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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As politicians debate the pros and cons of building upwards versus outwards, Australia continues to follow the international trend of building taller buildings.
In modern architecture, taller inner-city towers are able to drive greater cost and space efficiency whilst also including better environmental and green benefits. Though there are a number of down sides – shadow casting, vehicle and human traffic congestion, and flight path and noise challenges – taller towers can solve more problems than they create.
Despite this, Sydney city council imposes a building height limit of just 230 metres throughout the CBD for all residential and commercial towers. Not only are other capital cities around the country taking advantage of this; but suburbs and employment hubs through Sydney’s suburbs are too.
Developers understand that height restrictions imposed in the CBD will increase office and residential costs over time, as demand will outstrip supply, so they have been shopping their proposals elsewhere. And, it is working.
Just 20 kilometres from Sydney CBD lies Parramatta, Sydney’s ‘second CBD’; soon to be home to not only Australia’s, but the southern hemisphere’s largest residential tower. At 336 metres tall, <a target="_blank" href="https://en.wikipedia.org/wiki/Aspire_Parramatta">The Aspire Tower</a> will not only be the tallest residential building in the southern hemisphere; but the tallest building of any kind in the hemisphere. Aspire forms part of a multi-tower, massive scale <a target="_blank" href="https://www.parracity.nsw.gov.au/your_council/news/CBD_redevelopment">redevelopment of the Parramatta CBD area</a>; driving more businesses, residents, and wealth creation into the surrounding area.
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Melbourne and Brisbane are also eclipsing Sydney in tower heights. Melbourne has several stumbles, with both the Australia 108 Tower (388 metres), and 555 Collins Street Tower (404 metres), cancelled indefinitely. The most likely project for approval though is the 250 Spencer Street site, with current plans at 300 metres in height.
Brisbane is also building two towers; 222 Margaret Street, and 300 George Street, each standing 274 metres in height. The Infinity Tower, which completes construction in 2014, will be 249 metres tall, slightly shorter than its original 294 metres plan.
Sydney Mayor Clover Moore has commenced a building height restriction <a target="_blank" href="https://www.propertyobserver.com.au/https://www.altmedia.net.au/sydney-left-behind-on-building-heights/70773">review</a> for the CBD/City of Sydney area; approaching the issue of building size from an economic output perspective, to ensure Sydney remains competitive.
For Australian home buyers and investors, the issue of building heights is one that must be considered carefully during your due diligence phase. Nobody has a crystal ball and though it is impossible to know what the rules will be in five, 10, or 20 years’ time an awareness of emerging projects in the short term will help you buy better.
One of the best things to keep an eye on is council land re-zoning. This can occur anywhere in Australia, but when it occurs metropolitan city inner, middle, and outer ring suburbs, it almost always will be a rezoning to enable greater building density, not less.
Australian urban development is trending more towards ‘higher density vertical living’ a la New York, Singapore, and Sao Paulo; and away from ‘low-rise high density’ growth, such as cities like Paris,  Washington DC, and Prague.
Regardless of your view on this trend, property buying decisions in our major cities needs to occur with a solid understanding of this shift in mind.

<hr>
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" rel="nofollow" href="https://www.propertycorrespondent.com.au/">Property Correspondent.</a>
 
