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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Auctioneers have a very public role – every Saturday they’re out trying to sell as much property as possible. It takes a lot of confidence and a lot of preparation.

Property Observer spent one Saturday with Steve Burke and Nicholas Goold from Hocking Stuart Glen Iris to get a behind-the-scenes look at the life of an auctioneer. We were able to see how auctioneers coax people in to bidding higher and, if an auction passes in, how they negotiate with vendors and buyers to secure the highest price possible.

In this episode of Day in the life we follow Steve Burke to the auction of <a href="https://www.realestate.com.au/property-townhouse-vic-camberwell-115340459">1B Cooloongatta Road Camberwell</a> (pictured below the video), a three-bedroom townhouse.

A similar property next door sold for $871,000 last month and Burke is hoping to beat that. But he has to contend with a limited number of interested bidders and a potentially unrealistic vendor.

The negotiations get quite tense and there are lessons to be learned on how to act in such circumstances.

Burke and Goold remind us it’s a complex job that’s not suited for everyone but a job that can do vendors wonders.
{qtube vid:=wt6PdCNBPmU&amp;feature=youtu.be}
 
{yoogallery src=[images/stories/2013/12/05/cam]}
Photos: 1B Cooloongatta Road Camberwell


(Satur)Day in the life

9:00: Arrive at office and start preparation for the days auctions

9:30 Call around to make sure all interested parties will be at the auction

10:00 Leave for the auction and meet the clients

10:45 Auction starts

11:00 Auction ends and negotiations start

12:00 Negotiations finish and time to celebrate then finalise paperwork

13:00 Head to the next auction to repeat the process



Transcript

It’s a November Saturday in Glen Iris and potential property buyers are out in force, attending and bidding at auction. It’s the modern day battlefield for today’s property buyers. I’m speaking with auctioneers Steve Burke and Nick Goold as they take a number of properties to auction. 

I’m Steve Burke from Hocking Stuart Glen Iris, the director here at the company and I’m very excited to have a chat today. We have got a busy day ahead, we have five auctions scheduled today. I’m looking forward out there today in a very strong market and getting some bidding and some very good results for our clients.

My name is Nicholas Goold. I’m a sales exectuve and auctioneer here at Glen Iris as well.

I think it’s seen very much as a glamorous industry. People just see the public side when people are handing out brochues, people are bidding and it’s all very exciting. People drive up in flashy cars. But there’s a lot of work that goes on behind the scenes and that is a lot of administration work, a lot telephone calls, a lot of prospecting. Before you actually get to auction day it can be a two or three year journey.

It certainly takes a specific set of skills and a personality type. Not everyone wants to do it, not everyone is comfortable doing it because you’re a big advertisement for the agency and for the company itself. 

We’re driving out to 1B Coolangatta Road Camberwell. It’s a three bedroom townhouse which has been on the market for four weeks with 55 groups coming through. Two or three of those have come back for a second look and Steve’s hoping they’ll be bidding today.

Real estate is all about comparing apples with apples and recently next door sold for $871,000 with another agent so that’s our agent and wer’e certainly hoping to achieve a better result than that today.

There’s a lot of people here today but not many serious bidders. Steve has to try his best to coax bids out of a reluctant crowd. The vendor’s reserve is $908,000. Slightly unrealistic given next door sold for just $871,000.

*Auction*

After a few minutes and another vendor bid of $850,000, it passes in to the young couple for $860,000, well below the vendor’s reserve. Steve must now work to get the two to meet in the middle. The vendor is upstairs in the second bedroom as Steve negotiates at the kitchen table. 

This is where the skills of an auctioneer really come into play. It’s a tense situation for the vendor. Steve knows these were one of the few genuinely interested bidders at the auction. Next door sold not that long ago, but that price was pushed up by a bidding war between this couple and the eventual buyer. With their competition out of the way the couple know they’re in a strong position.

We’re just giving the purchasers a few minutes chance – breathing space to work out what they’re prepared to pay and the vendor the same. And we’re looking to see if we can bring the two parties together. We’re being summoned inside.

*Negotiations*

It’s a very emotional decision for our vendors. We’ve now got an offer of $875,000 and our vendor has come to $880,000 in price. So we’re $5000 away. This is the job of the agent to bring the parties together. And let’s hope we can get a sale sticker up very shortly. 

