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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Now that we’re well into 2013, home buyers and investors who were looking to the property markets for direction are seeing positive signs and responding with renewed interest.
This is reflected in more people attending open homes, more offers being made to buy properties, higher auction clearance rates and property values slowly rising.
The biggest change I’ve seen so far this year is the rise in consumer confidence and history suggests this is good for property.
So today I’d like to whip around Australia and see how our property markets are performing.
But before I do, let’s first look at the latest housing stats. 
<a href="https://www.rpdata.com/" target="_blank">RP Data</a> reported their February <a href="https://www.rpdata.com/images/stories/content/pressreleases/2013_03_01_rpdata_rismark_indices.pdf" target="_blank">house price index</a> and the findings were encouraging.
<img src="/images/stories/2013/03/yardneymarch8one.jpg" width="470" height="193" alt="yardneymarch8one">
Interestingly I’ve already seen the word ‘boom’ used in the media. It would be misleading to say our housing markets are in full-scale recovery and any deterioration in economic conditions could easily slow things down again.
However the latest stats will once again disappoint the doomsayers who frequent the property forums and for the last five years have been predicting an apocalypse.
What the stats show 
The five-city dwelling price index recorded a 0.26% rise over the month. This is the second consecutive monthly increase following January’s 1.11% increase in our five big capital cities.
What the figures don’t show is how fragmented our markets are, with different states, price points and types of properties behaving differently.
Only half our capitals showed price increases and this time around Melbourne was the outstanding performer with its third monthly increase in a row.
<img src="/images/stories/2013/03/yardneymarch8two.jpg" width="470" height="201" alt="yardneymarch8two">
Source – RP Data
The tide is turning
According to RP Data’s Tim Lawless, most housing markets bottomed out around May last year and since that time the combined capital cities index has recorded a 3.3% improvement in values.
<img src="/images/stories/2013/03/yardneymarch8three.jpg.png" width="470" height="215" alt="yardneymarch8three.jpg">
Apartments outperformed
Units outperformed houses in Australia’s major capital cities. Over the past year apartment values rose 2.3% compared with a 1.2% gain in house values.
 
