High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

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For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

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<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

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The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

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For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

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The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

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Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

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Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

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The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

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According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

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Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

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Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

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Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

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<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

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A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

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The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

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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Fairfax Media has put its news printing facilities in NSW and Victoria up for sale with reported hopes of about $90 million.
The two newspaper printing plants will be redundant by mid-2014 with both sites being sold on vacant possession delayed settlement terms.
CBRE and Colliers International have been appointed to conduct the campaign.
CBRE has the <a target="_blank" href="/news">Chullora</a>, Sydney site which includes the existing industrial complex of 37,600 square metres on a land parcel of 10.2 hectares.
Colliers International will be seeking the buyers for The Age Print Centre, <a target="_blank" href="/news">Tullamarine </a>site which includes an existing 24,000?square metre industrial complex on a land parcel of 5.9 hectares.
Meanwhile the entreprenuer Shesh Ghalel is set to shortly start his $40 million redevelopment of Melbourne’s landmark Argus building, after years of abandoned starts on the project.
The 87-year-old heritage-listed building on the corner of La Trobe and?Elizabeth streets has been boarded up, but used for <a href="https://www.propertyobserver.com.au/victoria/argus-building-to-host-melbourne-music-week-before-long-awaited-mit-campus-transformation/2012111457722" target="_blank">music fesitvals</a> after significant structural repairs and asbestos removal.
The building has been in decrepit state for decades. Its first tenant, The Argus daily newspaper, closed in 1956.
The Herald and Weekly Times Group bought the Argus newspaper along with the building in 1957 and later closed the newspaper down and sold the building.
Ghalel, chief executive of the Melbourne Institute of Technology, paid $15 million for the building in 2010, but works were delayed in part because of a downturn in tertiary education.
The fit-out is expected to cost $25?million with another $15 million spent on structural works. 
“I understand the public interest in this property and we hope to rebuild our goodwill with the city, we are also keen to see it brought back to life,” he told The Australian Financial Review.
The six-storey building will have 9,000 square metres of space hosting 5,000 students.
Ghalel said enrolments in MIT’s English language courses had jumped 300%, the bulk of students coming from China and Vietnam.
The Argus building, designed by Godfrey Spowers, is listed on the Victorian heritage register as a major inter-war office building.
It also made the 2012 National Trust list of the country’s top 10 “heritage at risk” sites.
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Argus building poised for reincarnation while Fairfax flogging off its printing press land holdings

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A Lavender Bay property topped the RP Data top 10 sales of the week.
<a href="https://www.propertyobserver.com.au/international/local-chinese-buyer-snaps-up-sydney-s-highest-weekend-auction-offering/2013031759763?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">The four-bedroom unit was sold after auction by McGrath Estate Agents for $5.6 million</a>.
The week's most expensive sales:
2/9 Waiwera Street, Lavender Bay, NSW, 2060, four-bedroom unit, sold at auction on March 16 by McGrath Estate Agents for $5.6 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/24_bay_street_brighton_vic_3186/10003950">24 Bay Street, Brighton</a>, VIC, 3186, five-bedroom house, sold at auction on March 16 by Buxton Real Estate Brighton for $4.85 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/61_union_street_mcmahons_point_nsw_2060/4169730">61 Union Street, McMahons Point</a>, NSW, 2060, four-bedroom house, sold on March 15 by Belle Property Neutral Bay Neutral Bay for $3.485 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/13_john_dykes_avenue_vaucluse_nsw_2030/7141422">13 John Dykes Avenue, Vaucluse</a>, NSW, 2030, four-bedroom house, sold at auction on March 16 by Laing + Simmons Double Bay for $3.35 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/11a_huntingfield_road_brighton_vic_3186/15691966">11A Huntingfield Road, Brighton</a>, VIC, 3186, four-bedroom house, sold on March 15 by Biggin &amp; Scott Brighton for $3.27 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/14_gladstone_avenue_mosman_nsw_2088/4484397">14 Gladstone Avenue, Mosman</a>, NSW, 2088, four-bedroom house, sold at auction on March 14 by L J Hooker Mosman for $2.95 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/3_boorroo_street_kangaroo_point_nsw_2224/3186557">3 Boorroo Street, Kangaroo Point</a>, NSW, 2224, two-bedroom house, sold at auction on March 16 by McGrath Estate Agents for $2.63 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/11_wellesley_road_hawthorn_vic_3122/11196389">11 Wellesley Road, Hawthorn</a>, VIC, 3122, four-bedroom house, sold at auction on March 16 by Marshall White Real Estate Armadale for $2.45 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/50a_champion_road_tennyson_point_nsw_2111/6755087">50A Champion Road, Tennyson Point</a>, NSW, 2111, four-bedroom house, sold at auction on March 16 by McGrath Estate Agents for $2.395 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/48_sackville_street_maroubra_nsw_2035/4050256">48 Sackville Street, Maroubra</a>, NSW, 2035, four-bedroom house, sold at auction on March 16 by Century 21 Coastline Properties for $2.36 million
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Lavender Bay and McMahons Point dominate the week's top sales podium: RP Data

