High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

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For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

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<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

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The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

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For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

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The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

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Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

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Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

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The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

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According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

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Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

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Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

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Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

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<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

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A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

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The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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The latest ABS data has indicated the percentage of first home buyers active in the market has once again fallen, from 14.7% in July, to 13.7% in August.  
Subsequently we’ve been <a href="https://www.propertyobserver.com.au/first-home-buyers/sacrifice-and-compromise-the-reality-of-first-home-ownership-terry-ryder" target="_blank">bombarded with commentary</a> asking why this should be so in a low interest rate atmosphere, where, there are plenty of acquisitions available for sub $300,000?  
Not withstanding, whilst 10 years ago $200,000-$300,000 would have secured a modest home in reasonably facilitated suburb, today – due to woeful supply side policy – you’d struggle to find family size accommodation on the fringes of our major cities for the same expense.  
First home buyers will always wax and wane to some extent, based on their perception of value and <a href="https://t.co/cRxqNHaHPi" target="_blank">ability to save</a> over and above items of affordability alone.  
And whilst a lower percentage entering the market can in part be attributed to lifestyle factors such as labour mobility, getting married later in life, numbers falling under the radar on <a href="https://www.accreditedbroker.com.au/knowledge-portal/articles/512-where-have-all-the-first-home-owners-gone" target="_blank">loan applications</a> and the shadow effects of various grants and incentives being introduced and subsequently scaled back (thereby producing a demographic shift in the timing and age at which buyers enter the market), there are other factors at play which clearly point towards pressures of affordability.  
For example, just from the last census alone we can see the percentage of one person households has decreased for the first time in over 100 years from 24.4% to 24.3% - whilst at the same time group households have jumped from 3.9% to 4.1% and crowded houses with three or more families have risen nationally by 64% to 48,499.  
A closer look at exactly what it costs to rent a modest apartment within commutable proximity to our capital cities gives some indication why this should be so.  
For example, in Melbourne - (which currently has one of the highest vacancy rates of any capital – 2.7% (SQM) for the month of September) - if you’re halfway fussy, requiring good proximity to transport, a modest balcony, or internal floor space over 40 square metres, you’ll be hard pushed to get a one-bedroom apartment in original condition under $320-$350 per week.  
In Sydney, the equivalent will cost between $450 and $500 per week – therefore it makes sense to share expenses, and this is certainly the case with renters I’m in contact with.  
An argument consistently put forward when discussing the first home buyer demographic, is the idea that many want to rent, rather than buy – and it’s certainly one I have sympathy with, whether that be for <a href="https://t.co/cRxqNHaHPi" target="_blank">lifestyle</a>, affordability, or work purposes.  
However when two people meet and plan a family, there is a natural desire to settle. In the absence of long-term lease and rent controls, most would preference purchasing over renting.  
Therefore, a drop in ownership for this demographic, falling 79.5% to 77.2%, coupled with increasing numbers becoming long-term renters, is concerning.  
The Grattan report, released early last week, clearly demonstrated how tax policy is disproportionally weighted toward the owner/investor at the expense of the renter.  
Indeed, so imbedded is it in the Australian culture that home ownership is the key to financial freedom, there is an un-witting air of sympathy when we refer to ‘generation rent.’  
As for the first home buyer - assuming their initial property is not going to be their last - it would be more apt to term the demographic ‘first time investor’ with the need to purchase a growth generating asset in an area with enough projected consistent buyer demand, to ensure equity to tap into, when time comes to upgrade.  
Notwithstanding, the investment potential of their purchase is always an initial question from home buyers I assist.  And to get on what’s the commonly termed the ‘property ladder’ today, is markedly different from the post-war environment baby boomers were born into.  
Much of the newer accommodation being constructed is generally not attractive to consumers - being high-density, low-grade apartment blocks for which first home buyers can have difficulty obtaining finance.  
Whilst it’s not impossible for those who have saved a deposit to enter the established market - the stronger financial arm of the investment sector competing for a similar pool of dwellings around the suburban median price bracket, can present a significant challenge.  
Urban boundaries and the propensity to towards land banking, hefty tax overlays and poor infrastructure development, has ensured land on the outskirts is already artificially inflated, rather than representing a cost that would assist purchasers to compensate for the expense of commuting greater distances to work related services.  
The residents who purchased in Melbourne’s Point Cook for example, which was expanded in line with the 2030 plan and initially marketed as “A thriving neighbourhood … just 22 kilometres from Melbourne’s CBD” with “convenient access to established schools, shopping, recreational facilities and public transport” have seen their <a href="/news">home values fall</a>, battled with overcrowded roads, and a minimum two hour commute to the CBD in peak hour traffic.  
So whilst it’s easy to accuse first home buyers of being picky, one could just as easily ask why they should they forgo a hard earned deposit to accept what’s currently on offer, or exceed the budget to outbid competition for a limited number of established dwellings?  
First home buyers are not a ‘buy anything as long as it’s cheap’ consumer – although some mistakenly assume they should be if they want to get into the housing market.  
And whilst commentators use low interest rates to support the argument that housing affordability has improved, it is important to understand that housing affordability and the cost of servicing a mortgage are two separate entities.  
Mortgage rates are set up with different structures dependant on circumstance, and subject to interest rate changes influenced by the macro environment.  
To take out a 25 year mortgage requires the expectation of secure employment in a terrain where frequent job changes or part time work are becoming a norm.  
They may influence house prices through a cycle, but they do not take away the fact that home prices now – even with lower lending rates – require longer terms to pay down, with the interest over the duration of that period adding considerably to the capital cost.  
Next page: So what can be done?
 