<hr class="system-pagebreak">
Let’s now look at some of our major property markets in a little more detail:
Sydney
Median house price: $600,000 with 2.2% increase in last 12 months   Median unit price: $400,000 with 4.7% increase in last 12 months Vacancy Rate: 1.6% 
Sydney performed well over the last year, but the top end of the market is still suffering from an oversupply of property relative to the reduced demand. However, affordable gentrified suburbs within close proximity to the city, transport, amenities and infrastructure are performing well.
In particular, investors and owner-occupiers are snapping up well-located apartments in the inner western suburbs and Sydney’s eastern suburbs at hotly contested auctions, according to George Raptis, director of <a href="https://www.sydneybuyersagent.com.au/" target="_blank">Metropole Property Strategists in Sydney</a>.
“I’d like some of the property doomsayers to come to one of these auctions and see how many genuine bidders are in the market for the small selection of good properties for sale,” says Raptis.
“The market for well-located apartments is likely to remain strong throughout the year. Strong rental demand, a shortage of rental properties, tightening vacancies and rising rents means investors will vie for the same apartments as owner-occupiers, underpinning prices.”
Melbourne
Median house price: $520,000 with 0.6% decrease in last 12 months   Median unit price: $420,000 with 1.4% decrease in last 12 months Vacancy Rate: 3%
Melbourne has been the surprise performer over the last three months but different segments of the Melbourne housing market are at different stages of the property cycle.
While there is still an oversupply of property at the top end, there is more competition for properties in the middle range of the market, where there is a shortage of well-located properties. This has been evident in strong auction clearance rates this year.
But there are some segments of the Melbourne property market to avoid.
According to Keith Franklin, of <a href="https://www.melbournebuyersagent.com.au/" target="_blank">Metropole Property Strategists in Melbourne</a>, “Builders and developers have got ahead of themselves, and there is an oversupply of newly built house-and-land packages in Melbourne’s outer western suburbs. “Currently there is a flood of new properties, but buyers are showing a preference for two to three year old homes which can be bought considerably cheaper than new stock.
“There is also an oversupply of inner-city CBD apartments and the rental vacancy rate in Melbourne’s CBD is 4.4%.
“The problem is there are many more apartments coming on stream in the next few years at a time when there is less demand from the tenant demographic that rents in the CBD,” adds Franklin.
“This will put downward pressure on prices and rentals. I expect there will be an oversupply of inner-CBD and near-CBD apartments in Melbourne for a few years, causing prices to fall slightly.
“Currently there are some good investment opportunities buying established apartments in Melbourne’s southern or eastern suburbs and adding value through renovations” he says.
Brisbane
Median house price: $453,000 with 1.3% increase in last 12 months   Median unit price: $350,000 with -2.4% decrease in last 12 months Vacancy Rate: 1.9%
House prices in Brisbane are still around 9% below their peak, but there are now signs of improvement in this market.
“Last year we saw Brisbane buyers lacking the necessary confidence to re-enter the market, instead sitting on the sidelines waiting for signs that real estate has bottomed before buying a property, but things are very different this year,” said Liz Wilcox, director of <a href="https://brisbanebuyersagent.com.au/" target="_blank">Metropole Property Strategists in Brisbane.</a>
“More potential buyers are coming to open homes, with many putting in offers within days of properties being put on the market. There has definitely been an increase in confidence among Brisbane-based property buyers.”
“Like other parts of Australia, the prestige end of the Brisbane housing market is suffering, but well located, more affordable homes within 5-10 km of the CBD are likely to perform well this year” said Wilcox.
Currently there are a large number of off-the-plan apartments available in the Brisbane CBD and surrounding suburbs. Many of these remain unsold, and this oversupply of properties will put downward pressure on prices and rentals in these suburbs.
Perth
Median house price: $480,000 with 3.9% increase in last 12 months   Median unit price: $410,000 with 1.5% decrease in last 12 months Vacancy Rate: 0.8%
In the three years leading up to the 2008 peak in house prices, WA house prices increased 20% per annum on average, compared to a national average of 6% per annum. Since then, investors and home owners deserted the Perth residential property market, until the middle of last year when the market turned the corner.
“Currently prices are around 4% below their March 2008 peak and with rising rentals (up around 15% in the last year) and a shortage of good stock on the market at a time of strong population growth and first home owners and investors returning to the market, prices in Perth are once again moving up,” says Damian Collins, director of <a href="https://www.momentumwealth.com.au/" target="_blank">Momentum Wealth</a> in Perth.
Adelaide
Median house price: $395,000 with -1.5% decrease in last 12 months   Median unit price: $320,000 with 2.8% increase in last 12 months Vacancy Rate: 1.4%
The Adelaide property market has been flat for some time now and prices are likely to correct a little more before the market bottoms.
Darwin
Median house price: $587,000 with 6.3% increase in last 12 months   Median unit price: $410,000 with 4.2% increase in last 12 months Vacancy Rate: 1.4%
The Darwin property market has been the strongest performer over the last year, fuelled by strong investor sentiment at a time of a shortage of properties and rising rents.
What next?
While our property markets are likely to remain soft this year, they should keep consolidating.
We’ve entering the stabilisation phase of the property cycle where buyers are returning, slowly taking up available stock and gently pushing up prices in the middle price range.
However, these purchasers are being very selective. Well-located, well-priced properties are selling, but properties in secondary locations or those in areas of oversupply are languishing.
The prestige end of the market, which has been hit hard over the last five years, will slowly improve as our economy and business sentiment picks up.
Rising consumer confidence, low interest rates, a stable economy, rising rents and more good news in the media are likely to augur well for our property markets this year.
Warning: There are plenty of speed bumps ahead
Home buyers and investors will have to do careful due diligence – they won’t have booming property prices to cover up mistakes.
This means they will need to buy the right type of property. One that has a level of scarcity, meaning it will be in continuous strong demand by owner occupiers (to keep pushing up its value) and tenants (to help subsidise your mortgage); and one in the right location (that has outperformed the long-term averages), at the right time in the property cycle (that would be now in many states) and for the right price.
Then hold it as a long-term investment and reap the rewards.
Data Sources: <a href="https://rpdata.com/" target="_blank">RPData</a>; <a href="https://sqmresearch.com.au/" target="_blank">SQM Research</a>
Michael Yardney is the director of <a target="_blank" href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Investment Strategists</a>, a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the<a target="_blank" href="https://propertyupdate.com.au/category/property-investment/" rel="nofollow"> Property Investment Update blog.</a>
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myardney-DFoGhGbSJX

