<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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As potential homebuyers are swamped for choice, property developers and builders are looking for new ways to encourage buyers through a range of incentives.
Incentives include furniture packages, rental guarantee, stamp duty savings, a marina berth and even a free boat ride.
The newest offering commenced on April 1 and includes a <a target="_blank" href="https://www.studioninerichmond.com.au/StudioNine_HermonandHermon_Terms_Conditions.pdf">complimentary $40,000 Hermon &amp; Hermon furniture package with the purchase of a Studio Nine penthouse apartment</a> in Melbourne’s Richmond.
Buyers will receive a gift voucher, which will then be redeemable at Hermon &amp; Hermon store that entitles them to $40,000 worth of Hermon &amp; Hermon furniture and a free personalised styling consultation. The offer expires May 31 and the voucher must be redeemed within 12 months of settlement.
Here’s a look at other incentives currently being offered:
Bonus Marina Berth at Mirvac’s Yarra Point
 
For contracts signed between April 1 to April 30, Mirvac is offering buyers in the <a target="_blank" href="https://www.yarrapoint.com/mirvac">Yarra Point development in City River Park Docklands a bonus Marina Berth</a> if the purchased apartment is over $1 million. There are only 12 berths available at Marina YE and are on a leasehold expiring December 1 2030. Million dollar residences include three bedrooms, two bathrooms and three car spaces.
5% rental guarantee
 
The 5% rental guarantee is not a new offer on the table but still remains popular with property developers. CBRE is offering buyers of its You and I development in Collingwood a 5% rental guarantee or up to $14,000 first home owner grant boost. You and I offers one-bedroom apartments starting from $359,000 and two-bedroom apartments starting from $512,000.
CBRE is also offering a 5% rental guarantee in April on its Lucia development in South Yarra. The incentive is only valid for contracts settled in April. Lucia offers two-bedroom apartments from $460,000 and a residents gym, swimming pool and a rooftop resident’s lounge.
Stamp duty savings
<a target="_blank" href="https://www.cbreresidentialprojects.com.au/NewProjects/Emporia/491.aspx?PRegion=57">CBRE is offering stamp duty savings of up to $45,000 in their Empora development in Prahran</a> if purchases are made before construction commences. Located on Commercial Road, one-bedroom apartments start from $370,000 and two-bedroom apartments start from $530,000. However buyers better get in quick, as demolition is now completed to pave the way for construction.
Meanwhile, Spec Property developers are offering to pay the stamp duty for apartments purchased off the plan in their Madison development in Doncaster. One-bedroom apartments start from $419,000, two-bedroom apartments start from $549,000 and three-bedroom apartments start from $745,000.
Hampton’s free boat ride 
 
It may not be a luxury furniture package of a marina moor but<a target="_blank" href="https://www.havenontheriver.com.au/cms-news/index.phps"> property developer Hampton offered a free boat ride</a> on the weekend for potential buyers to “experience the riverfront lifestyle for yourself”. The free boat rides were offered for three hours for those looking at purchasing in Abbotsford Haven neighbourhood. Haven offers a range of apartments and terrace homes priced from $950,000.
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Melbourne apartment buyer enticements include rental guarantees, marina berths and even a boat ride, as market ripe with new offerings

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A-League soccer star Daniel McBreen of the Central Coast Mariners has revealed his ambition to become a successful mortgage broker with AFG once his soccer playing days are over.
McBreen scored the second half penalty goal that secured the Mariners their first A-League title in a hard fought 2-0 win over the Western Sydney Wanderers last weekend.
In an interview with MPA Magazine McBreen said his father had been a mortgage broker and the plan was always for him to take over from him one day. 
Sadly, his father’s passing last year brought forward his role in the business.
McBreen says football is his main priority currently but he spends afternoons and evenings working on mortgage broking-related business.
“Every spare moment I get away from football I try and put towards doing what I need to do to get this [business] up and running,” he told MPA Magazine.
“I’m hoping to play football for another couple of years and if that comes off I’d like the mortgage side of the business to be up and running – and to be in a position where, when I do finish playing football, I can move seamlessly into full-time [broking] work and have the work there to keep me going on strong."
McBreen is not the only sports star to try their hand at mortgage broking through AFG.
Former Richmond Tigers ruckman Troy Simmonds operated mortgage broking business Harbour Finance, aggregating through AFG, for four years towards the end of his football career.
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Soccer star Daniel McBreen shoots for AFG mortgage success after grand final glory

