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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With many of Australia's CBD office markets beset with high vacancies, particularly at the secondary level, new research has shown that the case for hotel conversion has never been stronger.

A new report from Colliers International said that the tightly held ownership of Australian capital city hotels was "the impetus for investors to examine the prospect of converting office buildings to hotel accommodation."
At present, it said there was "window of opportunity" for office conversion due to hotel values rising relative to B-grade and lower office space, which was suffering from rising vacancy and escalating incentives.  
"Hotel investors clearly have a preference for existing stock but there is presently a lack of hotels for sale so they are being forced to look at alternative options," said Stephen Burt, Colliers managing director of hotels.
He believes that well located, existing B-grade or C-grade office buildings burdened by smaller floor plates, central core and poor lease tenure ironically offered the key attributes for a good hotel conversion.
The research highlights that the feasibility of office conversion is particularly attractive in Brisbane and Sydney.
It also noted that over the year to June 2013, Investment Property Databank figures report that returns generated from the hotel sector halved to 6.3%, down from 12.8% the previous year.
However, over the last three years returns from the hotel sector averaged 11.8% compared with 9.5% for retail, 10.0% for office and 9.7% for the industrial sector.
Strong interest from sovereign wealth funds and global institutional investor has seen transaction activity during 2013 the strongest since 2007. Total hotel sales activity for the year-to-date is in excess of $1.550 billion, a 24% jump over 2012. But the figure was bolstered by just two sales - the Tourism Asset Holdings Limited portfolio for a reported amount of about $800 million and the Four Seasons Hotel Sydney for $340 million.
Colliers also noted that over the year to June, the major city hotel markets it monitored saw average revenue per available room (RevPAR) rise by 2.5%.            
   
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Case for office to hotel conversion never been stronger

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China's love affair with Australian real estate market is growing, with at least $1.5 billion set to be invested locally in over the coming years.
Recent research from CBRE revealed that Chinese insurance funds, alone, had about US$14 billion available for overseas real estate investment. Australia was among a handful of countries it identified as "key targets" for that money.
Underpinning the attraction said Cushman &amp; Wakefield director of investment sales, Mr Tony Dixon was that "Australia was high yielding".
Yields had been compressing in other regions of the world, he said, but that it hadn’t happened to the same extent in Australia. Political stability, transparency and the positive property fundamentals were also appealing.
In the last 12 months, he estimates more than $1 billion has been spent by Chinese investors buying local real estate.
In a paper last month on Chinese investment in Australian property, Colliers International identified that investment was coming from four major sources: Banks and financial institutions; Developers with global ambitions;  large state-owned enterprises (SOEs) and China sovereign wealth funds (SWFs) and high net worth individuals.
The Colliers paper also said that while the increase in Chinese investment in the Australian residential property market has been widely reported, statistics show that Chinese investors are putting their money into a wide range of commercial property assets.
“While first time private investors may start by looking at residential investments, the more experienced investors have a broader appetite, and we’re receiving interest across a range of asset classes from farmland and wineries through to retirement, hotel, retail and large office building assets,” said Steam Leung, director of investment sales at Colliers International, who heads up the company’s Asian Division.
“However the most common enquiries are seeking Commercial A and B-grade offices and residential sites.”
Colliers estimates that Chinese investors have spent more than $600 million in the year to date on residential development sites in Sydney alone, with plans for almost 5,000 units on these sites.
Mr Dixon said that the indication from Chinese groups was that at least a further $1.5 billion could be invested in Australian real estate. But he emphasised that "if deals show themselves, they will do a deal".
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Australia identified as a 'key target' by Chinese insurance funds

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This tweet comes with a warning attached about relying on pre-approvals.
The <a target="_blank" href="https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&amp;objectid=11148369">New Zealand Herald reports</a> that an Auckland man, after letter dropping to find a potential property to buy, had his $800,000 pre-approved home loan withdrawn within 24 hours.
He had a $60,000 deposit and the loan was pre-approved on September 3 by the Bank of New Zealand (BNZ).
<blockquote class="twitter-tweet">
An Auckland man is furious BNZ withdrew an 800k pre-approved home loan less than 24-hours after giving the OK: <a target="_blank" href="https://t.co/vBhmJHqe1H">https://t.co/vBhmJHqe1H</a>
— nzherald (@nzherald) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/nzherald/statuses/395263004197281793">October 29, 2013</a>
</blockquote>
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po-LsXgBTHBmX