 
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cmcevoy-Go82SmsJA9

A tall order: Australia's new wave of skyscrapers may not be where you think

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There’s a lot at stake as our property experts gaze into their crystal balls and make some predictions for the coming year.
<img src="/images/stories/2013/12/12/ryder-profile.jpg" width="125" height="150" alt="ryder-profile" style="float: right;">Terry Ryder, property commentator and founder of hotspotting.com.au, believes the 2014 housing market will show "a little bit more sanity" than this year.
"Sydney and Melbourne are experiencing an auction frenzy, which occurs every three or four years, but things will settle down a bit," he said. "Next year there will be 5%-10% growth in those cities but it will be more evenly spread across the middle and outer-ring suburbs."
Ryder predicts the big improver will be Brisbane "which is only just starting to gather momentum". Improvements will be shared across the board. "Brisbane is behind Sydney and Melbourne after being adversely affected by the devastating floods of 2011 and the job losses experienced by 1,500 public servants after the election of the Newman government in March 2012.
"Brisbane is only just now starting to take off and I see much stronger growth there – perhaps over 10%."
Ryder predicts Perth’s "solid year" – it was growth leader early in 2013 before being overtaken by Sydney – would ensure it carried momentum, especially into the more affordable areas, in 2014.
He said Darwin had "quietened down" after a flying start fuelled by the $34 billion Ichthys liquefied natural gas project off Western Australia. The 820 kilometres pipeline through Darwin has generated jobs and, consequently, the interest of investors and home buyers. The fact that this growth has already happened will mean a more moderate 2014 for the city.
Adelaide, he said, would show moderate growth next year of around 5%, while Hobart – "technically in recession" – will need government input to maximise its opportunities.
Ryder predicts savage job cuts of 10,000 to 15,000 by the Abbott government and an apartment oversupply will have Canberra "struggling" into the New Year.
He believes the next interest rate move will be up – but not possibly before at least the middle of next year – and that a heated Sydney property market is not reason enough to put the brakes on the economy as a whole.
He described a 7% increase in property values overall – after two years of zero growth - as "moderate" and not justifying any dampening tactic by the RBA. "Affordability is the best it’s been in 10 years so there’s no need to put on the brakes in 2014 – even though a lot can happen in six months."
Regions should do well in 2014, he predicts, especially those with input from resources, such as Narrabrai and Dubbo in NSW, Myles and Rockhampton in Queensland, and Port Lincoln in South Australia. A regional growth leader will be Cairns in Far North Queensland which is making a comeback. Ballarat and Bendigo in Victoria will show growth, boosted by high infrastructure spending and regional rail links.
No-go areas, Ryder warns, are Melbourne’s Docklands, Southbank and CBD, where oversupply has stymied the apartment market. Likewise, oversupply will affect the Queensland coal port of Gladstone, he says. Ryder is not enamoured with regional city Mackay nor tourism hotspot, the Gold Coast. "Stay away from the speculative market," he warns, "and buy in ‘real’ suburbs with real housing where people have jobs and buy houses to live in. Sales momentum in south-east Queensland is inland – not on the coast."
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<img src="/images/stories/2013/12/12/wargent-profile.jpg" width="125" height="150" alt="wargent-profile" style="float: right;">Peter Wargent, co-founder of <a href="https://allenwargent.com/" target="_blank">Allen Wargent</a> property buyers in London and Sydney, is a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>. He said: 
"Our base case sees a number of key variables which will represent headwinds for the property markets in 2014.
"With the unemployment rate still in a moderate uptrend and mining capital investment set to fall, it is likely to be a year of sub-trend economic growth for Australia, and, consequently, we are tending towards a more subdued overall view than you will see elsewhere.
"The RBA has yet to see the material uplift in dwelling construction it had hoped for, so we are expecting to see interest rates remaining historically low, and the next adjustment may yet still be down."
Sydney is the clear standout, he said. There are likely challenges ahead for Canberra, but Brisbane could be the star.
Wargent’s property price predictions:
<ul>
<li>Canberra -1% to -4%</li>
<li>Hobart -1% to 2%</li>
<li>Perth 0% to 3%</li>
<li>Adelaide 0% to 3%</li>
<li>Brisbane 2% to 5%</li>
<li>Melbourne 2% to 5%</li>
<li>Sydney 6% to 9%</li>
</ul>
<img src="/images/stories/2013/12/12/sasson-profile.jpg" width="125" height="150" alt="sasson-profile" style="float: right;">The Melbourne property market in 2014 is likely to maintain - and even build - on the momentum of 2013, according to Monique Sasson, founder of Wakelin Property Advisory.
“2013 was a year of recovery with the values of many properties recouping their losses since the last peak in 2010," she said.
"We anticipate this trend to continue, and feel the momentum of the past 12 months should carry the Melbourne market upwards in the first half of 2014.
“There will be many Super Saturdays – weekends with a thousand-plus auctions – throughout the autumn of 2014. Nevertheless, robust demand should soak up this supply and see auction clearance rates remain at around 70%.
“In a typical year, the first serious auction weekends don’t occur until mid-or-late February. But the auction season may well open a little earlier than usual in 2014 and we may see a lot of deals in the private treaty market as early as January.
“The greater unknown is what will happen in the second half of 2014.  In large part, the trajectory of the property market will be determined by the Reserve Bank’s attitude to setting monetary policy.
“It may well be the case that the RBA decides to leave interest rates steady throughout most of 2014. If that scenario eventuates, then expect to see Melbourne price growth in 2014 to be strong, and potentially reaching double-digits.
“I doubt the Reserve Bank will be entirely comfortable with this potential outcome – especially if there is a similar result in Sydney.
“Consequently, there is a reasonable likelihood of a modest tightening in monetary policy – perhaps 25 or 50 basis points – from around the middle 2014, or even earlier. This would dampen capital growth in the second half of the year and possibly see a retracting back of some of the earlier 2014 growth.
“Should the Reserve Bank cut rates again, then I expect this will accelerate capital growth in 2014. However, in our view, another rate cut seems unlikely and unwise. As well as fuelling price inflation, cutting rates to 2.25% or lower leaves the Reserve Bank with little in the way of monetary ammunition to respond to any unexpected shocks: such as the banking crisis of 2008.”
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<img src="/images/stories/2013/12/12/CatherineCashmoreProfile.jpg" width="125" height="150" alt="CatherineCashmoreProfile" style="float: right;">"The markets of inner Sydney, and some areas of Melbourne, are being driven by a lot of speculative activity, and this will affect their performance next year, says buyers’ agent and observer Catherine Cashmore.
"Investors tend to be sensitive to interest rate changes, however, in Sydney, a number of factors have combined to make ‘the perfect storm’ leading into 2014: strong interest from overseas buyers, SMSFs feeding into a limited pool of residential real estate, buyers looking for a better return on their savings, coupled with a severe shortage of supply.
"It is projected we'll see interest rates rise through the course of next year and, although not immediately, this will take some heat out the market. This will be more the case in Melbourne before we see the effects in Sydney.
"Brisbane is still playing catch up and, with lower price options, it will likely continue its upward trajectory. There also looks to be some tentative activity along the Gold and Sunshine coasts.
"Home buyers in both Sydney and Melbourne are finding themselves forced further out to find suitable accommodation, and this ‘ripple effect’ will be felt in the middle-ring suburbs.
"I'm afraid without more direct action on long term sustainable solutions for first home buyers, they will continue to struggle with a severe shortage of affordable accommodation."
<img src="/images/stories/2013/12/12/robert-larocca-profile-for-site-2.jpg" style="float: right;">Robert Larocca, RP Data’s Victoria housing specialist, can’t see anything on the 2014 horizon to change the market’s current trajectory.
 
"This year there’s been modest growth while the economy remains between subdued and good. There are not a lot of external calls for the market to rocket ahead.
"Melbourne prices fell back a bit in the past month and we are not yet to reach a new peak, but I think we have levelled out a bit and can expect a peak in either February, March or April."
Larocca said the property market was not being driven by over-confident consumers, but by the Reserve Bank’s interest rate decisions - which are designed to encourage spending. He cautioned that transaction levels were "not overly high" and that there is lots of room for improvement.
"Monetary policy settings remain of interest, but, ideally, we will have good housing prices supported by low interest rates."
Larocca tipped 2014 would be a year of "ongoing sustainable – but not rapid - growth and, if the Victorian economy improves, it will have a direct input into the property market" through jobs and wages growth.
"The whole of last year we had slow improvement. This year the clearance rate is up 10% and the cycle bears no resemblance to those of 2007 or 2010 that were rapid and unsustainable. I hope that next year is more sustainable."
Larocca is concerned at the low numbers of first home buyers. "We need to see an improvement here; last month’s figures (showing a 13% FHB participation rate) were the worst in 10 years."
But he said it would be prudent to wait before hitting the panic button as the reasons are still unclear.
"There’s really a big question mark over next year’s market: we’ve had a good year but we’re not out of the woods yet."
<a href="mailto:staylor@propertyobserver.com.au" target="_blank"></a><a href="mailto:staylor@propertyobserver.com.au" target="_blank">staylor@propertyobserver.com.au</a>
 
