<a href="https://www.apartments.com.au/developers/jl-place">JL PLACE</a>'s Veil Brighton is approaching its final months of construction, with the nine-townhouse development at 17 Rooding Street expected to complete in December 2026.

The milestone is bringing the boutique project closer to becoming a finished part of the <a href="https://www.apartments.com.au/developments/brighton-vic-3186">Brighton</a> streetscape, with much of Brighton's everyday amenity within a short walk.

Palace Cinema, Coles Supermarket and North Brighton Station are all around five minutes on foot from <a href="https://www.apartments.com.au/new-townhouses/veil-brighton-17-rooding-street-brighton-vic-3186">Veil</a>, alongside numerous cafés, restaurants and bars. The station provides a direct rail connection toward Melbourne's CBD, while Bay Street and the wider Brighton retail and dining network add to the range of services accessible without relying on a car for every trip.

"The location was fundamental to the project. Brighton is an established suburb where many buyers already have strong connections to the area and want to remain close to the people, places and amenities that form part of their everyday life," the developer said.

"Veil sits in a highly walkable part of Brighton, with a Walk Score of 90/100."

For buyers looking to right-size within Bayside, that level of walkability adds to the appeal of a more manageable way of living. Everyday shopping, dining, entertainment and public transport can be accessed without relying on the car for every trip, while residents remain connected to the places and routines that make Brighton familiar. It allows buyers to simplify day-to-day life without giving up the convenience, amenity and connections they already value.

[smartcode_project:default project_id=7877 project_image_fid=355754]

As completion approaches, the architecture, landscaping and material palette are progressively becoming visible on site, giving prospective purchasers a clearer view of the finished development beyond its plans and renders.

Veil comprises nine townhouses, predominantly three-bedroom homes with between 2.5 and 3.5 bathrooms, two car spaces and, depending on the residence, study areas and private outdoor space. Selected homes include a bedroom on the ground floor.

Veil occupies a middle ground between detached housing and apartment living, retaining private gardens, storage and secure parking within a more manageable residential format.

<a href="https://www.apartments.com.au/architects/schmidt-pang-architects">Schmidt &amp; Pang</a> designed the architecture around natural light, ventilation, privacy and practical use of space. From Rooding Street, the façade has been composed to read as a cohesive residential building rather than nine individual townhouses, with landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick Landscape Architects</a> integrated throughout the site.

Inside, natural stone, oak flooring, integrated joinery and brushed nickel finishes establish a restrained material palette, while kitchens include Miele appliances and substantial storage such as pantries. Walk-in robes and dedicated study spaces have also been incorporated across the collection.

[smartcode_project:default project_id=7877 project_image_fid=355852]

The project team said the planning of the homes has been informed by how the spaces function for both daily routines and larger gatherings.

"Our new homes owners at Veil have enjoyed the attention to detail in creating efficient layouts that use every space well. Hosting Christmas lunch and large family gatherings is an ease when care is taken to consider how people really live and entertain."

Private landscaped gardens extend the living spaces outdoors, while secure basement parking and bicycle parking are provided below. The homes have also been designed to achieve a 7-star energy rating, supported by double glazing, high-quality insulation, natural ventilation, LED lighting, water tanks and water-efficient fittings. Each residence is backed by a 10-year building guarantee.

Veil is being built by <a href="https://www.apartments.com.au/builders/jeniton">Jeniton</a>.&nbsp;Limited-time stamp duty savings are also currently available on selected purchases at Veil, adding another consideration as the project moves toward completion.

[smartcode_project_cta:default project_id=7877]

Joel Robinson

Veil Brighton nears completion in one of the suburb's most walkable pockets

<a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a> has recorded 134 sales worth just over $400 million in two months of pre-release activity at The Riversdale, as the developer brings its $750 million South Brisbane riverfront project to the broader market.

The sales represent more than 60 per cent of the project's 213 apartments, with Mosaic reporting the majority of purchasers have been local owner-occupiers and downsizers.

<a href="https://www.apartments.com.au/new-apartments/the-riversdale-by-mosaic-south-brisbane-91-montague-road-south-brisbane-qld-4101">The Riversdale</a> will rise 39 storeys from its north-facing site at 91 Montague Road, delivering a mix of two, three and four-bedroom apartments alongside a collection of Mosaic's premium Masterpiece Series Sky Homes.

[smartcode_project:default project_id=151614 project_image_fid=371872]

The early buyer response comes ahead of the wider evolution of the northern end of Montague Road, where The Riversdale will be one of the first major residential projects delivered within an emerging riverfront precinct.

Directly adjoining the development is a planned 7.1-hectare mixed-use precinct, set to introduce new residences, parkland and public realm along the river's edge. The Riversdale's position directly on the Brisbane River gives it a relationship with the waterfront that Mosaic says cannot be replicated by future buildings within the precinct.

The site is also the result of a years-long pursuit by Mosaic. The developer first earmarked the <a href="https://www.apartments.com.au/developments/south-brisbane-qld-4101">South Brisbane</a> property in 2018, reflecting what Founder and Managing Director Brook Monahan has described as a deliberately patient approach to acquiring development sites.

[smartcode_project:default project_id=151614 project_image_fid=372083]

"We aren't opportunistic," Monahan previously told Apartments.com.au.

"Every site purchase is carefully considered. As seen with Kangaroo Point and South Brisbane, it can take years to eventuate. There are sites we're looking at now that we may not secure for several years."

Designed in collaboration with <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau Proberts</a>, The Riversdale has been shaped around the qualities of the riverfront site, with apartments oriented to capture northern light and uninterrupted Brisbane River views.

Generous floorplans and expansive balconies extend the living spaces towards the river, while natural materials and a restrained interior palette have been selected with longevity in mind.

[smartcode_project:default project_id=151614 project_image_fid=371890]

Residents will have access to a level of amenity more commonly associated with world-class hotels and private members' clubs, with almost 3,000 sqm dedicated to wellness, connection, recreation and everyday convenience.

At ground level is a business lounge, private meeting rooms and dedicated workspaces. Mid-tower is a wellness sanctuary featuring magnesium hot and cold plunge pools, sauna, steam room, infrared therapy facilities, a Pilates and yoga studio, and a commercial-grade gymnasium.