Rising consumer confidence a good sign: Michael Yardney

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Dear Margaret,
If I buy a property to rent out, what insurances do I need to cover me for the tenants etc?
Phillip, ACT 
Phillip, as you know the basic insurances are going to be really important for you, as with all property, so you need to start with a good house and contents policy. 
This means insuring the building, and any contents too.  Where it is rented you might not have a lot of contents but remember there are some things which still need covering, like window treatments and anything not part of the building. 
A lot of people think they don’t need to cover the building if it’s a strata-titled property, since the body corporate has building cover, but that’s not entirely true.  You will still need that gap insurance to cover parts of your property not considered common property - so anything inside your four walls.
In addition to that you will need landlords insurance.  This will cover:
<ul>
<li>Damage caused by a tenant</li>
<li>An amount for public liability</li>
<li>Loss of rent if the damage renders your property uninhabitable</li>
<li>The costs of pursuing a tenant through a tribunal for unpaid rent</li>
</ul>
It won’t cover loss of rent through periods of normal vacancy but that’s something you should be planning for before you buy anyway. 
It’s important to be aware that not all policies are the same – the important things you are looking for will be a low excess, and a high cap on claims for each event – many companies cap the claim you can make at too low an amount leaving you very out-of-pocket in the event of damage.
Shop around and don’t just take the cheapest option – a few dollars more might save you thousands in the long term and remember, the cost of this insurance is tax deductible.
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News. She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Ask Margaret: What insurance policies do I need to cover my tenants?

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A major property industry legal stouch will begin in the Victorian Federal Court next Wednesday when commercial property giant GPT faces off against a $100 million class action claim from disgruntled investors.
It is one of a <a href="https://www.propertyobserver.com.au/legal/rod-lambert-s-%24175-million-gold-coast-claim-and-other-courtroom-conflicts-to-consider-in-2013/2013012458976" target="_blank">number of court room conflicts</a> that property industry participants will follow closely this year.
The class action against GPT was filed on behalf of investors by law firm and class action specialists Slater &amp; Gordon in December 2011.
It relates to a July 7 2008 statement from GPT to the ASX in which GPT downgraded its forecast earnings for the 2008 calendar year by 27%, and its distributions per security (DPS) by 30%.
Six months prior GPT had released its results for the 2007 calendar year and stated that its earnings would be “flat” (about $600m) for 2008.
“The class action against GPT alleges that it engaged in misleading or deceptive conduct and breaches of continuous disclosure obligations in relation to and following the release of its 2007 Full Year Statutory Accounts,” according to a statement on the Slater &amp; Gordon website.
Former GPT boss Nic Lyons and current head of corporate development Michael O’Brien will be called to give evidence next week.
In its 2012 report to shareholders released this week GPT says it rejects the allegations and intends to defend the claim.
“GPT does not expect that any payment it could be required to make would have a material adverse effect on the group’s operation or strategic objectives, or its financial strength,” adds the group in the report.
Current CEO Michael Cameron, who became CEO in May 2009, will not be cross-examined.
GPT was one of the listed property trusts heavily impacted by the GFC, losing more than $1 billion in value as its share price plunged.
However, it has since recovered and is now regarded as one of the strongest companies in the A-REITS sector.
 
