<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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The first thing a property investor needs is a strategy. Without one, everything an investor does is likely to fail, fizzle or fall flat. 
   The impression I get from my contact with consumers, and from the buying behaviour I observe in the market, is that few people have any kind of plan.   The approach employed by most real estate consumers is “me too”.   In one of many frenzied articles coming out of Sydney lately was the comment of one consumer who was getting into the market because he was afraid that if he didn’t do it now he would never be able to.   Those were the thoughts of someone without the first clue about what is going on in real estate – and without anything resembling a strategy.   He probably read something like Australian Property Monitors senior economist <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;ved=0CCwQFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fresidential%2Freal-prospect-sydney-s-median-house-price-will-exceed-%24700000-during-spring-selling-season-apm-s-dr-andrew-wilson%2F2013081163656&amp;ei=LZoNUpU2pp6IB9f4gEA&amp;usg=AFQjCNEyOfszSFGXyEx5DILph8OXkn4coQ&amp;bvm=bv.50768961,d.aGc" target="_blank">Andew Willson predicting Sydney’s median house price will top $700,000 by year’s end</a>. Or a journalist writing in The Sunday Telegraph that Sydney was “on the verge of a huge spring property surge”.   Or Robert Gottliebsen (not a property expert but that’s never stopped anyone pontificating on real estate) predicting the <a target="_blank" href="https://www.propertyobserver.com.au/news/robert-gottliebsen-forecasts-mother-of-all-dwelling-booms-driven-by-property-investors/2013081864307">“mother of all dwelling booms”.</a> Or Saul Eslake (an economist who is also not a property expert and who has a poor track record on predicting anything) <a target="_blank" href="https://www.propertyobserver.com.au/news/property-boom-to-be-led-by-investors-saul-eslake/2013081864311">tipping an investor-driven property recovery.</a> Or Charlie Aitken of Bell Potters Securities (also, obviously, not a property specialist) forecasting a “genuine residential property boom”.   As I wrote earlier this week, most of this frothing-at-the-mouth rhetoric is coming out of Sydney, which appears to be having its first real growth phase since 2004, and mostly from people who are not real estate specialists.   We have seen similar behaviour from property buyers in Perth this year. People have been piling into the market with no game plan other than “we’d better act fast because everyone else is”.   This is the herd mentality, the thing that drives most behaviour in real estate, running on overdrive.   People with a plan and a healthy research habit would have bought in Perth late in 2012 or early in 2013, before the stampede started.   If you’re interested in real estate, you have to do better than the “me too” people. If you’re serious about buying, for any reason, you need to be informed. And, above all else, you need a plan – one tailored to your end game.   It starts with a clear objective. Next comes the strategy to achieve the goal. Then should follow a process of research (which means more than absorbing media headlines) to become informed about markets and to aid decisions on what, where and when to buy.   I would guess than maybe 1% of the people out there in the market have done anything like that.   The rest will buy in a frenzy and sell in a panic – and wonder why real estate investment hasn’t made them rich.
<hr>
Terry Ryder is the founder of <a rel="nofollow" href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a> and you can contact him at <a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a> or <a href="https://twitter.com/hotspotting" target="_blank">twitter.com/hotspotting</a>.
CORRECTION: This article has been updated since initial publication due to an error in an previous article by a Property Observer staff member. This prior article referred to Saul Eslake tipping a property "boom" compared to his actual comments tipping a property "recovery".
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terryryder-YECXbqmri2

Don't get caught in the herd mentality of investment property buying: Terry Ryder