Crowning The Riversdale is a rooftop featuring a 35-metre swimming pool with lap lane and spa, outdoor dining and seating terraces, firepit lounges and views of the city, river and Mount Coot-tha.

A private members' club-inspired retreat offers private dining rooms, a whisky lounge, media rooms and immersive entertainment experiences. Completing the amenity offering are two hotel-style guest suites and a resident-exclusive electric vehicle fleet and car-share program.

[smartcode_project:default project_id=151614 project_image_fid=371877]

The Riversdale sits at the northern end of Montague Road between South Bank and West End, around 1.3 kilometres from the Brisbane CBD, providing access to the city's major cultural, dining and recreation precincts.

It becomes Mosaic's largest Brisbane project to date and adds to a pipeline already under construction across the city.

In Brisbane, the developer is currently delivering The Bedford and The Carter at Kangaroo Point, both of which are approaching sell-out, with a further four projects being delivered on the Gold Coast. Mosaic has completed more than $2 billion in projects since 2012 and has a further development pipeline exceeding $2 billion across South East Queensland.

Early works are underway at The Riversdale, which will be delivered by Mosaic's in-house construction division. Completion is anticipated in late 2029, with remaining apartments priced from $1.98 million.

[smartcode_project_cta:default project_id=151614]

Mosaic records more than $400m in two months at South Brisbane's The Riversdale

Lender, fund manager and apartment developer Princeton has completed <a href="https://www.apartments.com.au/buildings/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a>, the first new apartment development in South Sydney to provide its owners with a 10-year Latent Defects Insurance policy, the most comprehensive insurance available for a new apartment building.

The policy has been a key consideration for prospective purchasers of the 58 one-, two-, and three-bedroom apartments, strategically located between&nbsp;Rockdale Plaza and Rockdale Station.&nbsp;

Buyers have also been drawn to the fact that it is one of few new apartment developments delivered in the suburb in the last 10 years, and the only one located on Princes Highway to be set well back from the street to reduce noise. There's also a communal rooftop, a rarity in the suburb, complete barbecue facilities, landscaped seating areas, a children's play zone and herb gardens.

[smartcode_project:default project_id=136442 project_image_fid=374084]

Ray White Projects’ Matt Otway said buyer enquiry reflected the increasingly diverse and cosmopolitan population that has made Rockdale home.

“We’re seeing strong interest from a broad mix of buyers, including young professionals and people who have rented in Rockdale and the surrounding suburbs and now see Marque as an opportunity to buy a brand-new apartment in an area they already know,” Otway said.

“Proximity to the CBD and Sydney Airport is another key advantage particularly for buyers working in these locations who want the added convenience of living close by.”

Investors have also been attracted to the project, with rental yields of more than five per cent, which is considered a strong result for the Sydney market.

[smartcode_project:default project_id=136442 project_image_fid=374090]

Adding another layer to the buyer proposition is Marque's 10-year Latent Defects Insurance policy from Resilience Insurance, making it the only new apartment development in Rockdale to offer the cover.

The policy protects apartment owners against major structural and waterproofing defects for 10 years following completion, giving Marque purchasers cover until early 2036 at no additional cost.

The likelihood of defects emerging has also been mitigated through the Technical Inspection Service (TIS), which saw independent experts inspect the building at various stages throughout construction to identify potential issues during the build, rather than after the fact.

SDSS, which provided the TIS, consistently ranked the construction quality at Marque, undertaken by iCIRT-rated builder Coplex, among the best across its extensive portfolio of projects.

[smartcode_project:default project_id=136442 project_image_fid=374088]

Otway said the LDI had become a major drawcard for buyers, particularly given Rockdale has seen relatively little new apartment development over the past decade.

"Rockdale hasn't had a lot of new apartment buildings in the last decade, and has never had a project with 10-year defect insurance," Otway said.

"Marque presents a truly rare opportunity at an affordable price point, so well connected to the Sydney CBD."

One-bedroom apartments at Marque start from $735,000.

[smartcode_project_cta:default project_id=136442]

Marque Rockdale completes as South Sydney’s first apartments backed by 10-year defect insurance

Sydney developer <a href="https://www.apartments.com.au/developers/odus">ODUS Property Group</a> is continuing to expand its local Gold Coast development pipeline, filing plans for a new 40-storey tower in the Southport CBD.

Odus, which bought two luxury Main Beach projects, now La Mer and Le Reve, to make its move into the booming Gold Coast apartment market, has secured its third site. But it is tweaking the plans for a previously proposed 50-storey skyscraper, now seeking to deliver 40 storeys.

The project, dubbed <a href="https://www.apartments.com.au/new-apartments/80-marine-parade-74-80-marine-parade-southport-qld-4215">80 Marine Parade</a>, sits on a prime&nbsp;2,032 sqm amalgamated corner site at 74–80 Marine Parade and 4 Welch Street, across the road from the Gold Coast Aquatic Centre. It will have unobstructed, never-to-be-built-out views to the east given its position opposite the Broadbwater Parklands.&nbsp;

The plans are for 316 apartments, ground-floor retail, and resort-style resident amenities. The project sits within Precinct 1 (Central Business District) of the Southport Priority Development Area, where high-density residential and commercial development is actively encouraged.

BGD, ran by Bayden Goddard and the architecture firm behind Le Reve, has revised the original concept plans, substantially reworking the built form. Basement parking has been replaced by an expanded podium designed to improve functionality while reducing the tower's overall visual impact.&nbsp;&nbsp;

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="0f13d065-2cf5-45ec-aa17-1a03754d93d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da%202.png?VersionId=.9QS2n7kBc_U3PyaI247uOyNSXIqnXSE" />

The tower rises above the eight-storey landscaped podium with a distinctive architectural language defined by sweeping arches, integrated greenery, bronze-toned glazing, and a sculptural rooftop crown.

The development will comprise 104 one-bedroom apartments, 208 two-bedroom apartments, and four four-bedroom penthouses across levels 9 to 36. Apartments are designed to accommodate both permanent residents and short-term accommodation within the same building.