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While the federal Department of Immigration has yet to issue any Significant Investment Visas (SIVs), over 200 applications from Chinese investors and a smattering of other nationalities should soon be in the post.
Most are targeting investments in NSW and Victoria, and the granting of the visas is expected to have positive reverberations for the top-end property markets in cities like Sydney and Melbourne, where demand for prestige real estate has been low compared with more affordably priced properties.
The SIVs, colloquially called "Golden Ticket" visas are available to wealthy investors who can invest $5 million in approved investments for four years and are then eligible for permanent residency. There is no English language requirement, though they must stay in Australia at least 160 days within those four years.
The applicant, spouse and dependent family members can live in Australia immediately after approval.
While the rules of the SIV specifically exclude direct investment in real estate, applicants can invest in an unlisted managed fund that holds Australian direct property assets and/or a trading business/ company.
According to the latest figures from the Department of Immigration, 222 invitations have been issued to investors to apply for a SIV.
This is up from the 131 invitations to apply issued by late February.
Of these, 212 invitations have been issued to Chinese investors with the remaining ten coming from Singapore, Japan, Taiwan, Germany, Hong Kong and the US.
Almost half (101) of these invitations are for applicants looking to invest in NSW, with 81 in Victoria and 29 in Queensland.
A surprisingly small number – just 8 – are looking to invest in mining-rich WA with three planning to invest in South Australia.
The 222 invitations issued by the Department of Immigration follow it receiving 345 expressions of interest from Chinese investors, seven from Hong Kong, two from India, three from Japan, four from Singapore, two from Taiwan, three from the US and one application each from 13 other countries.
Earlier this month, Knight Frank established a <a href="/news">special sales team specifically targeting wealthy Chinese investors</a> following the introduction of the significant investment visa (SIV).
The Knight Frank team includes Chinese born agents and people with experience dealing with Asian investment, led by Dominic Ong.
Ong believes Chinese spending overseas is increasing and won’t peak for another five years.
“During my recent visit to Shanghai and Beijing, we are seeing Chinese investors increasingly looking to diversify their portfolios and they view Australia as a safe haven and a long term investment destination.
“We are currently working with some 20 groups of Chinese investors sourcing office towers and shopping centres to hotel investment and land development projects.”
Th SIV program was launched in November last year.
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None issued yet, but significant visa applications dominated by Chinese investors eyeing NSW and Victoria

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If an agency offered you a $30 gift voucher to submit your home to an appraisal, with a promise of a $250 gift voucher if you listed it with them, would you believe the appraisal?  
This is life in the Perth market today. People are clamoring to buy and making offers above the asking price to secure a property. Agents who can’t get enough stock to meet demand are offering gift vouchers and frequent flier points to entice home buyers to list their properties for sale.  
Why is it this way in the Perth market at present? It’s because people are herd animals and in no activity are their pack instincts more alert than in real estate buying and selling.  
It was clear in the middle of last year that Perth was heading for a new phase of price growth. All the key indicators that forewarn a rising market were in place. But few people were buying.  
Why not, when the buying was good and the future was clear? Because the herd was sitting around in the sun, having a graze. Herd animals don’t like acting independently. They prefer the safety of the pack.  
Now the herd is restless. Those who have been sitting on a nearby fence have started to get the splinters out of their butts and join the herd.  
Why are people piling in and joining the pack? Because if everyone else is doing it, it must be right – right?  
Eventually there will be a stampede. The herd is easily spooked.  
This is why we have booms and busts in real estate markets.  
The average consumer would rather be part of herd that’s stampeding towards a cliff, than detach from the herd and trot in the opposite direction.  
Here’s the rub. No one ever got rich following the herd. Those who achieve notable success move in the opposite direction – or, at least, lead the herd, remembering to break loose before the pack reaches the edge of the cliff, where many herd members will meet a painful death (financially) or sustain major injury.  
Two years ago, when the Perth market was going nowhere, there were a lot more houses for sale than there are today. Conversely, there were few buyers, while today, with limited stock available, everyone wants to buy.  
Right now, according to reports, we have something akin to panic buying in the Perth market, particularly at the lower end. Many homes are selling within days of being listed or at their first open day. People are getting into bidding wars with competitors and paying well above asking prices.  
Were these buyers not in a position to act a year ago, when prices were low and competition was scarce? Did they not see the upward trend coming? Or was it simply that they were afraid to take action outside the comfort of the herd.  
This, sadly, is standard behaviour for real estate consumers. Their actions are driven, not by careful research and independent thought, but by the impulse to do what everyone else is doing.  
The herd rules.  
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/">hotspotting.com.au</a>
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Perth property stampede is driven by herd mentality: Terry Ryder

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Recent reports reveal that Australia has overtaken the US as titleholder for “home to the world's largest houses”.
Large ‘McMansions’ on expansive suburban blocks have long been held up as the ‘Great Australian Dream’ ideal, while smaller inner city apartments copped a pretty bad rap as the cheap and nasty end of the property market.
However, <a href="https://www.propertyobserver.com.au/residential/times-are-changing-and-apartments-are-on-the-rise-terry-ryder/2013041560408" target="_blank">times are changing</a>, with many home buyers and tenants forced to reflect on whether their priority is square footage and a big backyard in the burbs or getting into a property without breaking the budget.
Suddenly that one-bedroom apartment seems a lot more appealing.
Whilst many developed countries have embraced the virtues of high-density accommodation clustered around major cities – think New York, Paris, London and Tokyo – here in Australia, our culture has been based on backyards, BBQs and wide-open family spaces.
Now though, a demographic shift is occurring, with more single person households and childless couples choosing to live in and around our big cities where employment and lifestyle factors are big drawcards.
Figures from the Australian Bureau of Statistics (ABS) reveal that the number of one person households will surge to between three million and 3.6 million by 2031; a dramatic shift when you consider that in 2006 only 1.9 million people lived alone.
This massive increase is due to a number of factors, including:
<ul>
<li>Gen X downsizing as their children grow up and leave the family home.</li>
<li>A forecast jump in the number of DINKS (Double Income No Kids). According to the ABS, couple-only households are set to overtake the number of families with offspring in the next two or three years, and it's expected that DINKS will make up 60% of all couple-only households by 2031.</li>
<li>A rapidly growing population and continuing housing shortage in some of our major cities.</li>
<li>Ongoing affordability issues and increasing rental prices forcing many to rethink their size requirements.</li>
</ul>
Demand for one bedroom apartments, which skeptics have long considered to be less desirable, is set to soar as many Australians adjust their ideals according to what they can afford. And one of the questions they'll be asking is: do I really need that extra bedroom?
In the past, singles and couples have, by and large, sought out two bedroom apartments with the perception that they offer larger living spaces and the convenience of extra storage.
However, with median price tags for such real estate heading upwards of $500,000 and rents soaring over $500 per week in many desirable locations, the affordability barrier is encouraging many tenants, investors and home buyers to accept one bedroom units as a viable alternative.
Recognising this growing trend, developers are jumping on the bandwagon and including more one bedroom units in their large scale projects. But be wary – the price of many of these new apartments is going up as their size is going down.
 