The talks go back and forth for some time, But it seems Steve has pushed the couple as far as he can and they’re standing up to leave the table. This is Steve’s last chance to secure a sale today. He speaks to the vendor one last time with a final offer of $877,500.

*Deal accepted*

It took a lot of back and forth but Steve was able to secure a deal that’s kept both parties more than happy.

The vendor and her recently graduated son will move out after settlement and this young couple can start their new life in Camberwell. For everyone involved it’s time to celebrate.

*Toast*

Basically we’ve got an opportunity to sell her property for her today. A cash unconditional contract which means there’s no cooling off or it’s not subject to finance or any such means. As a result we were able to bring the parties together. It was very close, in percentage terms, to what she actually wants. She had a bit of council from her friends and common sense prevailed. Well done.
<a href="mailto:awalsh@propertyobserver.com.au" target="_blank">awalsh@propertyobserver.com.au</a>
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awalsh-7Ub9EypybQ

Day in the life of an auctioneer - Walking the negotiation tightrope

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The federal and Queensland governments will work together to develop proposals and options to directly address insurance affordability in North Queensland.
Federal Assistant Treasurer, Senator Arthur Sinodinos, and Queensland Premier Campbell Newman met in Brisbane this week to discuss the issue.
“The extremely high cost of insurance in North Queensland is a problem that has been around for a number of years. It is causing significant financial and emotional strain for the North Queensland community,” Senator Sinodinos said.
“Dealing with this issue was an election commitment of the Abbott government.”
Newman said both governments agreed with the need for action to address the problem. “We look forward to working with the insurance industry to develop and implement practical solutions.
“We were heartened to discover that Senator Sinodinos shared our desire to work together to provide relief for people in North Queensland who are struggling with extremely high insurance premiums.’’
The meeting built on the Newman government’s 10-point action plan with agreement on a number of actions to be implemented as quickly as possible.
These include:
•               An expanded Australian government actuary study into pricing of strata insurance in Northern Australia compared to southern states, and a second study into insurance pricing for residential building-and-contents insurance;
•               Development of an insurance aggregator for the North Queensland insurance market for strata, home building and contents insurance;
•               Consideration of allowing foreign insurers access to the North Queensland insurance market;
•               Reviewing the payment of insurance commissions to strata managers;
•               Development of a program of engineering assessments for strata properties in North Queensland to identify risks to property that can be mitigated.
These initiatives will be communicated over the coming weeks with a view to receiving feedback from the industry and community in addressing the need to rein in costs and ensure more affordable insurance premiums in the region.
<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

Insurance affordability in North Queensland a target of state and federal governments