 
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staylor-63KgDrKwoY

What will the year 2014 mean for the national property scene? The experts have their say

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Taking the bit between your teeth and setting out to sell your home online is a gutsy effort in a market awash with real estate agents, but it is increasingly being preferred by those on the move.  
And the reasons are understandable: it takes the estate agent out of the equation and, without having to pay hefty commissions, is far cheaper with much less rigmarole.  
But selling your home online yourself doesn’t have to mean you are on your own: a range of ‘For sale by owner’ companies are here to help with advice, photography, 'for sale' boards, flyers, colour e-brochures and even online valuations.  
Vendors can feel that they are in charge but with backup. They are not beholden to others’ ways of doing things. There are fewer forms to sign, no need to fit your life around an agent's timetable, and fewer stickybeaks who saw the open-for-inspection board out front and just popped in.  
Come to think of it, you don't even have an open-for-inspection board. But you do have a for sale sign on the fence - one that looks as appealing as a professionally sign-written board can be. Research has shown that most property buyers live within 5 kilometres so a professional board is essential if you want to catch them driving past.  
Basic sales packages at buyMyplace.com.au – which claims to be the largest ‘For sale by owner’ company – cost $270, the ‘professional’ package is $350, and the ‘premium’ package is around $600. They come with various levels of hardware, support and expertise. The firm – which is a fully licensed estate agent - can offer advertising online through the big advertising sites, such as Realestate.com.au and Domain.com.au to reach the most potential buyers.  
The level of newspaper advertising – both local and city - is up to you, with no limits on how much you can spend. Maybe buy more advertising with the money you'll be saving on the agent's commission?  
Other services offered include home decluttering, minor repairs, conveyancing and valuations, as well as auctioneers and other professionals who can be called upon to handle property inspections. These can be ordered on the website.  
Behind all this, of course, is social media’s ability to reach potential buyers and show them what's on offer in the comfort of their home or office. You simply list your property online, detailing its key selling points, the floorplan, and a map of surrounding streets, and upload photos. Those on the lookout for a similar property - on location, price, number of bedrooms and landsize - will receive a prompt in their inbox when the listing is complete. Simple, isn't it.  
A huge proportion of today's buyers - even those looking through an agent - check out online offerings as part of their search strategy. So, it's not like yours will be in some private, out-of-the-way spot where no one will see it - or even be looking for it.  
And the success rate of this well run window of opportunity is a comforting thought for a solo seller who hasn’t got the expertise of a professional realtor on side.  
buyMyplace.com.au and a host of other specialist for-sale-by-owner portals, such as <a target="_blank" href="https://sellmyhouse.com.au/">Sellmyhouse.com.au</a>, Gumtree, <a target="_blank" href="https://realestateguide.com.au/">Realestateguide.com.au</a>, and <a target="_blank" href="https://realestateyourway.com.au/">Realestateyourway.com.au</a> are often the first ports of call for prospective buyers who can scan the web and have properties that suit their preferences sent to their inboxes daily.  
While established real estate agents have the advantage of being able to showcase properties in their shop windows, and can market them to an established list of contacts, the surge in online listings is testament to the fact that buyers look online as much as anywhere.  
Online seller <a target="_blank" href="https://buymyplace.com.au/">buyMyplace.com.au</a> claims vendors – especially in Victoria - are ditching real estate agents and selling their homes themselves in record numbers. And in many cases they're selling faster – ''within hours'' for some properties, they claim.  
Senior manager Stephenie Pulis-Cassar said that, nationally, private sales online entries increased by 23% from February 25 to November 25 this year. "According to Realestate.com.au there are currently over 3000 properties being sold privately and these obviously don’t include the many thousands more vendors who list with Domain.com.au, Gumtree, Trading Post and/or buyMyplace.com.au," she said.  
The company’s statistics show that 30% of clients so far in 2013 had sold their properties in under 30 days. "Our general current average selling time is 90 days which is similar to that of a traditional real estate agency agreement," Pulis-Cassar said. "This clearly outlines the similarities between the buyMyplace selling process and the traditional estate agents. It is further proof that there really isn’t any disadvantage in selling property privately."  
It is not a difficult process, either, she said, and it doesn't cost anywhere near as much as the alternative. "Our clients spend an average of 12.5 hours selling their property - with many taking less than 10 hours in total.  Given that the average overall selling time is 90 days - or around three months - our vendors are spending, on average, an hour per week selling," she said.  
"Given these statistics, why would you pay an agent $15,000 (at 2% commission on a $750,000 house) for 12 hours' work?"  
With figures such as these, savings on estate agents' fees are a major drawcard for private online vendors. "Our data shows that buyMyplace has saved clients more than $5 million in commissions this year alone which is not hard to work out when the average commission charged by an estate agent is around 2%-2.5%.  
''And this is our company alone, therefore, the savings by all vendors per year would be well and truly in excess of $6 million per year. On top of this, with buyMyplace, vendors also save more on advertising compared to using a traditional agent.  
''The figures don’t come close to the real dollar value saved or the extra monies earned, as we have worked out that 58% of properties sold through buyMyplace sold for more than what they were valued at by real estate agents.  
''To us, this figure speaks volumes. Either 50% of agents aren’t qualified to give a property estimate or there are some ulterior motives when it comes to giving a valuation.''  
Pulis-Cassar estimated that 52% of people who sell their home privately sell within one month, 72% sell for more than quoted by an agent, and 100% end up with more cash in their pockets. She said 80% save more than $10,000, 40% save more than $14,000 and 100% ''would sell a property themselves again''.
''On the flip side most buyers prefer to deal directly with the owner. You only have to read the hundreds of testimonials written directly from our vendors. They speak for themselves. They enjoy the fact they don’t have to chase an agent who often doesn’t call them back and they feel they receive more genuine feedback and immediate responses to their queries.''
Tips on selling your home online on next page. Please click below.
 
