<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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In keeping with the media’s habit of asking dumb questions and coming up with dumber answers, the (mis)information channels are alive with speculation about what the election result means for real estate. 
   The short answer is that the election will have no direct impact on property markets. Indirectly, the election of a new government will tend to be positive, because an emphatic change of government usually boosts public sentiment.   The reality is, though, that real estate markets were already rising before the weekend poll and the election outcome won’t change that.   This week’s new data on housing finance helps to illustrate the point. The figures from the Australian Bureau of Statistics show that lending for residential real estate purchases rose, again, in July. No surprises there – housing finance has been climbing month by month since late last year.   The value and the number of loan commitments to buy dwellings have been steadily rising since the last trough in December 2012. The number of loans for owner-occupier housing has increased from around 44,000 last December to above 52,000 in July.   The figures show that investors now comprise about 36% of the buying market. That’s noteworthy for two reasons: one, a symptom of rising markets is greater activity from investors, who usually make up about 30% of buyers; and two, despite their rising prominence, investors continue to be a minority in the market.   The major forces in residential real estate include first-time buyers (currently around 14% of the market) and investors (about 36%). The most important component is the third force, which comprises the remaining 50%. These are the next-time buyers – i.e. home buyers other than first-home buyers.   They’re the people who drive real estate markets and cause prices to rise over time. So those who stridently claim that grants to first-home buyers cause prices to rise or that negative gearing tax benefits are to blame because they help investors, are well wide of the mark.   Markets are recovering and price growth is back because next-time buyers are active again and investors, who collectively are followers not leaders, are getting busy as well.   Consumers have been encouraged by improving affordability, thanks to higher incomes, lower interest rates and the two years of price decline that preceded the recent recovery. Housing affordability is at its best in 10 years, according to latest Housing Affordability Report from AdelaideBank and the Real Estate Institute of Australia. It says that the last time affordability was this good was in the June quarter of 2003.   All of this was happening before the federal election and occurred despite the widely-held view that an election causes stagnation. People who run bad businesses or struggle to make investment decisions have used the election as a scapegoat. They’re deluding themselves.   We’re in a growth market and have been since late last year. The election result changes little.   Now that the distraction is out of the way, let’s just get on with it. We have a growing economy, low unemployment and attractive interest rates.   You’ve run out of excuses, people.

<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 him at <a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a> or <a target="_blank" href="https://twitter.com/hotspotting">twitter.com/hotspotting</a>.
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Now that the election's over there are no more excuses: Terry Ryder

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The latest housing finance figures released by the Australian Bureau of Statistics (ABS) show that total lending for housing continues to grow steadily in response to interest rate cuts and the positive housing outlook, but that first-home buyers are missing out.
Housing finance figures for July 2013 show, in trend terms, that the number of owner-occupied finance commitments rose by 1.6% – following increases of 2.1% in June and 2.4% in May.
If refinancing is excluded, the increase, in trend terms for July, is 1.5%. 
Increases were recorded in all states with the largest increases in the ACT and Queensland, up 2.0% and 1.9% respectively, in trend terms.
There are increases in the purchase of established dwellings (up 1.8% in trend terms), the purchase of new dwellings (up 1.4% in trend terms) and the number of commitments for the construction of new dwellings (up 0.2% in trend terms).
The proportion of first-home buyers in the number of owner-occupied housing finance commitments fell to 14.7% compared to the June figure of 15.1%. The figure remains persistently low compared to the long-run average proportion of 20.1% despite seven interest rate cuts since November 2011.
In large part, this drop can be attributed to state governments withdrawing previous levels of support for first-home owners buying established dwellings and it is established dwellings that 80% of first home buyers prefer.
The value of investment housing commitments rose by 0.8%, in trend terms, in July resulting in over a year of consecutive monthly increases.
With the proportion of first-home buyers remaining consistently below the long term average, this needs to be a high priority issue for the incoming government.
 