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The interest rate cuts of the past year, if fully utilised, could potentially save mortgage holders more than $90,000 in home loan interest and take nearly seven years off their loan term.
A series of interest rate cuts since May 2012 has seen the official <a target="_blank" href="https://www.propertyobserver.com.au/economy/rba-statement-on-march-rate-decision/2012030653695">cash rate</a> reduce by 1.25%, with banks passing on about 1% of this.
Therefore, if you had a 30-year, $300,000 home loan at 7% back in May last year, you’re probably now paying around 6%.
This takes the required monthly repayment from $1995 a month to $1798 – let’s call it a difference of $200.
However, if you maintained your repayments at $1995, you could potentially save yourself more than $90,000 in interest and take six years and nine months off your home loan.
You end up paying about $257,000 in interest over the life of the <a href="/news">home loan</a>, rather than about $347,000, so you’re paying about 26% less in interest.
While this scenario assumes that the interest rate stays at 6% for the life of the loan, which isn’t likely, it does illustrate the power of making extra repayments off your home loan, whatever the interest rate may be.
It’s all about good habits and discipline.
If you’ve been used to making those repayments at that higher rate, it should then be reasonably painless to continue to keep them at that same level.
Chances are most people won’t even miss the money and the benefits of not touching that money now for a major long-term benefit should outweigh any pain.
You’re effectively giving yourself $90,000 of future lifestyle – money you can use to do something significant with for you and your family.
That’s a significant amount of money for pretty well everyone I know.
Any further cuts, either by the RBA or the banks themselves, to home loan interest rates would further compound the benefits.
Joe Sirianni is executive director of <a target="_blank" href="https://www.smartline.com.au/" rel="nofollow">Smartline</a>.
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Recent rate cuts could save mortgage holders $90,000: Joe Sirianni

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In times past many savvy investors would buy apartments off-the-plan, leaving only a deposit of 10%, and sell them on before settlement to make a tidy profit.
It made many people rich. When the GFC hit these leveraged investments also made many people broke. Some speculators are tied up in court with developers chasing their money on units that have dropped in value to much less than the investor agreed to pay. This investment strategy is only for those who are willing to take big risks with a deep understanding of residential investment.
“You don’t see this sort of speculation now, and as a result it is a much more stable and realistic market,” says Rees.
Leveraging is simply using other people’s money, either as a mortgage from a lender or sometimes from the developer, to increase the potential gain from a property investment over a fixed period of time.
What separates leveraged investment from long-term investment is that it must have an end date that can be calculated. It is the opposite of taking a mortgage out to buy your house, paying it off over 25 years and owning the property.
For example, if you buy <a href="https://www.propertyobserver.com.au/developments/don-t-underestimate-the-risks-in-off-the-plan-buying/2013031959692?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=off-the-plan" target="_blank">off-the-plan</a> and put a $10,000 deposit on a $100,000 property, you would need to borrow $90,000.
If the $90,000 borrowed costs you 5% in interest, it would add $4,500 to the entire cost, therefore the $100,000 investment is in fact $104,500, if you sell within that one-year period. To make a profit, the property must be sold for more than $104,500. If the property sells for $110,000 you have made of profit of $5,500.
The profit is impressive when calculated as a percentage gain on the capital, however take note: if the property sells for $102,000 it will cost you money rather than making it.
For great tips on buying off the plan, download Property Observer’s free ebook – <a target="_blank" rel="nofollow" href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=14e9848476&amp;e=7a53fc6dd9">14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.</a>
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Weigh up leveraged investments carefully: Tips for off-the-plan