<hr class="system-pagebreak">
So do one bedroom apartments make good, affordable investments? 
 
Is there enough ongoing future demand from tenants and owner occupiers alike to ensure they perform as long-term cash cows?
The simple answer is – yes!
Why?
Because affordability means more owner-occupier buyers will be pushed into this type of real estate as they sacrifice size for location, thereby increasing demand and placing upward pressure on prices. These apartments are often located closer to the city and major work nodes as well as universities and hospitals, in areas that generally have efficient transport connections, plenty of retail facilities and social amenity; all key elements high on the list of young buyers.
In addition, tenants seeking rental accommodation in and around desirable lifestyle locations will look for affordable one bedroom alternatives, meaning investors will have a large tenant pool to help pay the mortgage.
Sure, one bedroom accommodation caters to a narrow demographic of one and two-person households, but the reality is this is a mismatch of the demand from this growing demographic and the relatively restricted supply of established one bedroom apartments that are “investment grade” properties.
I have to say that some of my best performing investments over the last few years have been one bedroom apartments. They attract a diverse range of tenants, including Gen Y’s making the break from mum and dad; young professional couples, middle-aged singles as well as downsizing baby boomers.
A few words of warning:
<ul>
<li>Small spaces can either be highly functional or incredibly pokey, meaning the design and layout of your apartment is critical.</li>
</ul>
<ul>
<li>Avoid studio apartments. They are too small, the banks don't like them and they are very hard to on sell. Instead, go for something that offers at least 50 square metres of indoor space and if you can manage a balcony and plenty of clever storage options, all the better. Off-street parking is a desired bonus, but not necessarily required if close to transport</li>
</ul>
<ul>
<li>Steer clear of new and off-the-plan developments, especially in the CBDs of our major capital cities. Especially in Melbourne, where there is a huge oversupply and Brisbane with a potential oversupply problem.</li>
</ul>
<ul>
<li>Avoid the large generic developments sold off the plan in the center of major cities. While these might seem shiny and new, they quickly lose their lustre when people realise they lack character and the timeless appeal that puts property in continuous strong demand. Usually the majority of buyers in these soulless complexes are investors, while owner occupiers – the true driving force behind real estate values – tend to stay well away in preference of something more established or in a boutique block.</li>
</ul>
So next time you're shopping for an investment remember that it's not the size of the property that counts, it's the size of the profit you'll realise at the end of the day!
Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
 
 
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Warning, but yes small apartments offer big property investment possibilities: Michael Yardney

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New South Wales and Tasmania have led the states in the the latest new listings activity figures published by RP Data.
New South Wales recorded a 15.4% month-on-month (seasonally adjusted) increase in listings, while Tasmania had a 14.5% increase.
<img src="/images/stories/2013/04/rpdatalistingsapril23one.gif" width="470" height="250" alt="rpdatalistingsapril23one">
<img src="/images/stories/2013/04/rpdatalistingsapril23two.gif" width="470" height="202" alt="rpdatalistingsapril23two">
The RP Data listings index provides a lead indicator for the number of residential dwellings that are being prepared for sale across the Australian housing market.
The index, which tracks the flow of metadata across RP Data’s real estate data platform, shows a 75% correlation with the number of new listings about to enter the market.
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NSW and Tassie lead new residential listings activity: RP Data

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A three-bedroom Werrington brick house was last weekend’s cheapest auction sale in New South Wales, selling for $300,000 according to Australian Property Monitors.
Located at 20 Dunkley Place, the house sits on a 562 square metre block of land and features a large backyard.
<a target="_blank" href="https://www.realestateview.com.au/Real-Estate/20-dunkley-place-werrington/Property-Details-sold-residential-5234711">The property </a>sold for $10,000 over the reserve price, which was set at $290,000. It last sold for $19,750 in 1991 according to RP Data records.
Its listing agent Paul Abassi of Laing+Simmons St Marys/Ropes Crossing told Property Observer there were seven registered bidders present at the auction, most of whom were potential investors.
“The successful bidder was an investor,” he said.
Based on Laing+Simmons’ estimated $360 rental per week, the price reflected a likely rental yield of 6.24%, slightly higher than the average rental yield in Werrington which currently stands at 5.5% according to RP Data.
Abassi added that the market in Werrington is “pretty strong”. While the area is populated by “older people”, he told Property Observer that new homes are coming up, and younger families are “buying and renovating”.
According to the latest report by RP Data, the <a target="_blank" href="/news">median sale price for houses in Werrington</a> is $335,000, up 2.5%% on last year. The average discount required to sell a house is 4.2%, while private treaty sales average 67 days on market.
Other houses currently on sale on Werrington include: 70 Reid Street, listed for $379,000 by JLB Real Estate Werrington, and 205 Victoria Street, listed for $509,950 by LJ Hooker St Marys.
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Investors compete for $300,000 Werrington offering which sells at 6.24% yield