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The latest <a target="_blank" href="https://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbyCatalogue/7DB4DD841EA3A2A5CA2574B9001E26F6?Opendocument">population projections</a> from the Australian Bureau of Statistics (ABS), released last week, suggest Australia’s future population growth will be considerably greater than previously indicated. As a result, Australia’s population debate should move away from simplistic pro or anti-population growth posturing and towards the question of: “how much is too much?”
The ABS produces three main series of projections in relation to differing input assumptions for future fertility, mortality and migration levels. The projections show the population growing to between 34.3 and 41.9 million in 2050 and between 42.3 and 69.5 million in 2100.
These future population sizes are significantly larger than the equivalent figures from the previous ABS <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/allprimarymainfeatures/FF590BD57662A60BCA257C2E00172359?opendocument" target="_blank">2008 projections</a>.
The “medium” and “high” variant projections for 2050 also exceed the 35.9 million projected by the <a href="https://archive.treasury.gov.au/igr/igr2010/report/pdf/IGR_2010.pdf" target="_blank">2010 Intergenerational Report</a> (IGR3, which sparked the so-called <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2010-01-29/the-population-debate-do-you-want-a-big-australia/313846" target="_blank">“Big Australia”</a> debate), and the 35.3 million “base case” scenario in a recent Productivity Commission <a href="/news">report</a>.
Bipartisan support for high immigration
The major reason for these larger projected populations is their incorporation of higher levels of net international migration. Reflecting <a href="https://www.immi.gov.au/media/publications/statistics/immigration-update/nom-march-2013.pdf">forecasts</a> by the Department of Immigration and Citizenship and ranging from 200,000 to 280,000 per annum, these migration levels are over 33% higher than those the ABS adopted five years earlier, and also significantly above the 180,000 per annum used in IGR3 and the Productivity Commission’s “base case”.
The assumption of a constant annual number for net immigration ignores the potential implications of an increasing population for the <a href="https://www.hwa.gov.au/sites/uploads/health-workforce-2025-volume-1.pdf">demand for skilled migrants</a> and family migration.
The high levels of immigration during the Gillard government era were at odds with Gillard’s <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2010-06-27/gillard-shuts-door-on-big-australia/884050" target="_parent">expressions of opposition</a> to a “Big Australia” made prior to the 2010 election. Then-opposition leader Tony Abbott also <a href="https://www.theage.com.au/national/36-million-too-many-says-abbott-20100429-twlk" target="_blank">expressed reservations</a> about population growth but <a href="https://www.abc.net.au/am/content/2010/s2799547.htm" target="_parent">support</a> for immigration and a larger population.
More recently, Abbott has adopted a <a href="https://www.news.com.au/national/opposition-leader-tony-abbott-announces-paid-parental-leave-scheme-to-encourage-baby-boom/story-fnho52qo-1226699348119" target="_blank">pro-population growth stance</a>, while opposition leader Bill Shorten has been <a href="https://www.theguardian.com/world/2013/sep/30/bill-shorten-immigration-leadership-debate" target="_parent">clearly supportive</a> of high levels of immigration. There appears little reason to anticipate significant cuts to immigration in the near future.
Birth rates
Both the current and the previous ABS projections assume the total fertility rate or <a href="https://www.un.org/esa/sustdev/natlinfo/indicators/methodology_sheets/demographics/total_fertility_rate.pdf" target="_blank">TFR</a> will ramp to the same long-run levels of 1.6, 1.8 and 2.0 births per woman. However, the implications of fertility for population size are magnified gradually over time by the current projections’ higher immigration levels.
Considering the 2012 TFR is <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/F41B99AB234B2074CA25792F00161838?OpenDocument" target="_blank">1.93</a>, the recovery in the TFR since 2001 – and the possibility the proposed new paid parental leave scheme could affect fertility (even if <a href="https://theconversation.com/abbott-shouldnt-get-his-hopes-up-about-a-parental-leave-induced-baby-boom-17225" target="_parent">only slightly</a>) – the higher of the three fertility scenarios appears the most plausible.
In his book Battlelines, Tony Abbott concurs with Malcolm Turnbull’s <a href="https://www.apop.com.au/SAconfNOV03/M%20Turnbull.pdf">call for fertility</a> to be closer to replacement level. Since 2001, the gap between Australia’s TFR and the replacement level – which would lead to long run zero growth under zero migration and constant mortality – of 2.07 has more than halved with the increase being concentrated in the later reproductive ages.
With each of the successively smaller increases required to further halve the gap to replacement level, the <a href="https://www.demographic-research.org/volumes/vol26/14/26-14.pdf" target="_blank">very long-run implication</a> for the size of the Australia-born population of continuation of the annual levels of fertility, mortality and migration more than doubles.
The implication of continuing support for fertility levels to be closer to replacement levels would appear to be that either a future very big Australia would abandon net immigration, or a certainty that there is no long run limit for Australia’s population.
Ageing beyond ‘living longer’
The increasing life expectancy also contributes to the projected growth. The forecast increases in life expectancies the ABS uses for its “low” and “medium” variant projections are considerably lower than those published in the peer-reviewed <a href="https://www.tandfonline.com/doi/abs/10.1080/00324728.2012.689316#.UpV33cRQKSo" target="_blank">academic literature</a> and the forecasts used by IGR3 and the Productivity Commission.
This projection series presents conservative estimates of the population implications of the migration levels they use. Of its main projection series, the ABS’ “high” variant would appear to be the most plausible for the longer run.
The ABS projections show the inevitability Australia’s population ageing, with the numbers aged over 65 rising to between 20.9% and 22.5% in 2050. Most of the increase would occur even without further improvements in life expectancy, reflecting lower birth rates and the legacy of past improvements in mortality.
Higher immigration partly explains the magnitude of population ageing as being somewhat less under the current ABS projections than under its previous projections.
City limits
Arguably, the most challenging aspects of the projection results are the future sizes of the largest cities. The projected populations in 2050 range between 7.4 and 7.9 million for Sydney and between 7.0 and 8.4 million for Melbourne. One fear is that these larger populations will aggravate traffic congestion.
Recent increases in births will have a flow-on effect on the numbers reaching the driving ages from the latter part of the current decade onwards. With higher levels of immigration adding to numbers on the road, the need to improve transport infrastructure will be all the more pressing.
The tip of the iceberg
The latest ABS projections show the substantial long-run implications which fertility and migration near the current levels and ongoing improvements in life expectancy would have for Australia’s population size over the period to 2101.
The projected growth over this period is just the tip of the iceberg compared to what would result from sustaining such patterns over an even longer period.
 
