<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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It’s just over 12 months since the results of the 2011 census were released and at the time it was impossible to escape news about how old the population was becoming, what areas were popular, what incomes and education levels were making the grade, plus much more. We were all very excited to be reading so much information about, well how can I put this, about ourselves.
Thanks to the ABS, the industry has always had access to a large amount of demographics data, but I think it is great to always stop and ask what’s the consumer’s perspective?
What expectations do consumers have when they consider buying a home regardless of the prevailing economic or social environment? Are we delivering what they are looking for? Is the market excited about our products or is it simply being driven by a desire not to miss out on this or that new development?
There is one subject that I always find myself thinking about is and that point asks: is there enough attention paid to what consumers think, or are the raw numbers and hard facts just given too much importance?
While price, place and time are the three big factors that influence almost all consumers in the housing market, there are endless, more personal, more local and possibly less predictable options to ponder.
Price and value for money, while possibly the most obvious and easy to observe influences, are still open to varied interpretation. From a buyers view there may well be more flexibility than we give credit for, and if we look at many other consumer markets, then we do see that design trends are very fluid very responsive.
Emotion is also a key element and even at the high end of a market an emotional connection with a property can relegate price down the scale of importance. Or is the role of emotion simply over-stated and should the idea of a willing but not over anxious buyer, dealing with a willing but not anxious seller always be the rule?
In most circumstances price is frequently the central concern of most buyers. While we are now well beyond the GFC, I think that in some parts of the market the GFC acted to make buyers much more price focused, much more sensitive to debt and price is now related to being comfortable with how much buyers can afford to borrow. Not having to worry about finance is not common.
 
<hr class="system-pagebreak">
Historical data is important and over time almost all real estate improves in price, but at any point in time it needs to be affordable in the context of the economic environment.
If the market is in pain, if prices are seen as falling then buyers will know that. But in either a tough or healthy market it appears that emotion is a factor and buyers will post GFC still be found paying unexpected prices to get a particular property or to be part of a popular new development.
Incomes, interest rates, employment and an entire range of settings all act to influences prices. This applies to any market and like the one we now see in mid-2013, a lack of supply and very low interest rates are a power influences.
Also currently improved incomes from the share market are important, while a general recovery in superannuation returns always makes us all feel a little better, more secure.
However it is true that after price there are many other influences. Today more then ever transport and access to essential facilities make buyers much more selective and as we have been discussing with pocket infill land estates.
Employment is clearly another a big issue, not only the potential access to employment, but the security of employment. Lenders and buyers are both job sensitive and this is fact that may well become more central over the next 12 months and is set to be a driving factor in the NSW market with jobs associated with construction expected to grow at a pace not seen for some years.
But it can also be a combination of issues that are much less complex, much more day-today issues, that influence buyer behaviors and how they experience the marketing benefits of particular developments. Some markets simply take off and others do well but sell at a much slower pace.
Research is always of value and an understanding of demographics a good starting point for a successful development and marketing campaign. But a first hand view of what buyers want and what they are currently looking for is essential; this is a fast paced environment so we need to be up-to-date.
What makes one area more appealing than another can sometime come down to some very simple factors. While some major issues like access to employment, transport, shopping and schools will always be important, at times other less complex factors can provide an incentive for particular buyers to consider one area or development over another.

<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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pchittenden-eLqUUC8TWW