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Just over a quarter of the unit hotspot suburbs picked by Australian Property Investor (API) magazine in its 2012 Hot 100 list outperformed the national unit market in terms of capital growth over the past year.
Mining towns like Gladstone and Mackay were among those that fizzled badly, analysis by Property Observer can reveal.
Of the 62 unit hotspots from the 2012 Hot 100 list where comparison are possible, only 16 suburbs managed capital appreciation greater than the 2.4% rise in national unit prices recorded for the year to December 2012 as measured by Australian Property Monitors (APM).
This follows Property Observer revealing earlier this week that of the <a href="https://www.propertyobserver.com.au/hotspots/hit-and-miss-hotspots-box-hill-flames-out-while-highgate-karratha-newman-and-other-wa-mining-locations-are-on-fire/2013042260643?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=hotspots" target="_blank">90 hot spot suburbs for detached houses</a> where comparison were possible, 25 locations recorded declined of 1% or more over the year, 19 locations treaded water, 34 recorded gains of between 1% and 10% in their median house prices and 12 managed gains of more than 10%.
The Property Observer analysis is based on APM median sales figures for the 12 months to January 2013 as quoted by API Magazine in its latest Hot 100 flagship issue.
The APM figures show that more than half of the 62 suburbs recorded price declines over the year to January compared with expectations that suburbs on the list should demonstrate capital growth over a 12 month period and beyond as part of a long-term investment play.
Notable unit failures were the WA tourism-focused town of Broome (unit prices down 22.8%) and mining-influenced Newcastle (-16.4%), Mackay (-15.9%) and Gladstone (-11.1%).
Worst of the bunch was Norwood, a suburb just 3 kilometres from the Adelaide CBD, where the median unit price fell 28% from $461,000 as of December 2011 to $328,000 as of January 2013.
Reasons for Norwood’s inclusion in 2012 include its seemingly good local council which “supports community sentiment and maintains standards”, its close proximity to the CBD and bus connections (though no train) and the appeal of its main street as a “popular shopping, dining and entertainment precinct”.
However, Norwood has been axed from the 2013 Hot 100 list, which features just three South Australian suburbs on its list and has totally excluded the inner suburbs of Adelaide.
South Australian suburbs on the 2013 list are Hackam West on the south eastern outskirts of Adelaide, the rural Riverland regional town of Renmark and mining town of Whyalla, despite the shelving of the Olympic Dam expansion project.
The second-worst performer was Broome in the Kimberley region, where median have fallen 22.8% over the comparison period.
Located 1,680 kilometres north of Perth and famous for its pearling, fishing and tourism industry, Broome made it onto last year’s list because of its proactive local council, good flight connections and a good mix of services and amenities including two major shopping centres, a university and a TAFE.
However, despite all of this, the median Broome unit price fell from $453,000 to $350,000 over the 12 months to January 2013.
Broome is not included on the 2013 Hot 100 list.
At the other end of the spectrum, Belmont, 7 kilometres north east of Perth, was the standout unit performer from the 2012 Hot 100 managing a 32% rise in its median unit price as was the South Australian mining town of Roxby Downs (up 29.6%) and Mandurah (17%), listed as a "lifestyle" location by API Magazine, 65 kilometres south of Perth.
The high number of suburbs where unit prices went backwards rather than forwards, as anticipated by API Magazine, highlights the challenges faced in picking hotspots and the importance of doing your own research.
In its guide to this year’s list API Magazine tells readers they should not buy a property in a location “just because it’s in the Hot 100”
“This list isn’t your due diligence. You must do your own detailed homework into any area you’re going to invest in, as well as the property type,” says API.
<table style="width: 446px;" frame="box" border="0" cellpadding="0" cellspacing="0">
<colgroup>
<col width="122">
<col width="324">
</colgroup>
<tbody>
<tr height="21">
<td height="21">Suburb</td>
<td>12 month change in median unit prices to Jan 2013 (units)</td>
</tr>
<tr height="21">
<td height="21" width="122">Norwood, SA</td>
<td width="324">-28.00%</td>
</tr>
<tr height="21">
<td height="21" width="122">Broome, WA</td>
<td width="324">-22.80%</td>
</tr>
<tr height="21">
<td height="21" width="122">Carindale, QLD</td>
<td width="324">-21.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Werribee, VIC</td>
<td width="324">-17.30%</td>
</tr>
<tr height="21">
<td height="21" width="122">Dunsborough,WA</td>
<td width="324">-16.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Newcastle, NSW</td>
<td width="324">-16.40%</td>
</tr>
<tr height="21">
<td height="21" width="122">Mackay, QLD</td>
<td width="324">-15.90%</td>
</tr>
<tr height="21">
<td height="21" width="122">Chermside, QLD</td>
<td width="324">-15.70%</td>