A double-height lobby and reception will anchor the ground floor alongside a 23 sqm food and drink outlet, activating the Marine Parade frontage.

Parking will be accommodated within the podium, providing 288 vehicle spaces and 74 bicycle spaces, accessed from Welch Street.

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="d7528b91-2c47-4094-98b3-5eecbacc0041" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da%20podium.png?VersionId=efF5oWs4T9PDvxJwJEDHu5kSQ5eE3IBy" />

Residents will have access to an extensive suite of amenities spread across multiple levels. A podium recreation deck will include a swimming pool, spas, sauna, steam room, cinema, residents' lounge and children's games room, while a second wellness level near the top of the building will feature a gym, co-working spaces, reading room, dining areas and communal kitchen. Extensive podium landscaping wraps the building to soften the built form and strengthen its interface with the surrounding streetscape.

The planning report notes the project responds directly to Southport's ongoing urban transformation.

"Consistent with much of Southport, the surrounding area is undergoing significant transition, with many older low-rise developments progressively being redeveloped for higher-intensity urban outcomes, as envisaged within Precinct 1."

It also states that the proposal "will contribute to a defined and legible eastern gateway to the Southport CBD, reinforcing the area's high-density urban character while maintaining a strong visual connection to the adjoining public open space network."

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="0b9fdebd-4b35-400b-a287-6bd1cdbcdb1b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da.png?VersionId=4LG35XR5mfir7jvG2TShtQx.utMLYBxu" />

Located opposite the Broadwater Parklands, the site enjoys immediate access to the Gold Coast Aquatic Centre, Australia Fair Shopping Centre, TAFE Queensland Southport campus, the G:link light rail corridor and Southport's established commercial precinct. The location places future residents within one of the Gold Coast's fastest-evolving mixed-use centres, where numerous high-rise residential projects are reshaping the CBD skyline.

Odus is headed by development professionals Byron Sakha, Jarrod Younan and Sebastian Younan. The Younans also head family-owned builder Nazero Constructions, established in the 1960s.

They are currently delivering La Mer, 24 luxury apartments on Main Beach Parade, and Le&nbsp;Rêve, on the same street but on the prized beachfront side of the sought-after strip.

ODUS plans landmark 40-storey tower for Southport's Broadwater gateway

A boutique collection of just 10 residences could become the catalyst for the next phase of renewal along the southern end of Surfers Paradise Boulevard, with new plans laid for a mixed-use tower designed to transform a long-vacant site.

The proposal for <a href="https://www.apartments.com.au/new-apartments/3098-surfers-paradise-boulevard-surfers-paradise-qld-4217">3098 Surfers Paradise Boulevard</a> has been conceived as more than a standalone residential project. Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the development aims to spark the revitalisation of what the design team describes as the "South Boulevard" precinct, creating an active streetscape with retail uses at ground level beneath a collection of full-floor luxury residences.

The application, by PR Property Holdings, an entity directed by the Brisbane-based Ryan and Petrovic families, seeks approval for a 17-storey, 62.2-metre mixed-use development on a compact 427 sqm site between Surfers Paradise Boulevard and Appel Street.

The project will comprise just 10 apartments, including eight full-floor residences and two duplex apartments, positioned above a two-level retail podium. Three podium parking levels will accommodate 26 vehicle spaces, while a recreation deck is proposed on Level 4.

<img alt="First look: PR Property Holdings plans boutique apartment tower to kickstart Surfers Paradise's 'South Boulevard' revival" data-entity-type="file" data-entity-uuid="46cfa37d-5051-4449-8d8e-6724f8ca0d59" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_8.png?VersionId=e7UkeV1eTZAC2lXhdq72E3jpUbwiFD2t" />

Rather than pursuing apartment volume, the proposal focuses on large-format homes with a slender tower form intended to maximise outlooks while limiting visual bulk.

BDA Architecture said the proposal has been designed to become an urban renewal catalyst for the precinct.

"The ambition of 3098 Surfer's Paradise is that it provides the catalyst for incremental infill redevelopment and upgrade of what is coined the 'South Boulevarde' of Surfers Paradise which connects to the beating heart of Cavill Avenue."

The architects added: "An incremental approach to development that provides quality ground plane interface, human scale design, integrated subtropical landscape and semipublic permeable frontage can over time entirely upgrade a precinct."

The architecture adopts soft curves, articulated balconies and a slender tower profile rising from a human-scaled podium. The design report describes the project as delivering "bespoke residences of enduring distinction, sculpted with precision and quiet sophistication," with a focus on timeless coastal architecture.

The application also includes retail tenancies addressing Surfers Paradise Boulevard, reinforcing the site's role as an active mixed-use destination rather than a purely residential address. The planning report states the combination of the podium, landscaping and active frontage is intended to strengthen the pedestrian experience while contributing to the evolving character of the boulevard.

The site occupies a prominent position in the southern section of Surfers Paradise, directly opposite the G:link light rail corridor and within walking distance of Surfers Paradise Beach, Cavill Avenue, the Nerang River and Bruce Bishop Car Park. It is currently vacant, having previously accommodated a single-storey commercial building that was demolished in 2022. The planning report notes the surrounding area is characterised by a mix of commercial buildings and residential towers, with unlimited building height provisions applying under the Centre Zone.

The proposal also replaces an earlier 2022 approval for a restaurant and bar on the site, instead introducing a permanent mixed-use development that combines retail activation with boutique residential living.