Pre-approved loan withdrawn within 24 hours

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Comparable sales are a useful tool for anyone with an interest in buying or selling property. If you're looking for a good gauge on what price might be achieved, or that you can expect to pay, it's worth knowing what similar properties have sold for.
In fact, not checking comparables made number five on this list of things of <a href="https://www.propertyobserver.com.au/residential/ten-things-not-to-do-when-buying-a-home-robert-skeen/2013042360669" target="_blank">things not to do when buying a property</a>.
For instance, if the house next door was identical, on an identical block, and sold for $650,000 yesterday, you would likely be correct to expect the same result for your property. However, if your block was smaller, you'd be right to potentially revise your expectations downwards.
When a comparable sale... isn't
There are comparable sales and then there are non-comparable sales carefully masquerading themselves as equal four bedroom two bathroom houses in the same suburb.
If you have an intimate knowledge of a suburb, and the properties within it, you are more likely to know what properties are truly comparable. However, this also requires being honest with yourself.
Create a list of the features of your property. Note building material, block size, era, slope of the land, aspect, views, number of bathrooms and bedrooms (be honest about whether that fourth bedroom is actually an office), renovations that have occurred and the quality of the finishes and other aspects. This gives you a personal starting point to assessing, on paper, what it may be worth and will help turn it into a scientific approach.
To make things simple: If you are looking to buy a renovated house, do not expect it to be the same price as the unrenovated property you watched sell last week.
Also, do not expect the same factors to cause the same change in acheivable price across all suburbs. While in some areas the addition of a pool may add a substantial sum to the value of your property, in other areas it is just an expectation that the property comes with one.
You should keep records of sales in the area in which you're looking, and note down whether they are superior or inferior to your property. Over time, you should be able to understand what the value of different properties in the area are, and justify this reasoning - note this research paper that looks at <a href="https://www.prres.net/papers/Kummerow_Error_Trade_offs_in_Selection_of_Comparable_Sales_for_Residential_Valuations.pdf" target="_blank">comparable sales and how the different elements adjust the price in the mind of a valuer</a> and some of the issues using this method.
"Data sets often omit the qualitative uncountable characteristics that real estate agents tell us are quite important in buyers’ evaluations of properties, such as neighborhood prestige, views, street appeal, or design quality," the report explains. This should be something you consider when looking at comparables - is there a street that commands a premium due to prestige?
The Real Estate Buyer's Association of Australia recommends that<a href="/news"> potential buyers consider looking at 100 comparable properties</a> during the research phase. As with all data, the lower your sample, the less accurate it will be.
What to do when there are no direct comparables
When looking for comparable sales, you'll want to narrow down the field to as close to the property as possible. While, ideally, this will mean next door, sometimes it can mean needing to look a few suburbs away for something similar. A different postcode, suburb name or LGA can have a huge effect on property prices and the way buyers view a property.
The difference of a street can also be crucial, depending on noise factor and amenity.
The other issue when it comes to comparables is how recent the sales were. If the sales occurred more than three months ago (or even in a shorter time frame in a faster moving market), you may find that they are not a good gauge of what a property on the market currently will sell for.
When direct comparables are not present, you will then need to broaden your search parameters. Also consider looking at prices of units, townhouses and other stock just to get an idea of how selling activity is performing.
COMMON TRIP UP: Regularly, comparables are compiled based on listing price, rather than selling price. Those wanting to get the best gauge on value will want to find out the price properties sold for. This may mean attending auctions in the area. Try <a target="_blank" href="https://www.rpdata.com/?">RP Data</a>, <a target="_blank" href="https://www.pricefinder.com.au/">PriceFinder</a> or a similar service to find recent sales prices for properties you identify as comparable.
However, you do want to keep an eye on listings and notice any potential trends and the number of similar properties currently on the market.
MORE: <a href="https://www.propertyobserver.com.au/finance/letters-to-the-editor-valuation-experiences/2013092965354" target="_blank">Valuation experiences of readers - Letters to the editor</a>
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Understanding comparable sales: An introduction