Look beyond the demographics to find what buyers really want: Peter Chittenden

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A report into the Sydney CBD unit market – focusing on Dawes Point, Haymarket, Millers Point, Sydney and The Rocks – has found that demand for new apartments was strong in the first half of 2013.
Investors and owner occupiers in the postcode 2000 suburbs are opting for one and two bedroom units, leaving sales of existing units subdued.
The Sydney CBD unit sales cycle graph points to steady activity over the 18 months to April 2013 with 385 transactions in the most recent period. This compares with highs of 985 transactions in October 2007 and 1002 transactions in October 2003. New apartments lifted the median price to $692,000 over the six months from October to April.
New apartments selling off-the-plan not included in the data are expected to boost the April 2013 six-month result, with five new projects at various stages adding 383 units to the existing stock.
<img height="379" width="470" src="/images/stories/2013/08/sydney-aug-26-one.gif" alt="sydney-aug-26-one">
The market overview, by researchers PRDnationwide, found the current market is attractive to a mix of local and overseas buyers, with those from overseas often using a 20%-30% deposit and finance of the balance from local financiers.
It found anecdotal evidence of strong demand for one or two-bedroom apartments, allowing buyers to alternate between an investment and owner occupation. Similarly, overseas investors who bought a residential unit for children attending university use it as a conduit to further investment in residential and commercial properties.
The study found residential construction in the 2000 postcode is mainly south of Druitt Street, with the exception of Eliza, a 19-apartment development on Elizabeth Street near Hyde Park. Haymarket has the highest number of units being built, with the Quay, a 240 mixed use development on Quay Street, and the Hing Loong Apartments, a 47 apartment project on the corner of Dixon and Little Hay Streets.
A positive outlook for Sydney is backed by an ‘’accommodative mortgage rate environment’’ – the report says - and improved investment in real estate as other asset classes show low returns or volatility.
March rental data points to little change in rents for the 2000 postcode. The median rent for a one-bedroom apartment of $600 per week represents a 12 month growth of 1.3%. Over the same period the median rent for a two-bedroom unit remains at $800 per week.
The gross rental yield for one-bedroom apartments ranged from 4.5%-6.6% for properties under $1 million, with similar returns for two bedroom apartments. Today’s lending rates allow investors putting down large deposits to recover most of their annual expense from their tenants.
<img height="355" width="470" src="/images/stories/2013/08/sydney-aug-26-two.gif" alt="sydney-aug-26-two">
While rental return is important, investors are usually searching for long-term capital growth. PRDnationwide Research’s resale analysis ascertains the average annual growth achieved by vendors who sold in the April 2013 half year period. It reveals an average appreciation of 3.1% per annum, with an average holding period of 6.5 years. PRDnationwide says moderate capital growth and higher rental yield compared to inner city suburbs outside the city centre is consistent with the traits of CBD investment.
The changes in mortgage demand chart shows a 13% increase in the 12 months to April 2013 in NSW.
The unit price point chart shows the April 2013 price strength with properties selling for at least $1.1 million accounting for 25% of sales, those less than $500,000 at 20% of sales, $500,000-$600,000 at 16% and $600,000-$700,000 at 14%. The upper figure of 25% compares with 22% in 2012.
The Sydney precinct recorded the highest number of units available for sale in the first half of 2013. The Sydney CBD unit days on market table highlights the 30 days or less bracket as the largest for the precinct, suggesting a good turnover of stock. Only 23% of the stock was advertised for a period of 120 days or more, compared with 33% for Haymarket and 50% for units in The Rocks.
The June quarter recorded the highest 12-month increase in the volume of mortgage inquiries since June 2010, with the Veda Consumer Credit Demand Index pointing to a 12 months growth of 13% for New South Wales. The figure reaffirms the market’s strength.
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staylor-63KgDrKwoY

Strong demand for Sydney CBD apartments: PRDnationwide

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The businesswomen Roxy Jacenko didn't get to sell her investment cottage, and former home, at 12 Nelson Street, Woollahra following its weekend auction listing.
She wanted $3.5 million, but like so many other prestige auction vendors faced buyer hestitancy.
She decided to list her investment property as she's been looking to purchase a commercial property to house her business, Sweaty Betty PR.
The 329 square metre property – with the two-bedroom, two-bathrooms was bought in 2006 for $2.8 million.
Interior designer Blainey North fitted out the double fronted, one story, residential home which was previously for sale in 2011 with a $3 million price tag.
According to Australian Property Monitors, there were just three sales over $1.9 million at Sydney weekend auction. They included $1.933 million in Willoughby for a renovated property last sold $590,000 in 1998. There was a $2 million sale in Mosman and a $2.3 million sale in Paddington. 
APM recently carried out a study of $2 million plus sales and found the highest proportion of $2 million plus sales were in:
<h3>Strathfield</h3>
<h3>Balmain East</h3>
<h3>Glebe</h3>
<h3>Darlinghurst</h3>
<h3>Birchgrove</h3>
<h3>Cronulla</h3>
<h3>Sylvania Waters</h3>
<h3>Randwick</h3>
<h3>St Ives</h3>
<h3>Wahroonga</h3>
 The APM report released in July found Strathfield's 37 sales reported of more than $2 million was more than the combined tally of Point Piper, Double Bay and Vaucluse.
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jchancellor-FAypfDUnLy

Roxy Jacenko stills seeks buyer for Woollahra investment cottage, as prestige buyers baulk