Boutique apartment tower to "kickstart" Surfers Paradise's 'South Boulevard' revival

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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What will it take for the real estate industry to be satisfied? 
   It’s doubtful there’s been a time in the past 10 years when the industry has had it this good.   Interest rates at historic lows, sales volumes rising, housing finance increasing month by month, building approvals trending strongly upwards, grants and stamp duty concessions to people building new homes, affordability the best it’s been since 2003 and confidence rising – it’s an almost perfect set of parameters for service providers to make money.   But the industry is still complaining. I say that with a sense of disbelief that a sector with so much in its favour still thinks it has legitimate complaints.   The welfare mentality in the industry borders on the pathetic.   I didn’t think anyone could challenge the Housing Industry Association as the greatest malcontents in real estate, but the Real Estate Institute of Australia is giving it a good try.   Interest rates are the best they’ve ever been but the REIA is demanding more cuts from the Reserve Bank.   There are a couple of issues I have with that. One is that the boffins at the institute clearly think interest rates are the dominant influence on property markets. All the available research contradicts that notion. Rates are a factor, but only one of many. There have been many periods in the past 50 years when markets have thrived in a high rates environment and others where low rates have failed to stimulate activity.   Another issue if that the REIA leadership apparently believes that the key consideration for RBA board members in making interest rates decisions is the wellbeing of the real estate industry. I doubt the RBA gives more than a moment’s thought to hard-luck stories from real estate agents. They have far greater considerations to ponder than the trading of houses and apartments.   But the bottom line is that we’ve never been so well off when it comes to housing finance. Not only is the official rate extremely low, but multiple lenders are competing to provide attracting mortgage products.   Another recent REIA press release complained that first-home buyers need more encouragement. They already have plenty of help and it’s really up to individuals to take action. It’s probably not going to get any better than this.   The real estate industry has shot itself in the foot, the other foot and both hands, with its constant stream of negative comments about affordability and the alleged plight of first-home buyers.   The HIA (which greeted the news that building approvals are up 28% in the past year with yet another negative press statement) has led the way, with Master Builders Australia and the REIA close behind.   The theme of their messages, gleefully regurgitated by the media, is that young people just can’t afford to buy homes. And potential first-home buyers appear to have accepted that as fact, without even giving it a try.   The reality, as demonstrated by ABS, is that housing costs (as a portion of household income) are no higher today than in 1995. And housing affordability now is the best it’s been in 10 years, according to the quarterly report published by the REIA itself.   The main thing holding back first-home buyers is the perception that it’s all beyond their reach. And for that, the industry only has itself to blame.   The ingrates of real estate should stop pleading for handouts and start taking advantage of the best market conditions in 10 years. 

<hr>
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/" rel="nofollow">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://twitter.com/hotspotting" target="_blank">Twitter</a>. 
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terryryder-YECXbqmri2

Real estate industry only has itself to blame for holding back first-home buyers: Terry Ryder

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While Australia's housing bubble is currently a big source of conversation in our own comments, it's interesting to see the fears from overseas as well.
The current big topic of conversation is the housing price bubble being feared in the UK at the moment.
In fact, it even made the frontpage of UK newspaper The Guardian, and was tweeted out across their network. 
<a target="_blank" href="https://twitter.com/guardian"><img alt="tweet_sept_17" height="679" width="470" src="/images/stories/2013/09/17/tweet_sept_17.png"></a>
"Growing confidence in the outlook for the housing market has been a key component of the economic upturn that led Osborne, to claim in a speech on Monday that the UK is turning a corner," The Guardian reports in the <a href="https://www.theguardian.com/society/2013/sep/11/record-number-estate-agents-housing?CMP=twt_gu" target="_blank">linked story</a>.
"Cable's remarks also fuelled fears that the economic recovery could simply be based on a consumer boom and a housing bubble. He made his political reputation by criticising the Labour government's economic boom for being based on a bubble and has often warned the recovery must be sustained."
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po-LsXgBTHBmX

The UK's housing bubble fears

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When it comes to increasing your equity and opening up opportunities for further purchases and investments, paying down your mortgage as quickly as possible can be crucial.
Michelle Hutchison, spokesperson at <a target="_blank" href="https://www.Finder.com.au">Finder.com.au</a>, said that there are a number of techniques that you can put in place. And they don't require you giving up your daily coffee.
“There are several ways to help pay down your mortgage faster and can also help you save significantly too," Hutchison said.
1) See how your loan stacks up
"Firstly, it’s worth seeing how your loan compares to what’s in the market," she said. 
"Checking your home loan every three months or so is a healthy habit to see if your lender is keeping up with rate cuts, what features and services you’re using or need, and how it measures up to other home loans."
2) Maintain your repayment amount during a rate change
If the rates decrease, ensure you keep paying back at the same rate as you were previously affording.
“For instance, if your interest rate dropped by 0.25 percentage points – from 5.50% to 5.25% – and you kept your repayments at the same level as 5.50%, you could potentially cut two years off the 30-year loan term and and save over $23,000 for a $300,000 home," Hutchison explained.
3) Make fortnightly payments 
If you're currently paying off your loan monthly, then you could be missing out on potential savings that come as a result of shifting your repayment frequency.
“By doing this you can potentially save over $57,000 in interest charges and cut an extra two years off the loan term," she said.
4) Offset accounts
“If you put your salary into your offset account, you can make your money work harder because your savings offset against your home loan to reduce the interest charged.”
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jduke-EHk3XBmHkn