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John McGrath says one of the most attractive traits of Sydney’s Barangaroo development is its green credentials.
“One of the coolest things about Barangaroo is its plan to be Australia’s first large-scale carbon neutral community – in fact, the aim is to make it the first of its size in the world to be climate positive,” McGrath wrote on Switzer.
“Sustainability has been a major factor in the masterplan, which includes a harbour cooling system, a recycled water service that will deliver 60 Olympic pools of recycled water to the CBD per year; a waste recycling service; and 6,000 square metres of solar panels.”
He says the $6 billion Lend Lease development will reinvigorate the city but will also lead to many commercial developments being transformed into residential towers.  Major commercial tenants in the project will be Westpac, KPMG and Lend Lease – the group developing the site.
“As Barangaroo attracts the city’s best commercial tenants, this will probably result in some older commercial buildings in the CBD being redeveloped into residential apartments, as demand from commercial tenants declines.”
“This isn’t a bad thing as there are plenty of buyers who are keen to live in Sydney’s CBD. Executives love new apartments and living in the CBD means they’re close to work as well as all the great entertainment and lifestyle amenities the city has to offer.
“Downsizers are a group of buyers increasingly heading to the CBD, as many Sydneysiders refuse the seachange option in favour of New-York style living close to all the action.”
The development hopes to have 96% of all people heading there arriving by public transport, bicycle or by foot.
The 22 hectare former container port will hold 23,000 workers will house up to 1,500 residents living in 800 apartments.
It will also be home to James Packers' new $1.4 billion casino which McGrath says will attract high net worth Asian visitors.
Barangaroo South – the first of three areas at Barangaroo will open in 2015 and will host apartments and three commercial towers.
The six hectare Headland Park will open in mid-2015 and will have waterfront promenade, native gardens and cultural spaces.
And Central Barangaroo’s preliminary plans include large public spaces, cultural and civic components and further commercial development.
Some <a target="_blank" href="https://www.propertyobserver.com.au/developments/harbourfront-barangaroo-apartment-developments-stoke-significant-anticipatory-interest/2013080863814">5000-plus enquiries by prospective buyers</a> have emerged for the first luxury apartments at Barangaroo South.
There are just the 159 off the plan apartment offerings in the first two buildings which are due for completion by late 2015.
The two low-rise buildings, the Alexander and Anadara, are the first two residential instalments of a master plan that will eventually include 800 apartments at Barangaroo South.
But they don’t come cheap starting at $1 million for a one-bedroom apartment.
The two-storey penthouse on the northern wing of the Anadara building, known as The Cloud, is expected to fetch more than $10 million.
 
 
 
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John McGrath's sights set on sustainability at Barangaroo 

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Two strata property on Melbourne’s pedestrian thoroughfare, The Causeway have been sold.
They were sold "under very competitive conditions," according to Fitzroys agent Charles Emmett.
Shop 5, a 45 square metre retail premises leased to Gordon’s Café (pictured below left), sold for $1.51 million, some $460,000 above reserve.
Returning $67,700 per annum net, the sale price reflected a yield of 4.48%.
<img height="153" width="235" src="/images/stories/2013/08/laneway-aug-21-one-2.jpg" alt="laneway-aug-21-one-2"><img height="157" width="235" src="/images/stories/2013/08/laneway-aug-21-two-2.jpg" alt="laneway-aug-21-two-2" style="font-size: 0.8em;">
The partially fitted Basement (pictured above right), with an area of 204 square metres approx and without “retail access”, sold for $675,000 plus GST.
 
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jchancellor-FAypfDUnLy

The Causeway, Melbourne strata offerings sell

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Endeavour Hills Shopping Centre has secured two new tenants and re-signed a further 10 national operators as part of an overhaul of the centre’s retail mix.
The two new tenants were Snap Fitness, which signed a 321 square metre lease and Bank of Melbourne, which took 212 square metres in the centre.
Both leases were negotiated by Colliers International leasing agent, Mike Crittenden.
In the past six months, Wespac, Commonwealth Bank,  Priceline, Millers, Sussan, EB Games, Suzanne Grae, Tenderfresh Meats, Flight Centre and ANZ have all renewed there leases in the centre.
Recent rentals achieved have ranged from $750-$1,800 per square metre, said Mr Crittenden.
“Our focus has been on renewing quality tenants as well as improving the centre by securing additional offerings not previously represented in the centre,” he said.
Located 30km south-east of the Melbourne CBD, the Endeavour Hills Shopping Centre, comprises a variety of retail spaces, totaling about 36,000 square metres. Among the 86 retailers in the centre are Woolworths, Coles, Aldi, Dan Murphy and a Big W.
“We are still on the look-out for more high-quality retail, fresh food, fast food and service-based operators to complement the existing strong tenancy mix for the remaining tenancies," said Mr Crittenden.</body></html>

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Endeavour Hills Shopping Centre overhaul continues, securing two new tenants