<hr class="system-pagebreak">
So what can be done?  
As recorded by APM, Sydney’s median house price has increased by 4.2% over the September quarter to $722,718 – ‘the first capital to reach this milestone,’ whilst, the unit median has pushed past the half million landmark to $510,000.  
The current rental yield for a unit would be around 4%, therefore most new investors would be negatively geared and speculating on capital growth accrued during the period of ownership plus another like minded investor paying more at the end of that duration, to make the strategy productive.  
Yet, despite this robust activity from the investment sector making up around 50% of the buying market, Sydney’s vacancy rate recorded the largest monthly decline in September of any capital - now at 1.8% (SQM).  
This is because, the concentration of investment is focused overwhelmingly on the established sector through policies such as negative gearing coupled with 1999 decision to tax capital gains at half the rate applicable to other income. Since implementation, supply has not increased; rather investor activity around a limited pool of second-hand dwellings has multiplied (see next graph).  
<img src="https://www.urban.com.au/images/stories/2013/10/28/cashmore_oct_28_one.png" alt="cashmore_oct_28_one" width="470" height="350">
Needless to say, common sense dictates that maximisation of policy initiatives to increase supply cannot occur if we don’t address this mindset.  
<a href="https://www.facebook.com/l.php?u=http%3A%2F%2Fwww.propertyobserver.com.au%2Fnegative-gearing%2Fnegative-gearing-a-boon-for-investors-not-so-great-for-renters-catherine-cashmore&amp;h=2AQHhdbwt" target="_blank">As I touched on last week</a>, prior to negative gearing being quarantined in 1986 – rents were already rapidly rising in Sydney and Perth, with vacancy rates below 1%.  
Therefore, it is not clear whether subsequent rises were wholly due to the tax changes.  It is also not clear that a continual sharp increase in rents would have been worst had the policy backflip not occurred.  
However, without effective supply side initiatives to offset the inflationary elements investment in established property has produced, the market is simply a game of musical chairs - replacing a property for sale with a property for let.  
Solution  
I’ve said on many occasions that the challenge of creating a balanced, affordable, attractive market for homebuyer, investor and renter alike cannot be tackled on one front.  
There are many distortions that need to be slowly unpicked, whilst robust activity to lower land values and increase supply implemented.  
As it stands, considering the number of investors who rely on negative gearing as a tax/investment strategy, we’ve arguably painted ourselves into a corner.  
I am a full agreement that negative gearing is a failed policy. However, I would hesitate in abolishing it in one foul swoop for the following reasons.  
Whilst here is little evidence to suggest there’d be an investor exodus, there’s also scant evidence that first home buyers would be in a position to immediately soak up any additional stock at current prices – bearing in mind negatively geared investments are most suited to this demographic (being smallish one or two bedroom apartments.)  
The average first home buyer borrows around $280,000-$300,000 – therefore we’d need to see more than a light correction in values to provide a competitive entry point – not to mention the difficulties most have saving a deposit.  
Furthermore, even if established supply were to increase with projected lower demand from investors, to see substantial drops in values assumes vendor’s being forced to sell at a loss.  
As evidenced in some of our previous downward cycles (most recently during 2011 to 2012) markets can stagnate rather than truly ‘correct’ with many buyers taking a back seat expecting further falls.  
However, a gradual deployment of speculation away from established dwellings, with incentives to investors to purchase new over old, coupled with assistance to potential home buyers to either <a href="https://www.moneysmart.gov.au/managing-your-money/banking/savings-accounts/first-home-saver-accounts" target="_blank">save</a>, or enter into <a href="https://www.keystart.com.au/" target="_blank">shared equity schemes</a>, would be a start to meeting any increased supply with new home buyer demand.  
The policy could be gradually phased out by limiting it to a fixed number of investments  - two for example – or taking the suggestion made by the Henry tax review of tightening current arrangements with a lesser 40% of interest allowed as a deduction, and capital gains taxed at the slightly higher rate of 60%.  
This at least would be a starting point toward a fairer market.  
Additionally, dramatically increasing supply of new ‘quality’ accommodation with some reserved for low-income workers must take priority, as well as a structured plan to increase infrastructure through the consideration of bond financing for example.  
Over the 17 years to 2012 negative gearing cost Australian tax payers around $33.5 billion (inflation adjusted for the period estimated). Considering we have an aging population requiring increased spending on healthcare and other related services, coupled with a widey spruiked shortage of housing and, as Tim Toohey pointed out in a recent Goldman Sachs publication, forecast income growth of 3.5% in 2013-14 compared to an average of 15.5% over the last 15 years, it’s hard not to see better ways to manage the budget.  
Indeed – any politician with more than a short-term mindset – would be blinkered to imagine we can continue with the current status quo for ever.  
Additionally, an overhaul of policy surrounding tenancies is also necessary. However, that’s for another column.
<hr>
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
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catherinecashmore-6LXia3pPQj

Why aren't first home buyers purchasing?