Pay down your mortgage faster

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Since we came out of Keating's famous "recession we had to have" and slow growth returned to Australia in September 1991, our economy has posted an amazing 22 consecutive years of growth. Although we experienced a slowdown around the turn of the century as the tech stock bubble burst, and again during the financial crisis, on both occasions interest rates were dropped and monetary policy helped Australia to avoid recession. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/4-au-gdp-growth/4tl-gdpgrwth-small.gif?accessed=2013-09-15-17-41-34" height="258" alt="GDP Growth graph"> The most recent National Accounts from the Australian Bureau of Statistics showed the Australian economy growing at 0.6% quarter on quarter  and 2.6% year on year, which is some way below the long-term trend as you can see in the chart above. The official cash rate has again been dropped, this time to a new low of just 2.50%. The full effect of interest rate cuts can take up to two years to flow through in full. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/18-22-interest-rates/18bl-cr-small.gif?accessed=2013-09-15-17-50-48" height="272" alt="Australian Cash Rate graph"> As inflation remains benign and comfortably within the Reserve Bank's 2-3% target range, it appears likely that interest rates will remain relatively low for the near-term future. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/4-au-gdp-growth/4bl-underinf-small.gif?accessed=2013-09-15-17-49-56" height="282" alt="Underlying Inflation graph"> Inflation is forecast to remain fairly benign, largely thanks to a soft labour market. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-6.4.gif" height="285" alt="Graph 6.4: Trimmed Mean Inflation Forecast"> Consequently, there is not yet an expectation of higher interest rates in the coming six months. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-4.1.gif" height="260" alt="Graph 4.1: Cash Rate Expectations"> Low interest rates have impacted net savers and some pensioners adversely. Bank accounts and fixed-interest products are yielding very low returns. Some residential property market prices have benefited from the lower rates, particularly those in Sydney, Perth and Melbourne. There was a lot of market commentary suggesting that the response to low interest rates by the property market would be weak. As recently as June, there was talk of falling prices in spite of multiple indications to the contrary. This has been shown to be incorrect. The response has in fact been strong and is strengthening by the month, causing a rapid about-face in commentary. If this trend continues as implied by recent housing finance data from the ABS then it may cause a stop lever to be applied in 2014. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.6.gif" height="246" alt="Graph 3.6: Housing Market"> Is the property recovery being led by real estate investors or owner-occupiers? Actually, it's both. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-4.14.gif" height="268" alt="Graph 4.14: Value of Housing Loan Approvals"> Vacancy rates have remained now for some years, and rents continue to rise. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="291" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.7.gif" height="400" alt="Graph 3.7: Rental Market"> Are new dwellings attracting buyers? Yes, with a steady increase over the last three years. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.8.gif" height="265" alt="Graph 3.8: Indicators of Dwelling Investment"> Both dwelling approvals and dwelling construction are trending steadily upwards in response to monetary policy. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.9.gif" height="262" alt="Graph 3.9: Residential Building Approvals"> After the stock market crash, investors have also returned to share markets seeking yields and prospects for capital growth, pushing up stock valuations and price-earnings ratios. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/23-24-share-markets/23bl-spiau-small.gif?accessed=2013-09-15-17-55-40" height="250" alt="Australian Share Price Indices graph"> With asset prices increasing, we're getting wealthier again after the financial crisis destroyed much of the value of superannuation funds through 2008-9. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.3.gif" height="290" alt="Graph 3.3: Household Wealth and Liabilities"> It's notable, however, that share market gains have been found largely in the non-resources sectors: the industrials and financials. Resources companies have performed less favourably as commodity prices have tailed off.  <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/15-commodity-prices/15tl-rbaicp-small.gif?accessed=2013-09-15-17-58-58" height="252" alt="RBA Index of Commodity Prices graph"> Iron ore export spot prices have not remained dramatically lower as feared (although it's likely that we'll see a seasonal dip in the coming months), but it's been a rough ride for other bulk commodity prices. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/15-commodity-prices/15bl-blkcomp-small.gif?accessed=2013-09-15-17-58-58" height="269" alt="Bulk Commodity Prices graph"> The brighter news is that recent data out of China suggests that it can achieve and perhaps subsequently maintain its growth target of 7.5%. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-1.3.gif" height="268" alt="Graph 1.3: China – GDP Growth"> Resources export volumes from Australia continue to ramp up and the major players forecast this to continue through 2014. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.17.gif" height="281" alt="Graph 3.17: Export Volumes"> However, from a risk perspective, keep a close eye on what happens to China's overheating property markets. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-1.6.gif" height="251" alt="Graph 1.6: China – Residential Property Market"> The red line signifies a weakening Aussie dollar against the USD, which is welcome news for exporters. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-2.22.gif" height="266" alt="Graph 2.22: Australian Dollar"> Unemployment continues to increase steadily in Australia as the mining investment boom is set to decline over coming quarters. The participation rate is also sliding. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.18.gif" height="261" alt="Graph 3.18: Unemployment and Participation Rates"> Wages growth has also fallen away. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-5.5.gif" height="262" alt="Graph 5.5: Wage Price Index Growth"> Note below the disparity in employment growth between states as the population booms. The major states are cumulatively employing tens of thousands more heads. Tasmania, South Australia and the territories, however, are not. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.20.gif" height="262" alt="Graph 3.20: Employment by State"> Labour sentiment indicators point to an ongoing weakness. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.21.gif" height="281" alt="Graph 3.21: Labour Market Indicators"> There has been a notable pick-up in consumer sentiment of late, and we're certainly buying a lot of cars, but any such confidence has yet to be translated into stronger retail sales. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="323" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.4.gif" height="400" alt="Graph 3.4: Consumption Indicators"> Summary
All in all, the RBA's Statement of Monetary Policy and Economic Outlook shows that the economy has slowed, and with the labour market remaining soft, we can expect this to continue for some time. There is a significant community of voices which is hoping that the economy sinks into recession, in the misguided hope or belief that will somehow make things better. And indeed the labour market remains weak and the mining construction phase will begin to unwind in the coming years. Does this mean that Australia is headed for recession? In a word, the RBA's team of economists says: no. The Reserve Bank maintains confidence that stimulatory monetary policy will work and stronger growth will return. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-6.3.gif" height="285" alt="Graph 6.3: GDP Growth Forecast">

<hr>
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
 
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Australia's miracle economy, a quick update on how we're tracking: Pete Wargent 