<hr class="system-pagebreak">
Tips on selling your home online
 
1) Establish a sale price
Most people get a good idea of what houses in their areas sell for by attending auctions and reading ads in their local paper, or by studying professional online sales data, such as RP Data's <a target="_blank" href="https://myrp.com.au/">myrp.com.au</a>.  
Pointedly, some private online sellers caution potential vendors against speaking with a real estate agent when determining a property’s price. "Agents are trained to ‘close the deal’ and ‘secure the listing’ by telling you what you want to hear," says Pulis-Cassar of buyMyplace. "If you want a personal approach use a professional valuer."  
2) Prepare your home so it looks its best
Clean and tidy up inside and manicure the garden - potentially adding thousands to the price. Take into account which photographs you have taken and make sure these areas are addressed first. They will appear online well before the first open for inspection.
Here are a few simple ideas:
- Cut the lawns and trim the edges
- Cover flower beds with mulch (saves water as well)
- Give the fence a coat of paint
- Sweep up around the house before your first open
- Remove everything from bench-tops
- Vacuum and dust lightly
- Fill the fireplace with logs and a plant
- Open the curtains to bring in as much light in as possible  
3) Select the services you need
If you have too much to do, most online sellers can arrange service providers. buyMyplace claims to be a one-stop shop, with all the services you need in one central location
- Full customer support available
- Photographers
- For sale boards
- Interior designers
- Lawyers
- Landscapers
- Conveyancers
- Valuers
- Furniture hire
- Builder  
4) Prepare your contract (and section 32)
In Victoria you should have a contract of sale (or at least a Section 32) available for prospective buyers when they request it. Check all your contractual requirements with your solicitor or conveyancer. When a prospective buyer wants to put in an offer on your property you can use a “letter of intention” to assist in the sale process. It is not a legally binding contract, however, it does add some professionalism to the whole process. Check with your solicitor or conveyancer for something similar.  
5) Photography
The photographs of your property are one of the most important elements of your marketing campaign. Most people look at the photos first so they must be good. Keep in mind that your home photographs may also appear on your for sale board. Some online sellers can provide a professional photographer as part of its package or you can organise your own photographs. It's your choice, because you are in control. Vendors taking their own photos and advertising their property are charged $270 by buyMyplace. Professional photography costs $349.  
6) Create brochures
Brochures are an inexpensive way to communicate to your neighborhood that your property is for sale. With the majority of property sales originating from surrounding suburbs this is an effective tool for marketing your property and a great way to get fit.
- Convert your advertisement into a printable PDF brochure
- Print as many brochures you need to distribute in your local area
- For professional brochures ask your online seller's customer service person and have them arranged.  
7) Open for inspections
These are a great way to meet potential buyers face to face. Most agents spend around 15 minutes at a property which is convenient for them, but not so convenient for the buyers who are rushing around to see as many properties as possible. Give yourself the best chance possible by opening for a reasonable period, say an hour. Perhaps have open for inspections by appointment only. This forces the potential buyers to call you and flag their interest.  Either way, once you get to speak to a buyer face to face your chances of a sale increase dramatically.  
8) Negotiations
Price negotiations can seem a little scary, however the process is simple. Here are some tips than can help you negotiate the right terms and price.
- Talk less, listen more – You’ll find the more you listen, the more you will find out about your buyer. Maybe the buyer has been looking for a long time? Perhaps they really like the view from your front window? These are triggers for you to really start selling.
- Only accept written offers – You may have a pesky prospective buyer wanting to grill you about your price at the inspection. Politely say you are happy to accept written offers, and move on. An offer isn’t a legal offer until it’s on paper.
- Think – In all the excitement, you may say something rash, or not completely consider all your options. Give yourself time to reflect and ponder the offer. Don’t be afraid to say “let me think and get back to you”.
Always be prepared to walk away – Haven’t got the price you want? Are you willing to wait? Don’t hesitate to walk away.  
9) Deposit and settlement
When you accept an offer you should get at least 10% deposit to be held in your solicitor's or conveyancer's bank account. Consult with your buyer to set a settlement day and remember that, before you sell, the buyer is entitled to a property inspection to ensure all is as it was the day you sold the property.  
10) Celebrate
The final step in any sales process is celebrating your success. The good thing about selling your own house is  that you have also saved thousands in fees and commissions. What will you do with the savings? New car, new furniture, holiday?
<a href="mailto:staylor@propertyobserver.com.au" target="_blank">staylor@propertyobserver.com.au</a>
 
  
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Marketing your home online: Where to go and how to do it

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Median house prices are a useful tool for analysing growth in the property market and looking at which suburbs are doing well. However, it is important to remember that median house prices can be skewed by a few particularly low or particularly high sales in an area.  So breaking down the prices within a suburb according to whether the property sold was a house or unit and how many bedrooms it had can give a more detailed and useful snapshot of what is happening.  
For example, while the median price of a one-bedroom unit in Melbourne was $340,000 in September, it was $355,500 in inner Melbourne and only $240,000 in outer Melbourne.  
Checking out particular suburbs shows even more variation.  For example, a one-bedroom unit in Collingwood had a median price of $335,500 in September – $20,000 below the overall inner Melbourne price.  But just across the street in neighbouring Fitzroy, a one-bedroom unit had a median price of $390,000 and a one-bedroom unit in nearby Abbotsford's median was $370,000.  
Research is essential for investors looking for the highest rental yields or capital growth, for downsizers wanting to free up home equity but stay in the same neighbourhood and for those feeling squeezed out of their preferred suburbs.  
Suburb-by-suburb information about median prices according to property type and number of bedrooms for the 12 months to September is now available free on the REIV website at <a href="https://reiv.com.au/BedroomMedians" target="_blank">reiv.com.au/BedroomMedians</a>.
Investors will be particularly interested to know that this also includes weekly median rents, gross rental yield and five-year annual capital growth.  Simply click on a suburb and all the information about it will appear.