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Just got around to reading the latest missive from one of my favourite blogs, Ricardian Ambivalence.
<a href="https://ricardianambivalence.com/2013/08/21/rba-tries-again-with-easing-bias/" target="_blank">The blog explains why futures markets have all but discounted an interest rate cut in September</a> (only a 7% chance is presently priced in) and don't expect to see any cuts for a few months, implying perhaps on balance not even until early next year.
The RBA's <a target="_blank" href="https://www.propertyobserver.com.au/https://www.rba.gov.au/monetary-policy/rba-board-minutes/2013/06082013">Minutes from its Monetary Policy</a> stated:
"...with growth expected to remain below trend for longer and inflation to remain within the target even with the effects of a lower exchange rate, members concluded that a lower level of the cash rate would better contribute to achieving sustainable growth in demand consistent with the inflation target.
Regarding the communication of this decision, members agreed that the Bank should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates further. The Board would continue to examine the data over the months ahead to judge whether monetary policy was appropriately configured."
As Ricardian Ambivalence points out, while the next move for interest rates could be down, there is no urgent rush for the trigger to be pulled again.
Firstly, because lower interest rates are having some effect on the areas of the economy which tend to be impacted, and secondly, because the drop off in mining capital investment - to date at least - has not been sharp.
The last round of ABS figures showed that mining capex may yet fall in a more measured fashion.
As a recap, these are the actual and expected figures for total capital expenditure:
<a style="text-decoration: none; color: #7f7f7f; clear: left; float: left; margin-bottom: 1em; margin-right: 1em;" imageanchor="1" href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/1ecf42b5ec12e8bcca2573460014f2df/Body/0.1304!OpenElement&amp;FieldElemFormat=gif"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; float: left;" width="470" src="https://www.abs.gov.au/AUSSTATS/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/1ecf42b5ec12e8bcca2573460014f2df/Body/0.1304!OpenElement&amp;FieldElemFormat=gif" height="174" alt="Financial year actual and expected expenditure - Total Capital Expenditure "></a>
 
 
 
 
 
 
 
Source: ABS
And this is part of the same data set for mining only capital expenditure, actual and expected:
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470" src="https://www.abs.gov.au/AUSSTATS/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/1ecf42b5ec12e8bcca2573460014f2df/Body/1.3C70!OpenElement&amp;FieldElemFormat=gif" height="177" alt="Financial year actual and expected expenditure - Mining Capital Expenditure">
Source: ABS
The estimates in the March quarter implied that the RBA still has some time on its hands before another cut will be needed.
The data for the next quarter will be released on August 29, so it will be interesting to note whether the June quarter figures hit expectations or whether we are on a steeper downward trajectory than feared.
However, as noted by RA, if unemployment does rise back to 6%, then that would likely be a trigger for another cut.
Best guess therefore: interest rates on hold for a couple/a few months, until a slowing of capital expenditure or an uptick in the unemployment rate sees another cut in the official cash rate to a new cyclical low of 2.25%.
<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>' is released on 1 September 2013. 
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pwargent-M4siyDbqQY

Will the RBA keep interest rates on hold? Pete Wargent

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Melbourne recorded a 82% auction clearance rate this  past weekend, according to the Real Estate Institute of Victoria which compared to 74% last weekend and 57% this weekend last year.
Allen's Real Estate has weighed in on the result, tweeting their report of comments from <a href="https://allensre.com.au/the-orange-room/article/experts-downplay-melbourne-property-boom-despite-h?utm_source=dlvr.it&amp;utm_medium=twitter" target="_blank">Real Estate Institute of Victoria chief Enzo Raimondo, who downplayed the notion of a property boom</a>.
<a href="https://twitter.com/AllensRE" target="_blank"><img alt="Screen_Shot_2013-08-26_at_11.18.41_AM" height="67" width="442" src="/images/stories/2013/08/Tweet_of_the_Day/Screen_Shot_2013-08-26_at_11.18.41_AM.png"></a>
"We are definitely not in a boom,” Enzo Raimondo said.
''We are still coming off a relatively low level of transactions. This high clearance rate is a reflection of an increase in latent demand after a couple or so years of below-average transactions.''
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po-LsXgBTHBmX

REIV dampen boom talk, despite Melbourne's weekend clearance rates

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Melbourne clearance rates overtook Sydney last weekend for the first time for a while.
The <a target="_blank" href="https://www.propertyobserver.com.au/news/melbourne-records-80-plus-auction-clearance-rate-as-sydney-s-79-falls-short-of-recent-highs/2013082464516?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">REIV recorded Melbourne’s clearance rate at 82%</a>, while Sydney fell just short of recording its seventh straight 80% result, with APM reporting a 79% auction clearance rate in Sydney.
They are both preliminary figures, so subject to review.
Melbourne’s result across the August 24 weekend compared to 74% last weekend and 57% this weekend last year.
 
{module Did the weekend clearance rates represent a baton change with stronger results to be expected from Melbourne rather than Sydney over the spring selling season?}</body></html>

Did the weekend clearance rates represent a baton change with stronger results to be expected from Melbourne rather than Sydney over the spring selling season?