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Sydney, Melbourne and Brisbane have maintained their ranking among the world's most expensive cities for global retailers, despite a backdrop of flat retail turnover figures and a weak domestic economic environment.
The three Australian cities all featured in CBRE Group's top 10 quarterly rankings, which was topped by Hong Kong with prime rents at US$4,328 per square feet per annum, followed by New York.
<img alt="record-retail-rents-charts" height="425" width="470" src="/images/stories/2013/08/record-retail-rents-charts.jpg">
Prime rents in Sydney, which was fifth in the rankings, came in at US$945 per square feet. Prime rents in Melbourne were $794 per square feet and in Brisbane  were $599 per square feet, the CBRE research showed.
Josh Loudoun, CBRE senior director of Retail Services Australia, said the Australian cities combined were tracking at a "steady growth" rate, but that the results varied from city to city. Prime rents in Sydney, he said had fallen, whilst in Brisbane rents had accelerated strongly and Melbourne had experienced steady growth.
Nervertheless, he said the overall results  highlighted that Australia was showing steady growth at a time when the retail sector is in the doldrums.
Driving the local results , said Mr Loudoun, was the "limited number of new leases being signed as landlords have been more inclined to leave tenants on hold over or short term leases at the lease expiry, instead of putting the property to the market and crystallising a downgrade.”
However, he also said, Australia had continued to benefit from low vacancy rates and the limited new supply coming to the market, along with the influx of international retailers to our local shores.
US fashion label Brooks Brothers and UK retailer Marks &amp; Spencer have recently announced they will be entering the Australian market.
Another consideration he points to is the upcoming Federal election.
"History shows that retail sales following a federal election usually show a strong short-term spike as consumer confidence lifts and this will translate to rental growth over the next 12 months. This will also coincide with a number of the ‘boom time’ leases of 2008/2009 coming up for their five year anniversary," said Mr Loudoun.
CBRE said that the top 10 prime global retail markets saw little change relative to previous quarters, however, four of the top 10 markets - New York, London, Zurich and Tokyo - saw quarterly increases in prime retail rents, compared with only one market during the previous quarter.
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Australian cities among the most expensive for global retailers: CBRE

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If ever there was a reason for property investors to be looking at the Sydney suburban office market for investment opportunities, it is now, according to Jones Lang LaSalle.
Based on its analysis of the nine key suburban office markets - Sydney Fringe, South Sydney, North Sydney, Chatswood, St Leonards, Parramatta, Macquarie Park, Norwest and Homebush/Rhodes - JLL found that the combined commercial footprint stood at 4.39 million square metres and the value was $19.5 billion, incorporating 190 A-grade assets.
<img height="224" width="470" src="/images/stories/2013/08/chart-of-the-week-aug-21.jpg" alt="chart-of-the-week-aug-21">
Source: Jones Lang LaSalle
There was "significant depth" in Sydney's non-core office market, said JLL research analyst Leighton Waugh.
Specifically, he said there are four fundamental criteria that support the argument for investment in the non-CBD office markets - tenant demand and vacancy levels, rental growth, incentive levels and the yield spread between CBD and non-CBD markets.
"Tenant demand for suburban office space has been buoyant in the 12 months to June 2013, with gross take up totaling 140,700 square metres,'' he said.
And while prime net absorption was a modest 2,000 square metres over the same period, he made a point of saying that the Sydney CBD prime office market recorded negative net absorption of 20,700 square metres.
Of the nine suburban markets, JLL said demand was highest in Homebush/Rhodes, Macquarie Park and Parramatta ,which recorded positive net absorption of 47,300 square metres in the 12 months to June 30. North Sydney, Sydney Fringe and Sydney South reported negative net absorption of 81,400 sqm.
"The number of tenant briefs for space has increased in the majority of the suburban markets as prospective tenants look to take advantage of the modern amenities and lower gross effective rents," said Mr Waugh.
He said the average gross effective rent for the nine Sydney suburban office markets was $341 per square metres per annum.
"The lower gross effective rent for the suburban office markets compared to the Sydney CBD ($608 square metres per annum) makes the suburban market attractive for tenants despite the stronger rental growth (4.2%) against the Sydney CBD (-2.5%) year-on-year," he added.
The JLL research also showed that prime vacancy across the nine suburban markets sat  below the CBD vacancy level, at 9.2% and 11.3% respectively.
"Quality supply is scarce in the Sydney suburban office markets and little supply is forecast to come on stream in 2013 and 2014, which should see a tightening in the vacancy rate as was recorded in Parramatta, Macquarie Park and Homebush/Rhodes in Q2/2013," said Mr Waugh.
Sydney suburban upper yields ranged from 7.25% to 9.00% compared to 6.00% to 7.50% for the Sydney CBD, JLL said. It is forecasting yields to compress in the North Sydney and Parramatta markets in 2013 and 2014.
A number of institutional investors were preparing to raise capital for non-CBD office funds, said Mr Waugh, as those markets offered a combination of high yielding assets together with strong income streams.
"As a result, the demand for non-CBD product is likely to increase over the next 12-36 months, " he added.
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Significant depth in Sydney's non-core office market: Jones Lang LaSalle