 
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lschlesinger-FZcF9M3vE6

Former GPT boss to give evidence in $100 million investor class action

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<img height="111" width="470" src="/images/stories/2013/03/hobarthouseprice.gif" alt="hobarthouseprice">
The median price of houses in Hobart, based on settled sales for the quarter ending February 28, according to <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/" style="font-size: 14px;">RP Data.</a> The median price of houses across Australia's eight capital cities was $485,000 for the quarter.
<img height="112" width="470" src="/images/stories/2013/03/adelaidehouseprice.gif" alt="adelaidehouseprice">
The median price of houses in Adelaide, based on settled sales for the quarter ending February 28, according to <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/" style="font-size: 14px;">RP Data.</a> The median price of houses across Australia's eight capital cities was $485,000 for the quarter.
<img height="101" width="470" src="/images/stories/2013/03/brisbanehouseprice.gif" alt="brisbanehouseprice">
The median price of houses in Brisbane, based on settled sales for the quarter ending February 28, according to <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/" style="font-size: 14px;">RP Data.</a> The median price of houses across Australia's eight capital cities was $485,000 for the quarter.
<img height="103" width="470" src="/images/stories/2013/03/perthhouseprice.gif" alt="perthhouseprice">
The median price of houses in Perth, based on settled sales for the quarter ending February 28, according to <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/" style="font-size: 14px;">RP Data.</a> The median price of houses across Australia's eight capital cities was $485,000 for the quarter.
<img height="102" width="470" src="/images/stories/2013/03/melbournehouseprice.gif" alt="melbournehouseprice">
The median price of houses in Melbourne, based on settled sales for the quarter ending February 28, according to <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/" style="font-size: 14px;">RP Data.</a> The median price of houses across Australia's eight capital cities was $485,000 for the quarter.
<img height="107" width="470" src="/images/stories/2013/03/canberrahouseprice.gif" alt="canberrahouseprice">
The median price of houses in Canberra, based on settled sales for the quarter ending February 28, according to <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/" style="font-size: 14px;">RP Data.</a> The median price of houses across Australia's eight capital cities was $485,000 for the quarter.
<img height="97" width="470" src="/images/stories/2013/03/darwinhouseprice.gif" alt="darwinhouseprice">
The median price of houses in Darwin, based on settled sales for the quarter ending February 28, according to <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/" style="font-size: 14px;">RP Data.</a> The median price of houses across Australia's eight capital cities was $485,000 for the quarter.
<img height="93" width="470" src="/images/stories/2013/03/sydneyhouseprice.gif" alt="sydneyhouseprice">
The median price of houses in Sydney, based on settled sales for the quarter ending February 28, according to <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/" style="font-size: 14px;">RP Data.</a> The median price of houses across Australia's eight capital cities was $485,000 for the quarter. Sydney's house median has been at $600,000 or above for the past three quarters.
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po-LsXgBTHBmX

Sydney house median sits at $600,000: RP Data capital city analysis

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More Chinese investor money is expected to flow into the prestige Sydney real estate market on the back of tighter controls being implemented in Beijing, according to Angus Raine, CEO of Raine &amp; Horne.
Recent measures announced by the Chinese government aimed at curbing real estate ownership include stricter enforcement of capital gains tax on home sale profits and the imposition of higher deposits for the purchase of second homes.
“Turning the screws on property speculation appears to be aimed at limiting a potential asset bubble in China,” says Raine.
“The upshot is that cashed up Chinese nationals could look to foreign property markets, which will surely mean more money flowing into Australian real estate in capital cities such as Sydney.”
Raine notes that the latest actions by the Chinese government comes soon after the introduction of the ‘Significant Investor Visa’, which accelerates migrant visas for foreigners who invest more than $5 million in approved investments in Australia.
“We’ve had a few wins in recent times with the Significant Investor Visa, and combined with the Chinese government’s restrictions, this will surely mean more money finding its way into the Eastern Suburbs housing market,” says Barry Goldman, co-principal of Raine &amp; Horne Double Bay and Bondi Beach.
Goldman says his office has already read received “significant interest from Chinese buyers” including “plenty of interest” in a five bedroom home at <a href="https://www.domain.com.au/Property/For-Sale/House/NSW/Bellevue-Hill/?adid=2010287773" target="_blank">141A Victoria Road in Bellevue Hill</a>, the Sydney suburb, with the highest median prices.
“It ticks all the boxes with Chinese buyers and investors including harbour views, excellent build quality and close proximity to schools,” says Goldman.
Another Raine &amp; Horne estate agent, Hugh Macfarlan of Chatswood/Willoughby, said he expected the  legislative changes in China would flow through to the Sydney North Shore real estate market.
“Around 30% of our Chinese buyers are overseas investors, so we expect that any restrictions on real estate in China will flow through to our markets,” he says.
For more on the allure of Australian property to Asian buyers, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment">download our free eBook. </a>The eBook is also available for<a target="_blank" href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook"> free download in Chinese.</a>
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Chinese govt real estate clampdown good for Sydney prestige markets: Angus Raine