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One of the loveliest highlights of late spring are the Jacarandas which are now fully in flower across Sydney, even in its back laneways. Highlighted ofcourse in Brett Whiteley's winning entry in the Wynne Prize of 1977. Brisbane's season started earlier being warmer, and there are reports from Perth of their flowering. 
<img src="/images/stories/2013/11/01/jacaranda-nov-1-one.jpg" alt="jacaranda-nov-1-one" width="470" height="309">
Photo courtesy of Pedro Vizcaino Pina<a id="yui_3_11_0_3_1383263603194_841" href="https://www.flickr.com/photos/pedrovizcainopina/"></a>/flickr.
But these purple canopies which look superb against the November sky are certainly high maintenance. Our He Said/She Said commentators Jonathan Chancellor and Margie Blok bicker over the garden fence.
HE SAID<img src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" width="150" height="225" style="float: right;">
I adore jacarandas from a distance. It makes flying into Sydney so special at this time of year.
But in the front garden I'd happily settle for a row of gardenias, a grand magnolia and even a good old gum tree in the corner.
I am no jacaranda grouch but the beauty of jacarandas, especially after rain, inevitably becomes the sodden fallen flowers. Not quite as adorable and only tolerable so long as I only have to rake them up the once.
Of course gardening guru Shirley Stackhouse is on my side urging all not to rush out and rake up the spoils - relax and enjoy the double image, she suggested. But easier said than done, especially if the open for inspection crowd are coming through at 10am, and then the mess becomes just another chore. 
Anyway be sure to photograph your property for future listing while jacarandas are in flower as any pictures taken now can be stored ready for future marketing campaigns. Rather than delay any auction listing until the garden looks right, the photos will ensure buyers see the place in full bloom, even if it's not the season.
 
<img src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" width="150" height="225" style="float: left;">SHE SAID
The jacaranda flowering - in something like 49 variations including white - produce such a beautiful uplifting effect across Sydney they ought be forgiven for making a mess.
As Shirley Stackhouse says surely part of the beauty of jacarandas in bloom is the marvellous mauve-blue pool of fallen flowers at the foot of the tree, like a reflection in water.
More robust than normal, the very dry weather seemingly brought them out into an earlier bloom this year. Like nature's clock, they signify shifting into the peak of the spring property market, though I do recall the unseasonably 1992 cold spell  when they were a couple of weeks later than the final week of October. 
Whenever they flower, memories arise of Sister Irene Haxton who ran Sydney's Jacaranda Hospital from 1948 to 1961. She, more than anyone since the first truly successful propagator, pioneer Double Bay nurseryman Michael Guilfoyle, saw to it that the suburbs are ablaze. Mostly down in the Sutherland Shire as the Jacaranda was a maternity hospital at Cronulla where every one of the thousands of babies born were sent home with a jacaranda seedling.
Of course the Hunters Hill peninsula must top the list of jacaranda (Jacaranda Mimosifolia) suburbs which is why I always enjoy jacaranda cruises on the Lane Cove River - this year there's three rivals - <a href="https://www.macleaycruises.com.au/page1.php" target="_blank">MV Macleay cruises</a>; the <a href="https://www.emeraldstar.com.au/Documents/2013/Jacaranda%20Cruises%20Nov%202013.pdf" target="_blank">Emerald Star</a> or <a href="https://buy.shf.org.au/eventListing2?filterMonth=null&amp;filterType=Jacaranda+Cruise" target="_blank">the Harman</a> but sadly none hosted by the horticulturalists Graham and Sandra Ross. I haven't ever spotted the white jacaranda (Jacaranda mimosifolia alba) that Dr George Hewitt imported in 1960 from Brazil, but Jonathan claims he's seen one at Grafton and Bellingen.
Sydneysiders have been busy installing pools, spas, tennis courts and paving into their front and rear gardens with their contractors putting down a long-lasting herbicides to stop the weeds. But be warned these herbicides, carried by the seepage of water under the soil, can be quite damaging to  jacarandas which have fairly shallow roots.
Jacaranda Hill, the 60 hectare Brisbane Valley property at Coal Creek, is the standout current listing - and the marketing shows the splendor of the tree and the 1885 Queenslander homestead. Its for sale through LJ Hooker Esk agent Helen Granzien at $1.5 million.
<img src="/images/stories/2013/11/01/coal-creek-nov-1-one.jpg" alt="coal-creek-nov-1-one" width="470" height="353">
Photo: Coal Creek, Queensland
With no great 2013 listing imagery as yet, dipping back into the late 2012 offerings with jacarandas, I spotted a 1904 Federation cottage at Epping that sold after being listed for December 15 auction through NNW agent Kate Seehusen at $1.06 million. Its photograph (below) truly highlights the importance of taking pics now, for next year, rather than waiting until late spring before the delayed, same season, auction marketing opportunity.
<img src="/images/stories/2013/11/01/epping-nov-1-one.jpg" alt="epping-nov-1-one" width="470" height="262">
Photo: 18 High Street, Epping
Also in Sydney, the Fraser's development at Putney Hill have low rise apartments surrounded by nature, with the buildings named, Jacara, Figtree and Palmera Apartments, designed by Cox Richardson Architects. 
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We would like readers to email and tell us where their favourite jacaranda or group of jacarandas is. Maybe it's a tree in your own garden, or a street or park planting. Maybe you are selling it! Let us know. 
 