</tr>
<tr height="41">
<td height="41" width="122">Broadmeadows, VIC</td>
<td width="324">-15.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Parap, NT</td>
<td width="324">-12.20%</td>
</tr>
<tr height="21">
<td height="21" width="122">Gladstone, QLD</td>
<td width="324">-11.10%</td>
</tr>
<tr height="21">
<td height="21" width="122">Southport, QLD</td>
<td width="324">-11.10%</td>
</tr>
<tr height="21">
<td height="21" width="122">Ringwood, VIC</td>
<td width="324">-10.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Nundah, QLD</td>
<td width="324">-10.30%</td>
</tr>
<tr height="41">
<td height="41" width="122">Indooroopilly, QLD</td>
<td width="324">-10.00%</td>
</tr>
<tr height="21">
<td height="21" width="122">Port Lincoln, SA</td>
<td width="324">-9.70%</td>
</tr>
<tr height="21">
<td height="21" width="122">Frankston, VIC</td>
<td width="324">-9.00%</td>
</tr>
<tr height="20">
<td height="20" width="122">Bunbury, WA</td>
<td width="324">-7.20%</td>
</tr>
<tr height="21">
<td height="21" width="122">Coburg, VIC</td>
<td width="324">-6.20%</td>
</tr>
<tr height="21">
<td height="21" width="122">Townsville, QLD</td>
<td width="324">-5.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Dandenong, VIC</td>
<td width="324">-5%</td>
</tr>
<tr height="21">
<td height="21" width="122">Erskineville, NSW</td>
<td width="324">-4.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Ascot Vale, VIC</td>
<td width="324">-4.40%</td>
</tr>
<tr height="21">
<td height="21" width="122">Thornbury, VIC</td>
<td width="324">-3.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Enmore, NSW</td>
<td width="324">-3.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Mentone, VIC</td>
<td width="324">-2.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Granville, NSW</td>
<td width="324">-2.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Como, WA</td>
<td width="324">-2.40%</td>
</tr>
<tr height="21">
<td height="21" width="122">Northcote, VIC</td>
<td width="324">-1.90%</td>
</tr>
<tr height="41">
<td height="41" width="122">South Brisbane, QLD</td>
<td width="324">-1.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Armadale, WA</td>
<td width="324">-1.40%</td>
</tr>
<tr height="21">
<td height="21" width="122">Coorparoo, QLD</td>
<td width="324">-1.40%</td>
</tr>
<tr height="21">
<td height="21" width="122">Fremantle, WA</td>
<td width="324">-1.40%</td>
</tr>
<tr height="21">
<td height="21" width="122">Kellyville, NSW</td>
<td width="324">-0.90%</td>
</tr>
<tr height="21">
<td height="21" width="122">Orange, NSW</td>
<td width="324">0.00%</td>
</tr>
<tr height="41">
<td height="41" width="122">West Footscray, VIC</td>
<td width="324">0.00%</td>
</tr>
<tr height="21">
<td height="21" width="122">Midland, WA</td>
<td width="324">0.30%</td>
</tr>
<tr height="21">
<td height="21" width="122">Sherwood, QLD</td>
<td width="324">1.00%</td>
</tr>
<tr height="21">
<td height="21" width="122">Joondalup, WA</td>
<td width="324">1.40%</td>
</tr>
<tr height="21">
<td height="21" width="122">Turner, ACT</td>
<td width="324">1.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Carlton North, VIC</td>
<td width="324">1.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Stafford, QLD</td>
<td width="324">1.70%</td>
</tr>
<tr height="21">
<td height="21" width="122">Blacktown, NSW</td>
<td width="324">2.40%</td>
</tr>
<tr height="21">
<td height="21" width="122">Dickson, ACT</td>
<td width="324">2.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Box Hill, VIC</td>
<td width="324">2.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Maroubra, NSW</td>
<td width="324">2.70%</td>
</tr>
<tr height="21">
<td height="21" width="122">Highgate, WA</td>
<td width="324">3.80%</td>
</tr>
<tr height="41">
<td height="41" width="122">Osbourne Park, WA</td>
<td width="324">4.10%</td>
</tr>
<tr height="21">
<td height="21" width="122">Sunshine, VIC</td>
<td width="324">4.10%</td>
</tr>
<tr height="21">
<td height="21" width="122">Summer Hill, NSW</td>
<td width="324">5.20%</td>
</tr>
<tr height="21">
<td height="21" width="122">Perth CBD, WA</td>
<td width="324">5.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Magill, SA</td>
<td width="324">5.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Neutral Bay, NSW</td>
<td width="324">6.30%</td>
</tr>
<tr height="41">
<td height="41" width="122">Camperdown, NSW</td>
<td width="324">6.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Marrickville, NSW</td>
<td width="324">7.00%</td>
</tr>
<tr height="21">
<td height="21" width="122">Willetton, WA</td>
<td width="324">8.90%</td>
</tr>
<tr height="21">
<td height="21" width="122">Footscray, VIC</td>
<td width="324">11.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Warrnambool, VIC</td>
<td width="324">12.50%</td>
</tr>
<tr height="21">
<td height="21" width="122">Hamilton Hill, WA</td>
<td width="324">14.80%</td>
</tr>
<tr height="21">
<td height="21" width="122">Mandurah, WA</td>
<td width="324">17.00%</td>
</tr>
<tr height="21">
<td height="21" width="122">Roxby Downs, SA</td>
<td width="324">29.60%</td>
</tr>
<tr height="21">
<td height="21" width="122">Belmont, WA</td>
<td width="324">32%</td>
</tr>
</tbody>
</table>
</body></html>