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On this week’s Purchase or Pass, Chris Gray is joined by John Edwards of Residex to take a look at a property whose strata’s administration fund is deep in the red and discuss whether or not it would still qualify as a worthy purchase.
It is a two-bedroom, one-bath unit in a block of 21 units, 8.6 kilometres from the Sydney CBD and under a kilometre to the local action. The main question is that while the sinking fund has $36,000 in it, the administration fund is $30,000 in debt and the strata levies have recently been upped to $1,250 per quarter. There have been some water issues and there have been some expensive contractors looking after the building and gardens.
{qtube vid:=BYBcC6MKQx8}
Chris Gray: Now, obviously for the administration fund, and that’s the fund that pays all the day-to-day bills and that’s $30,000 in debt. What are your thoughts on that? That’s usually a pretty scary warning sign straight away isn’t it?
John Edwards: Yes, I think there is probably something else worthy of looking at that we didn’t talk about there and that is, looking at the people that are actually in that strata unit block, are they elderly people? Or are they young people? Or young professional people? If they’re elderly people, it’s quite possible that they don’t have the resources behind them to fund that strata title and do the things that they really need to do. So you need to take some care and actually look at the people in the dwelling. The other thing in this is to be a little cautious about making sure the structure of such a building was good, and that building looks quite fine.
Chris Gray: So again, you have the building and pest inspections and the strata inspections as well. With the deficient, I guess the main thing to start with is, the actual overall funds are $6,000 in credit. So I’ve had a lot of buildings that have been taking the money from the wrong account, overall at least it is positive. One of the things that we actually found through the strata report is that a normal levy was about to come in, so if you have 21 people all paying $1,250, that almost puts it back to zero in one levy.
John Edwards: So this particular strata title looks ok and I don’t think it’s an issue here. However, just remember in all states of Australia, not all strata titles actually have to have management funds or sinking funds. You go to Victoria and small blocks of units don’t, so take some care when you get into those sorts of positions with some units. This is all about research.
 
Chris Gray: Another thing that we thought about is, these guys have decided to up it, say from normally $750 is normally what I would pay on a strata levy. They’ve said right, lets put an extra $500 a quarter in, because over the next five or six levies, we’re going to raise an extra $3,000 per unit, which is $60,000, that goes from $30,000 debit to $30,000 credit. Or, there’s an alternative, they could just raise $3,000 special levy each and then suddenly they’re $60,000 up.
John Edwards: And there’s another alternative; they could go and borrow money. A strata title can actually go and borrow money to actually manage short falls that its got. I don’t think that overall this is a big problem.
Chris Gray: The reason I’ve bought it up is I think the average person would see that as a major issue and certainly when you pass the strata report onto your solicitor, your solicitor would be going “no no, don’t go anywhere near this, it’s obviously badly managed.” So reading into things, the other things we found out was that they’d actually sacked a lot of the contractors and then found some cheaper ones, so a lot of the overrunning bills and the rest of it they’ve had the last few years maybe wouldn’t happen either.
John Edwards: And that so often happens in strata titles, you find that all contractors seem to think that they can actually hit the strata titles very hard and it’s a warning to all title strata managers, they really need to watch they’re contractors new expenses.
Chris Gray: So purchase or pass for you?
John Edwards: I would still be interested in this property.
Chris Gray: Good stuff, and look for me, I think the strata fund issue is a minor one and is of no major consequence. However, most buyers wouldn’t be able to read into it and would probably be scared off by it, but it could be fixed by $3,000 a unit. So, I would definitely make a purchase as I think it’s a great opportunity to buy it at a good price for a reasonable property where other people are scared off.
John Edwards: And a gem of a negotiation position.
Chris Gray: Exactly, a great negotiation position even though it’s a booming market at the moment or a heated market.
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chrisgray-pn7di3ceFk

Strata's administration fund deep in the red in Coogee: Purchase or Pass?