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A feature of real estate’s recent history is the poor growth in sea change locations. A feature of the present is that many of these places are on the rise. A likely feature of the future is considerable price growth in Australian places where tourism is big.
Over the past five years coastal centres where the economy turns largely on tourism have struggled to deliver real estate growth. Many have gone backwards. In Queensland, the Gold Coast, <a href="/news">Cairns</a> and the Whitsundays have been among the worst of them.
The message has been that tourism economies are highly vulnerable to economic, political and natural disasters, both at home and abroad, as well as currency fluctuations and wild weather.
A tale of two northern cities illustrates how much things changed. Cairns was king in the 1980s when tourism was thriving and Japanese investors were the prime movers and shakers. Townsville down the road was the poor cousin.
That is a distant memory. <a href="/news">Townsville</a>, with its broadly diverse economy, has taken over as the capital of the north, while tourism-dependent Cairns has struggled. Townsville has delivered good real estate growth while Cairns has been one of the great under-achievers.
But change is the only constant in real estate. We’re now seeing evidence of those coastal markets rising again and Queensland property consultant Simon Pressley believes it’s a sign of major things to come.
Pressley, who runs 6 Point Property and the propertyology.com.au website, has published a research report which makes a strong case for a strong future for tourism-based locations. And it’s all to do with the Asian Century in which we are now immersed.
“I believe that Australia’s tourism industry will be the next sector to produce investment riches,” he says.
Pressley says the major force behind this is “the enormity of the rise of Asia’s middle class”.
“Asia is in the midst of urbanisation which has created unprecedented demand for ‘rocks and crops’ – the iron ore and coal to construct numerous new gigantic cities plus the agricultural products to support <a href="/news">Asia’s new-found modern diet</a>.
“Dinosaurs, koalas, crocodiles and casino chips will be Asia’s next interest in Australia. The numbers are already showing that Australia is high on their list of most desirable holiday destinations.”
Incomes are rising in nations such as Malaysia, India, China and Indonesia and our proximity to these expanding Asian markets heralds the beginning of a new era of tourism growth and investment opportunities.
Pressley says: “China has already overtaken the UK as our second highest source of tourists, behind only New Zealand. And we are only a couple of laps into this Asian Century marathon.”
His report includes some impressive numbers on the importance of tourism to the national economy: it adds $35 billion to GDP each year, employs 500,000 people and is on target to attract six million international tourists this financial year – spending, collectively, $102 billion.
We are now getting half a million Chinese visitors a year and the Tourism Forecasting Committee predicts one million per year will arrive by 2020.
“Asia’s middle class is rising faster than Gina Rinehart’s bank balance,” Pressley says.
It’s probably not coincidence that Chinese investors are becoming a major force in Australian residential property, spending increasingly large sums on real estate in Sydney, Melbourne and the Gold Coast.
Pressley also warns that investing in tourism-based economies can be a trap for Australian investors. “Tourism locations deliver one of the biggest sucker punches imaginable for the DIY property investor,” he says. “People confuse the emotion they feel when away relaxing with property market fundamentals.”
Very true – it’s why so many people have blown their savings on a high-rise apartment on the Gold Coast.
But the latest statistics show that the strongest growth in sales of residential property in Queensland are being seen in those coastal tourism-based markets, headed by Hervey Bay and the Sunshine Coast, but also including Cairns and the Gold Coast.
Keep watching this space.
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/">hotspotting.com.au</a>
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Change is the only constant in real estate: Terry Ryder