<hr>
 Peter Bushby is president of the <a target="_blank" rel="nofollow" href="https://www.reia.com.au/">Real Estate Institute of Australia.</a>
 
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First-home buyers missing out amid positive outlook for nation's housing market: Peter Bushby

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Global patterns are shifting in real estate. It’s something I’ve talked about for some years now, but in the world of real estate, you gradually come to realise that people generally form their own beliefs and stick with them until they see figures which might change their otherwise held views.
Capital is flowing around the world more quickly than ever before, and with stock markets remaining volatile, more of that capital is finding its way into real estate in prime global cities.
However, for many real estate markets, there will only be misery ahead, for a wide range of reasons. Australia, for example, has an ageing population, a declining employment participation rate and seems very likely to see a steadily falling rate of home ownership.
Aussies are changing jobs and careers more quickly than ever before, and thus there may be a diminished appeal in buying a home (with stamp duty and other transaction costs to pay) only for it to be sold within 36 months with yet more fees to pay.
It’s possible that we may see an increasing trend of younger Australians renting where they live, but owning an investment property as a foothold on the property ladder.
Aussie underperformers
When I started writing my first book back in 2010, I underscored the reasons why I felt that of all the Australian capital cities, with the possible exception of Hobart, the city I would be least inclined to buy real estate in would be Adelaide.
The South Australian capital has far weaker population growth than elsewhere (South Australia’s population increased by just 15,600 heads in the year to December 2012, while the states comprising the four major capitals saw increases of 83,000-99,500 persons respectively) and given the supply/demand dynamic I couldn’t see any valid reason why property prices would rise faster than household incomes in Adelaide. And I still can’t.
Although some have tipped Adelaide as a hotspot for more than half a decade, prices have flatly refused to budge. Sure, they probably will inch up while interest rates remain at the lowest level in a generation (however long that proves to be), but my question is: what happens when lending rates begin to revert upwards? It surely seems likely than any uptrend would rapidly be reversed, or at least, stymied?
I feel the same about most regional markets – their day in the sun has come and gone with the deregulation of lending conditions and an unprecedented increase in household debt in the period broadly from 1990 to 2005. Since that time, household debt levels have levelled off and correspondingly so have most regional property prices.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="wargent_sept_20_two" height="359" width="400" src="/images/stories/2013/09/20/wargent_sept_20_two.gif">
My personal opinion is that the only ways property investors are likely to outperform in the future is if they (a) can find a short-term hotspot (or perhaps time an investment in a mining town skilfully), or (b) if they follow the wave of speculative capital which is heading to the inner suburbs of the major capital cities.
I grew up in England and have watched prices in London’s favoured suburbs continue to increase at a dizzying rate for two more than decades with scant regard for the state of the economy or almost any other fundamental metrics which you might care to mention.
It’s true that the UK has few barriers to inflows of international capital. In theory, Australia restricts foreign ownership of established residential stock, but plenty have suggested that the rules are being easily circumnavigated through the use of friends or family members. The absolute level of Asian capital flowing in to Australia is certainly a point for debate, but where it is happening I’d suggest that the likely destination of funds is the major capitals, and potentially some other key coastal Queensland destinations.
Is this actually unfolding?
Take a glance at property prices across Australia – is my theory starting to play out?
Certainly, prices in some capital cities have stalled badly – including, notably, Hobart and Adelaide. Canberra prices may be back at record highs, but the city faces falling demand as public sector jobs are cut. And in aggregate at least, regional property prices have not shifted for years now. Brisbane has had its confidence knocked more than once, but personally I believe the Queensland capital has better days ahead (a topic for another day).