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The debate around underquoting is never ending because the focus is on the vendor’s reserve price.
Many people have suggested that vendors should be made to disclose the reserve prior to auction. However this would fly in the face of very robust auction laws that state a vendor has the right to withdraw a property from sale at anytime.  
Legislating what the agent must do is one thing but making a law that binds the vendor is fraught with danger.
The vendor is in complete control of the reserve and agents who do underquote are able to hide behind their vendor’s instructions. This makes the current laws around underquoting very difficult and costly to implement. They are in the best case weak and at worst they are unenforceable.
I believe the solution to the underquoting does not lie in using the stick of law but rather the empowerment of knowledge.
The benefit of a public auction for a vendor is they give themselves the best opportunity to maximize the sale price.
The trade-off should be vendors loose their right to privacy. All results should be in the public domain so future buyers can gauge where the market is.
However vendors currently have the right to not disclose the result. This means they can have their cake and eat it too while purchasers are left in the dark.
Take for example the sale of this one-bedroom apartment at <a target="_blank" href="https://www.realestate.com.au/property-apartment-vic-hawthorn+east-115013031">3/1 Brookfield Court, Hawthorn East</a> that went to auction on Saturday.
{yoogallery src=[images/stories/2013/10/30/haw]}
The property was advertised to sell for between $300,000 to $320,000 and as the auction progressed multiple bidders competed. It sold under the hammer in a public forum but when the auction results were released the following day it was reported as undisclosed.
<img alt="hawthorn_oct_30_chart" height="295" width="470" src="/images/stories/2013/10/30/hawthorn_oct_30_chart.png">
If you were able to attend this public auction you would know the property sold for $408,000. However if you were not there this information would be locked away and only available to licensed real estate agents.  
The next time a comparable one-bedroom apartment comes onto the market and is advertised at $300,000 to $320,000 purchases will not be able to source this valuable information.
The logic behind this bizarre state of affairs is due to privacy laws that allow vendors to keep the result out of the public domain. However if a vendor decides to sell their property by public auction I think they have should have waived their rights to privacy.
In some cases it is the agent that keeps auction results under wraps because it means people who want to know what it sold for will call them. This is a lead generation tool for agents as the first thing they ask is ‘are you looking to sell a property?’
If the real estate industry really wants to stamp out the negative effects of underquoting, either real or perceived, they need to be more transparent.
The answer to underquoting is simple. Make agents disclose all results within 24 hours of the auction and make this information either freely or cost effectively available to purchasers.
This will give purchasers the knowledge they need and make price quotes redundant.

<hr>
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.              
 
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marmstrong-sd3emVLPPb

Underquoting: the clear and transparent solution

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First things first, head to your current lender and tell them why you’re considering refinancing. See what they can offer you, and what better rates they may suggest, before hitting the streets looking for something else. Many lenders will try their hardest to keep their existing clients.
<hr>
This article is from Property Observer's free ebook <a target="_parent" href="http://propertyobserver.com.au/ebooks/free-ebook-mastering-the-art-of-refinancing-12-tips-for-success-and-key-things-to-consider">Mastering the Art of Refinancing: 12 tips for success and key things to consider</a>.
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Talk to your current lender first

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The glut of office sublease space facing most Australian capital cities appears to have peaked.
A national review of the sublease office market by CBRE, titled Sublease Barometers - showed that the amount of sublease space is hovering between 70,000 square metres and 80,000 square metres in Sydney, Melbourne, Brisbane and Perth.
And while the figures are above historic average, the expectation was that no significant tranches of new sublease space were expected to come to the market in the near future.
<img src="/images/stories/2013/10/29/chart_of_the_week_oct_29.jpg" width="470" height="250" alt="chart_of_the_week_oct_29">
Source: CBRE
CBRE regional director, office services, Andrew Tracey pointed out that "much of the available stock is subject to very short lease tails with expiries in 2014 and 2015." 
"This is more of a deferred direct hidden vacancy issue given the inherent difficulty in leasing space with less than a three year lease expiry.
"Much of this stock is expected to revert back to direct vacancy, which will significantly reduce the volume of available sublease space."
In short, CBRE believes that the availability of office sublease space nationally is likely to have peaked
In assessing the state of the national office sublease market, The Sublease Barometers tracked both the volume of sublease space, the trends occurring within different industry groups and market sectors in the major capital city markets.
The results varied significantly between the small and bigger cities. Canberra recorded the least sublease space available at just 8,553 square metres in September. Conditions are expected to change any day as various government departments are restructured, leading to public sector rationalisation.
Market influencers also varied by city. It said the mining sector, as expected, had a much more significant influence on the Perth and Brisbane markets given the recent slowdown in this sector to which both cities have a high exposure.
At the same time, Brisbane’s high exposure to government tenants also resulted in that city being hit by Queensland state government job cuts and consolidation, with almost 2,500 full-time equivalent jobs in inner Brisbane cut from the Queensland public service in 2013, CBRE said.
While Sydney's high exposure to the finance industry saw it hit hard by the low sentiment in that sector.
But Mr Tracey noted that employment in the Sydney finance and insurance sector had increased by 4.5% in the September quarter, surpassing the national figure of 0.4%.
"With this sector being the main contributor of sublease space, overall availabilities may start to decline as business sentiment improves,” he said.
He concluded by saying that the national office leasing market was expected to show signs of improvement in the second half of 2014 and early 2015 as business confidence improved.    
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Glut of national office sublease space appears to have peaked