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When discussing issues of housing affordability, the conversation is often weighted toward our first-home buyer demographic – principally those locked on the ladder of rising rents.
However, last week ABC Radio National’s ‘Background Briefing’ report focused on the new face of homelessness – with a quarter of a million older Australians approaching retirement with little super, and no house to call their own – importantly – many only a couple of rent payments away from homelessness.
I’ve commented previously on our <a href="https://www.propertyobserver.com.au/residential/ageing-population-poses-serious-challenges-to-australia-s-future-economy-catherine-cashmore/2013062362530" target="_blank">ageing headwind of retirees</a>, who hold roughly half of Australia’s housing stock as their principal retirement fund, and the potential consequences resulting from any downturn in home values or dwindling activity from a first-home buyer demographic, who are currently outbid by demand from a higher percentage of investors focused on the established sector.
However, as highlighted in the program - a growing demographic of older working Australians, are facing dire financial straits as they reach retirement.
Some of the most venerable victims are women, who having worked hard, and raised children, due to divorce or circumstance, are now finishing employment with less super than their male counterparts, (some with no more than $40,000 in a fund) and finding themselves once again as tenants, paying more than 50% of their income in rent.
Within the report, Ludo McFerran – from the University of New South Wales and national director of the Safe at Home, Safe at Work project stressed the urgency of the problem;
‘This problem of ageing and gender and homelessness is so big the reality is it will swamp all previous expectations or discussions or plans.’
Her comments are insightful, because as I’ve pointed out on many an occasion, the accommodation we’re currently building (which many argue is in undersupply) is neither affordable nor suitable for average single workers or elderly downsizers – being predominantly McMansions on the sparsely facilitated fringe locations, far away from our inner and middle suburban job hubs or low grade over-priced apartments with high owners corporation fees, which offer little more than a roof and four walls.
It’s a sobering reality, because if you think the numbers are significant now – without immediate action, the story’s set to get worst.
The traditional model of an ageing population who have in the past, purchased a house, enjoyed tax free capital gains and when the children have left home, sold it onto the next generation, not only starts to break down as the dependency ratio (the proportion of workers to non workers) falls from peak – but with more demands on the tax payer dollar, coupled with a lower growth environment as we face the challenges of a tighter macro economy than previously experienced, the trend indicates a reducing number of first-home buyers who purchase later in life, marry later in life, start their family later in life and significantly, tap into their housing equity to fund the rising cost of living, earlier in life.
The bias is a significant one, because parents often find themselves digging into their own retirement equity stream to assist their children onto what’s too often termed ‘the property ladder’ – as if it’s something to be conquered.
 
 
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Importantly, for those who don’t partner and cannot harness the power of a duel income or do not have funds to draw upon from relatives - retiring whilst still renting, is a very real possibility.
 
The issues were also highlighted in last week’s AFR in which Simon Kelly – author of a CPA Australia study entitled <a href="https://www.cpaaustralia.com.au/cps/rde/xbcr/cpa-site/household-savings-retirement-report.pdf" target="_blank">‘Household Savings and Retirement – where has all my super gone?’</a> makes comment;
“People approaching the age of 65 have considerably higher debt than in the past. Mortgage averages and other property loans have more than doubled since 2002 and credit card debt has increased 70%. Superannuation is clearly being used to reduce debt.” 
The report goes on to highlight how:
“People approaching retirement age are using the equity in the family home as a source of funds to assist their children into homeownership.”
Considering we’re in the second half run up to the federal election, it’s hard not to take further opportunity to highlight such concerns which have to date been ignored by our two major contenders - hence Peter Chittendon’s comments in Property Observer last week that <a href="/news">the “elephant in the room” is “housing policy.”</a>
Whilst our two major political contenders are busy focusing on a stronger Australia – promoting economic growth a return to surplus all coupled with reduced cost of living - which as highlighted by St Vincent de Paul in their recent campaign for a <a href="https://www.theaustralian.com.au/news/nation/call-for-overhaul-of-living-index/story-e6frg6nf-1226697408053" target="_blank">relative price index</a>, bears little relation to official CPI measures. By far and away the biggest financial cost most Australian’s face is that of accommodation.
As <a href="https://housingstressed.org.au/" target="_blank">Australians for Affordable Housing</a> correctly point out, – between 2003-04 and 2009-10 the amount households spent on housing has outpaced other expenses - increasing by 55%. Therefore any policy debate with cost of living on the agenda should have this top of list.
Needless to say, the first question on ABC’s Q&amp;A debate between Joe Hockey and Chris Bowen last week, was precisely this, as a young professional living in Western Sydney expressed her dismay at the now near impossible dream of becoming a home owner.
As I’ve written previously – it’s an unfortunate reality that neither political party can see past burdening buyers with cheap credit by way of grants, low interest rates and incentives, in a vain effort to mask the rising cost of accommodation under the false premise that they’re doing something.
As Chris Bowen commented that “there (are) two big things that we can do to help with housing affordability. That's keep unemployment as low as possible. Because you have got a job, that's the best thing you can do to get into the housing market. And also to keep interest rates low and interest rates are as low as they’ve ever been in Australia”
However,  in answer to his first point - Australia faces challenges ahead - with a falling participation rate due in part to an aging population, fewer full time positions coupled with a rise in part time work inflating the underemployment figures – it’s clear job creation is not keeping pace with increases in our working age population. Whilst moves are underway to improve the situation, the role of private debt is overlooked in favour of paying down government debt; hence consumers are weighted toward saving rather than spending money into the economy.
As for low interest rates, they have done little more than inflate established property prices and speculation on financial markets which is scant benefit to those facing rising yields, or paying an inflated cost to secure a property at the offset.
Joe Hockey’s comments took a similar stance – except he did touch on the issue of supply;
“The fact is you've got to increase the supply. I mean it’s a market. There is plenty of demand and increasing demand but what are we going to do for supply? I have some plans on that which we’ll be talking about before the end of the election.”
However, releasing more land and building more supply is not the answer when the land is neither affordable, or the supply desirable enough to attract the surplus of buyers forced to live within commutable distance from essential facilities. 
In this respect, any plans for new supply need to be specifically targeted to combat both issues – let’s hope this is the case.
 