Melbourne, on the other hand, has been a staggering outperformer. I, for one, have been constantly amazed by the market’s resilience after the tremendous boom in prices since seen from around 2006 to 2011, with median dwelling prices moving more than 50% higher at well above $600,000 today.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="wargent_sept_20_three" height="319" width="400" src="/images/stories/2013/09/20/wargent_sept_20_three.gif">
I note that Australian Finance Group reported this month that 49.5% of mortgages sold in NSW were for investor loans, the highest level ever recorded in any Australian state.
Investors tend to buy and hold real estate, which clogs up the established market and ultimately damages affordability – correspondingly I think inner Sydney remains set for a period of outperformance.
The global shift: following the smart money?
Real estate funds have tended to shy away from residential property. Yields are typically low as compared to industrial/commercial/retail stock, and superior fund returns can be tough to achieve, involving detailed research and frequently an ability to add value across a large portfolio.
Institutional investors have recognised the trend towards high net-worth individuals parking capital in prime location real estate, and some new residential funds have sprung up in an attempt to capitalise on the trend, such as the Coral Prime Portfolio Fund, which notes:
“Very few cities across the world can support a prime or super-prime residential market, namely those with the leading financial districts and world renowned cultural reputations."
Where are the prime global cities?
Leading Global Real Estate consultants Knight Frank prepare a <a target="_blank" href="https://my.knightfrank.com/research-reports/prime-global-cities-index.aspx">Prime Global Cities Index</a> which covers 28 cities that it believes can support prime real estate markets. 10 of its 28 cities are located in the Asia Pacific region in cities such as Singapore and Hong Kong, but to date only one of its 28 cities is located in Australasia, that being Sydney. There might be an argument to say that with its even faster rate of population growth, Melbourne could be on an equivalent level to Sydney today.
Perhaps unsurprisingly, the Prime Global Cities Index performance has been massively hindered of late by its component European cities, the five worst performers all being European capitals (Madrid, Geneva, Rome, Paris, Zurich) - indeed seven of the worst eight performers are located in Europe - while the top of the index is powering ahead with the top 10 performers containing no fewer than five entrants from the Asia Pacific region.
Despite debt crises in countries such as Spain and Italy, in its Q2 2013 Prime Global Cities Index report, Knight Frank notes that prices in the luxury property market across its 28 cities are 27% higher than they were during the financial crisis lows of 2009. Notably, Knight Frank highlights that European markets appear to be through the worst  of their problems, with losses now slowing up.
It's also interesting to note the level of regulatory interference in prime real estate markets. Some Asian markets such as Jakarta and Tokyo have seen prices rocketing, and are looking to restrict foreign ownership in order to temper gains. Meanwhile, struggling European cities have looked towards "golden visas" to attract non-EU investors and prop up prices. So, if you ever thought real estate markets will be left to find their own level without interference...think again!
Two speed markets
Coral notes that Britain has now reached the point that many of us have predicted for years – it has a dramatically two-speed market, comprising prime location London and ‘the rest’:
“Prime Central London has become detached not only from residential prices in the UK, but also from the rest of London. This phenomenon is set to continue with limited stock and rising international demand. A challenged national economy and a weaker currency add fuel. Other international prime cities benefit from similar factors.”
It’s been my position that while prices will naturally ebb and flow, I can’t envisage how Sydney land prices will become cheap while we have domestic policies so heavily-focussed on a massively booming population in only a handful of city locations. Sydney’s population is forecast to grow to a jaw-dropping 7 million over the next few decades, and while we can build upwards, it's difficult to see how the popular suburbs will cope with such a booming level of population growth.
I’m not simply “bullish on housing” as some have suggested. Australian households have already undertaken the great leveraging up and dwelling prices in most locations appear likely to underperform quite badly as this decade unfolds. But I feel that Sydney’s inner suburbs are becoming increasingly heavily skewed towards investor capital and this will push prices up sharply in that sector over the coming decades.