 
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jchancellor-FAypfDUnLy

Blooming jacarandas set late spring property market ablaze

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With rates still currently at record lows, and predictions being made as to when we may start to see them rise, it's time to consider the affect of a rise, according to Smartline Personal Mortgage Advisers.
The impact of interest rate rises on household finances, and the actions that can be taken to manage the impacts, should be at the forefront of all mortgage holders' minds, said Smartline's executive director, Joe Sirianni.
"Interest rates are at historic lows and there is widespread speculation as to where they will go from here,” said Sirianni.
"Recent comments by the RBA indicate that the interest rate cut door is still slightly open, but money markets seem to think that it’s more likely that they won’t cut again," he said.
"That means we are moving closer to the time when rates will start to rise again, particularly if the economy improves. For those who haven’t already, now is the time to perhaps look at locking into a fixed rate and considering other ways of managing higher interest rates.”
AMP Capital's Shane Oliver also said that this week, with a speech from Reserve Bank governor, Glenn Stevens, to be released, it's time to watch closely for clues regarding the outlook.
"Given the confidence Deputy Governor Lowe recently expressed in the economic outlook, it’s likely that Governor Stevens will signal a degree of comfort with current interest rate settings – assuming he offers any comments on current economic conditions," Oliver said.
Currently, when assessing an application for a loan, banks factor in a potential 1.5% to 2.0% on top of the current rate, to ensure the applicant can afford an increase.
Sirianni recommends mortgage holders also consider the following:
·    Consider fixing part or all of your home loan 
·    Don’t forget the rate lock
·    Carefully consider your fixed rate term
·    Get into the habit of making higher repayments
·    Understand your spending patterns
·    Get good advice
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jduke-EHk3XBmHkn

Start considering interest rate hikes now: Smartline

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Ensure you are set on refinancing before embarking on any applications, as any applications for new credit products, including mortgages, affect your credit rating. Ensure your existing mortgage is healthy with no recent missed repayments that could affect your ability to refinance.
You should also compile a list of credit cards and other debts, such as personal loans, that will affect your borrowing capacity. Remember the hoops you needed to jump through to achieve your initial loan, as you will find yourself undertaking a very similar process. Consider obtaining a copy of your personal credit file, and make sure all taxes and bills have been paid. Tax returns and accounts need to be up to date as well. Find out from your lender which documentation will be required and have it all ready to go.

<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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po-LsXgBTHBmX

Get your affairs in order to make the process as smooth as possible 

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Recent national dwelling approvals data by the Australian Bureau of Statistics shows that with interest rates at their lowest levels in 53 years, dwelling construction approvals are now higher than their long-term average levels.

This latest news will please the RBA where Governor Glenn Stevens recently stated that with interest rates at extremely low levels, dwelling construction is starting to fill the void.
The RBA was keen to see an increase in dwelling construction, not just higher home prices. Governor Stevens also commented that the RBA was hopeful that dwelling construction could pick up some of the economic void as mining investment went past its peak. The good news for the RBA is that what they desired is exactly what is coming to fruition.
<img alt="kusher-oct-25-one" height="213" width="470" src="/images/stories/2013/10/25/kusher-oct-25-one.gif">
Lower interest rates and incentives to ‘buy new’ are fuelling a higher number of dwelling approvals, which ultimately leads to construction which in turn provides a substantial multiplier effect for the domestic economy.
Based on the ABS results, the best response to the lower interest rate environment in terms of dwelling approvals was seen within New South Wales, Queensland, South Australia and Western Australia.
While approvals in Victoria trended lower, the number of approvals across the state was significantly higher in previous times than those in other states and has recently recorded a significant decline.
<img alt="kusher-oct-25-two" height="237" width="470" src="/images/stories/2013/10/25/kusher-oct-25-two.gif">
This result is not necessarily a bad thing given the fact that the housing supply deficiency is lower in Victoria and there have been looming concerns about excessive levels of construction within inner Melbourne and across the outer fringe of the Melbourne metro area.
Across the states there have been early signs of a revival in dwelling approvals. The annual number of dwelling approvals as at August 2013 was 22.6% higher in New South Wales, -3.0% lower in Victoria, 12.2% higher in Queensland, 9.6% higher in South Australia and 31.8% higher in Western Australia.
With month-to-month dwelling approvals data so volatile, it’s important to look at the trend where based on today’s accompanying charts, it can be seen that approvals are beginning to trend higher.
Based on a rolling 12 months average figure, there were 13,589 approvals in August 2013 which was 11.7% higher than in August 2012. The August 2013 approvals figure of 12,163 was the most recent low.
<img alt="kusher-oct-25-three" height="234" width="470" src="/images/stories/2013/10/25/kusher-oct-25-three.gif">
The RP Data-Rismark September Home Value Index confirmed that capital city home values have increased by 8.7% from their recent low. Given this and based on percentages, the rebound in approvals was stronger than the lift in home values.
A lift in dwelling approvals is more important than a lift in home values. It would be fair to say a higher rate of dwelling approvals is much more beneficial to the Australian economy than a lift in home values. Unfortunately without the additional demand created through higher home values and sales it is less likely that developers would take on the risk of building more homes.
The rolling 12 months average dwelling approvals figure shows that approvals are now 1.9% above their 20 year average. The issue here is that for most of the past 20 years, the supply of new dwellings has been insufficient. This result is probably not actually a good benchmark; no doubt the RBA would like to see approvals continue to climb further from this point.
<img alt="kusher-oct-25-four" height="238" width="470" src="/images/stories/2013/10/25/kusher-oct-25-four.gif">
The ABS dwelling approvals data is the sharp rise in the proportion of approvals for medium and high density housing. He found that over the past 12 months, 41.6% of all approvals were for units where just five years ago, only 33.2% of all approvals were for medium and high density properties.
The shift towards a higher proportion of unit approvals is a change that may be difficult to accept for potential home owners but will no doubt be an ongoing feature of the market over coming years.
As long as governments continue to show a reluctance to expand urban footprints, particularly within our major capital cities coupled with population increases in these areas, there will subsequently be additional demand for housing.
It is clear that instead of supplying a greater number of detached homes there is a general preference, particularly in some of our larger cities, for densification of inner city areas. This is not necessarily a bad thing, especially considering that this development of inner city areas will reduce the requirement for new infrastructure.
 