Unit hotspots less hit and more miss: Broome, Newcastle and Gladstone among markets that flopped in 2012

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A couple of years ago at an property show in Sydney, I noted the abundance of overseas property investment stands.
Whilst most were related to the US, Thailand, and Bali, there were a couple of stands fronted by New Zealand specialists.
At the time I was focused on other things and did not really entertain the prospect of investing in the Kiwi market.
However, after doing some further digging recently, I uncovered more about our neighbour to the East, Aotearoa; the ‘Land of the Long White Cloud’.
Today I thought I’d provide a few of the pros and cons I perceive for investors considering the New Zealand market.
Whilst my findings are certainly very limited, and my own knowledge of, and experience in, this market is limited to many snowboarding trips and a few tongue-in-cheek jokes, I think New Zealand is certainly a market to consider for those who can see value in offshore property investment.
As merely a ‘tourist’ in my coverage of this market, I am keen to here from other Australians who have had residential property investment experience in New Zealand.
No doubt there are many further pros and cons that I have neglected to mention.
Cons:
Macroeconomic factors that challenge job security:
Some macroeconomic limitations can adversely affect many of the property markets in employment centres such as Auckland and Wellington.
According to Wikipedia, New Zealand overall has a market this is quite connected to international trade partners such as Australia, Europe, USA, China, Japan, and Korea.
However, what comes with these connections are the peaks and troughs that these bigger markets can fluctuate through. What I am getting at is that for a country so heavily dependent on trade with other markets, jobs can be adversely effected at random, in Auckland and Wellington.
Environmental challenges:
The tragedy that was the 2011 Christchurch earthquake changed the city of Christchurch forever.
The quake was the result of what was a previously-unknown defined tectonic plate fault-line until about 2010; leading to the big 6.3 magnitude quake, just outside the CBD area of the city.
Since then the city has been rebuilding and creating infrastructure that is better-equipped for future tremors. Still, the unpredictable volatility of the ground beneath this city has led to many investors recording losses and selling properties at reduced costs in and around this Canterbury region of New Zealand.
Environmentally and ecologically, Australia and New Zealand could not be more different. In Australia, the continent is very secure, with zero tectonic plate faultlines meaning that we can pretty much build what we want, where we want.
Conversely, New Zealand as a nation is constantly reviewing and upgrading needs-assessments for construction projects ranging from small granny flats, all the way up to skyscrapers on the city skyline.
There is actually one main pro and one main con to perceive this moving into the future:
Con: existing dwellings may later be required by law to be ‘future-proofed’. As an investor this is high risk. You could pick up a house for a great rate now, but what happens in a few years when new compliance construction laws come in, requiring you to fortify the dwelling to ensure its compliance with new laws?
The costs involved could completely diminish any further gains-potential from the property, as a viable investment. This trend may or may not be confined to ‘known’ Earthquake-risk areas. I.e. the New Zealand government could nationalise these compliance laws, which could upset the property investment landscape significantly
Pro: This has potential to create the ‘San Francisco Effect’ for property investors. The San Francisco Effect is a term I have just made up then! San Francisco is a city on a limited volume of land – a trait that on its own is enough to effect supply and demand ratios positively for investors – with the added challenge of being earthquake-prone.
This reduces the height of buildings that can be built there, and also the materials able to be used. Ever notice how those pretty three-storey weatherboard homes line the streets neatly in San Francisco and cost a small fortune to purchase? Well, that trend was not down to a designer saying ‘let’s make San Fran a city of really cute, adorable old-fashioned houses and not big concrete-and-glass apartment blocks like every other city’.
No, the materials used and height limits decided are necessary to earthquake-proof the dwellings. This creates further limitations for future city expansion, making those dwellings highly coveted in demand, and thus increasingly returns and values sharply. Cities like Christchurch, which is an important economic hub for New Zealand, could go down this path in the future, meaning that securing a good deal on an earthquake-compliant, well-located property in Christchurch now, could pay significant dividends in the future.
 