<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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 The shifting sands of the global real estate market: Pete Wargent

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On the face of it there's no apparent logic as to why accepting a smaller yield would make sense.
Unless of course, you intend to occupy the property when the lease expires; or it may adjoin the one you already own. In which case, the initial low rental is really of north of paramount importance.
However, not every such sale will have a special value to the purchaser. More often, the reason for accepting an initial low yield will be that:
<ul>
<li>
There is a pending review, to bring the rental in line with market level;
</li>
<li>
You have a strong tenant and a long lease, and place some added value on having a secure cash flow; or
</li>
<li>
The property has redevelopment potential, and a short-term lease.
</li>
</ul>
When are you able to snare a higher yield?
Sometimes the remaining lease on a property may be short, with no certainty the tenant will continue on.
You're being compensated for the lack of security in cash flow.
Therefore, despite the rental being appropriate your passing yield may well end up higher than usual. And, in effect, you're being compensated for the lack of security in cash flow.
However, there are several other reasons why you may obtain a higher passing yield:
<ul>
<li>
The rental is above market, and likely to fall when the lease expires;
</li>
<li>
The property is purpose-built, and only suitable to a narrow range of alternate uses;
</li>
<li>
The building itself is obsolete, and would soon in need of upgrading or replacement;
</li>
<li>
The tenant could be considered financially weak; or perhaps …
</li>
<li>
The property is currently occupied under a non-conforming-use permit.
</li>
</ul>
And so, it's important to users seek advice from your consulting team — to properly interpret the evidence you have available.
The bottom line is you must not simply accept every passing yield as "reflecting the market", whenever you're looking for comparable sales.
Instead, make sure you look behind each and every sale. And you need to discover whether the rental was at market level; the tenant and lease period were secure; or if there may have been any hidden potential for further development.
 
<hr>
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a target="_blank" rel="nofollow" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
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Should you ever accept a lower yield? Chris Lang 

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Asking the right questions is an absolutely critical skill for property investors looking to get ahead with their investing, particularly if they're hoping to ensure the suburb or area they are looking at is going to stack up.
Positive Real Estate's Sam Saggers points to 10 easy questions that you should ask as a starting point. 
1) What is the availability of new land? Will it be effected by urban sprawl or infill development?
2) What major infrastructure projects are happening in the area? 
3) What major retailers are moving to the area?
4) What commercial office space is being expanded?  Are the more jobs being implemented in small businesses?
5) What transport plans are in the area? 
6) What is the major demographic of the area? Could it change over time positively 
7) What schools are in the area? Does that match the needs of the market? Would families fight to live in the area to benefit from the schools?
8) What ability does the market landscape have to change? Or be gentrified?
9) What are the rentals yields like?
10) What are major companies doing in the area? Are airlines flying more regularly to an area? Are major companies building in an area?
He admitted that hotspotting is not an exact science, and <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/stafford-blooms-but-four-out-of-five-sam-saggers-brisbane-hotspots-yet-to-show-promise-samsaggers/2013053061795">while not every suburb will grow as expected</a>, he said these 10 questions are crucial for investors to be asking.
To explain how he approaches these questions, Saggers pointed to Queensland's <a target="_blank" href="/news">Townsville</a> as one area widely regarded as diverse and offering a lot of demographic changes. While it has been on investors' radars for some time, he still said it has some good investment opportunities.
"[It's] Queensland’s strongest regional economy and de facto second state capital," Saggers said.
He pointed to major infrastructure of hospital redevelopments as being important for the area's future. For instance, the Townsville Hospital has recently completed the first stage of a $437 million redevelopment project.
"Townsville has become Queensland’s largest service center after Brisbane and currently has $54 billion of committed infrastructure projects across mining, construction and transport," he said.
He then looked at supply and demand, and found the picture to be favourable.
"Demand is improving, supply of mortgage in possession stock, that was a hangover from the GFC has dried up. There is large land estates that can aid the cities growth but the supply of new housing is limited to a few estates and the Honeycombs redevelopment of the urban city fringe," he said.
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Sam Saggers' 10 questions you should ask about every suburb

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As property investing is an unregulated industry, it comes as little surprise that you must undertake your due diligence on those you include in your investment team to avoid getting ripped off.
 
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How do you find the best property investment expert?