<hr>
 Nick Parr is Associate professor in demography at <a target="_blank" href="https://www.mq.edu.au">Macquarie University</a>.
Nick Parr receives funding from the ARC and the Institute of Actuaries Australia.
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/why-our-big-australia-is-getting-bigger-20846">original article</a>.
 
 
<img width="1" height="1" alt="The Conversation" src="https://counter.theconversation.edu.au/content/20846/count.gif">
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nparr-cDPXWRvWUW

'Big Australia' is going to get a whole lot bigger

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Current data from the Real Estate Institute of Western Australia (REIWA) show that sales turnover lifted during both October and November pushing Perth’s median house price to a new record.
The data show sales had returned to normal levels and indicate that for the three months to November Perth’s median house price climbed to around $530,000 – $535,000, up from the previous peak of $525,000 on the June quarter.
The main reason for the big rise in sales was that Perth was coming out of a big slump in turnover in the September quarter and had returned to more normal conditions.
The quarterly median for the three months to November was up by almost 4% and due mainly to the composition of sales during this period after strong first home buyer activity pulled the median house price down to $510,000 in the September quarter.
While first home buyer activity is still very evident, there was a solid increase in sales within a 10 kilometre radius of the CBD and a softening of activity in outer areas, particularly along the coastal sub-regions north and south of the city.
This shift in sales composition towards more expensive properties selling pulled the median upwards.
The data also show that in some of the coastal sub regions, such as parts of Wanneroo, Joondalup and in Rockingham there was a weakening in sales activity that had emerged through the month of November.
While this retraction is sales is only modest at around 2-3% on the previous month, it is accompanied by a drop in listings also in these areas which suggests that the fall in sales activity has nothing to do with oversupply.
It is more likely that first home activity in areas away from the coastal strip has been the focus of buyers in more recent times.
The number of properties on the market continues to recover from below average levels over the last year to now reach its highest point for the year. REIWA data currently showing 8,656 dwellings and 1,199 land lots for sale.
The rental market continued to turn in favour of tenants, with the number of available rentals growing and median rents coming down once again.
The median rent in the metropolitan area has dropped by just over 2% over the last three months to $460 across the board. This now breaks down to typical rents for houses coming in at around $470 per week and for units and apartments at around $450 per week.
Current REIWA data show rental listings lifted by 2% last week alone, to 4,419 properties on the market while the vacancy remains above average at around 3.2%.
 
<hr>
 David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank" rel="nofollow">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx" rel="nofollow" target="_blank">reiwa.com</a>.
 
 
 