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Department store giant David Jones may look to redevelop its flagship department stores in the Sydney and Melbourne CBDs as it reported a 13.5% decline in interim profits.
<a href="/companies/david-jones" target="_blank">David Jones</a> reported a company-wide profit after tax of $73.5 million for the six months to January 26 compared with $85 million in the same period in 2012.
Leasing and occupancy costs increased from $93.3 million in 2012 to $95.6 million in 2013 over the six month period.
“In 2012 independent property consultant Cushman &amp; Wakefield concluded that the potential worth of the company’s Sydney and Melbourne flagship CBD store properties (on an existing use basis) was $612 million,” said David Jones in its half-year results announcement.
The flagship stores are the two Sydney stores on Elizabeth Street and Market Street in Sydney - the former being the very first David Jones store, which opened in 1927 - and the Melbourne store on Bourke Street Mall.
“The company is continuing to explore options to unlock the development value of these assets, whilst retaining ownership of its retail trading space.
“Priority has been given to the two Sydney sites as it felt these have the greatest potential.
“CB Richard Ellis has been appointed to advise the company on maximising the value of these assets.
“This remains a significant opportunity for the company however it is complex and will take time.”
The Australian Financial Review speculated this could mean adding "airspace" above its Sydney stores with "20 storeys to its Market Street store and perhaps five stories on Elizabeth Street where development is restricted because it could overshadow Hyde Park".
The extra storeys would be turned into hotels and apartments.
As part of interim results briefing, David Jones said it would continue to focus on its omni channel retailing (OCR) strategy, which includes emphasis on online sales.
Online sales increased 288% in the second quarter of 2013 following the launch of the David Jones web store in mid-2012.
David Jones chief executive Paul Zahra also highlighted that the company would examine its store portfolio in light of its broader omni channel retailing strategy and with six store leases in “less robust demographic locations:” set to expire in the next five years.
Stores in <a target="_blank" href="/news">Bondi Junction</a> and Canberra Centre will be refurbished over the next 12 months while the company will also focus on improving the productivity of stores with a target of lifting its average proportion of selling space compared to gross lettable area from a current 76% across the store portfolio to 85%.
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David Jones considers development of flagship Sydney and Melbourne stores

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A ground floor shop with an upstairs dwelling has sold at auction on Burke Road, Camberwell, for $2.11 million – $360,000 above the reserve price. 
The sale was closed by Fitzroys director Chris Kombi, with the price reflecting a yield of 4.1%.
The <a href="https://www.commercialrealestate.com.au/property/2010256689/for-sale/vic/camberwell/retail" target="_blank">two-storey brick building</a> is approximately 168 square metres and is situated on a 184-square-metre lot.
<img alt="camberwellmarch20one" height="305" width="470" src="/images/stories/2013/03/camberwellmarch20one.jpg">
The ground floor – with a 5.5-metre frontage to Burke Road – is occupied by New Zealand-owned brand Ziera Shoes on a five-year term from October 2011.
There is separate access to the first level, which features an un-renovated two-bedroom residence.
Kombi says there was heavy interest throughout the campaign and a large <a target="_blank" href="/news">auction</a> crowd on the day.
He says the strong sale price was further proof of improving sentiment among buyers.
The property is currently returning $88,484 per annum plus outgoings and GST.
Burke Road, <a href="/news">Camberwell</a>, boasts an array of Australian retailers including Sportsgirl, Witchery, Sussan and Just Jeans.
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Two-storey Burke Road Camberwell property sells for $360,000 above reserve