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It appears that treehouses are the new trend, and we're not just talking about knocking something up for your children either.
<img src="/images/stories/2013/09/09/TWEET_OF_THE_DAY_sept_9.png" width="461" height="215" alt="TWEET_OF_THE_DAY_sept_9" style="font-size: 0.8em;">
In fact, this <a target="_blank" href="https://www.facebook.com/photo.php?fbid=613718048678281&amp;l=1367fe0c78">particular effort, named Tower House</a>, featured in the tweet (and pictured below), has won an international architecture award for the 2545 square foot house with three bedroom suites.
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Treehouses climbing back into vogue

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Renovating is not always approached as a scientific process, however succesful renovator and director of Renovating for Profit, Cherie Barber, recently revealed that her success rides on a specific approach.
At the recent Property Millionaires Tour at the Sofitel in Melbourne on Saturday, Barber said that her process wouldn't win her any design awards but it's about making money and ensuring the renovation undertaken is appropriate to the area.
She shared a brief run-through of her process in her presentation at the event, during which Property Observer was present.
1) Structure and strategy
- The structure in which you purchase is crucial to ensuring you are taxed efficiently at the very end of the process. Should you purchase in a trust, SMSF or company structure?
- Decide on the strategy upfront: Is it buy/renovate/hold, buy/renovate/sell or something else?
2) Suburb due diligence
- Investors must know suburbs down to a street level. Pointing to her target suburb of Balmain, she explained that she knows where the negative and positive price pockets are, or where the prices change, and the reasons for this.
- Ensure you're targeting the right type of suburb for the renovation you intend to undertake. Middle ring and outer areas tend to suit cosmetic renovaitons, while inner city areas tend to favour structural.
3) Pricing due diligence
- The real estate agent's job is to make the vendor money, never forget this. 
- Ensure you are looking at true comparables - your suburb due diligence should assist you with this process.
4) Property due diligence
- Ensure you're not purchasing a property with major defects you cannot rectify under your budget (think about the hidden problems, such as termite damage or bad wiring).
- Check that the property stacks up for the majority of buyers in the area. Your demographic is crucial, and you should be thinking about a property as a product.
- Calling council and a number of other local experts will save you money in the long run.
5) Acquire
- The purchasing process and negotiation can be crucial for getting the price right. Ensure you enter in unemotionally and knowing the value (pricing due diligence).
- There are a number of different conditions, requests for early access and similar that can be asked for at this part in the process.
6) Council approval (usually for structural renovations)
- The earlier this part of the process is started the better. Investors should be prepared for councils to take longer than is often stated on their websites.
- To get an idea of how long the process might take, check online and see what has already been approved and the time frames. Expect it to take longer.
7) Renovate
- Get some good tradespeople and treat them well. It can often take a number of renovations to get your team selected.
- Keep organised, keep timelines and ensure effective communication.- Avoid being the DIYer unless you have done it before effectively.
8) Sell/Rent
- While you should have been clear on which of these approaches you were going to take since step one, it's now important to ensure you approach the best real estate agents and property managers for the job.
- Treat choosing agents as an interview process, rather than solely basing it on personality.
- Ensure that at any opens, the changes you have made to that process are highly visible and communicated to potential tenants/purchasers.
On September 5, 2013 we asked readers which room they thought would generate most value when renovated. The results are below:
<img src="/images/stories/2013/09/09/poll-results-sept-9.jpg" width="470" height="318" alt="poll-results-sept-9">
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Cherie Barber's eight step renovation process