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Seven weeks ago as we all went into election mode I noted that housing policy appeared to be pretty much missing from the political debate. While an interest rate cut by the RBA was announced at the start of the election, last week another cut did not follow, and hardly anyone appeared to notice. While in Sydney this election weekend auction clearance rates remained at record levels and possibly heading for 90%.
Over the past six months the dynamics of the residential property market have shifted up a few gears. However, now as we enter a new three-year term of a Liberal lead federal parliament, housing policy will be near the top of the priority list for the new government.
Even at this very point I think housing policy should at least be on the to do list. Here are some reasons why and many of the points are old issues that simply refuse to go away.
Low interest rates will not last forever
So lets start with interest rates, because as a key plank of the economy interest rates rank alongside growth, inflation and unemployment as key indicators. Home loan rates are now well below 5%, they may not go much lower and they are not set to rise anytime soon.  It is clear that low rates are helping to keep demand high and sooner or later they will rise. Retirees on fixed incomes might be wishing for that increase to be sooner.
However even with very competitive interest rates for some time now home ownership has been falling since the 1970’s. This trend suggests that low rates do not bring about lasting improvements in affordability. So in two or three years time if rates head up from their current lows this will have a big impact on affordability.
The key aspect of interest rates will need to stay on the new governments agenda because an increase of 25 or 50 basis points will soon hurt buyers used to low rates.
Infrastructure now into emergency settings
Infrastructure policy is very closely aligned to housing and it was one of the topics to get headline attention, in New South Wales Sydney’s second airport got another airing. The new government has stated its intention to move some expenditure into more roads. But the real question that remains is will badly neglected urban infrastructure get the attention it desperately needs.
There are some big-ticket items like the airport, but across almost every major city there is a huge backlog of projects both big and small and now there is also the bogeyman of needs to maintain some of our major infrastructure, let alone get new projects underway.
So along with keeping an eye on interest rates the future infrastructure minister will be busy and we should not forget the fate of the NBN here, because as anyone marketing a new development knows, internet access is today a key point for any buyer.
We need more housing
There is a compelling case to encourage the construction of more new homes because even on the most basic count – according to most industry bodies – we are building around 150,000 new homes a year, but we need 200,000, and a short fall of 50,000 year on year is a time bomb.
The construction industry post-mining boom claims that it is being held back by a lack of skilled workers, never ending red-tape, compliance issues and banks still making finance hard to access – so yet again another big policy area for Canberra and the states.
Tax
The new government in Canberra has promised a big picture tax review and as far as the housing market goes that’s something that may well open a can of worms. But again that’s another key issue that got little attention over the last six weeks of campaigning. Local and state governments still gain 45% of their revenue from property related taxes. Transaction taxes alone account for 14% of that revenue among the highest rates in the world.
Housing Finance
Even before commenting on housing finance it’s hard to understand why housing should have been relegated down the list of policy priorities during the election campaign, given these key points.
Having touched upon the topic of interest rates and infrastructure housing finance, let’s bring these two topics together. There remains a suggestion that an easy financial model should be found to allow superannuation savings to be invested into housing finance and as a way to fund infrastructure. This sort of secure and attractive fixed rate alternative to the sharemarket would, I suggest, be very welcome by the very same retirees now facing low bank deposit rates along with fund starved infrastructure projects and homeowners.
So looking back over the election campaign could it be suggested that a very active market with strong demand, and some record prices simply have relegated housing policy off the agenda.
But now I think that view needs to shift and the new Abbott government in Canberra does need to soon acknowledge the key role of housing policy.

<hr>
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
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The post election outlook for housing policy: Peter Chittenden

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What has to change is confidence - a state of mind.
Thirty years ago about this time, a great Australian sporting victory changed the mindset of the Australian population from can't do to we can do anything.
The Americas cup victory by a tenacious Australian crew changed our attitude, and from that day on the country moved forward.
Today emerging confidence may come from many sources; the continual lowering of interest rates to the lowest level known by this generation, clarity in the state of the political environment and the gradual emergence in the US and European economies out of recession.
The overall weight of capital in both savings and superannuation accounts waiting for efficient deployment is staggering. This capital is earning exceptionally low real rates of return and will, with the emergence of confidence be deployed. It has to, to justify its purpose in providing fulfilling retirement for superannuates and a security of lifestyle for savers and business investors.
The question is how cash deployment will affect various real estate sectors?
Clearly, yield-chasing investors will support commercial property that has well-secured income streams. However, the general investment market needs to improve to support the underlying operating leases. This is something that may take a few years to slowly flow through.
Currently, residential property seems to be divided into three defined sectors.
* Up to about $1.5m,
* Round about the $5m mark
* $20m and above.
My view is that up to the $1.5 million mark, is well supported and is currently showing benefits of low interest rates. Together with the inherent backlog in housing construction, there is a positive effect being made.
The $5 million and above sector tells a different story. The servicing of a large mortgage that is required to purchase such property also needs the security of employment and the prospects of substantial bonuses and
dividends. It is also evident that there is a change in attitude towards these properties which result from the ongoing maintenance rates, taxes and electricity. All of which contribute to putting a further burden on this market sector.
As for the top end, (about $20m + sector) there are always clandestine sales taking place.
Following the recent introduction of the significant investor visa program by the federal government, (which is designed to attract wealthy migrants to Australia by investing $5 million into a business in return for providing a family with permanent residence) evidence to date suggests that these wealthy migrants while happy to invest $5 million in a required enterprise also have an appetite for high-end residential property i.e. around the $20 million mark. Early days but it is starting to have an impact.
The federal government expects to issue over 1,000 visas per annum.
If we followed this scenario through, over $20 billion per annum could be pumped into the upper end residential property market by just 1,000 families.
This would undoubtedly have a flow through effect to all sectors.
My view ­is that overall confidence will return, as always up by the staircase down by the elevator.
Maintaining a considered and patient approach to the future may be the best way forward.
 
<hr>
 Bill Ireland  is a current advisor of <a href="https://www.isa.com.au/" target="_blank">ISA Partners</a> and formerly a founder of Challenger Financial Group and Mariner Corporation. 
 
Mr Ireland filed for personal insolvency in early 2011 with a reported tax bill of $38m and owed money to other creditors.
 