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More than one in four borrowers are now considering splitting their home loan between fixed and variable, according to Loan Market.
The mortgage broking group says that over the past four weeks  27% of enquiries have been from borrowers wanting to split a portion of their loan between fixed and variable.
This is a 70% increase on the number of borrowers looking to split their home loan a year ago.
Borrowers are looking to take advantage of historically low fixed rates with all the major banks offering a fixed rate product below 5% while RateCity.com.au said the average standard variable rate across the lenders on its website in February was 5.97%.
Last month, the <a href="https://www.propertyobserver.com.au/news/monday-feb-25-feature-the-fix-is-on-for-bank-mortgage-rates-should-you-take-the-deal/2013022159504">Commonwealth Bank’s general manager for home loans, Clive van Horen</a>, told Property Observer there was a growing proportion of borrowers who are “hedging their bets" by splitting their loan and keeping part of it on a variable rate.
“That way they get the best of both worlds,” van Horen said.
Loan Market spokesperson Paul Smith says split loans are particularly popular with young buyers getting into the property market.
“The fixed potion of these loans gives borrowers certainty around their repayments and the variable portion allows flexibility to pay off their home loan quicker whenever they're comfortable doing so”, he said.
“With fixed rates at near historic lows and likely not to drop too much further, many customers who would have traditionally gone with variable rates are opting for the fixed route to avoid the fear of missing out when rates eventually go back up."
One Loan Market borrower, who took out a home loan for $450,000 split their loan in the following way:  $400,000 fixed for two years at 4.99% and $50,000 Variable at 5.50% for three years.
“The split gives them peace of mind that the bulk of their repayments will be the same for the term of the loan, during which they will only pay the minimum level.
“The smaller variable portion means they won’t be severely affected by rate movements but do have the ability to pay off their home loan quicker,” explains Loan Market.
“Most fixed loans minimise the ability to make additional repayments but with a variable loan split, the borrower can use features like an offset account and has the ability to make extra repayments as they see fit.”
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One in four looking to split their home loan between fixed and variable: Loan Market

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The National Rental Affordability Scheme (NRAS) is set to expand with the federal, state and territory government planning to issue another 10,000 incentives worth around $40 billion to developers under the scheme.
Each incentive equates to one home under the scheme with around 11,300 homes built since its launch in 2008.
The scheme aims to provide affordable rental accommodation at a 20% discount to market rents, while property investors get an annual tax free incentive of just under $10,000, which is indexed each year to the rental component of the CPI.
The NRAS scheme was launched by Kevin Rudd in 2008 but failed to gain initial traction due to a perception that it was a social housing scheme with just 329 homes delivered in the first year.
Momentum has picked up since around April 2011 (as the graph below shows) with 11,277 homes delivered as of December 2012. However, momentum will have to pick up signficantly if the government wishes to achieve its target of 50,000 homes by 2015.
Property investors can participate by buying an NRAS-qualifying house or apartment and receiving the tax-free incentive in exchange for offering the 20% rental discount. 
Actual Delivery of Incentives by end of NRAS Year (30 April) – Cumulative: 
<img alt="nrasmarch7" height="167" width="470" src="/images/stories/2013/03/nrasmarch7.jpg">
The Australian Financial Review quotes Mark Butler, federal minister for housing and homelessness as saying he is working with state and territory ministers to open the fifth round of NRAS incentives with the aim of completing 50,000 houses by June 2015.
It follows the release of The National Housing Supply Council's 'Housing Supply and Affordability Issues 2012-13' report, which warned of a low volume of new housing supply coming onto the market with the shortage “likely to continue to be felt by the more vulnerable in our population, such as would?be buyers with low and insecure incomes, those at the lower end of the rental market and those dependent on government income support payments”.
In December last year, <a href="https://www.propertyobserver.com.au/queensland/nras-and-smsf-investors-helping-keep-inner-brisbane-off-the-plan-market-afloat-david-devine/2012112858155" target="_blank">Brisbane apartment builder David Devine</a>, whose Metro Property Development Company is currently the most successful seller of new off-the-plan apartments in inner Brisbane, told Property Observer that self-managed super funds and NRAS investors were among the biggest buyers of his off-the-plan apartments in his projects.
Metro has marketed more than 50% of the 308 apartments in its Madison Heights development as NRAS-approved investments, compared with 20% in its first development, the Chelsea.
Financial advisory firm Onyx Wealth, which promotes NRAS property investments, says SMSF investors should consider acquiring an NRAS property because of the positive cashflow benefits,
“NRAS properties have greater negative gearing than equivalent non-NRAS properties,” says Paul Thewlis and Margaret Hardy from Onyx.
“By giving up 20% of the taxable rental income the SMSF increases its tax loss. Normally a loss is undesirable, but in this case it is usually offset by the value of the NRAS incentive,” they say.
Ernst &amp; Young partner Ross Hamilton told The Australian Financial Review he expected a “massive response” from developers to secure the incentives.
The tax incentive comprises an Australian Government contribution of $7,486 per dwelling per year (paid as a refundable tax offset or payment); and state or territory Government contribution of $2,495 per dwelling per year (in direct or in-kind financial support).
Financial institutions, investors, private developers, not-for-profit organisations and community housing providers are all eligible to apply for NRAS incentives.
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Government to expand NRAS scheme with aim of 50,000 homes by 2015

