experienced had many changes over its lifespan.

A worst case scenario would have a poor quality replica commissioned which included all the previous buildings shortcomings and none of qualities or spirit which trigger fond memories of time gone by.

If the building were on private property ultimately it would be substantially up to the owners to decide how they should rebuild. However on this case the land is owned by the State Government. This means that they rightly have a substantial say in what gets built. Clearly in exercising this control they must act in the best interest of the community they serve.

This brings us back to a new design which can take advantage of the unique site and provide maximum value to the community. The idea of an architectural design competition certainly has merit in generating dozens of possibilities for the site. The big question is could such a process capture the soul of the previous experience whilst also taking advantage of all the new opportunities a rebuild offers. I would think this would ultimately depend on how the competition was run and how the winner was selected.

<blockquote>
We do need to understand what was beautiful about it, and what we loved about it and start the design process from there.
<cite>David Brand, Former Councillor</cite>
</blockquote>

<dl>
<dt>
<a href="http://theredandblackarchitect.files.wordpress.com/2014/01/photo-21.jpg"><img alt="Another opportunity that a redesign would offer is the opportunity to simultaneously rebuild and possibly integrate the St Kilda Lifesaving Club which is currently housed in the ugly shed next door." height="224" src="http://theredandblackarchitect.files.wordpress.com/2014/01/photo-21.jpg?w=300&amp;h=224" width="300"></a>

	 
	</dt>
	<dd>Another opportunity that a redesign would offer is the opportunity to simultaneously rebuild and possibly integrate the St Kilda Lifesaving Club which is currently housed in the ugly shed next door.</dd>
</dl>
In situations like this where a building is replacing one lost unexpectedly, it is always tempting for the owner to desire a lightning fast approach. The problem with this is that it often leads to reduced quality which will remain long after the urgency of the initial situation is long forgotten. To prevent this, in this case, I would like to see a temporary structure commissioned to provide a continuance of the fine food experience in the idyllic beach setting. This temporary structure could be prefabricated and modular allowing its reuse elsewhere once a more permanent building was ready for construction. It would also enable the business to keep a presence on the site and the local council to receive some of its rent.

If a design competition is no longer an option, as seems to be the case, it is clear to me that a more conventional architectural design process should ensue. This would enable experienced and highly qualified architects the time to properly investigate the site, assess the requirements of the Stokehouse and the wider community and then provide the well-rounded and considered response that the site and the community deserves.

Architecture is for Everyone.

Michael Smith is Director of Melbourne architecture firm <a href="http://redblackarch.com.au/">Atelier Red + Black</a>, and this article originally appeared on <a href="http://theredandblackarchitect.wordpress.com/2014/01/22/what-to-do-about-the-stokehouse/" target="_blank">The Red and Black Architect's blog</a>.

Further reading: <a href="/expert-insights/buying/what-to-do-about-the-stokehouse">What to do about the Stokehouse (Part Two)</a>.
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redblackarchitect

What to do about the Stokehouse

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The recent inflation numbers sent the Aussie dollar up and saw most economists advise “forget anymore interest rate cuts”.
But you should never get too carried away with a one-off figure.  It is trends that count.  Also understanding the reasons behind the figures helps.
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/01/CPI-1.png"></a>
 <img alt="matusik_jan_31_one" height="353" width="470" src="/images/stories/2014/01/31/matusik_jan_31_one.png">
 <img alt="matusik_jan_31_two" height="352" width="470" src="/images/stories/2014/01/31/matusik_jan_31_two.png">
 <img alt="matusik_jan_31_three" height="352" width="470" src="/images/stories/2014/01/31/matusik_jan_31_three.png">
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/01/CPI-2.png"></a>
Domestic inflation surprised on the upside.  Yet it remains well within the RBA target range of between 2% and 3%.  At present the cash rate is 2.50%.
Housing-related things drove much of the recent inflation result.  This was followed by food; recreation and transport.  Much of the housing inflation has come from taxes, charges and utility bills.  Also, recent house price rises (measured here via new dwelling sales excluding land) factor in.  Fruit and vegies went up due to the weather; holiday travel/accommodation prices rose as did the cost of petrol.
A significant component of the current inflation was due to the government tax increases including the carbon tax.  Using housing as an example – property taxes and charges rose 7.9% last year; the cost of water/sewerage rose 9.3%; the price of electricity lifted 6.3% and the cost of gas/other household fuels went up 5.6%.  Remember CPI, overall, was just 2.7%.
Interest rates remain low.  The standard variable rate is below 6%; discounted rates below 5%.  Three-year fixed rates remain well below the standard variable rate averaging 5.3%.  But fixed rates are now rising, up from 5.1% three months ago.
All long-term rates now exceed the cash rate.  A year ago the opposite existed.  At the time of writing, the 90-day bank bills were around 2.6% and 180-day bills 2.64%.  Three-year government bonds were 2.96% and ten-year Aussie bonds 4.24%.
<ul></ul>
So interest rates look set to remain benign for some time to come.  But are they low enough?  Again, I think no.  Inflation is tame.  In fact, much of the current inflation is caused by unnecessary taxes and charges, which are helping stop consumption and lowering consumer confidence (which fell last week).  Lower interest rates would help.
Yet maybe now (or soon) is the time fix your interest rates.  I would like the talking heads to be wrong on this one (no more rate cuts) but I doubt it.
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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