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dairey-MVZf5ZguQC

 Perth median reaches a new high, while rents fall 

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Back in May some media outlets were telling us that the property boom was over.
After dwelling prices had recorded “the biggest rise in three years” in the March quarter (a 2.8% quarterly rise, as an average across the eight capital cities), data published in May was interpreted as the end of the alleged boom almost before it had started.
The limelight seekers at RP Data, who tend to sacrifice credibility at the altar of cheap publicity, had published (on May 1) their analysis of what happened to prices in April, apparently forgetting that it would take months before a full set of data was available to make an accurate call.
These (very) preliminary figures spat out of a careless computer found that prices fell 0.5% in April. This led multiple newspapers to declare the market recovery to be over.
It was, of course, a statistical aberration and prices, on average, continued to rise in subsequent months. The same media outlets were pretty soon shouting about “white hot” markets creating that most dreaded of property phenomena, the bubble.
That experience should have been a timely lesson that one month’s figures from one source are meaningless, particularly when there are numerous other research outlets with different figures.
But, no, we are back in the same territory again. The same rubbery figures factory reports price stagnation in November. Media, aided and abetted by RP Data mouthpieces, has declared the peak of the market.
Louis Christopher of SQM Research has disputed the validity of the figures. He says it’s wrong to claim that the market has peaked based on a single month’s figures. He’s right of course and anyone with any experience with real estate research would agree.
Privately, the boffins at RP Data would probably agree too. If they don’t, they need to find a new profession. But the objective is today’s headlines, not genuine analysis.
But hang on. If you dig down deeper in the dodgy data, prices allegedly rose 2.8% in November in Darwin, 1.2% in Adelaide and 2.9% in Perth. Sydney showed monthly growth of a tick under 1%, which, in annual terms, is still a strong growth rate.
Only Canberra and Melbourne showed significant falls.
So the basis for declaring the peak of this market cycle is flimsy indeed.
If you chose to place any credibility on these figures, which I don’t, you would interpret them as depicting markets still growing strongly in Sydney, Perth, Darwin and Adelaide.
So this so-called research fails on two major points. It treats Australia as one property market and declares that “dwelling values increased 0.1% in November”, ignoring regional differences, which show that most of our major markets are still rising strongly. And it places undue significance on a single month’s figure from a single data source.
And when you look at the figures from the same source for the three months to November, they actually show capital city homes values (again treated as one market) rising at their fastest pace in three years.
The end result of this shameless lust for publicity is misinformation and confusion for property consumers.
 
<hr>
 Terry Ryder is the founder of <a rel="nofollow" href="https://www.hotspotting.com.au/" target="_blank" style="font-size: 14px;">hotspotting.com.au</a> and you can contact him via <a target="_blank" href="https://mailto:%20ryder@hotspotting.com.au">email</a> or on <a target="_blank" href="https://twitter.com/hotspotting" style="font-size: 14px;">Twitter</a>.
 
 
 
 
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One stat shows a market peak, but should we believe it?

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The Australian real estate market always slows down - some might suggest even shuts down - over the Christmas/New Year holiday break, especially after an exhausting year like 2013. 
But buyers, sellers and estate agents should always be ready for the next opportunity.
Mobile phone and iPad devices ensure we are all never far from the latest showcased property listing.
Sure we all want to take the formal Christmas Eve office closure and then the New Year's Eve fireworks, but there just might be times in-between and around these family events that get the 2014 sales activity well underway.
Successfully securing a transaction might be tricky with solicitors not keen to interfer with family holiday plans, but like most agents having executive assistants, there are staff who can do the legwork.
Even if it's not happening, the holiday slowdown can be used by estate agents for getting the mind and devices organised for the new year. Maybe sketching out or revising business goals and plans.
Our property commentators Jonathan Chancellor and Margie Blok give their pointers to ensuring a great start to the year because it won't be long before in the April Easter-Anzac Day break. Their tips, which are both contemporaneous and old-fashioned, could give you the opportunity or competitive edge in the unfolding 2014 marketplace.
HE SAID:
<img src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" width="150" height="225" style="float: right;">
Buyers:
*Follow up on properties that failed to sell at auction during November and December – vendors, whose properties have been languishing on the market for weeks, could be willing to listen to reasonable offers and also be more flexible in negotiating the terms of an offer. Also use this time to research sale prices of recent spring listings – the spring market has been quite frenetic, so take the time to guage where values are at now so you can be realistic about pricing the offers you make.
* Auction clearance rates normally trend downwards through December, so keep an eye out for those passed in prospects and put in a tough offer as you never know what sort of pressure the vendor will be under.
Sellers:
*Choose an experienced local agent, with a hyper executive assistant, who isn’t holidaying in Europe. Hopefully, the agent already knows the likely buyer from their long list of unsuccessful bidders at their spring recent auctions.
Use the Christmas/New Year period to tidy up your property and get it ready for a marketing campaign starting in late January. Spruce up the inside of your home as well as outside for it’s a lovely time of year to be in the garden.
* If your property failed to sell at auction in the run up to Christmas, instruct your agent to promote extended settlement terms on internet advertising, so buyers will have time to sell their property during January and February.
Agents:
*Keep networking, but in a relaxed fashion - schedule lunches, drinks or coffee with friends, past clients and vendors. Pursue strong and constant communication with both buyers and sellers as to what's been happening with their specific listing of interest.
*The challenge is to quickly and increasingly understand what’s happening in the new 2014 market – and to believe it. You have to be in an informed position to advise your seller and buyers the facts about price and where the market is going. Remember no year is exactly the same as the prior one. 
<img src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" width="150" height="225" style="float: left;">SHE SAID:
Buyers:
*Hot summer weather, and hoardes of holidaymakers, usually means a decrease in the number of people attending Saturday inspections – this could work to your advantage because competition for properties in popular price brackets may not be so strong. Be ready for the next opportunity by creating daily or weekly alerts for new listings on real estate websites
* Trawl the internet for listings where vendors have ignored their agent’s advice about making a property look good for sale. Search for properties which appear unattractive in photographs. Rooms with bad lighting and cluttered with knick-knacks can affect sale price, but these may not affect long-term value. Make realistic offers for properties which are demonstrably overpriced.
Sellers:
* Remember the old saying “the early bird catches the worm” – rather than wait until the February auction season, tell your agent to advertise your property as a forthcoming auction on the internet because buyers.
*If your property didn’t sell before Christmas, be sure to keep it looking in tip-top inspection order for eager buyers and expats (who are home for holidays during January) could be house-hunting.
Agents:
*Get back into the office swing during early January and use the time to stay in touch with your clients by calling to wish them a Happy New Year. Even if you make just 10 calls each day from Mondays to Fridays, this will add up to a large number of people over four weeks. Ring long time clients and those collected duing spring, so you let them all know of your continued interest in their purchasing and or sales.
* Update your databases and declutter your computer files, as well as other unnecessary paraphernalia lying around the office. Use this time to organize yourself in readiness for the year ahead. Evaluate your office systems and if these are not supremely efficient, then update software and set up new systems. Ensure that the website is kept up to date, and there's nothing more frustrating for readers if the sales or rental listings are actually no longer current.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
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Making the most of the Christmas holiday downtime: advice for sellers, buyers and estate agents