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It also doesn’t touch upon the difficulties developers have gaining funding without a large proportion of pre-sales - generally only possible to the foreign market – and I mentioned last week, due to cultural tendencies, a significant proportion of these apartments often remain empty once sold - which once again has an impact on measuring the true effectiveness of any increase in underlying supply.
With the rise of the internet and the ability of those searching for answers to delve a little deeper than they perhaps would have done before the world became a mirror of reflections - it can only be hoped, that a majority, not minority, are taking opportunity to look past the frivolity of what I think most would agree, (whether by design or purpose) have been fairly meaningless debates – particularly if their searching for answers on housing policy.
Indeed, the home ownership dream - which resulted in prices trebling between 1997 – 2007 in the UK - and performing a similar feat in Australia, was not built on the fundamentals so often advocated - that of a rising population’s demands for a home – although of course, supply/demand constraints do a good job of exaggerating the figures when inelastic policies hamstring development.
Rather a great inflation in property prices was the direct result of the dramatic increase of mortgage debt built on the back of a housing market which had fast progressed into what Faisal Islam comments in his new book <a href="https://www.theguardian.com/business/video/2013/aug/16/faisal-islam-default-line-video" target="_blank">‘The Default Line’</a> “a multi faceted investment vehicle financed through an unrestrained system of credit and deposit creation.”
<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">As I said last week</a> – in this respect, it’s not the health of the housing market that needs to be tacked, it’s the disease, hence why a growing number of influential economists are pushing for monetary reform – importantly, regaining control of the money supply and the dictates of where that supply is allocated, as a basic prerequisite for coming to grips with the banking and financial system.
What cannot be argued is the conditions that took values to their 2010 peak following our golden decades of growth, will not be replicated as we enter a very different and challenging decade than previously experienced – therefore all LNP comments that start with under the Howard era as evidence for their management of employment figures and surpluses, bear little relevance to our new reality.
As it stands, the environment in various capital city pockets has gone into overdrive and among others, AMP have now weighed into the debate commenting “Australian houses are 7% overvalued based on long- term trends” referencing how “home prices rose last quarter at the fastest pace in more than three years, and sales of dwellings reached the highest since 2011 in June, government and industry data show.”
Whilst the current rally seems set to last into 2014, the prospect of higher rates coupled with higher unemployment, should temper the gains and therefore, I expect we’ll see shorter durations to the traditional boom and bust market cycle.
As Christopher Joye aptly commented in a recent AFR column “ride the housing and equities wave for as long as you can. But remember... You are not surfing a swell in Bali.”
 
<hr>
 Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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Empty apartments and demographic headwinds need constant investor surveillance: Catherine Cashmore