<hr>
 Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
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ckusher-ujnxiKuFQs

Low interest rates push construction approvals higher than long-term average: Cameron Kusher

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“I ‘heart’ the Grattan Institute,” Peter Verwer told the room.
At a forum in Melbourne on Thursday night, the CEO of the Property Council of Australia said the Institute was thought-provoking and open to discussion. “But that’s where the good news ends.”
The forum was an opportunity to discuss the findings of <a href="https://www.smartcompany.com.au/finance/tax/34232-government-policies-favour-wealthy-property-owners">this week’s Grattan Institute report</a>, which found that many government policies did little to make housing more affordable for those who do not already own home.
The Institute invited along the body most likely to be critical of such a view. The match-up did not disappoint. Verwer and the report’s author, Grattan Institute Cities Program director Jane-Frances Kelly, clashed over many of the report’s key findings.
Verwer, who jokingly claimed he was at the forum representing “the dark side of the force”, took issue with the report’s claim that homeowners received a $36 billion subsidy from the government.
“That figure is a load of cobblers,” Verwer said. “The report moves from talking of theoretical taxes, then calls them subsidies, then outlays. There are no subsidies. But that line is fed to the media.”
Kelly, however, defended adding up the “generosity of the taxpayer”.
“The numbers are on government budget papers,” she said. “Sure they’re theoretical, but they are counted in the economic accounts.”
Both Verwer and Kelly agreed the tax system surrounding housing was badly designed, and both said the lack of housing supply was a crucial issue keeping home ownership out of the reach of many.
“The relationship between housing supply, economic growth and population grown has been moving out of sync,” Verwer said.
The warring duo also agreed that taxes like stamp duty made little sense, and discouraged people from selling up and moving homes to dwellings more in tune with their needs.
However, they clashed on the issue of negative gearing.
Kelly said that the policy, which allows investors to offset the loan repayments not covered by a rental income against their taxable income, acted to increase the demand for housing stock, pushing prices up, creating a “zero sum game” with taxpayers and those outside the housing market being the losers.
Verwer strongly disagreed, saying that negative gearing, while doing little to create new housing stock, did create new rental stock.
“The earnings from rent are not desirable,” he said. Faced with yields of around 4%, he argued, small and medium-sized investors needed negative gearing to make the ownership of rental stock desirable.
The tax break was used by small investors, he said, claiming that just 10% of those using negative gearing to minimise their tax earn more than $180,000 a year. Because of that deduction, there were 1.8 million homes available relatively cheaply for rent that would otherwise not be available.
“It’s not a monumental benefit anyway,” he said. “On the Grattan Institute’s numbers, it works out to $25 a week in most cases.
“Frankly, it’s the deal of the century [for the government]. If you didn’t have negative gearing, you’d have to invent it.”
But Kelly questioned whether having a high proportion of the population renting was a good thing.
For the past few decades, she said, home ownership had hovered around 70%. It’s only 68.5% overall now, she said, but the figure had plummeted among those under 45 and those on low incomes.
Today, a quarter of Australians rent. The median age of renters is 37.
Despite this, she said, there persisted an attitude that renters were layabouts and vagrants.
“The thought of renting as only a transitional thing is out-dated. People are renting further into their lifetime, and there are more children in rental households.”
Despite this, she said renters here have few rights, with Australia having some of the shortest lease terms in the world and the shortest mandated notice periods.
“Kids benefit from stability,” Kelly said. “And we restrict how much renters can have a sense of creating a home. Things like hanging up pictures, or having pets, are often not allowed.
“That’s the effect of this capital gains culture. We treat tenants almost as an accident of people using that investment instrument. But renters want to be treated with respect. They’re not just an income stream for real people living elsewhere.”