<hr class="system-pagebreak">
Pros:
Opportunity exists for year-round holiday investment property types:
Though I mentioned above some challenges with job security due to macroeconomic and international-dependent factors adversely affecting job supply, there are opportunities in New Zealand property in areas not as affected by these drivers.
Take, for example, certain areas of the south island where tourism is high, year-round. In Australia, it is harder to find tourism-dependent property types that can consistently (read: ‘year-round’) provide secure rental revenue.
Here in Australia, the weather greatly affects such areas. For example, in the tropic north, tourists avoid the wet season, making an investment property up there, very seasonal, with a high risk of long-term vacancy during the ‘off’ months.
In cooler tourist areas such as the Snowy Mountains and Tasmania, it changes again, with the demand in the ‘off months’ for each of these regions arguably reducing heavily.
In New Zealand, many holiday hotspots are valued year-round for their appeal. Queenstown in the South Island for instance; is valued in winter for its skiing/snowboarding, yet in summer it can still achieve similar patronage numbers for is river-sports and extreme sports activities along with trails and trekking that is otherwise difficult in winter. Areas with year-round appeal like this can make for solid investments.
Your Australian dollar buys you more:
This is a pretty obvious one but must be stated nonetheless. The AUD certainly performs well when buying NZD currency.
At the time of writing, XE.com reported that 1 AUD will buy NZD 1.22. This is significant when considering the entrance costs to any property investment. Furthermore, regardless of the dollar conversion figure; without a doubt your dollar goes further in many parts of New Zealand when compared to Australia, on an apples-for-apples basis.
Yields can be as significant in some parts of New Zealand as say a US investment. Whilst capital growth may not be as significant as Australia, if you can ‘hold’ a high yielding property for five years, the opportunity to open more doors and grow a portfolio quicker, is significant.
Stamp duty concessions:
When you compare Australia with New Zealand in terms of ‘up front costs’, you cannot help but think somewhat that Australians are being ripped off. The extortionate stamp duty costs attached to investment (aka non-first-home) properties in Australia are amongst the worlds highest.
In truth, it is important to note that ‘stamp duty’ as a tax, does weed itself into a property investor’s balance sheet in some way or another, in many other countries in the world; but it is certainly not as initially prohibitive in the way Australia’s is, when spread out over a longer term or payable later on. For example, in the US, ‘county taxes’ are payable yes, but these are significantly higher than say the ‘council rates’ you’d expect to pay quarterly when holding property in Australia.
This is due, in part, to some of the ‘stamp duty’ tax making its way into county tax costs. The difference is, you do not have to pay an huge sum up front.
This enables you to pour more money into the actual deposit and start your property investment career much more quickly. Well according to a 2012 white paper by Deloitte on ‘Taxation and Investment in New Zealand 2012’, New Zealand does not carry any stamp duty on property purchases. And it gets better; in addition to this, there is no transfer fee/tax on property purchases, along with no national or provincial (I.e. ‘North Island’ or ‘South Island’) land tax on physical plots of land in the country.
Counties and councils will charge their own land rates but these are certainly not as extreme as land tax thresholds payable in states of Australia when you own land of greater values than these thresholds. One thing to be mindful of though, is the way Australians are taxed for New Zealand investment properties.
Whilst NZ will not charge capital gains tax at the point of sale, in Australia you will be liable for tax when selling your NZ property, though this tax rate is in line with your tax rate in Australia. This is as per the CER agreement between the countries. You income from the NZ property whilst you are holding it is taxed at your Australian rate.
However, building depreciation schedules are much better in New Zealand and higher depreciation rates can be claimed on any property (no age restriction like in Australia).
 
<hr class="system-pagebreak">
Fostering the ‘Special Relationship’ between Australia and New Zealand in loan terms:
Following on from the taxation incentives of buying, holding, and selling residential property in New Zealand, there are added financial advantages when investing as an Australian that many other non-New Zealand citizens are not privy to.
One of the biggest advantages comes via lenders who operate in both countries. As an Australian, when buying property in countries like the US and UK, investors are often at the mercy of dealing with in-country lenders in these places who, on top of charging higher interest rates on mortgage products, will charge additional set-up fees to foreign investors.
Lenders such as ANZ, however, are able to provide access to Australian citizens, loans securing properties in New Zealand, at competitive interest rates and often-times without any of the additional fees that they may ordinarily charge investors from other countries.
New Zealand is a very business-friendly country:
Seemingly contradicting one of the cons I mention above about the NZ economy being tied to other regions, New Zealand is becoming a very attractive country to do business, and offers many incentives to international business to set up shop there.
Just as some states in the US (Delaware, and Nevada, for example) offer tax incentives and infrastructure support to encourage business to those states), New Zealand offers incentives that countries such as Australia, Indonesia, and Singapore, do not.
According to Wikipedia, back in 2005 the World Bank praised New Zealand for being the most business-friendly country in the world. Being so reliant on its agriculture and tourism industries and knowing it cannot continue to compete with much larger countries in the agriculture and technology sectors, Kiwi’s have cleverly aligned their incentives to their strongest suits, resulting in an economy that continually ‘defies the odds’ that are stacked up against it.
Supply and demand ratios are trending upwards for investors:
In Australia, we know that certain cities (Sydney and Darwin for example) are significantly undersupplied with available properties.
In other words, demand is greater than supply which in turn pushes both rents and values up. This is great news for investors, not so great for aspiring home owners and renters. Other areas though (Melbourne and Gold Coast City for example) have the opposite problem – oversupply, which is not good news for investors but holds potential opportunity for aspiring home owners in those cities).
But how does this differ in New Zealand and what is the trend? According to February 2013 research from Properazzi NZ, supply and demand is varied in the main cities and population centres; so one must tread very carefully, as you would do when considering property in Australia.
No doubt Auckland continues to drive local demand, with supply levels subdued against demand for property, so there are opportunities in this city. However, there are also opportunities in smaller population centres based on demand. The Otago region is one such example. The other ratio in supply and demand is New Zealand’s ageing population. Just like Australia and many other developed countries (Japan, Sweden, Canada etc.), New Zealand is experiencing an ageing population that on the long term, could result in slower population growth. Curbing that however, is an incentivised skilled immigration program and as I mentioned previously.
There are incentives for more international business to set up shop there, which would in turn bring new workers in to New Zealand, which over time would increase the population again.
So, where does this leave us, and what is my verdict (if there is one to be made from my limited findings)?
Well, like most markets around the world, New Zealand is no doubt a market comprised of hundreds of sub-markets, and there is value and risk to be associated with many of these.
Personally I would consider a NZ investment as a component to my portfolio, as I think whilst the potential for rapid capital gains is not as great as Australia, this could be offset by reduced holding costs and overall better mid-long term yield as you progress along with holding property there.
All of the existing Australia-based ‘due diligence’ checklist of items still apply, when canvassing potential properties in New Zealand. However, there are unquestionably some additional items that are specific to this market.
An ‘outside the box’ approach is required to due diligence when contemplating taking a plunge into this market as an Australian.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a> 
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cmcevoy-Go82SmsJA9