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Australia’s largest customer-owned lender, CUA, has cut its three-year fixed rate from 5.25% to 5.1%, effective from Friday (March 22).
The move follows <a href="/news">Westpac lifting its two-year fixed-rate</a> from 4.99% to 5.29% today and expectations from mortgage broker Loan Market and Channel Nine's Ross Greenwood that fixed-rates would start rising again.
In his money minute segment today on Channel Nine Today Greenwood said the Westpac move was indicative of the banks changing their views on loan rates.
CUA general marketing manager Jason Murray highlighted that the move was "contrary to one of the nation’s largest banks".
Murray says the CUA’s three-year fixed rate is significantly lower than the equivalent standard rates offered by the Big Four banks, now by thirty four basis points (0.34%).
"On an average loan size of $300,000 with a 30 year term, a three-year fixed rate home loan from CUA at 5.10% could save homebuyers $63 per month, or $2,2681 over the three year duration of the loan, compared to the average rate of the big four banks on their equivalent products.
 “While one of Australia’s largest banks has moved to increase their fixed rates, CUA has chosen to make further cuts to its entire suite of fixed rate products. We are determined to offer customers the best deal we possibly can and these cuts further demonstrates that. 
“CUA aims to provide Australians with an innovative alternative based on value and service to the major banks and we are constantly looking at ways to reinforce this to our customers,” he says.
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CUA cuts three-year fixed rate to 5.1% and sticks boot into big banks

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It may be popular to say that first-home buyer incentives don’t work or are inflationary but it’s simply not supported by the data in Victoria.

Not only is this not supported by the data but it is also a position which, from a policy perspective, is inequitable for one simple reason: stamp duty.
The REIV believes that <a target="_blank" href="http:/www.propertyobserver.com.au/first-home-buyers/first-home-buyer-grant-schemes-simply-don-t-work-terry-ryder">first-home buyers</a> deserve a better deal from governments because they have to compete with second- and third-home buyers who enter the market with equity built in earlier transactions. This would be less of an issue if not for stamp duty.
There is no rational reason why a first-home buyer should be subject to a wealth tax such as stamp duty to the same level as someone who has actually generated personal wealth from property.
How is a first-home buyer supposed to compete with other buyers? They have to save for a considerable amount of time to build the deposit, only to see it evaporate when they receive their stamp duty bill.
This is a far more significant issue than the standard debate about affordability for first-home buyers suggests. It is concerning that many who argue for more affordable property don’t also argue for lower wealth taxes on first-home buyers.
The First Home Buyers Grant, now a paltry $7,000 (the equivalent of one 25 point cut in interest rates), pales into insignificance against most stamp duty bills in Australia. Despite that fact, many commentators and organizations take pride in arguing against this form of assistance.
While governments continue to levy large stamp duty bills this is no more than an argument for wealth taxes on those who don’t have any. This position is supported by the findings in the report on Housing Supply and Affordability Reform by the Supply and Affordability Reform (HSAR) Working Party of COAG.
In its report, it found that “the FHOG does provide some help to potential first homebuyers in competing against existing homeowners, who have typically benefitted from capital gains from previous property price growth”.
In the Victorian context, there is plenty of evidence of incentives for first-home buyers being both equitable and delivering on their aims.
The first example is the First Home Owners Bonus, or builder’s bonus as it became known. When the Global Financial Crisis hit Victoria, it had a growing population that was not matched with an increase in supply. The National Housing Supply Council pointed to a supply shortfall which was translating into rapidly increasing prices.
In response, governments responded with significant grants – up to $36,500 for a new home in regional Victoria – to both increase activity in the housing market and, more pointedly, get the builders building more homes.
This policy was also part of the stimulus package aimed at generating employment for builders and related trades.
It worked. First-home buyers flocked to the market and the builders built more homes. The increased incentives came into effect on October 14, 2008 and within 12 months the number of first-home buyers in Victoria increased from 2,420 a month to 4,448. Over the last decade first home buyers have comprised 20% of all buyers; this share increased by 50% with targeted government incentives.  Those incentives achieved their aim by increasing the construction of new dwellings and addressing the supply shortfall.
These incentives also seemed to transcend politics as they were commenced under a Labor government, continued by a Coalition one and then, when they were clearly no longer needed, ended.
All home buyers benefited because housing became more affordable as there was less of an imbalance between supply and demand.
So much for suggestions that the incentives don’t work.
The second example is of the cuts to stamp duty in Victoria.
The REIV campaigned for cuts to stamp duty for all first-home buyers because we believe that it is, firstly, unfair to tax first home buyers’ precious deposits, and secondly, inefficient for governments to take with one hand and give with the other. This should not be taken as a lack of support for the grant; first-home buyers need all the help they can get and the moves by NSW, Queensland and South Australia will only make it harder for first home buyers.
As a result of our advocacy and support from the Victorian Government, by the 15th of September next year most first-home buyers will benefit from a 50% cut to stamp duty. Depending on the home you are buying, that is effectively a doubling of the $7,000 grant. This assistance has not had an immediate noticeable impact on the market nor did the REIV ever expect it to; after all it has been progressively introduced, rising from 20% in 2012 to 50% in 2014.
It may not have had the immediate impact of the builders’ bonuses but that was never the point. It was simply to reduce the inequities faced by first home buyers trying to get a start in the market. If this sort of policy is not more widely adopted, then governments are saying that they are happy for first-home buyers to spend years saving to pay a tax.
How does that help anyone?
Robert Larocca is Real Estate Institute of Victoria (<a target="_blank" href="https://www.reiv.com.au/">REIV</a>) policy and public affairs manager
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Why should first home buyers spend years saving to pay stamp duty? Robert Larocca