<hr>
Enzo Raimondo is CEO of the <a rel="nofollow" href="https://www.reiv.com.au/" target="_blank">Real Estate Institute of Victoria</a>.
 
 
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enzoraimond-7fvRFHPR52

The limits to median house price data

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Online shopping for Christmas gifts is becoming the norm for shoppers, with 65% planning to buy a gift via local websites this year, new research shows.
A survey of more than 1000 shoppers conducted by financial services group Aussie found that 47.7% of shoppers plan to buy a gift from overseas retailers.
However 4.4% confessed they stop at a service station on Christmas Day to buy a last-minute gift, while 24.3% do their shopping at a local shopping centre on Christmas Eve.
Aussie chief executive Ian Corfield said that local and online retailers are making a “real dent” in Australian’s gift spending habits.
One quarter of shoppers plan to spend between $250 to $499 on gifts, while almost 19% intend to spend between $1000 and $1999.
Just over 15% responded that they will spend between $750 to $999 on spoiling friends and family.
The remaining 5.7% intend to spend under $249 in total on gifts.
Cash looks set to be the number one method of payment for gifts, at 67.6%, followed by credit cards at 54.3% and debit cards at 48.8%.
PayPal and other online purchasing tools will get a solid workout, 32.4% of respondents intending to use them.
“It looks like Australians will be racking up many millions of dollars in credit card fees again this Christmas,” Corfield said.
The survey also found that 70% of shoppers do their shopping at a steady pace leading up to Christmas, while 60% dedicated a full day to get it done before December 25.
Handmade gifts still got a look-in, with just over a 25% intending to give things they had created themselves. And 8.3% said they will re-gift last year’s presents.
The results come as Australian Christmas shoppers are forecast to spend $7.07 billion this week, up $490 million from last week, in the second-biggest shopping week of the year, according to the Australian National Retailers Association Christmas Retail Index.
This is part of a <a target="_blank" href="https://www.smartcompany.com.au/marketing/sales/34545-pre-christmas-spending-tipped-to-rise-to-42-1-billion-but-it-s-not-the-whole-picture">$42.1 billion expected spend on Christmas</a> from November 14 until Christmas Eve.
ANRA chief executive officer Margy Osmond said the next two weeks will see the bulk of Christmas shopping occur.
“We’ve reached the serious end of the shopping calendar and Australian shoppers are expected to spend almost $16 billion over the next fortnight in what will be the two biggest shopping weeks of the entire year,” she said.
“Bricks-and-mortar stores will experience a sizeable increase in sales at the till, with spending expected to hit $5.5 billion – an increase of 32% since last week.
“Domestic online retailers will have their biggest week of the year where sales will reach $1.55 billion – up 23% on last week’s figure.
“Overseas online purchases will begin to peter off as the delivery deadline closes in and shoppers look for other alternatives to ensure they’ve crossed everyone off the Christmas shopping list.
Ormond said that shoppers in NSW will make the biggest contribution to sales, spending about $2.15 billion, while in Queensland they will spend $1.49 billion.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
 
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moliver-7qYWqnHmyR

Online retail a priority for buying Christmas gifts, but some still dash into the servo