Weighing the pros and cons of investing in New Zealand property: Cameron McEvoy

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The Reserve Bank is certainly going to town on its housing market speeches at the moment, <a href="https://petewargent.blogspot.com/2013/03/dovish-rba-unconcerned-about-risk" target="_blank">as I previously noted here</a>. This week, the head of Financial Stability, Luci Ellis, gave a speech in Sydney, they key themes of which I summarise below.
Make no mistake, when the RBA prepares charts it does so with an underlying message in mind. Let's see what we can decipher.
Firstly, Australia is no longer the high-inflation country that it was in the 1970s and 1980s, but note how house prices did continue to rise even as inflation slowed.
<img alt="Graph 1: Consumer Prices and Housing Prices" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph1-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Why? Because inflation acts as a 'credit constraint'. In other words, interest rates include an inflation compensation component. So, as inflation fell, so did the inflation compensation component of mortgage rates.
Therefore, estimates the RBA, due to lower inflation, we might expect the borrowing ratio roughly to have doubled as measured against income multiples.
<img alt="Graph 2: Maximum Loan-to-income Ratio" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph2-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Says the RBA, they would have expected household debt to rise. And it has. However, the transition period ended way back in 2005. Since then, the debt-income ratio flattened, in their own words, "to a new, higher average"...
<img alt="Graph 3: Household Finances" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph3-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
And, in recent years, households have begun to save again.
<img alt="Graph 4: Household Saving Activity" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph4-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Expect on average national future dwelling price growth and credit growth to be slower in the future, says the RBA.
 
<hr class="system-pagebreak">
The population continues to boom, by around 380,000 persons per annum at the current rate of expansion, and the number of persons per dwelling has fallen dramatically over the decades. Therefore we need tens of thousands of new dwellings each year to house the rapidly growing population.
<img alt="Graph 5: Dwelling and Population Growth" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph5-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
The urban population of Australia is massively focussed on the two largest cities, with nearly 40% of us living in those two metropolises. We have a lot of land, but most people only want to live in a very small part of it: the "acceptable range of locations is limited."
<img alt="Graph 6: Urban Population" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph6-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Why the problems with constraints on supply? Largely, because individually we use so darned much of the desirable land. We live on enormous plots and have the least dense population of any country with cities of a comparable size. Only NZ is anywhere remotely close to Australia in this regard.
<img alt="Graph 7: Urban Population Density" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph7-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Land cost isn't the real problem, says the RBA, and it isn't government charges either, which make up a small component of property prices.
It's overwhelmingly the construction costs of our shiny new dwellings that makes new property an increasingly expensive proposition.
<img alt="Graph 8: Construction Costs" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph8-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Key quote: 
 "...the price of our low-density life has become unaffordable for some. 
 It therefore seems likely that our cities will become denser over time.
 If so, the mix of residential construction will be tilted more towards medium-density and high-density dwellings than in past decades."
 
<hr class="system-pagebreak">
 <img alt="Graph 9: Apartment and Medium-density Housing" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph9-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Prices are rising in some cities, notably Sydney and Perth. Flat for many years now in others such as Brisbane and Adelaide, and also very little house price growth in regional Australia.
<img alt="Graph 10: Dwelling Prices" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph10-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
I noted that the RBA prepares charts with a message behind them. We have seen the below chart before, intended to demonstrate that with lower interest rates, repayments on new housing loans aren't nearly as high as a percentage of household disposable income as the popular consensus would have you believe.
<img alt="Graph 11: Repayments on New Housing Loans" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph11-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Note how the RBA has added a second (blue) line now. The message being delivered here: not only are repayments now more affordable on new housing loans they are also considerably cheaper on existing housing loans.
The underlying point, with interest rates set to fall even further, appears to be: "Stop complaining about property prices, because your repayments are lower."
 
<hr class="system-pagebreak">
As noted above, we'll have more higher-density dwellings in the future, and fewer detached houses:
<img alt="Graph 12: Private Residential Building Approvals" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph12-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
But, the RBA highlights that it takes longer to build a block of apartments than it does houses in fringe suburbs.
The undersupply is set to become a major problem in some urban areas: "It might well be that construction lags – and concerns about supply – will become even more acute."
 It's a worrying trend of appropriate supply failing to meet demand, certainly in my part of the world (Sydney).
 Rental yields have been rising. Bond yields have been smoked.
<img alt="Graph 14: Rental and Indexed Bond Yields" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph14-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Lending standards have become much tougher - fewer low-doc loans, for example. This is good for market stability.
<img alt="Graph 15: Banks' Housing Loan Characteristics" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph15-small.gif" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="470">
Summary: on average price growth and credit growth will be slower than we have seen in the past, but I am expecting the construction lag to cause a major undersupply of desirable dwellings in inner- and middle-ring Sydney suburbs and some other supply-constrained regions.
A further cut in interest rates on June 4 or perhaps a little later in 2013 may see median dwelling prices markedly higher by 2014 and payments on new housing loans revert upwards.
Pete Wargent holds a range of finance and property qualifications and is the author of <a rel="nofollow" href="https://petewargent.blogspot.com.au/" target="_blank">Get a Financial Grip – a simple plan for financial fr</a><a rel="nofollow" href="https://petewargent.blogspot.com.au/" target="_blank">eedom.</a>
 
 
 
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