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In one of the biggest Sydney industrial sales this year, listed property group Stockland has exchanged unconditional contracts on the Forrester Distribution Centre in Sydney's western suburbs of St Marys for $72.85 million.
Owned by the Goodman Australia Industrial Fund, the 12 hectare site at 40–88 Forrester Road incorporates three warehouses totalling 60,239 square metres. 
The centre is leased to ACI, a wholly-owned subsidiary of Owens-Illinois, on a 5.3 year WALE with fixed annual rental increases.
Stockland managing director Mark Steinert, said: "One of our key strategic focus areas is to grow our industrial business as a core part of our diversified portfolio.
"This asset is a strong addition to our industrial portfolio and demonstrates our disciplined approach to buying accretive assets in key, strategic locations.”
Stockland outlined its industrial strategy in May and the Forrester Road property represents the first purchase under that new direction. It also adds to Stockland’s existing industrial portfolio, which at June 30, 2013 stood at 13 industrial properties with a combined gross lettable area (GLA) of 963,047 square metres and a total value of $0.83 billion.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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St Marys industrial centre changes hands for $72.85 million

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Shopping centre giant Westfield Group has this morning unveiled plans to merge its Australian and New Zealand operations with the Westfield Retail Trust to create a new entity and a separate new international group.
The Australian business, to be known as Scentre Group, will be the largest REIT on the Australian Securities Exchange and will have total assets of $28.5 billion, with interests in 47 centres. 
The international arm will become Westfield Corporation and will have total assets of US$17.6 billion, with interests in 44 centres throughout the UK,US and Europe.   Both will be listed on the ASX. 
The restructure will see Westfield Group (WDC) chairman Frank Lowy will chair both new entities.  
"Westfield's international business and its Australian/NZ business have both grown in scale and quality to the stage where they can now stand on their own," said Mr Lowy. "They can each operate more efficiently, and generate growth and value for investors, by being independent."
He said the proposed new structure will allow both companies to "pursue their individual strategic goals and financing plans."  
Under the terms of the proposal, Westfield Retail Trust security holders will receive $285 and 918 securities in the new Scentre Group for every $1000 WRT securities held. The cash payment will be effected through an $850 capital return, equivalent to a pro rata buyback of WRT securities at $3.47 per security.  
WDC security holders will receive 1,000 securities in the new Westfield Corporation and 1,246 securities in Scentre Group for every 1000 WDC securities held. 
WDC and WRT secuirtyholders will vote on the proposal at a meeting in May 2014. 
At 11am, shares in WDC were up about 6.5% or 6x. to $11.04c.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
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Westfield Group merging operations to create largest ASX listed REIT