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Commercial property in sound locations with long-term leases to secure tenants should be increasing in value as interest rates fall and new stock diminishes.  The following article highlights trends over the last four years that will enhance the relative attractiveness of commercial property investments.
It shows how the income return on capital invested in a commercial property investment has increased from 8.4% to 14.3% over the same period.  The return on fixed-interest investments has fallen from around 7% to 3.2%.  
If you purchased a government bond earning 5% per annum over five or six years and interest rates fell as they have done recently to 3% per annum, then the value of your government bond would rise by about 10%.  This is because the government bond that you hold is earning 2% more each year than new bonds on issue.  
Commercial property is usually on longer-term leases and the tenant usually per annumys most of the outgoings, thus net rental income should be more predictable over a longer term. 
For example, a property in Wollongong is leased-out to Government tenants for seven years.  On commencement of the lease, net rents represented 8% of the value of the property and rose by 4% per annum.  This 8% is called the cap rate.
As interest rates fell over the last few years, the value of the property should have risen because the net rental return had an increasing premium over the prevailing level of interest rates.  This did not happen because the pool of willing buyers contracted and those remaining started to price-in a greater level of risk associated with vacancy or lower rental returns or lower sale value - at the end of the lease.  
Simultaneously, finance for such commercial investments became harder to source and shorter in duration and banks charged increased margins.  Margins on many commercial loans rose by over 2% in the last few years and the average length of loans reduced by 40%.  The increased margins meant that investors did not benefit from the full imper annumct of the general reduction in interest rates. 
For example, in late 2007 the prevailing interest rates on a five-year loan was 7% and the bank margin was as low as 0.6% giving the all-up cost of finance at 7.6% per annum.  
Today the loan is likely to be for only three years at 3.2% per annum and the bank margin would be around 2.5% giving an all-up interest rate of 5.72% per annum, an effective drop of only 1.9% per annum.  
With fewer new investors and greater attention to the risk associated with vacancy or the expectation of lower rental returns at the end of the lease and tougher finance conditions, the level of net rental return (Cap Rate) demanded by investors rose. 
In our example, the required level of return needed to attract a purchaser exceeded 10%.  This meant that in order to achieve this 10% return, the property dropped in value by 20%.  
These lower property values were then reflected in lower valuations of the properties. 
With lower valuations, banks started to demand borrowers reduce their loans.  If the loan-to-valuation (“LVR”) requirement was 60% (ie borrowings represented 60% of the property value) and the valuation fell by 20% then the bank would demand that the loan be reduced by 20%. 
Those investors who repaid the debt benefited from a reduced amount of interest paid to the bank on the reduced loan, while continuing to receive net rental distributions equal to or greater than (due to the indexation) the level they received prior to the devaluation of the property. 
Unfortunately many investors were unable or unwilling to reduce the bank loan despite cashflows being enhanced, thus the properties were put on the market and sold at the reduced levels.  
New investors are now benefiting from higher net rental returns, lower interest rates and diminished supplies of competing stock. 
In the above example, the net rental return is around 10% and the cost of finance was 5.7%.  Therefore the new investor is making a return on the borrowed portion of the property of 4.3% (10% minus 5.7%) interest and a return of 10% on their own capital, giving a total return on their own capital of 14.3% per annum.
<hr>
Rowan Wall is the principal of <a target="_blank" href="https://www.eclipsefinancial.com.au/">Eclipse Financial Group</a>.
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What are the relative attractiveness of commercial property investments?  Rowan Wall