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With most mortgage holders on variable rate products in Australia, our housing markets are sensitive to interest rates, and all things being equal lower rates could result in dwelling prices being re-set higher (and vice-versa).
However, other things are rarely equal.
Over the past two decades I've watched Britain turn into a dramatically two-speed housing market comprising a booming London market (and its surrounds) and the rest, where prices have essentially been soft now since 2007.
London is a global city and The City has continued to thrive as a financial centre, but as a developed country Britain's manufacturing and other industries have floundered.
Property investors who chased yields investing in far-flung areas and the north of England got badly burned, and many never recovered, while London prices are at record highs and have risen relentlessly through UK downturns and recessions as we charted <a href="https://allenwargent.com/wp-content/uploads/2013/04/AW-LONDON-BE-SP13-031.pdf" target="_blank">here</a> and have reproduced below.
In particular, note the difference between the massive out-performance of prime-location London stock, the lower-demographic London boroughs and the stagnation of markets across the remainder of England and Wales.
<a href="https://1.bp.blogspot.com/-z_Gjj252TVU/UqOIfDiLzhI/AAAAAAAALAw/I3BGY6ztrT4/s1600/AW.jpg" imageanchor="1" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img width="400" height="262" border="0" src="https://1.bp.blogspot.com/-z_Gjj252TVU/UqOIfDiLzhI/AAAAAAAALAw/I3BGY6ztrT4/s400/AW.jpg" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;"></a>
Source: Land Registry
I've suggested for years that Australia could follow a similar path, with the major capital cities attracting a level of interest from domestic and international investors in their supply-constrained inner suburbs, but other locations struggling badly as households become disinclined to take on ever-increasing household debt levels.
Specifically, I've felt inclined to invest in Sydney's inner ring suburbs, but rarely to venture outside that zone.
Low interest rates have seen prices in Sydney growing fast: up by around 18% since their last trough.
The worst performing capital city continues to be Adelaide, where I've been this week for fire and brimstone of Ashes cricket...or in England's case, a rather dis-spirited imitation thereof.
It's no real surprise to me that Adelaide has been a lacklustre market in recent years. There is so much more land potentially available to be developed close to the South Australian capital, population growth is relatively moderate, investor interest is lower than elsewhere and overall there is less upwards pressure on prices.
New stock is being built, which can drag median prices higher, but existing dwellings have seen little in the way of capital growth for more than five years.
I noted a similar dynamic in Port Augusta on my South Australian travels this week: it was quite clear that there are acres of land for sale and zoned for residential development, although it may be doubtful as to how quickly it will be sold due to the lively whiff at that end of town.
<a href="https://2.bp.blogspot.com/-WsFBx9dvYsw/UqMFf55rs3I/AAAAAAAALAg/ArCGNJGhjag/s1600/RPD.jpg" imageanchor="1" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img width="400" height="246" border="0" src="https://2.bp.blogspot.com/-WsFBx9dvYsw/UqMFf55rs3I/AAAAAAAALAg/ArCGNJGhjag/s400/RPD.jpg" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;"></a> Source: RP Data
RP Data's dwelling price index is currently a sea of green text, with prices rising almost everywhere thanks to Australia's presently low interest rates. However, don't expect increasing household debt to carry prices forward in future.
As the below chart clearly shows, household debt levels are no longer rising as a percentage of disposable income as they once did, with the percentage peaking out more than half a decade ago.
<img width="320" height="287" alt="Household Finances graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6tl-hhfin-small.gif?accessed=2013-12-07-22-32-45" 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;">
This chart should be of great concern to investors in certain areas. Times are tough, for example, in parts of South Australia following on from the shelving of BHP Billiton's planned $30 billion Olympic Dam expansion.
I drove down that way this week from Alice Springs and according to the local rag I read in Roxby Downs a decision might be expected on future expansion plans in approximately two years' time with BHP considereing new and cheaper designs for the expanded operations. However, you'd presumably want to see copper prices stronger than the lacklustre ~US$3.20/lb we've seen this week in order to see the proposed project expansion attract a definitive green tick.
<img width="320" height="203" src="https://www.kitconet.com/charts/metals/base/spot-copper-1y-Large.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
While an expansion of Olympic Dam a few years down the track could certainly be a net plus for the state, any direct link with real estate prices in Adelaide which is located more than 500 kilometres of barren land away may be somewhat tenuous.
Meanwhile, businesses such as Holden are in a world of bother with closure threats and pleas being lodged for government support of the car industry. With Australia's dollar having been so strong for so long, manufacturing industries have been hurting, and some exporting companies have also gone to the wall. 
<a href="https://theconversation.com/adding-up-the-flow-on-effects-of-a-holden-closure-21063" target="_blank">This article in The Conversation</a> posed this week whether Adelaide's economy could be damaged beyond expectation by Holden's potential closure, which also raises serious questions for the outlook for dwelling prices in the city:
"A second part of the debate are the implications at a regional level – what impact is there on the economies of regions that depend heavily on the automotive sector, specifically Melbourne and Adelaide?
"Our <a href="/news">study</a> on the contribution that the GMH manufacturing facility in Elizabeth makes to the South Australian (and northern Adelaide region) economy was recently presented to the Productivity Commission <a href="https://www.pc.gov.au/projects/inquiry/automotive">inquiry</a>. There are currently 1,750 jobs at GMH and the operations purchase A$530 million of supplies per year from core suppliers based in Adelaide. Through direct and first round (GMH and its direct suppliers) activities the operational spend of GMH in 2013 is estimated at A$750 million, contributing A$400 million to South Australia’s Gross State Product (GSP) and supporting 4,340 jobs.
"Then there are the full flow-through effects of this activity (such as the purchases of suppliers, and spend of wages and salary income). When modelled, the total economic activity linked to GMHs operations was estimated in 2013 to be a A$0.9 billion contribution to GSP, and 9,500 jobs and a contribution of $53 million per year to the state taxation base. (The model used a simple input output framework, which evidence supports as sufficient for order of magnitude long run modelling of impacts at the regional level). But if GMH were to cease activity, the impact would ultimately depend on how the local economy responds."
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
 
 
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pwargent-M4siyDbqQY

Low interest rates fueling Sydney market, but elsewhere less so

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We are currently in the midst of the strongest residential market since the GFC. Sydney and Melbourne in particular have seen a spectacular jump in market activity over the last three to four months. Auctions are at historic levels both in terms of the number of properties being sold and clearance rates. We are also seeing many new off-the-plan projects attracting what at times is frenetic demand. There are several key facts driving this activity, some of which are long-term and structural going way beyond a traditional market up-turn.
In mid January, looking ahead to 2013 I suggested here interest rates were set to be one of the key influences on every aspect of the residential market. This has proved to be the case with low rates, particularly over the last six months, impacting owner-occupiers and investors but also developers looking to fund new projects. Low rates have helped fuel demand and push prices up, while in many markets there is still a shortage of supply.
As we enter 2014 the question remains as to whether or not we have reached the bottom of the current low interest rate cycle, however seeking an answer to this question will not be any easy task as further cuts might not be good news indicating a much weaker local economy and bad news for employment.
However beyond interest rates, I think that a much bigger factor and one that has received little attention is the internationalisation of the local residential market. Like the share and currency markets, we are now looking at being a part of the worldwide demand for quality residential real estate. Offshore buyers are having a big impact and that trend is not going away any time soon. If Sydney and Melbourne are to be world-ranking cities then we have to accept that offshore demand will continue. Cashed up buyers from Asia in particular are attracted to our markets, often seen as a safe destination but also we are an appealing lifestyle destination.
We should not overlook the appeal of blue skies, fresh air and open space.  This offshore interest is not only confined to individual private buyers, but also developers and also now, in a trend I pointed to some 18 months ago we have seen the AMP join with Japan’s banks to enter the local home loan market.  And so we see international involvement across all areas of our residential development market. This trend is not new and other countries like New Zealand and the United Kingdom have either introduced or considered some curbs on foreign buyers but the same measures have been suggested for us, and given our very close links with Asia I do not think this is a credible idea.
In the UK prime London residential property has seen a big spike in prices with local officials looking at ways to generate more revenue. The idea is to impose a capital gains tax on foreign owners.
While UK residents have to pay CGT when reselling all but their main home, non-resident property owners do not. For example a UK-based buyer of an investment property or second home for £1m and then sold it for £5m. The UK resident would pay capital gains tax of £1.1m, assuming they were in the top tax bracket. An offshore investor, by contrast, is currently exempt from CGT. The lost revenue is proving tempting as Treasuries look for new revenue, and to some extent this action might also cool some areas of demand.
Offshore buyers are not going away
Offshore interest, no matter what fuels the demand be it lifestyle or investment considerations, is here to stay and just like the floating of the Aussie Dollar 30 years ago, the market may never be the same. Our markets are now considered desirable to a wide range of off-shore buyers and this is a major trend that will impact prices and demand.
Other big factors remain the rapidly changing demographics of our cities and shifts in lifestyle that all combine to create new pressures that will heavily influence markets and how infrastructure is delivered. Both the issues will continue to be very big topics in 2014, alongside how efficiently and where we create new supply.
However there is currently no indication that any sort of new policy measures are planned here to curb off-shore demand or investment. However another big ticket item next year will be the federal government’s tax review and how this might address the very big question of housing affordability, otherwise this issue could shift from a financial policy to one that has far reaching and possibly negative impacts on social policy and cohesion. First time buyers despite very low mortgage rates are now very much absent from the current market, they are being locked out by varied and complex factors.
While offshore demand is a structural change, I think that borrowers of all kinds might also have seen the best of low interest rates, but continued and very spiked demographic changes and the internationalisation of our markets will continue to be the big drivers of apartment demand and development in 2014.