<hr>
This article first appeared on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
 
 
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mrobin-TVRYiru7si

The Property Council strikes back: negative gearing not just for the wealthy council claims

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This time last month I wrote that we had reached what I called the <a target="_blank" href="https://www.propertyobserver.com.au/landlords/we-ve-reached-the-tipping-point-of-a-balanced-rental-market-ewan-morton/2013091264962">delicate rental market tipping point</a>. I said it would be fleeting and it appears I was right. That moment when rents and mortgage outlay are in line has passed. Figures released over recent weeks highlight house prices in Sydney jumped 2.5% in September with a 10% growth overall so far in 2013. Compare that to figures released by APM yesterday showing average Sydney house price rents haven't moved over the last 12 months and predictions are they will remain stable for much of the year ahead. That's great news if you're renting.  For those in the market to buy it is an interesting revelation. It's certainly another reason not to get caught up in talk of the market going gangbusters, and while it might sound gloomy I think investors should factor in a uniform rental return when doing their numbers on the value of a potential rental property. Better to be happily surprised rather than financially squeezed.   However it is also good to remember that those numbers are the average and there are pockets where rental demand is strong. We manage a large number of properties in and around Pyrmont where demand continues to outstrip supply so rental return is very healthy. If you are a potential investor don't be discouraged but do be discerning.
 
<hr>
 Ewan Morton is managing director of the Sydney based <a target="_blank" href="https://www.mortonandmorton.com.au/" rel="nofollow">Morton &amp; Morton</a>.
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emorton-DecMjPQt5h

Moment when rents and mortgage outlay are in line has passed: Ewan Morton 

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A fascinating week with the Abbott government establishing its commission of audit in order to return the budget back to surplus which will require wide – ranging cuts. <a title=" Return to budget will be ‘a herculean task" href="https://www.theaustralian.com.au/national-affairs/policy/return-to-budget-surplus-will-be-a-herculean-task-says-deloitte-access-economics-report/story-fn59nsif-1226743490437" target="_blank"> Return to budget will be ‘a herculean task</a>’, says Deloitte Access Economics so the leading question then is where are these 'rivers of gold' that the government will release in order to get the budget back to surplus?
I can’t see this happening anytime soon given these new cuts (whatever they will be) won’t be introduced until after the next election. The Abbott government’s preferred approach is to submit their reforms (cuts) to the voters at the next election seeking a mandate.
Front and centre will be property – <a title="housing is Australia’s great boondoggle" href="https://www.businessspectator.com.au/article/2013/10/24/australian-news/housing-australias-great-boondoggle" target="_blank">housing is Australia’s great boondoggle</a>. If Joe Hockey’s audit committee is looking for a way to save a lazy $43 billion a year, the middle and upper-class welfare that is Australia’s housing policy might be a good place to start.
The Grattan Institute’s <a title="Renovating Housing Policy" href="https://grattan.edu.au/publications/reports/post/renovating-housing-policy/" target="_blank">renovating housing policy</a> has determined that this massive wealth transfer puts $36 billion in the hands of existing home owners and a further $6.8 billion goes towards subsidising owner – investors into a product that delivers yields that are generally lower than equities or fixed interest. Between them, owner occupiers and investors receive over 90% of government funding directed towards the housing market.
The report confirms that government tax and welfare policies are contributing to housing unaffordability in Australia, with most of the welfare pie directed towards home owners and high income earners. Investors benefit from negative gearing and discounts on capital gains tax. First home buyers receive the first home buyer’s grant, which while popular, largely accrues to home owners via higher prices.
This motivated me to do a case study on Mosman and the conclusions sent alarm bells ringing. I went to the Mosman Council website and looked at the 2011 Census data.
MOSMAN
<ul>
<li>
Number of Houses: 4,746
</li>
<li>
Number of Apartments: 8,079
</li>
<li>
Combined Total: 12,891*
</li>
</ul>
*Includes three houseboats, eight other and 55 not stated. The census also showed at the time it was conducted that 1,242 dwellings not occupied.
I am advised that Mosman has approximately 6,000 properties for rental which in itself is a staggering number – 46.6%. If the government were then to be heavy handed on negative gearing the Mosman property market would be absolutely decimated with investor exit strategies.
NORTH SYDNEY
<ul>
<li>
Number of Houses: 4,518
</li>
<li>
Number of Apartments: 30,188
</li>
<li>
Combined Total: 34,897
</li>
</ul>
We don’t know how many properties are leased in the municipality of North Sydney.
<img alt="22-10-2013 1-54-30 PM" src="https://www.rwm.com.au/files/2013/10/22-10-2013-1-54-30-PM.jpg" width="470" height="651">
<img alt="22-10-2013 2-41-30 PM" src="https://www.rwm.com.au/files/2013/10/22-10-2013-2-41-30-PM.jpg" width="470" height="273">
<a title="Leave negative gearing alone: REIA" href="https://www.propertyobserver.com.au/finance/leave-negative-gearing-alone-reia/2013102165847" target="_blank">Leave negative gearing alone</a> said the REIA which was an expected response although the argument that carried the most weight was <a title="REIA persists with negative gearing lies" href="https://www.onlineopinion.com.au/view.asp?article=15604" target="_blank">REIA persists with negative gearing lies</a>. Reserve Bank of Australia data clearly shows that the overwhelming majority of investors - over 90% - buy pre-existing dwellings, and the proportion of investors buying new dwellings has fallen spectacularly since negative gearing was reintroduced in September 1987.
On the other hand, one area that could be looked at is the <a href="https://www.businessspectator.com.au/article/2013/10/18/politics/political-capital-locked-house-prices" target="_blank">GST that applies to new homes</a>. It is around one quarter of the taxes and charges that “drive a wedge between home builders and buyers”. Taxes and charges, including having to pay infrastructure bills up front, make up 40% of the cost of a new dwelling. This would explain why Australia’s new home construction is in the doldrums – and won’t be changing anytime soon. Furthermore this also sheds light on why so many of Australia’s construction companies have been forced into liquidation.
If the government does submit to abolish negative gearing at the next election it would win overwhelmingly given one third of Australia’s population rent, one third own with a mortgage and one third own without a mortgage.
<a title="Sydney beats $700,000 price barrier" href="https://canberratimes.domain.com.au/real-estate-news/sydney-beats-700000-price-barrier-20131023-2w1la" target="_blank">Sydney beats $700,000 price barrier</a> in the September quarter the median price jumped 4.2% to $722,718 – as one commentator remarked “We are in uncharted territory now.”