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While requirements may differ slightly from lender to lender, in general if you have to borrow 80% or more of the value of a residential property, you will have to pay lenders mortgage insurance (LMI).
LMI is paid by the borrower, but protects the lender if you default on your home loan and your lender is required to sell your property.
If the property sells at a loss, the lender can make a claim against its LMI provider for the shortfall.
Paying LMI allows borrowers with smaller deposits to buy earlier, rather than wait until they have saved up a 20% deposit.
There are two main providers of LMI in Australia, these being Genworth and QBE LMI.
These are 8 things you need to know about LMI:
<ul>
<li>
If you have less than a 20% deposit, you will more than likely need to budget for the cost of LMI.
</li>
<li>
LMI can be costly. Borrowing 95% on a property worth $400,000 will mean a premium of around $14,000. Borrowing 90% will mean a premium of around $7,000, according to the <a target="_blank" href="https://www.genworth.com.au/borrower-centre/homebuyer-tools/lmi-premium-estimator/?gclid=CO2R6M2yprgCFQMwpAodTjQASA">Genworth LMI premium estimator</a>. QBE LMI provides this handy <a target="_blank" href="https://services.lmiconnect.com.au/lmiOnline/common/tools/calculator/nsr/CalculateNSR.do?action=start">servicing capacity calculator.</a>
</li>
<li>
Stamp duty and GST are payable on LMI Premiums, subject to state government rules.
</li>
<li>
Your lender will determine if you will need to pay LMI after they have assessed your loan application and documentation.
</li>
<li>
LMI is a one-off premium you pay. The amount is determined by your lender based on a number of factors including, but not limited to deposit size, loan size, and type of loan.
</li>
<li>
You may be able to capitalise your LMI premium. This means adding the premium to your home loan amount and paying it as part of monthly repayments. However you will pay more as interest is payable on the LMI premium.
</li>
<li>
LMI is not portable, which means if you want to refinance into a cheaper rate but are still borrowing in excess of 80% of the value you will have to pay LMI again. “The premium paid on your first loan does not carry over to another loan if you want to refinance even though your premium is paid to a specific mortgage insurer,” says inTouch Finance founder Paul Ryan.
</li>
<li>
Don’t confuse LMI with mortgage protection insurance, which you take out to cover loan repayments in the event you are unable to make payments because you’ve lost your job, been disabled, or worse.
</li>
</ul>
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Less than a 20% deposit? The 8 things you need to know about lenders mortgage insurance (LMI)

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Concerns at the rate of New Zealand house price growth - and the potential risks that posed to the financial system - has prompted the NZ Reserve Bank to impose restrictions on the loan-to-value ratio (LVR) for housing mortgage loans within lending banks from October 1.
The banks will need to restrict new lending with LVRs of more than 80% to no more than 10% of the dollar value of their new housing lending flows.
House prices increased by 16% and 10% respectively in Auckland and Christchurch over the past year (three-month moving average to July 2013 over the same period in 2012).
They increased by 4% over the rest of New Zealand overall, with considerable variability among regions.
But here in Australia the growth isn't at these levels, and doesn't seem set to get any cap on loan-to-value ratios (LVRs) under the RBA governorship of Glenn Stevens.
Last year Dr Luci Ellis, head of the RBA’s Financial Stability Department, stressed borrowers needed to provide some deposit when they buy a home. 
Dr Ellis noted a cap would have little impact on buyers trading up, but certainly squeeze first-home buyers out of the market.
 
{module Should the RBA follow the Reserve Bank of New Zealand and introduce limits on bank lending as a property cooling measure?}
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Should the RBA follow the Reserve Bank of New Zealand and introduce limits on bank lending as a property cooling measure?

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New Limited economics columnist Terry McCrann says the RBA board is worried about a "property bubble.’’
He says the RBA is concerned that the only stimulus that would come from even lower rates was "to the second-hand property market and the bank accounts of real estate agents’’.
"In short, it's worried about "stimulating" a property bubble, McCrann wrote in his column today on the prospect of any further cash rate cuts.
He says the RBA ‘’is hostage’’ to what the US Federal Reserve does which will impact the US dollar and, indirectly, the Australian dollar.
The right moves would see our dollar slide to the 80s ‘’and hopefully stay there’’.
He says that would rule out any further rate cuts, although <a target="_blank" href="https://www.heraldsun.com.au/business/rba-may-cut-rate-further/story-fni0d8gi-1226700920257">China was another wildcard</a>.
McCrann is one of a less than a handful of economic commentators credited with<a target="_blank" href="https://www.propertyobserver.com.au/economy/rba-independence-on-the-line-in-complex-cup-day-scenario-christopher-joye/2011102752092"> insider RBA access</a>.
 
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