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After another week of official interest rate decisions and rebounding house markets, it’s time to put property into perspective.
Most of what we read about property prices and values is of a short term nature – it allows us to track a market by sales.
In the latest release, RP Data-Rismark’s August home value index shows that Sydney house prices rebounded 5.4% in the three months to August, and in Melbourne they’d gained 4.8% over the same rolling quarter.
The average of the eight capital cities was 4.0% gain in house value over the quarter.
However, property is a long term investment so I look at property numbers that reflect deeper value and take in metrics other than price. For instance, RP Data’s total gross return. This is a number that shows property value not in averaged sale prices, but as rental income plus capital gain.
Total gross returns are crucial for landlords, investors and for self-managed super fund members, however it’s a measure that everyone should look at prior to entering the property market.
In the RP Data Index for August the best total gross return of residential property over the year to August was 14.5% in Perth followed by Sydney on 11.7%. Melbourne – in spite of some weak property results in the past two years – managed a yield of 8.3% on residential property in the year to August.
RP Data says the total gross return on residential property in the year to August, across the eight capital cities, was 9.9%. This is a solid result for property.
There are reasons to look at property yields.
Firstly, yields are a less volatile measure of a market than prices. When house values are low, rental income can reinforce the investment, and when the market is roaring – pushing housing supply into the market – lower rental income can be compensated by capital gain.
The second reason to look at gross yields is that it reflects a true measure of value. House prices show you what the market was prepared to pay in a given month. But capital gain plus income is a more sustainable measure of your expected returns over time.
RP Data’s Cameron Kusher has interesting figures in terms of house prices versus total gross return: in October 2010, Australia’s housing market peaked. But when it eased off, house values dropped until May 2012, and have not returned to peak levels.
But when total gross returns peaked in October 2010, they simply went flat until May 2012, and have been climbing ever since. Total gross return acknowledges a small hedging effect against price fluctuation – it shows deeper value.
And remember, even if you live in your house, it still has a rental value – it’s just a value you take in kind, not in cash.
So, when investigating a house market, start with prices but keep your eye on gross total returns.


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Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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Keep your eye on gross rental returns: Mark Bouris