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By all accounts when one reads the news our property markets are apparently booming.
As they say if you want to make a mountain out of a mole – hill just keep adding dirt. It’s very easy to use the boom word just as its very easy to use the word bust. What the vast majority forgets is that real estate is not an exacting science, if it’s such a great time to buy now then why did the markets fail to react from 2008 to 2010 when prices dropped by 30%?
<a target="_blank" href="https://www.propertyobserver.com.au/hotspots/sydney-s-property-bubble-hysteria-is-unfounded-terry-ryder/2013081964362" title="Sydney’s property bubble hysteria is unfounded ">Sydney’s property bubble hysteria is unfounded </a>where it was correctly pointed out by Terry Ryder that “three years ago BIS Shrapnel, which makes part of its living from mis – forecasting property markets, declared in 2010 that capital city prices would continue to rise strongly. By 2013 Perth would be up 22% and both Sydney and Adelaide would have added 20%. Nothing of the sort happened, of course. Three years on, Perth is up about 7% and Sydney a meagre 4%. Adelaide is still down 3%. These are not statistics that support bubble theories.”
The capital growth rates (average annual growth in median prices over the past ten years) have Mosman at 2.4%, Cremorne at 2.8% and Neutral Bay at 3.5%. Our demographic property markets are performing currently at their highest level in six years albeit with the tightest stock levels not seen before in decades. If you are, for example, looking to buy a house presently in Mosman, Cremorne or Neutral Bay you have a choice of 110 homes, for apartments your choice is 112.
<a target="_blank" href="https://www.propertyobserver.com.au/hotspots/sydney-property-market-is-a-bit-like-the-porridges-of-the-three-bears-in-goldilocks-too-hot-or-too-cold-and-some-just-right/2013081264127" title="Sydney’s property market is a bit like the porridges of the three bears in Goldilocks – too hot or too cold and, for some, just right">Sydney’s property market is a bit like the porridges of the three bears in Goldilocks – too hot or too cold and, for some, just right</a> – I would put our market in the just right category; “Data from Australian Property Monitors shows 40% fewer homes selling in the $4 million to $6 million price range in the first half of this year compared with the same period in 2010 when the market was enjoying a fillip.”
The top four suburbs with the highest number of $4 million to $6 million sales in the six months to June 30, 2013:
1. Mosman (19 sales) 22 sales in the 2010 fillip
2. Vaucluse (9 sales) 14 sales in the 2010 fillip
3. Bellevue Hill (6 sales) 15 sales in the 2010 fillip
4. Woollahra (5 sales) 5 sales in the 2010 fillip
All up sales of $4 million to $6 million sales in Sydney, in six months to June 30, 2010: 187 compared to in six months to July 30, 2013: 111.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #be002d; text-decoration: none;" href="https://www.rwm.com.au/files/2013/08/20-08-2013-9-26-03-AM.jpg"><img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;" height="331" width="470" src="https://www.rwm.com.au/files/2013/08/20-08-2013-9-26-03-AM.jpg" alt="20-08-2013 9-26-03 AM" class="aligncenter size-full wp-image-8156"></a>
 
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The last time the Reserve Bank of Australia (RBA) moved the cash rate up was back on November 3, 2010 to 4.75%, so it’s little wonder that we are seeing engagement in the property markets given today it sits at 2.50%. 
<a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/interest-rate-increase-a-risk-for-borrowers-fitch-warning/2013081664269" title="Interest rates increase an eventual risk for borrowers: Fitch warning">Interest rates increase an eventual risk for borrowers: Fitch warning</a> – monthly home repayments will rise 40% if interest rates return to 2008 highs and banks might not be taking this into account when lending. Since October 2011 the RBA has now delivered eight cuts so it’s inevitable that they will start increasing the cash rate – <a href="https://www.propertyobserver.com.au/news/rba-tells-banks-dwelling-price-boom-was-its-greatest-fear-robert-gottliebsen/2013082164435" target="_blank">the warning signs already are starting to appear</a>. 
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #be002d; text-decoration: none;" href="https://www.rwm.com.au/files/2013/08/20-08-2013-2-32-21-PM.jpg"><img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;" height="306" width="470" src="https://www.rwm.com.au/files/2013/08/20-08-2013-2-32-21-PM.jpg" alt="20-08-2013 2-32-21 PM" class="aligncenter size-full wp-image-8157"></a>
When I want an accurate gut – feel for our property market I look no further than the available stock levels which still remain in decline. For houses Mosman is averaging a twenty% decline on previous years and to be honest I can’t really see this changing anytime soon.
MOSMAN – 2088
• Number of houses on the market this time 2012 – 99
• Number of houses on the market last week – 85
.Number of houses on the market this week – 84
• Number of apartments on the market this time 2012 – 99
• Number of apartments on the market last week – 59
.Number of apartments on the market this week – 63
CREMORNE – 2090
• Number of houses on the market this time 2012 – 15
• Number of houses on the market last week – 3
.Number of houses on the market this week – 7
• Number of apartments on the market this time 2012 – 18
• Number of apartments on the market last week – 17
.Number of apartments on the market this week – 13
NEUTRAL BAY – 2089
• Number of houses on the market this time 2012 – 17
• Number of houses on the market last week – 11
.Number of houses on the market this week – 13
• Number of apartments on the market this time 2012 – 45
• Number of apartments on the market last week – 30
• Number of apartments on the market this week – 36
Source: Australian Property Monitors
<hr>
Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a style="font-size: 14px;" title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Forget talk of a boom, Sydney's property market is just about right: Robert Simeon