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You may recall several <a href="https://his-best.biz/?s=baby+boomers" target="_blank">blogs in the past about baby boomers</a>, explaining the effect they will have upon the property market — both residential and commercial.
In 2005, I warned investors that: If you hadn't sold your traditional inner-city family home by 2010-11, you had better be prepared to hold it until 2025.
My reasoning for this was not that there would be any fewer buyers. Rather, they would be five times as many of these homes on the market — as baby boomers sought to downsize en masse.
Based on the recent buying frenzy (and the regular 70%+ clearance rates) for houses each weekend this year you may feel I had been somewhat mistaken.
However, you need to keep in mind that the GFC had effectively put everything (and everyone) "on hold" for about five years. And the residential market is merely playing catch-up, on both price and activity.
Anyway, an article appeared on page five in the weekend Australian Financial Review entitled: "Baby boomers set to flood the market with family homes", which caught my eye.
So, what will this mean?
For those boomers seeking to downsize, it will mean a growing number of similar competing listings on the market. But with no additional buyers, for these out-moded homes.
Many of them will be in need of major upgrade work. And some will have reached the point, where they only represent land value.
Therefore, you will soon face the likelihood of downward pressure on pricing, in order for you to achieve a sale.
And this new reality will certainly have some unexpected consequences:
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<li>
What you once looked upon as your de facto superannuation will be eroded;
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<li>
You will have less to spend on your new "smaller" home or apartment; and
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<li>
The inheritance available to your children could effectively be trimmed.
</li>
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Will this affect commercial property?
On the face of it, you would probably expect not too much impact at all.
However, during the early 2000s, many investors use the untapped equity in their homes, to set up lines of credit.
And then, used them to purchase one or more solid commercial investment properties.
The commercial properties themselves may be performing well. But it is the LVR for the line of credit, which will concern your bank over the next 10 years — as the market falls away, for your traditional family home.
As such, you may find yourself having to sell the commercial property to keep your family home. Or be forced to sell the family home, in what will soon become a soft market.
Bottom line is fortunately, most of my clients will have already taken the necessary steps to avoid this dilemma.
However, with the residential market running hot at the moment, you still have a small window in which to resolve any exposure you may currently have.
 
<hr>
 Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property.
You can visit his website <a target="_blank" rel="nofollow" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
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How baby boomer downgraders may affect commercial property investments 

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This is a question often asked by traditional residential investors when they're considering the transition across to commercial property.
And you'll quickly discover the reasons are rather compelling.
Reason #1: Longer leases
Quite often, you'll find residential tenancies will be on a month-by-month basis, maybe six months, perhaps for a year.
Whereas, commercial properties will tend to lease for between three and five years, and often for longer. That means you have fewer tenancy changes, and a far more predictable income stream.
Reason #2: Greater security
When residential tenants want to exit half-way through a lease, they simply need to find a suitable substitute tenant. And then, transfer the lease across to that person.
From there on, this new tenant becomes responsible for the rental, over the remainder of the lease term.
Commercial tenants are running a business from your property. And whenever they sell their business, they also require your approval to 'assign' the lease.
However, here's the difference: If the new commercial tenant defaults in paying the rental, you also have recourse to the previous tenant as well — because commercial leases are business contracts, enforceable by law.
Reason #3: Commercial tenants pay outgoings
Typically, residential properties will provide you with a 5% gross rental return.
From this, you need to pay the rates and taxes, insurance, maintenance and so on — leaving you with about a 3.5% net return, at the end of the year.
Depending upon what (and where) they are, commercial properties will generate a 5% to 9% rental return.
However, commercial tenants are also required to pay the various building outgoings on top of their rental — making this a net rental return to you.
Reason #4: Commercial tenants operate a business
As you know, if the toilet stops working in an apartment … the tenant asks you to send around a plumber. Whereas, commercial tenants quickly attend to (and pay to fix) the problem themselves — so as not to disrupt their business.
Furthermore, the overall appearance of the property becomes a reflection on them. As such, your property is kept in good condition, at their expense.
Therefore, whether the lease requires it or not, most commercial tenants will regularly repair and repaint the property, in order to maintain a good corporate image.
Reason #5: Payment certainty
Most residential properties are rented by individuals. Therefore, the rent is generally paid in cash or by personal cheque. And this can often vary in its timing.
Because they are running a business, commercial tenants consider rent as simply another regular expense each month. And generally, this gets set up as an automatic bank transfer — and can be specified as such, in the lease.
Bottom Line: As a residential investor, you find yourself having to deal with the vagaries of individual people.
However, as a commercial investor, you tend to enjoy a more predictable long-term relationship with your tenants — based upon a proper business footing.
Doesn't that sound like a far better arrangement?
 
<hr>
 Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a rel="nofollow" target="_blank" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
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