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The debate over the supply of affordable housing and the policies surrounding the framework is a topic that rightly inspires heated emotions – particularly in respect of the lead up we had to Saturday’s federal election and the thundering silence from either major political party, outside of a commitment to keep rates low and job security high.
However, what we really lack in Australia is a realistic vision of how our housing market should appear.
There are too many conflicting voices smothering the debate – from an ingrained cultural mindset looking to profit from rising values in the established sector, hoping to outpace inflation and enable retirement on a pot of property gold, to consumer organisations struggling to address the growing need of citizens requiring public housing or rental assistance.
Obviously vested interests across the real estate and finance industry as a whole, mitigates the commentary somewhat, concluding - based on a narrow contextual view of low interest rates alone - that affordability has in no way worsened, but rather improved – whilst at the same time applauding the recent recovery in prices.
Sydney, in particular is outperforming other states, and whilst there are differences to the macro back drop compared to 2007, it’s bounded into spring as the best (and consequently most expensive) performing capital city in Australia, with clearance rates (the curve of which prices typically follow) mirroring boom peaks, and AFG (Australia’s largest mortgage broker) reporting an 49.5% unprecedented level of home loans written for investors coupled with the comment:
“This is the highest level of investor activity the company has ever recorded for any state.”
RP Data have Sydney prices up +5.4% for the quarter, and although the information is subject to revision, it leads the annual growth rate to its fastest pace since 2010.
So where do we stand on issues of affordability?
I’ve written previously on the <a href="https://www.propertyobserver.com.au/auctions/heat-of-the-moment-the-mentality-of-auction-bidding-fervour-catherine-cashmore/2013090164693" target="_blank">various war stories witnessed on the ground</a>, as auction results exceed reserves by some 10/15% – and on occasion, reach a level, which defies all rationality.
In this respect, any benefit derived from lower interest rates is somewhat offset by the inflationary pressure placed on prices.
Indeed - you’d be hard pushed to find a first-home buyer shopping in our largest capital cities, who has not been outbid by an investor through the course of this year. Investors understandably have a stronger financial arm.
Albeit - at least for existing owners - the relative cost of servicing a mortgage has reduced considerably.
This influence is evident in the latest “Housing Occupancy and Costs” survey from the Australian Bureau of Statistics, which calculates affordability to be at the same level it was some 17/18 years ago from the date of which the survey relates.
According to the findings, in 2011-2012 owners with a mortgage and private renters spent roughly the same proportion of income servicing the repayments, as they did back in 1994-1995, despite the fact that the capital price of housing has more than tripled over the corresponding period and the subsequent duration of mortgages lengthened.
Those paying down a home loan were assessed to spend 18% of their income servicing the payments, with private renters just a fraction above this figure, at 20% of income.
It is this, and other indexes such as the Adelaide Bank/REIA housing affordability report, released last week, claiming affordability is at its “best level since 2003,” that encourages commentators to stamp and seal further discussion of the issue, with a dismissive waft of the hand to would be buyers, accusing them of being both spoilt and picky in their expectations, if complaints about the cost of accommodation are voiced, or any suggest that first-home buyers are locked out.
Neither is there any comment on the inevitable future consequence of rate rises.
However, any release of statistical data, always needs to be assessed in context.  A little like median prices, which bear scant relation to individual house prices, and often require an additional understanding of distortions such as stock on market, the shadow effect of buyer grants and incentives, and a full appreciation of how the data is stratified prior to making a surface assumption of the material at hand.
As ABC’s online business reporter <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2013-08-30/janda-home-ownership-and-future-aged-underclass/4924862" target="_blank">Michael Janda</a> points out in his own balanced assessment of the ABS release, there are some distinctive trends worthy of appreciation prior to drawing a conclusion that housing has never been more affordable.
Firstly, home ownership is falling.  In 1994-1995, 71% of Australian’s owned – or were servicing a mortgage – and the proportion of households renting - 18%.
By 2011-2012 the ownership rate had dropped to 67% with a relatively steep rise in the number renting at 25%.
Families with children (one of our biggest demographic of buyers) in particular seem to be suffering.  The decrease of ownership for this demographic has fallen over the latest census period from 79.5% in 2006 to 77.2% in 2011.
There are a number of factors that have played into the percentile changes. Firstly on issues of supply - restrictive growth boundaries, hefty development overlays in new estates, along with a woeful lack of planning for population growth and the consequential reluctance of home buyers to move outwards, has produced a downward slide in the number of new dwellings completed per annum, and further inflated the capital price of the stock marketed.
For many first home buyers, the choice, price and location of accommodation offered in these areas, where commute times are inflated as infrastructure development fails to keep pace - gives no incentive to buy in outside of various government grants - and based on historical data, it’s fair to conclude if they do purchase a house and land package, the growth of the underlying asset base of their investment in the new estates, will unlikely improve much past the rate of inflation – hamstringing the ability to progress or upgrade when desired.