<hr>
Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
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robertsimeon-hRNTwJyXkQ

Property will be front and centre of the government's planned reforms

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Regular readers will know that I have for some time expected the Sydney property market to outperform based largely upon its strong fundamentals as compared to other Australian capitals combined with the harbour city's relative under-performance since the first quarter of 2004.
This is evidently now playing out fairly dramatically with reported dwelling prices up by around 10% in the matter of only a few months.
At the same time, various other real estate markets are not firing in anything like the same way.
In fact, when adjusted for inflation - as RP Data does in their enlightening chart below - most other property markets are some way below their previous peaks in 'real terms'.
In other words, certain markets may be experiencing what some have described, aptly, as a "slow melt".
That is, they may be gradually increasing in terms of actual dwelling prices over time, but capital growth on average could remain lower than the rate of income growth.
In doing so, such markets may well become more affordable over time as household incomes increase.
Hobart and Brisbane are two good examples of where current prices are comfortably more affordable than they were at the previous market peak (at least, on a city-wide basis).
<img alt="Embedded image permalink" height="259" src="https://pbs.twimg.com/media/BXOnGfICMAIQIMC.jpg" width="400" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: RP Data
I'm aware that some people argue that not everyone is receiving pay rises right now. This is undoubtedly true. In fact, that is always the case.
But as the Australian Bureau of Statistics (ABS) data has shown, incomes have continued to rise in recent times on a national basis. Some industries - notably the mining and resources sector - have naturally fared better than others in terms of salary growth.
In any event, the current property market upturn is demonstrably largely a Sydney affair.
Interestingly, as recently as June of this year there were various misguided reports of a "weak" Sydney market (see the mid-year dip in RP Data's chart below), whereas now only a few short months later the pitchforks are out blaming Chinese buyers for forcing up our property prices.
Such are the pitfalls of daily home value indices and a greatly increased volume of reported data.
<img border="0" height="180" src="https://2.bp.blogspot.com/-gjTrpr11Fe0/Umc5z7QTQSI/AAAAAAAAKlc/To-yVEfZIyo/s400/RPD.jpg" width="400" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: RP Data
In other news, there were signs of inflation in this week's consumer price index (CPI) release for the quarter (the headline reading jumped to 1.2% for the quarter, although the trimmed mean and weighted median prints were sitting back in the desirable range) including in the housing and transport categories, although the ABS data was once again something of a mixed bag of messages.
Although inflation remains well under control on an annual basis, further interest rate cuts look to be doubtful at this stage. The data tumbling out of Sydney's housing market may represent one factor in the equation; the interesting movements in the Australian dollar recently was another.
 
<hr>
 Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
 
 
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pwargent-M4siyDbqQY

Sydney is firing but other markets are experiencing a 'slow melt'