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Australians love affair with online retailing has continued but the pace of growth has slowed and the value of the transactions has shrunk considerably.  
Figures in the latest National Australia Bank Online Retail Sales Index showed that Australians spent $14.4 billion in on retailing in the year to October 2013 - up $2 billion on the same period last year. But sales growth slowed considerably over the past three months, with month to month growth of just 0.3% in October, and the year-on-year rate at 10.6% - the second lowest after August 2013. 
However, it was the analysis beyond the headline number which was the most compelling and the findings are significant as we head into the crucial Christmas trading period.  
NAB’s analysis revealed that almost 90% of all online transactions in the past year were for products under $100. That compares to less than 3% of transactions with values of over $250 and just 0.2% of online sales were for purchases over $1,000. 
NAB Chief Economist Alan Oster said “retailers cutting prices to build sales volume, changes to shipping arrangements and a significant increase in people purchasing low cost media products like e-books, movies and music online are factors driving the lower transaction sizes.”
“While areas like homes and appliances and fashion have seen declines in the average transaction size, the groceries and liquor, and personal and recreational goods sectors have experienced an upward trend since early 2010.” 
Since January 2010, the average online transaction size has also fallen from $64 to $41 in October 2013. 
On what all this means for the GST debate around lowering the threshold, the NAB report found that in the year to October 2013, international online retail sales were around $3.9 billion, with almost 90% of those transactions below $100 in value. 
"Our calculations show that had a lower GST threshold been set over the past year, it would have yielded additional revenue of $42 million at a $500 limit, $210 million at a $100 limit, and $309 million if the threshold was $25", it said.  
Mr Oster said that the special report demonstrated that not only were the majority of online purchases in the very low value range, in fact 49% of all online purchases were below $10. “Transaction sizes for international retailers in particular have fallen quite dramatically over the last three years. Between January 2010 and October 2013 average purchase size dropped from $74 to $38.” 
But he emphasised that the drop wasn't equal across all sectors.
Looking at the spending pattern of the various states, it said that on a per capita basis, the ACT, Northern Territory and Western Australia continue to record stronger levels of consumption, while South Australia, Victoria and Queensland lag behind. 
The biggest spenders were aged between 35 to 44.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a> 
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Australia's love affair with online shopping continues, but growth is slowing

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With housing finance more available it's no great surprise that new Australian Bureau of Statistics housing finance data shows increased investor activity in the Australian property market.  It's a good time to buy an investment property, but it is important to be sure it will pay its way.
A good starting point is to consider the rental yield – that is, a property's annual rental as a percentage of the purchase price.  So, for example, a property costing $300,000 and renting for $9,000 a year would have a gross rental yield of 3%.  Generally, the higher the rental yield the better the property's return.
While the right house in the right suburb can bring a good rental yield, REIV sales and rental data over the 12 months ending September 2013 show that the highest rental yields are usually for one-bedroom or two-bedroom apartments.  In fact, the top three investment options in Melbourne are all for one-bedroom apartments.
The average rental yield for a one-bedroom apartment in Melbourne is 5%.  For a two bedroom apartment it is 4.4%.  But buying a carefully selected apartment in an in-demand suburb can mean a yield far exceeding the average.
Melbourne's top investment option is a one-bedroom apartment in the popular inner city university suburb of Carlton, with its current return an average gross rental yield of 8.3%. But it is not always the inner-city which brings the highest returns – illustrating a the importance of research.
The REIV data shows Melbourne's second best investment option  for the 12 months is affordable outer suburban Noble Park at 7%, where the median price of a one-bedroom apartment is just $155,000. So, three could be bought for the price of just one in Melbourne city, where the median was $481,500, offering the third-highest yield at  6.5%.
 
<hr>
 Enzo Raimondo is CEO of the <a target="_blank" href="https://www.reiv.com.au/" rel="nofollow">Real Estate Institute of Victoria</a>.
All this information and much more detail is available free on the REIV's regularly-updated website.  Go to <a href="https://reiv.com.au/Property-Research/Bedroom-Medians"></a><a href="https://reiv.com.au/BedroomMedians" target="_blank">reiv.com.au/BedroomMedians</a> to find bedroom medians, median rents, yields and capital growth data. 
 
 
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