When older generations purchased – the outer suburbs were some 10/15 kilometres from established job and commercial hubs, not the 40 plus kilometres we see today, and financial deregulation, the emergence of duel income households, and the very real realities of our golden decades of growth, assisted their steps up the property tree to the current environment in which baby boomers hold roughly half of Australia’s housing stock – a mix of owner-occupied dwellings and investments – many relying on the value of their properties to fund retirement.
Another direct consequence of our now inflated values, buoyed further by restrictive supply, and policies such as negative gearing - which encourage investors to speculate in the established arena, thereby inflating the value of second hand stock - is a national rise of 49.2% in yields over the five year census period (not accounting subsequent increases) – which outpaced growth in home loan repayments for the same duration.
Other trends indicating affordability pressures – (although agreed cultural tendencies also play a hand) – is between the 2006 census and the 2011 census, the single-person household was no longer the fastest rising demographic.
In the 2011 results, lone-person households dropped from 24.4% to 24.3% - this was the first decrease in this statistic since the census was initially conducted in 1911 – over 100 years – and therefore requires attention.
Against this group households (those sharing accommodation) jumped from 3.9% to 4.1%.
Crowded houses – with three or more families sharing accommodation, also rose nationally by 64% to 48,499, and other data from the ABS shows that over 40% of renter households receive some form of housing assistance - once again emphasising the growing crisis in this sector of our community.
With the decreasing proportion of first-home buyers as a share of the active buying market, commitments of which are down 10.6% year on year, along with reports that significant numbers are now initially entering into their first purchase at the age of <a href="https://www.news.com.au/realestate/firsthome-buyers-in-their-forties-are-a-growing-breed/story-fncq3era-1226708852405">post 40 years</a>, you have to question the stubborn refusal from market commentators to recognise we have a problem worthy of attention.
The AFG data I cited above also notes the drop in the proportion of first time buyers, and is no doubt mirrored by other lenders.
According to their figures, the share is down to 11.3% nationally from 15.9% at the same time last year – and although various state grants and incentives play into the peaks and troughs, the percentage drop in New South Wales is appalling – down from 13.1% in August 2012, to 4.3% as recorded last month.
Another mistake made when assessing affordability, is to concentrate only on the principle cost of the home and the percentage of income needed to service the repayments.
However I sometimes think a better assessment would be to take into account what’s left over post housing costs, and whether it’s enough to afford the actual non consumer price index cost of living.
It’s not only commodity prices that have spiked, for example gas and electricity, but an overload of other essentials such as insurance premiums, housing maintenance costs or owner corporation fees, school fees and child care for working mothers, medical and dental expenses and so forth – transport costs are substantial for those commuting daily as are the needs of a modern generation who enter commission/performance based jobs which expect them to have 24 hour access to mobile phones and email.
A privilege I have in my job, is meeting, assisting and talking to current first-home buyers (usually couples – singles are all but priced out) looking to get a foot hold. It’s a pleasurable aspect of my work due to the excitement expressed when a successful purchase is achieved.
Albeit, the conversations I have with both first home buyers and renters, keep my feet firmly on the ground in relation to the difficulties achieving the oft quoted dream of ownership – it is also what inflames my anger when I read reports such as that offered by <a href="/news">Terry Ryder</a> last week – questioning so called false perceptions that Australia’s housing is unaffordable.
I suspect we see things from a different frame of reference.
For this reason, and others, I attended the 122nd annual Henry George commemorative dinner at the Royal Society of Victoria, Melbourne – to listen to respected economist Saul Eslake give a excellently orated speech, entitled <a href="https://www.prosper.org.au/2013/09/03/saul-eslake-50-years-of-housing-failure/" target="_blank">“50 Years of Housing Policy Failure.”</a>
As well as his role as chief economist for Bank of America – Merrill Lynch Australia, Eslake is also deputy chair for the National Housing Supply Council – set up by the Australian government to “improve housing supply and affordability” for both home buyers and renters.
He is therefore suitably qualified to provide a detailed assessment the data which is all but ignored by those mentioned above.
As Eslake comments:
“..the decline in home ownership has been even more pronounced when one ‘looks through’ the effects of the ageing of the population, which (among other things) means that an increasing proportion of the population is within age groups where home ownership rates are always (and for obvious reasons) higher than in younger age cohorts.”
The transcript and slides of Eslake’s speech can be found <a href="https://www.prosper.org.au/2013/09/03/saul-eslake-50-years-of-housing-failure/" target="_blank">here</a> - an absolute must read.
Our affordability issues cannot be solved over night.  The distortions in the market need to be slowly unpicked and the various suggestions by Eslake regarding supply and tax reform, implemented.
However, as <a href="https://www.propertyobserver.com.au/economy/are-we-in-a-dwelling-boom-a-rally-bubble-or-a-recovery-inside-our-bubble-mentality-catherine-cashmore/2013081864317" target="_blank">I’ve written previously</a> – the reason we have asset bubbles is a direct consequence of our current debt-based monetary system, and in this respect, I hold the opinion that you cannot tackle the health of the housing market without also addressing the disease that funds it.
 
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 Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
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