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bireland-TvsYdb2oai

Changing Australia's mindset to a positive economic outlook: Bill Ireland

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Confucius say: Study the past if you would define the future. I say: Study the past 16 years of property metrics in Australia and you will see signs that a strong growth period might well be upon us. Now, I know Confucius’ pearl of wisdom fits neater on a fortune cookie, but my advice is just as sage; history is pointing to an exciting trend in property prices and investors would be wise not to ignore the signs.
According to REIA data, the average Australian capital city property was worth $165,000 in June 1997. Despite riding a rollercoaster of peaks and troughs over the following 16 years, the average property grew by 7.6% a year to now be worth $525,000. I think this is a healthy outcome worthy of a closer look.
Plotting the Australian capital city median property value against the national unemployment rate and the RBA cash rate for the period from June 1997 to December 2012 reveals there were three periods of significant interest rate reductions in that time: one during 2001, another in 2009—and, most interesting to us, we are currently in the midst of the third right now.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/09/16/pressley-sept-16-big.gif" rel="shadowbox"><img src="/images/stories/2013/09/16/pressley-sept-16-small.gif"></a>
Hot on the heels of both of the first two of these interest rate reductions was a bigger than normal surge in property values. “Booms”, if you will.
Significantly for today’s property outlook, interest rates and unemployment rates are both lower now than they were for the booms of 2001 and 2009—and so the smart money would seem to be on another surge in property values being about to ramp up.
Bellowing about boom times is always a bit risky of course, but the trends are there for the taking. And if we add in the long laundry list of current economic factors that can also play a positive role—lowest interest rates in over 50 years; an increase in home loan activity; an increase in consumer confidence as measured by Westpac and Genworth; rising population growth (housing demand); the fact that building approval levels (supply) haven't kept pace with demand; low vacancy rates nationally; falling stock on market figures across most capitals; and increasing buyer activity nationally—a pretty convincing picture starts to emerge.
In our search for suitable properties for our investors, Propertyology is already observing increased buyer activity and fewer properties for sale in several markets across the country.
One cautionary note of course is that consumers are currently more conservative with their spending habits and leveraging than they were in years gone by, and this might put the brakes on a fully-fledged boom. But, regardless, the data points to very strong fundamentals for Australian property markets. And Confucius is well known for being wise.
 
<hr>
 Simon Pressley is Managing Director of <a href="https://www.propertyology.com.au/" target="_blank">Propertyology</a>, a full-time property market analyst, accredited property investment adviser, and the 2012 and 2013 REIA / REIQ Buyer’s Agent of the Year.
 
 
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spressley-sBoeMhannA

The past is pointing to future property prosperity: Simon Pressley 

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Renovating is a big pastime for property enthusiasts, investors and home owners across the country.
Here at Property Observer we previously published a <a href="https://www.propertyobserver.com.au/renovating/the-10-best-diy-renovation-tips-from-the-experts/2013062662548" target="_blank">top 10 list of renovation tips from the experts</a>.
Now we're going to ask you what was useful for you, and which tip you thought was the best.
Which of the following tips is most useful to you?
{module Which renovation tip is the most useful?}
If there are any specific renovation tips you're keen to see Property Observer cover, email your thoughts to <a href="mailto:%20jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>. We're always keen to hear your thoughts.
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Which renovation tip is the most useful?

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Bernadette Janson from the School of Renovating (@renovatingsc) tweets out asking whether this picture is your style or not.
<a target="_blank" href="https://twitter.com/renovatingsc"><img alt="TWEET_OF_THE_DAY_sept_16" height="574" width="470" src="/images/stories/2013/09/16/TWEET_OF_THE_DAY_sept_16.png"></a>
Janson says that contrast gives the room expression, and here at Property Observer we're big fans of the dark/light look.
Do you agree? How have you gone about styling and decorating your property?
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Style your home with contrast

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Australia has a completely blindsided view when it comes to property, and never more so than in those sectors that profit from it directly.

The fool hardly assumption that increasing values in the established arena, which outpace both wage growth and inflation over a period of years, is somehow good for the economy, as buyers play a generational game of musical chairs for a limited number of second hand dwellings, gives little attention to the broader social and productive economic impact this mindset inspires, as rental affordability worsens and construction fails to meet the effective rate of demand.

Whilst there is overwhelming advocacy for keeping basic essentials such as food prices low – crunching farmers profits with $1 dollar litres of milk, and shipping cheap materials from markets in Indonesia and China, to fuel a consumer passion for all things at marginal cost. We seem happy to let our established house prices inflate away on the back of unrestrained credit expansion by the all too willing to lend private banking sector. Devoid of strong policies to ensure there are feasible and affordable alternatives, for a younger generation of buyers who increasingly have to rely on donations from family or friends to assist with a deposit, battle rising yields or harbour student debt, and find themselves part of the ballooning house price story as they compete at an investor dominated price point.

The latest housing finance data from the Australian Bureau of Statistics shows the value of investor finance commitments is currently 30.6% higher than at the same time last year. As a proportion, first-home buyers now account for a mere 8.8% of the buying market. This is their lowest proportion of market activity since June 2004 – yet for investors it’s the highest.

As I discussed in <a href="/news">my column last week</a>, we have a trend of falling home ownership in Australia which chief economist for Bank of America – Merril Lynch Australia, Saul Eslake, made note of in his <a href="https://www.prosper.org.au/2013/09/03/saul-eslake-50-years-of-housing-failure/" target="_blank">speech at the 122nd annual Henry George commemorative dinner</a>, is further pronounced when you look through the effects of our aging population.  In other words, an increasing proportion of home owners are understandably in the older age groups.

And whilst the statistic cited above can be in part attributed to lifestyle factors (labour mobility, getting married later in life, etc) thereby producing a downward shift in the measured rate of home ownership—but not in the lifetime rate of home ownership – you cannot take affordability out of the equation.

For example, the increase of cheap credit, deregulation, supply shortages, and duel income households that has over a period of decades, inflated the capital cost of the underlying asset in areas where most owner occupiers need to locate for work purposes, has ensured the level of Australia’s private household debt-to-income ratio remains stubbornly high at 147.3%.  And despite low lending rates assisting mortgage serviceability somewhat, this is offset by rising prices – increasing the total debt the buyer has to service, and the liability banks hold.

<a href="https://www.propertyobserver.com.au/australian-capital-territory/australia-facing-most-serious-housing-market-crash-in-75-years-christopher-joye/2013091265002" target="_parent">As Christopher Joye noted</a> in his AFR column last week, relatively sharp increases in median values evidenced in particular in Sydney, coupled with our dependency on a long term low interest rates, is a point of concern.

History attests, when property prices visibly rise, increased confidence from both borrowers and lenders tends create a sense of euphoria that the party will forever continue. However, there should be a strong warning to purchasers about over stretching against a macro backdrop which presents a number of headwinds.

Not least, the August labour market report reflects ongoing weaknesses, with the largest contraction in monthly trend employment in more than a decade, a fourth consecutive fall in full-time positions, a rise in the unemployment rate, falling participation and a lift in the underutilisation rate to its highest level since February 2002. Therefore, you have to question how long the rally we’re currently seeing in the established sector can reasonably continue before things start to unwind.