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Is now a good time to buy a property or home?
74% of respondents in the RP Data – Nine Rewards survey believe now is a good time to be buying property. While the results show the vast majority of those surveyed think the timing to purchase a home is good, the results are a reduction from our May 2013 results where 80% of respondents thought it was a good time to purchase a home. The result is also slightly lower than a year ago when 76% of respondents thought it was a good time to be purchasing a dwelling.
<img class="aligncenter size-large wp-image-2634" alt="1 time to buy" src="https://blog.rpdata.com/wp-content/uploads/2013/10/1-time-to-buy-580x206.jpg" width="470" height="167" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Across the regions the results for this question showed some diversity. Not a single respondent in the Northern Territory thought now was a good time to be buying a dwelling, perhaps reflecting a reduced level of buyer sentiment in the top end housing market. Similarly, a smaller proportion of Sydney respondents (63%) thought now was a good time to be purchasing a dwelling. The May results were 10 basis points higher for Sydney at 73%. Dwelling values have moved 12.2% higher across the Sydney housing market since values bottomed out in May 2012. Many prospective Sydney buyers have either been priced out of the market or would be viewing the current level of capital gains as unsustainable.
More than 80% of survey respondents thought it was a good time to be buying a home in Adelaide, Regional Western Australia, Regional Queensland and Brisbane.
Is now a good time to sell a property or home?
Despite the strong housing market conditions only slightly more than half of respondents thought now was a good time to be selling their home. The results are dramatically higher than a year ago when only 29% of those surveyed thought it was a good time to be selling.
<img class="aligncenter size-large wp-image-2640" alt="2 time to sell" src="https://blog.rpdata.com/wp-content/uploads/2013/10/2-time-to-sell-580x204.jpg" width="470" height="165" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
The strong housing market conditions in Sydney have prompted the largest proportion of respondents to suggest now is a good time to sell. About 74% of Sydney based respondents thought that now was a good time to be selling their home. Based on RP Data’s most recent weekly statistics, the typical Sydney house is selling, on average, in just 27 days, highlighting the strong selling conditions that are prevalent across this market. 65% of respondents in Melbourne thought now was a good time to be selling and 61% of Perth respondents though it was a good time to sell their home.
Housing markets where capital gains have been softer, such as South Australia, Queensland and Tasmania, have prompted survey respondents to be less bullish on selling conditions. Only 23% of those surveyed in regional South Australia thought now was a good time to be selling and 29% in regional Queensland.
In your opinion is Australia’s housing market vulnerable to a significant correction in values?
This is the first time this question has been included in the RP Data – Nine Rewards survey. The results show 60% of survey respondents believe the Australian housing market may be vulnerable to a significant correction in values. The survey didn’t probe further about what level of value decline would be considered ‘significant’, however, it is clear that there is a level of unease about the future of Australian dwelling values.
<img class="aligncenter size-large wp-image-2639" alt="3 vulnerable" src="https://blog.rpdata.com/wp-content/uploads/2013/10/3-vulnerable-580x258.jpg" width="470" height="209" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Respondents based in the Australian Capital Territory, Perth and Sydney showed the most significant level of pessimism when it came to their belief that dwelling values are vulnerable to a significant correction. 70% of respondents in the ACT thought the local housing values were vulnerable to a significant fall, as did 68% of Perth respondents and 65% of Sydney respondents. Both Sydney and Perth have seen a greater than average run up in dwelling values over the most recent growth cycle which may be contributing to the perceived threat of a downturn in home values.
Conversely, respondents in Tasmania, where the housing market has been the weakest of any state or territory, are much less pessimistic. Only 36% of respondents thought the housing market was vulnerable to a significant correction in dwelling values. The proportion of pessimistic responses was below 60% for respondents based in the Northern Territory, regional NSW, Adelaide, Brisbane and regional Victoria.
What is the most important factor when purchasing a property?
The vast majority of respondents believe the most important factor to consider when purchasing a property is their personal financial situation at 52%. Slightly more than half of the survey participants felt this to be the most important factor when considering a property purchase. Interestingly, the housing market’s prospects for capital growth also rated quite high, with just under 20% of respondents indicating this was their most important consideration. 15% of respondents thought the interest rate setting was the most important factor, while only 10% of respondents felt that job security was their most important consideration.
<img class="aligncenter size-large wp-image-2638" alt="4 most important" src="https://blog.rpdata.com/wp-content/uploads/2013/10/4-most-important-580x211.jpg" width="470" height="171" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Do you believe home values will rise, fall or remain stable over the next six months?
51% of respondents were expecting home values to rise over the next six months compared with just 33% of respondents in October last year. Only 6% of respondents were expecting values to fall over the coming six months.
<img class="aligncenter size-large wp-image-2637" alt="5 6 monhts" src="https://blog.rpdata.com/wp-content/uploads/2013/10/5-6-monhts-580x335.jpg" width="470" height="271" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Of those respondents who are expecting home values to rise over the next six months, their expectations of growth remain relatively measured, with just over half of those respondents that thought values would rise over the next six months indicating that growth would be between 2.5% and 4.9%. The vast majority were expecting growth to be less than 5% over the next half year.
According to the 6% of respondents who think values will fall over the next six months, the largest proportion (41%) are expecting the fall to be less than 2.5% and almost 75% of respondents think values will fall by less than 5% over the coming half year.
Do you believe home values will rise, fall or remain stable over the next 12 months?
A larger proportion of respondents believe Australian home values will rise over the next 12 months, with 57% of respondents expecting values to lift. Compared with the survey responses in October last year, only 42% of respondents were expecting home values to rise over the coming year.
<img class="aligncenter size-large wp-image-2636" alt="7 12 months" src="https://blog.rpdata.com/wp-content/uploads/2013/10/7-12-months-580x225.jpg" width="470" height="182" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Of those respondents who are expecting dwelling values to rise over the coming 12 months, the vast majority (78%) expect the magnitude of growth to be less than 5%.
Do you believe home rental rates will rise, fall or remain stable over the next 12 months?
 Most respondents (55%) to the survey are expecting rental rates to continue rising over the coming year, with only 4% of individuals surveyed expecting a fall in rents.
Of those respondents that are expecting a rise in weekly rents over the coming year, 41% are expecting a rise of between 2.5% to 4.9% while the second largest proportion are expecting rents to rise by under 2.5% over the year.
<img class="aligncenter size-large wp-image-2635" alt="8 rents" src="https://blog.rpdata.com/wp-content/uploads/2013/10/8-rents-580x248.jpg" width="470" height="201" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Respondents based in Northern Territory are the most bullish on rental markets, with three quarters of the respondents expecting higher rents over the next twelve months. Just under 70% of Adelaide respondents were expecting higher rents and more than 60% of respondents were expecting rents to move higher over the year in Regional NSW, Tasmania and Sydney.
Residents of regional South Australia showed the lowest expectation of rental rises over the coming year, with only 38.5% of respondents indicating they were expecting rents to move higher. Fewer than half the respondents in ACT, regional Vic and Perth were expecting higher rents over the coming year.
 
<hr>
 Tim Lawless is national research director of <a rel="nofollow" href="https://www.myrp.com.au/" target="_blank">RP Data.</a>
 
 
 
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