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The big four banks after tax profits were slightly down on previous years in 2012, but still tower over the profits earned by regional banks and foreign-owned banks.
The following graphs prepared by the RBA as part of its latest chart pack series shows the difference in profits earned by the three banking groups.
The major banks (Commonwealth Bank, ANZ, Westpac and NAB plus their subsidiaries), which have 92% of the home loan market, delivered interim after tax profits close to $12 billion in both halves of 2012, with analysts forecasting interim profits in excess of $12 billion in 2013.
In comparison, the regional banks (Suncorp, Bendigo &amp; Adelaide Bank, Bank of Queensland) made a loss in the first half of 2012 on the back of the Bank of Queensland becoming the first Australian bank in 20 years to report a full-year loss when it reported a $17.1 million loss for the year to August 31 2012.
The outlook for profitability for the regional banks is better for 2013 with analysts forecasting cumulative profits of around $400 million in both halves of the year.
While data on the profitability on foreign-owned banks is less up-to-date, their profitability also dwarfs that of the big four banks.
This week former <a target="_blank" href="/news">RBA governor Bernie Fraser</a> said the major banks could and should cut their variable mortgage rates amid 'very, very healthy'' profits.
<img alt="bankprofitsmarch7" height="656" width="470" src="/images/stories/2013/03/bankprofitsmarch7.jpg">
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Big banks profits in a class of their own: RBA

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Greenfield land supply is expected to address on average 44% of demand for the six major capitals.
Sydney, South East Queensland, Melbourne, Perth, Adelaide and Canberra have well defined expectation around the role of new land supply. That role centers on being able to respond to the need for families to access a home situated in a well thought through urban context.
For the role of greenfield markets to be effective, state governments need to ensure that there is sufficient supply to cater for expected demand. Additionally, that the nominated supply needs to be largely controlled by parties with the capacity to take it to market.
Research from the National Land Survey Program shows that as at the beginning of 2012 there were an estimated 1.6 million future lots across the six major markets. Future lots will include lots remaining in active projects and also supply yet to be defined by a project.
Of this future supply, 13% is held in active projects, 36% is classified as “short-term supply” and 51% of the 1.6 million lots are classified as long term supply. In summary the 1.6 million lots of future supply is equal to approximately 32 years of demand.
Considering the Melbourne future supply situation, the major listed developers control only 30% of the estimated 350,000 lots (includes active projects supply balance). It cannot be stated that major developers are holding the future supply of Melbourne at ransom when only an estimated 50,000 lots of the 276,000 future lots (outside active projects) are currently being managed by the top developers.
It would be fair to say that major developers control a small proportion (16%) of total future supply earmarked by the state governments for the six major growth regions across Australia. The reality of future supply is that a large proportion is controlled by land owners who have no clear intention on bringing it to market and by an array of smaller land developers.
Of the nominated future new land supply across Sydney, 44% is under the control of parties who intend to develop. The 44% includes major and minor developers.
There is a suggestion that the actions of the major developers with respect to how they handle their supply lines is contributing to the level of unmet demand and rising new land prices. It would be fair to say that developers are in the business of selling land. The concept that developers manipulate supply lines in order to build up demand and then leverage that demand to lift prices would be inaccurate.
Despite the relatively modest supply of land held by the major listed developers, land sales across the six major markets have continued to perform well below expectations (with the exception of the Perth market). As at the December 2012 quarter new land sales were only addressing 60% of expected monthly demand. The result cannot be blamed on lack of product or stock ready for sale, as at the close of December 2012 there were close to 16,000 lots ready for sale. The 16,000 lots which are ready for sale represent 32% of the total annual demand for land across all six markets.
This high level of supply does not suggest that developers are holding back in terms of producing new lots, but rather have continued to produce more land parcels in the face of weakening sales. The current lower than expected sale rate has nothing to do with supply levels but more to do with an array of issues impacting on price, location of supply, drivers of demand and production capability.
Taking the price issue, some would say that the industry is experiencing lower sale rates because the price is too high. The price points for land is a factor in deterring potential customers, however to blame it on 'land banking' would once again be inaccurate. As already mentioned the volume of land under control by the major developers is small, not enough to influence pricing strategy across the market. Also the fact that there are in excess of 750 active projects operating across the markets means that the level of competition in each sub market would ensure that projects are competitive.
The industry has been moving price back; however there is a floor under the price point. That floor has more to do with the cost of development and the embedded overheads imposed on the industry by governments. It is now very hard for projects to offer product to much below $200,000 due to the cost framework associated with producing lots.
In summary, the concept that the major developers are holding the residential market to ransom by having only 16% of future supply is difficult to support. The ability of the greenfield markets to perform their role efficiently depends on much more than simply looking at a wholesale stock number. It would be more accurate to suggest that markets perform better where there is a healthy representation of larger developers with well defined supply lines.
Colin Keane is director at <a href="https://www.researchfour.com/" target="_blank">Research4</a>.
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It is inaccurate to over blame land prices to 'land banking': Colin Keane