Accordingly, APRA has <a href="https://www.apra.gov.au/Insight/Documents/Insight%20Issue%202%202013_Web.pdf" target="_blank">released a report</a> warning the banking sector not to let lending standards slip, noting:

“Almost 15% of all approvals are now for borrowers with deposits of less than 10%...It’s also noteworthy that a large proportion of the lending would appear to be investors on interest-only terms,” clearly demonstrating the dangerous speculative nature of our current buying market.

New Zealand regulators have already moved to place limits on loan-to-value ratios banks can hold on mortgages – aiming to restrict new loans to an LVR of no more than 80%. However, inevitably the action will place a squeeze on first home buyers, rather than the speculative investment sector that have existing assets to leverage against.

Other areas of the globe are also suffering a similar conundrum. In Sweden, private debt levels have reached record highs and there’s talk of forcing households to start amortizing their mortgages, with <a href="https://topics.bloomberg.com/martin-andersson/" target="_blank">Martin Andersson</a>, director-general at the Swedish Financial Supervisory Authority, Finansinspektionen, commenting “if household debt accelerates, as we’ve seen before, well, then we must do something.”

This brings me briefly to issues of supply. When the question arises over how we can make housing more affordable, the argument tends to get little further than simply advocating the need for construction of a lot more dwellings. However, there are a number of complexities that need to be addressed to ensure the supply built, meets the wants of those who need it most.

The reversing decline in the number of individuals per household in census data, showing household size has increased from 2.4 people per dwelling to 2.66 in the five interim, is another cultural shift of which affordability plays its part.

This figure is used to calculate underlying housing demand; therefore, even a small change of 0.01% can result in a needed reduction of almost 30,000 dwellings, so it’s important we assess the cause of the shift correctly when planning the supply of additional stock.

Indeed, it’s the figure the National Housing Supply Council grapples with yearly, as they try and equate shortage of dwellings relative to the underlying demand – currently estimated to be of the order of 228,000.

As an offside to this, it is also to be acknowledged we have a widespread underutilisation of our current housing stock. For example, at 44% the typical Aussie home still has three bedrooms, with the majority only occupied by only one or two residents.

In fact, only 14% of lone-person households live in one-bedroom dwellings, and there’s been a big increase in the number of four-bedroom homes, which now make up almost a third of the housing stock.

I’ve argued before, that increasing supply per-se is not going to assist low-income households if it is not tailored specifically to their needs.  And to date, in a market where developers are pressured to provide 100% debt security, all but guaranteeing they design and sell to an international arena, a proportion of which let the stock sit vacant for extended periods, rather than fulfil the needs of an Australian demographic, we’re not making effective headway. However, this problem is one with multiple layers.

For example, stamp duty causes existing housing supply to stagnate as it imposes a direct transaction cost on top of property prices.  Yet reform to a land tax system as advocated in the Henry tax review, would over the long term discourage the hording and land banking of homes that often sit vacant for lengthy periods of time.

A study in this field was most recently taken by AHURI - the Australian Housing and Urban Research Institute - in their evidence review entitled “<a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;ved=0CCwQFjAA&amp;url=http%3A%2F%2Fwww.ahuri.edu.au%2Fhousing_information%2Freview%2Fevrev031&amp;ei=KT02UofHG-O1iAfL8IDgAw&amp;usg=AFQjCNGUKYtcolxWnuvQ1sSRUsymeq5odQ&amp;bvm=bv.52164340,d.aGc" target="_blank">Why tax policy is housing policy.”</a>

The paper researched the effects of replacing stamp duty with an annual land tax and showed that in doing so, it encouraged a more efficient utilisation of the amenity.  Additionally, the modelling also showed that <a title="Go to Final Report 182, p.2" href="/Remove Link" target="_blank">falls in house prices would exceed the value of land tax payments</a> “leading to more affordable housing for both owner-occupiers, and rental tenants.”

I recommend reading the paper, which answers many of the questions, such as how to transition from our current stamp duty system to a land tax based model.

Notwithstanding, if we could combine this reform with ideas of which economist Leith Van Onselen is at the forefront, when he suggests raising money through bond financing and recouping it from ratepayers over a period of 30 years - or similar initiatives such as those found in Houston Texas, in which a successful expansion of their city boarders is funded with policies such as MUD – a deductable municipal utility district tax – in which a panel of property owners sit on a government appointed board, to oversee utility and infrastructure distribution in the area. We would inevitably create a better mix of housing stock aptly suited to a range of demographics.

For example, most properties built on the fringe are McMansion style house and land packages, because it is perceived that families will only move outwards if there is due compensation of a shiny estate sized home to compensate for the relative commutable distance from city centres.

In these areas, lack of recreational recourses encourages most entertainment to take place within the constraints of the house – and this is what feeds a reputation of Australian’s desire for large dwellings.

However, with decentralisation and an increase of basic area amenity – units along with smaller subdivisions would be in demand, thereby providing a very attractive price point for first-home buyers and renters.

Obviously there is plenty more to discuss when it comes to policy reform – albeit, to sit back and do nothing aside from keep interest rates low and job security high, as advocated by our current government In their pre-election housing affordability spiel – not only indicates a lack vision, coupled with a short term mindset, but ensures we continue to kick the can down the road, snowballing the problem for future generations to come.

As if to demonstrate the foolhardy nature of the oft-quoted phrase by Einstein, “we cannot solve our problems with the same thinking we used when we created them,” it’s clear policy reforms to date, have done little to assist the makeup and vision of a country that champions a fair go for all, and highly regards the famous speech ‘it’s time’, which inspirationally points out:

“The land is the basic property of the Australian people. It is the people's land, and we will fight for the right of all Australian people to have access to it,” as words that have subsequently proven to be little more than fancy rhetoric.

Years of failed first home ownership schemes and tax policies that encourage speculation in the established arena, have done nothing to increase long term vacancy rates which consistently sit below 5% – and In some established areas, less than 2%.

The consequence of this has forced a social divide and exacerbates the very real reality that more Australians will reach retirement paying their mortgage or servicing high yields, with whatever superannuation they have used to fund the difference.

It’s time we campaigned for change.


<hr>
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.  
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