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One of the most important decisions to make when you buy an investment property is whether to appoint a professional property manager or manage the property yourself.

More than three quarters (77%) of landlords have their properties professionally managed by an agent, or have done so in the past, according to The Australian Landlords Panel 2012.
Both options needed to be carefully considered before making a final decision that is right for you.
Do-it-yourself property management can appeal to some investors, who may see it as an easy way to save money.
However, managing an investment property involves a time commitment that can significantly outweigh the cost.
Self-managing landlords will need to find the time to screen tenants, conduct regular property inspections, ensure rent is being paid on time and be ‘on call’ to attend to maintenance issues.
Landlords who fall behind in these tasks may find themselves in hot water. For example, if a tenant is damaging the property and regular inspections are not held, the landlord could be faced with mounting repair bills.
Likewise, if maintenance issues aren’t attended to promptly and the tenant injures themselves as a result, the landlord could find themselves exposed to a costly legal liability claim.
The Australian Landlords Panel 2012 study revealed that landlords received higher rental yields and profits when a property manager was used, and that they generally had better investment experiences.
Property managers can provide landlords with risk management benefits and potentially minimise loss for the landlord if an issue arose.
Property managers are able to conduct regular property inspections to identify maintenance issues, ensure the tenant is looking after the property and, if required, liaise with appropriate tradespeople as soon as possible to address any problems.
They also have systems and processes in place to find and screen prospective tenants, and have access to databases that list tenants with a history of defaulting on rental payments, damaging property and eviction.
Property managers can ensure the correct paperwork is in place, collect the rent, monitor arrears, form a professional relationship with the tenant and regularly liaise with them.
If a dispute arises with the tenant, they will be familiar with the relevant legislation and are therefore able to follow the correct procedures to help resolve the problem as quickly as possible.
For example, if a tenant falls behind in their rent, a property manager can ensure the proper notices are issued to the tenant within the required timeframes.
This is helpful if the dispute ends up in court and, if the landlord has landlord insurance in place, can also assist with the payment of loss of rent claims.
Regardless of what option property investors chose, a specialised form of landlord insurance was a must."Landlord insurance is designed to help protect investors from many of the risks associated with owning a rental property.
These include malicious damage by tenants, accidental damage, legal liability and loss of rental income if a tenant absconds or leaves a property unable to be re-let while damage is repaired.
It can also provide peace of mind if the unforeseen should occur, as well as ease a landlord’s concerns about receiving regular rental payments.
Even the most fastidious tenant is able to damage a property, whether accidental or otherwise.
This can be extremely costly for the landlord in terms of repairs and the loss of rental income.
The Australian Landlords Panel 2012 study found that 81% of landlords who employ a professional property manager had landlord insurance cover. However, only 54% of landlords who self manage their properties had a landlord insurance policy.
Uninsured landlords really need to think about how they would manage financially if they were faced with thousands of dollars worth of damage to their rental property, or were unable to re-let their property while repairs were being made.
Carolyn Majda is insurance manager at <a target="_blank" href="https://terrischeer.com.au/">Terri Scheer</a>
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