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Without knowing exactly the type of land <a href="https://www.prosper.org.au/2012/12/06/englobo-2/" target="_blank">Prosper</a> is referring to, I would say that the total land banks of the major developers (248,607 lots) does not reflect land that can be turned into vacant lots tomorrow.
Many are likely to be awaiting rezoning, planning approval, trunk infrastructure and services, etc, that have to be in place first before they can subdivide. As a result, the amount that can be brought to the market at any one time is likely to be much lower.
However, having said that, there is probably an argument, particularly in some corridors that a lack of competition and control of land releases is keeping prices up.
A land tax for zoned land may also encourage developers to turn over their land quicker if they are holding zoned land. If more land is forced onto the market in a corridor, then it could also result in price competition.
However, there could also be some unintended consequences.
For example, developers could delay seeking to rezone former cow paddocks to residential as late as possible to minimise the extra land tax. However, any additional delays in the planning process could mean that the land may not be zoned and ready when the market catches up, placing supply pressures in the local region and driving up prices anyway.
Additionally, if developers start building to a price and for speed rather than quality, then there may be lesser investment in product, environmental features, community infrastructure, etc.
The <a href="https://www.prosper.org.au/2012/12/06/englobo-2/" target="_blank">Prosper </a>article includes a link to an article from The Age with a reference from the chief operating officer of Delfin. He talks about the days when the number of competitors were too numerous to count, but the estates back in those days did not have the level of community investment of the larger estates you see nowadays.
Also, you would need to keep on top of other factors to prevent prices rising too far. At the end of the day, prices are governed by demand and supply, and the rate of supply needs to be able to meet the surges in demand.
This was part of the problem occuring during the boom in Perth in the middle of last decade. Initially, the rate of subdivision was able to keep up without large pressures on prices. However, as demand continued to increase and skills shortages emerged in planning, construction, etc, substantial delays began occurring that drove up prices despite the large level of zoned land that was available.
This also happened to some extent in late 2010 in Melbourne.
Therefore, at the administrative and construction end, you would need to guarantee a smooth process to ensure that land can be zoned and taken through the whole process quickly enough to meet the surges in demand.
There is also the issue of state and local government levies and infrastructure charges. These are charged to the developers who in turn pass them onto the purchasers and have also contributed to the increase in price of land over the past decade.
So the short answer is the concept of taxing zoned land to speed up development is likely to increase price competition and encourage further development of land.
On their argument, this would best work in areas where there are plenty of land holders to create competition, although it doesn't solve the problem where there is not enough competition in the corridor which would allow developers to just factor the land tax into their prices - i.e. a developer would balance their rate of sale to the market with the price they can achieve and the additional cost of the land tax in such a way as to maximise profits.
Even where there is competition, you would also need to ensure that the process of the delivery of the subdivided land is as smooth as possible so that the rate of development can be scaled up quickly enough to meet demand in an upturn without placing pressures on prices. In addition, in circumstances where developers are competing on price, it could impact on the type and quality of the product being offered.
Angie Zigomanis is senior manager of <a rel="nofollow" target="_blank" href="https://www.bis.com.au/" title="BIS Shrapnel">BIS Shrapnel.</a>
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