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The ABS released their counts of Australian businesses data recently.  The data largely flew under the radar, but there are some interesting findings in the data that relate to the housing market and those people working within industries associated with housing either directly or indirectly.
As a stark reminder about the realities of starting a new business, the data shows that of the almost 300,000 new businesses that commenced during the 2008/9 financial year, only 51% were still operating in June 2012.  This is an interesting period to analyse due to the onset of the global financial crisis and it is probably not a typical economic period given the severity of the global economic downturn.
At a high level, the study showed there were just over 2 million businesses actively trading in Australia as at June 2012.  Compared to a year prior there were about 9,000 more businesses active across the Australian business sector. 
Unfortunately a large component of the uplift in the number of businesses were classified as being within an ‘unknown’ industry sector (consulting the technical notes on the release, these are businesses which are yet to be classified by the ATO but are actively trading).
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" href="https://blog.rpdata.com/wp-content/uploads/2013/08/Top-ten-and-bottom-ten-industries-for-growth_decline.jpg" rel="wp-prettyPhoto[g2270]"><img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" class="aligncenter size-large wp-image-2271" alt="Top ten and bottom ten industries for growth_decline" src="https://blog.rpdata.com/wp-content/uploads/2013/08/Top-ten-and-bottom-ten-industries-for-growth_decline-580x325.jpg" width="470" height="263"></a>
Even though there were roughly 9,000 more businesses across Australia over the year, 62 of the 85 industry groups (excluding the ‘unknown’ category) recorded a decline in business numbers over the financial year.  Clearly the 26,440 unclassified businesses would be distributed across the classified industry groups, so it is unlikely that the fall away in business numbers is as severe as some of the figures suggest.
The table below provides an overview of the largest industry sectors based on the number of active businesses at the end of the 2012 financial year.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" href="https://blog.rpdata.com/wp-content/uploads/2013/08/Top-twenty-industries-based-on-number-of-businesses.jpg" rel="wp-prettyPhoto[g2270]"><img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" class="aligncenter size-large wp-image-2273" alt="Top twenty industries based on number of businesses" src="https://blog.rpdata.com/wp-content/uploads/2013/08/Top-twenty-industries-based-on-number-of-businesses-580x310.jpg" width="470" height="251"></a>
Construction services are by far the largest industry sector on this measure, representing 12.5% of all businesses.  The construction sector includes a wide range of business types, however ‘carpentry services’ were the most populous (44,870 businesses), followed by ‘electrical services’ (35,180) then ‘plumbing services’ (25,580).  
Given the prominence of construction and property related businesses as displayed in the data, it is no surprise that the Reserve Bank is looking for home construction to pick up the slack from a slowdown in mining investment over the coming years.
The next largest industry sector was ‘Professional, Scientific and Technical Services’ representing 9.5% of all businesses followed by Property operators and real estate services which comprise 9.4%.
Looking specifically at the third largest business segment, ‘property operators and real estate services’, more than half of these businesses were in the non-residential sector (53%).  ‘Residential property operators’ comprised 29% of all businesses in this sector and ‘real estate services’ accounted for 18% of all businesses.  <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/12135939EE65A795CA257B9500133CB2?opendocument">Note that formal definitions of each sector can be found here</a>.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" href="https://blog.rpdata.com/wp-content/uploads/2013/08/Property-operators-and-real-estate-services.jpg" rel="wp-prettyPhoto[g2270]"><img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" class="aligncenter size-large wp-image-2274" alt="Property operators and real estate services" src="https://blog.rpdata.com/wp-content/uploads/2013/08/Property-operators-and-real-estate-services-553x580.jpg" width="470" height="493"></a>
All states and territories have seen a reduction in the number of businesses within this category over the past year apart from the Northern Territory.  The largest decline in business numbers was in Queensland where there were 734 fewer businesses which is likely to be a reflection on the soft market conditions that have been evident in the State.
The fact that that there are fewer property and real estate businesses over the 2012 financial year should come as no surprise.  Housing and commercial market conditions were pretty tough during this time and many smaller or less efficient operators would have felt economic pain.  What is perhaps more surprising is that the fallout has not been more significant.

<hr>
Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/" rel="nofollow">RP Data.</a>
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tlawless-5VLUrbAk9s

ABS data reveals tough times for real estate businesses, but it could have been worse: Tim Lawless

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Recently, I looked at what happens to the housing market in the 12 months leading up to a federal election, this week I take a look at what happens in the 12 months after a federal election.  Once again, we have looked at movement in capital city home values and national house and unit sales over the 12 months following an election.