<hr>
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
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pchittenden-eLqUUC8TWW

Australia's residential market has become an international commodity

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How do you build a house in 30 seconds? Just order a house from JAYZ Building Solutions, press a button on the included remote and up your house goes.
The Australian firm is selling transportable homes that it claims can be erected in just 30 seconds.
It’s marketing its Instaslide series of homes which fit inside a standard shipping container and can be unfurled at the flick of a switch.
{qtube vid:=YOpBI3qRi74} 
“These products are amazing,” says JAYZ’s Jackson Yin.
“At a touch of the button on the remote control these units can be installed in 30 seconds absolutely labor free.”
There is:
<ul>
<li>a 50 square metre, four-bedroom, four-bathroom option;</li>
<li>a 25 square metre one-bedroom, one-bathroom, one-kitchen option;</li>
<li>and a 50 square metre office option;</li>
</ul>
They have a 6-Star energy rating and are able to withstand earthquakes up to a magnitude of 7.6 and D2 cyclones – winds of 270 kilometres per hour.
They can delivered on a normal truck and unloaded with a forklift.
The company supplies mining companies around Australia with transportable accommodation.
They also supply the Butterfly range of fold out homes which take four hours to assemble but are easy to stack together.
{yoogallery src=[images/stories/2013/12/10/30sec]}
This year JAYZ was able to quickly build a supermarket in an Aboriginal community in the Northern Territory by joining multiple Butterfly units together.
In the Butterfly series a 40-foot container expands to 82 square metres of living space - to triple its normal size, while a 20-foot container expands to 42 square metres.
They come with exterior lighting, laminated bamboo flooring, taps and sinks, smoke detectors, a toilet, bathrooms and kitchens and optional air-conditioning. They are fully plumbed and wired.
Jackson Yin says they hope to market the homes to the general public in the near future.
“We look forward to some larger order but eventually we hope to do retail orders. I hope it’s coming in very soon.”
Yin says they could be priced at substantially less than $1,500 per square metre.
<img alt="30-second-home" height="294" width="470" src="/images/stories/2013/12/10/30-second-home.png">
Other things you can do in 30 seconds
? Swim 50 metres backwards, if you're an Olympic athlete
? Drive from standing to 300mph, if you're in the Acabion GTBO (below)
<img src="https://i.imgur.com/DAyp6vk.jpg" width="470">
? Have your car stolen, if you left it unlocked. Lock it or lose it.
? Make Nachos in the microwave, courtesy of the South Australia based company Mexican Express (below)
<img src="https://i.imgur.com/OAC4vkW.jpg" width="470">
? Pull the tops off 65 pinapples, if you're this bloke (below)
<img src="https://i.imgur.com/CXrHqno.jpg" width="470">
? Flush your outboard motor out with revolutionary product, Salt-Away.
<img src="https://i.imgur.com/lrftVjw.jpg">
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
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awalsh-7Ub9EypybQ