The housing market is seasonal so the time of year of the election is likely to play some part in the results however, the <a target="_blank" href="/news">12 months worth of data does show the trend in the lead-up to an election.</a>  As you will see later, the position in the market phase and changes to monetary policy may also have a significant impact on the market performance.
The five most recent federal elections have been: 3 October 1998 (Coalition win), 10 November 2001 (Coalition win), 9 October 2004 (Coalition win), 24 November 2007 (Labor win) and 21 August 2010 (hung parliament but Labor take power).
Looking specifically at the change in home values over the 12 months following a federal election you can see that in 1998, 2001 and 2004 home values rose however, following the most recent two elections home values have fallen.  Over the 12 months to July 2013, capital city home values have risen by 4.9% so the market currently has momentum going into the election, but can it be maintained for the 12 months following the election?
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" href="https://blog.rpdata.com/wp-content/uploads/2013/08/home-values-small1.jpg" rel="wp-prettyPhoto[g2266]"><img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" class="aligncenter size-full wp-image-2267" alt="home values small" src="https://blog.rpdata.com/wp-content/uploads/2013/08/home-values-small1.jpg" width="470" height="169"></a>
The strongest annual increase in home values following an election was 2001, with values increasing by 16.4% followed by the 1998 election where values rose by 10.7% over the following year.  Over the 12 months following the 2001 election, interest rates increased by 50 basis points whereas following the 1998 election they fell by 25 basis points.  It is also important to remember that between 2001 and 2004 there was a national boom in Australian home values.
In 2004, capital city home values rose by just 1.8% over the following year.  This was the tail-end of the national housing boom and over this time, interest rates rose by 25 basis points.  Following the 2007 election, home values fell by 1.2% over the next year and home values fell by 3.0% over the 12 months following the 2010 election. 
Following the 2007 election, the financial crisis hit, economic growth slowed and interest rates were cut by 150 basis points from 6.75% to 5.25%.  Following the 2010 election in August, interest rates were lifted by 25 basis points over the next year as values fell.
If we look at the change over the year in national home sales, the results are reasonably similar, with volumes falling following three of the past five elections.  The most up-to-date sales information indicates that sales to May 2013 were 19.0% higher and with interest rates moving lower more recently; sales appear likely to pick-up further over the year in the lead-up to the September election, but once again will the momentum carry through the next 12 months?
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" href="https://blog.rpdata.com/wp-content/uploads/2013/08/home-sales-small1.jpg" rel="wp-prettyPhoto[g2266]"><img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" class="aligncenter size-full wp-image-2268" alt="home sales small" src="https://blog.rpdata.com/wp-content/uploads/2013/08/home-sales-small1.jpg" width="470" height="169"></a>
 
<hr class="system-pagebreak">
The number of home sales was higher in the year following the federal election in 1998 (13.9%) and 2004 (1.7%).  In 2001, sales volumes fell by 4.6% in the year following the election, in 2007 they fell by 27.0% and in 2010 they fell by 5.7% over the year. 
It makes sense given broader economic conditions, that volumes and values fell following the past two elections however, it is a little surprising to see that in the midst of a large real estate market boom in 2001 and 2002 although values rose 16.4% over the 12 months post-election sales activity actually fell.
Over the past five elections, home values and sales increased in 1998 when the Coalition held office for their second term and in 2004 when they took office for their fourth term.  When Labor took office in 2007, values fell by 1.2% over the next year and volumes fell by 27% of course, they also had the financial crisis to deal with at that time.  In 2010 following a hung parliament, values fell 3.0% over the next 12 months and sales volumes declined 5.7%.
How much the trends outlined above can be attributed to an election is debateable however, federal elections and the subsequent following budgets no doubt have an impact on consumer and business confidence. 
It does seem from the past five elections that when there is no change of leadership that the housing market tends to respond better post-election than when there is a change in leadership or hung parliament, notwithstanding the impact of the financial crisis following the 2007 election.
Following the upcoming election it will be interesting to see the housing market’s response. 
Housing affordability, low levels of growth in housing credit and high levels of household saving are no doubt likely to be barriers to a breakout in value growth and a surge in sales volumes.  Not to mention the forecast that the national unemployment rate will reach 6.25% by mid next year which would be its highest level since September 2002.
Despite all these constraints, home values have increased by 4.9% over the past 12 months on the back of the lowest mortgage rates in more than 50 years and rising levels of consumer, but not business confidence.
If Labor holds office do we see a continuation of rising home values and increasing sales? 
If the Coalition takes office do we see even better conditions in the housing market or do we see deterioration in market conditions? 
We simply don’t really know but it will be interesting to see in the wash-up of the election what impact it does have on the housing market.
<hr>
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
Photo courtesy of <a href="https://www.flickr.com/photos/gusveitch/" id="yui_3_7_3_3_1377476609468_888">Angus Veitch</a>/flickr.
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