How to build a home in 30 seconds

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“It is potentially the biggest economic and social challenge we face. Yet, it hardly registers in the popular debates. Within the lifetime of the typical Australian the number of people living here is expected to jump 60% from 23.3 million today to 37.6 million by 2050.” <a target="_blank" href="https://www.afr.com/p/national/why_australia_needs_to_get_real_7hEC3IX0RZWitSkELPcJEI" title="Why Australia needs to get real on population growth">Why Australia needs to get real on population growth</a> by Christopher Joye in the Australian Financial Review shows exactly why the modern day politicians are more concerned about re-election over strategic policy making.
Just this week we saw <a target="_blank" href="https://www.dailytelegraph.com.au/news/nsw/sydneys-weekend-traffic-not-only-rivals-weekday-peak-hour-but-also-lasts-through-most-of-the-day/story-fni0cx12-1226766853634" title="Sydney’s weekend traffic not only rivals weekday peak hour but also lasts through most of the day ">Sydney’s weekend traffic not only rivals weekday peak hour but also lasts through most of the day </a>where traffic at 11am on a weekend is now the same as at 5pm on a weekday, where there are close to 500,000 travelers on Sydney roads, according to the state government’s Household Travel Survey 2011–12. The problem is now that bad that the state government is now introducing permanent weekend clearways which will definitely enrage local businesses that rely on this parking for passing trade. As they roll out more and more permanent weekend clearways local councils will be forced to provide more community parking facilities – but where?
The only intelligent alternative that I can see is under existing playing fields – for example a super car park built under Alan Border Oval would be a perfect example. Councils could then charge for all day parking which would see less cars going to the city with direct bus and ferry transport packages sold to those using the car park.
Even if many see such a proposal to be farfetched, we approximately know what the population will be in 2050 but have absolutely no idea what needs to be done to meet this surge in population.
It is just as interesting to note that car ownership is up 24% over the past decade to 2.6 million vehicles whilst the city’s population has grown by 12% to 4.5 million people. There are now 1.54 vehicles for every Sydney household. About 42% of households own two or more cars.
Today, we see the state government investing robustly in future road projects like WestConnex and the M2 to M1 link, however there needs to be much more. The only problem as to why there is not more is simply due to governments having insufficient funds, which paints a very sad long term view of where we will be in 37 years’ time.
<img src="/images/stories/2013/12/09/abs-dec-9-two.gif" width="470" height="292" alt="abs-dec-9-two">
<img src="/images/stories/2013/12/09/abs-dec-9-one.gif" width="470" height="174" alt="abs-dec-9-one">
Source: ABS
Interestingly HIA chief economist, Harley Dale, commented that these updated projections represent a “massive shift” and “it is now clear that the Australian Bureau of Statistics (ABS) has been materially underestimating real population growth rates for some time.”
Christopher Joye for years has criticised ABS projections for being too conservative. In a speech to the Housing Industry Association in July he posited that the nation faced a “population planning crisis” that could precede an equally serious housing and infrastructure catastrophe.
CommSec’s Craig James said: “Who would have thought 10 years ago that we would be building more apartments than free-standing homes today.
“At the end of the day somebody has to take a stand and drive this agenda.”
I would have thought a Housing Minister would be a great start and Malcolm Turnbull would be the ideal candidate. Makes one find it hard to comprehend the reasons why, Prime Minister Tony Abbott does not see a need for a Housing Minister in his government.
We observed this week a rapid decline in the number of houses on the market as vendors conclude negotiations for 2013. Surprisingly our peak selling season this year (spring/summer) failed to break the 100 mark although on November 21 it did reach 99.
I was scanning through Twitter (at home) this week and I came across an interesting conversation about property auction statistics <a target="_blank" href="https://www.afr.com/p/business/property/auctions_missing_sydney_impossible_o3CDeT026j6UhTA4ZvgJ5N" title="1438 auctions missing: Sydney’s Impossible Property Search">1,438 auctions missing: Sydney’s Impossible Property Search</a>. “Looking back at the data for Sydney from APM, only 510 (483 auctions + 27 withdrawn) actually got reported. So an incredible 392 (902 – 510) auctions went missing. Of those 510 auctions that did get reported, there were 410 that sold, giving a reported auction clearance rate of 80.4% (410/510).”
“Using APM’s data: my transparent calculations show the real clearance rate was a decidedly chilly 45.5% (410/902); the lowest clearance rate since 13 April 2013.
“Once again there is a huge difference between the reported rate and the real rate. This week it was 34.9 percentage points; the biggest difference since I started collating the data in March 2013.”
This has been going on for years and these figures have been fudged by agents to prop-up clearance rates, and APM is after all owned by Fairfax Media whose very own print media revenues are struggling.

<hr>
Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
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Our politicians are ignoring the realities of population growth

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Australia is fast becoming a mecca for international retail brands.  What’s behind this modern-day gold rush and what do landlords need to do to attract these iconic global brands?
The retail landscape in Australia has changed forever.  With the rise of online retailing, Australian consumers suddenly realised there was more out there – greater range, greater variety and faster access to the latest fashions, electronics and a whole host of consumer goods.  And of course there’s the value question – the economies of scale available to those brands that started out in Europe and the US, meant that they could offer their products at far more competitive prices.  All these factors meant that Australian consumer started demanding change.  They wanted more variety and they were seeking value.
In response, we saw an initial wave of truly international brands coming to our shores.  Fashion brand Zara was one of the first, along with iconic technology brands Apple and Samsung.  These three brands have been highly successful in Australia.  Their global counterparts watched closely and they were keen to get a slice of the action when they saw what a successful move it was for these pioneers.
The second round of international retailers is starting to migrate to our shores.  Brands like Gap, H&amp;M, Uniqlo, River Island, Mango, Pottery Barn and Williams Sonoma have either recently opened their doors or have announced their intention to do so shortly.
So what is it that differentiates these brands from a landlord’s perspective?  As a landlord, you’re probably used to the demand for 125 square metre ground floor retail spaces from Australian retailers.  With these international brands it’s time to think again.  These retailers are looking for spaces of 600 square metres and upwards, and they’re not afraid to take on multi-level spaces.  Just look at the Zara shop in Westfield Sydney, which is over three floors.  They’ve cleverly designed it to draw the consumer in on the ground floor with women’s fashion, but once you’re in your drawn to the other levels, which offer their entire range of products from men’s wear to kids, tweens and so on.  This is another differentiator.  Few Australian brands offer the variety that these international brands offer.
It’s also important for landlords to be sympathetic towards the international brand itself.  These brands have a proven concept that is tried and tested across the globe.  They don’t compromise on their look and feel and it’s important that local landlords respect this and work with them.  Be it floor space, layout, street frontage or a myriad of other complexities, it’s important to realise they do things differently and there are certain brand attributes that they simply won’t be flexible with.
For most international brands their first site is generally the CBD flagship brand awareness store – their greatest tool in launching the brand into the country, and then they’ll look at super regional centres.  For landlords wanting to attract these tenants, the key is to demonstrate they have the customer base who will be attracted to this brand.  It’s all about having a strong market share, the right customer base and ultimately volume of sales.  Hollster moving into Bondi Junction is a great example of this.  Chadstone has also done a phenomenal job of positioning themselves for these retailers, and with such a stable of international brands already in residence they are the natural choice for the second wave coming in.
The outlook for these international brands coming to our shores is positive.  With a number of significant new CBD projects launching in the next two years, we’re estimating there will be more than 30 new stores launched to host a range of international retailers including many premium and luxury brands.  The time is right for local retail landlords to change the way they think to accommodate these new players.

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Michael Bate is head of retail at <a target="_blank" href="https://www.colliers.com.au">Colliers International</a>.
 
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