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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Chinese real estate listings portal Juwai.com has extended its reach into Europe following the signing of a new agreement, which will potentially add thousands of new European property listings to the site.
Under the agreement, more than 200,000 real estate agents in 24 countries will be able to market their properties on Juwai.com, which promotes itself as the largest international property search and information platform for Mandarin-speaking Chinese consumers.
Chinese buyers make up the fastest-growing real estate buyer group in countries in Europe, Asia, the Americas, Africa, the Middle East and the Pacific. They spent US$28.7 billion on residential property around the world in 2011, a figure that is projected to climb to US$114 billion by 2015.
In addition to an affinity for Australian wineries, hotels, residential sites and houses and apartments, Chinese buyers also account for 54% of the total value of purchases in the prime central London area, with average prices of £5 million ($7.4 million).
They also bought more than 30 prestigious Bordeaux vineyards in just two years, and are the biggest foreign buyers in the central Paris, Ile-de-France area, with 16% of the market.
Juwai.com search figures show that European properties were viewed over 882,000 times by Chinese investors in January 2013.
Last year, <a target="_blank" href="/news">Australian real estate group LJ Hooker</a> started advertising its residential and commercial listings on Chinese real estate listings portal Juwai.com following the signing of a partnership agreement between the two organisations.
Around 84% of Juwai.com’s traffic is comprised of high-net-worth Chinese from within China and living in Hong Kong, Taiwan, Macau, Singapore, Malaysia and other countries.
Eric Calosci, chief executive of Previsite, says the partnership with Juwai.com will significantly increase an agent’s chance of selling their property more quickly and at a higher price.
“They will be able to tap a huge market with no learning curve,” he says.
Juwai.com co-founder Simon Henry says the pool of high-net-worth individuals in China will expand at a 20% compound annual growth rate over the next three years.
“One-third of Chinese millionaires have assets overseas.  They have a voracious appetite for overseas property investments.
“Moreover, Chinese consumers continue to flock to Juwai.com from all corners of the world, with more than 32% of all website visitors living outside of China.”
The site has also been adopted by global Chinese communities living in Hong Kong, Taiwan, Macau, Singapore and Malaysia, providing Juwai.com customers with comprehensive exposure within China and across south-east Asia.
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Chinese real estate listings portal Juwai.com expands European property coverage

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Australia's "Jeans Queen", Bettina Liano, has closed all but one of her Australian stores and set her sights on the United States market instead.

Liano's first store in the United States will open in New York at the end of this week as her original store on Chapel Street in Melbourne closes its doors after 24 years.
The designer has closed down her other four Australian stores, leaving only one store remaining in Sydney.
Liano told SmartCompany she wants Bettina Liano to become a global brand with international trends and styles at the core of the collections each season.
"I am just looking for volume in the market, I feel that I outgrew Melbourne in particular and I have been banging the drums for 25 years. I feel like I could do with a new audience and I'm confident that what I do is different enough from everyone else to be able to sell it [in the United States]," she says.
"I want to create a focal point here [in the US], because if you go into a new market and you don't sell anywhere they can't market you and department stores won't buy if you haven't got any marketing."
Liano says she has always been attracted to opening in the United States and to New York in particular.
"It is the fashion capital of the world and because I have always liked America and I've always liked the way they do business here," she says.
"They do retail like nobody else, and also they love denim; denim is an American thing at the end of the day."
Liano says after <a target="_blank" href="https://www.smartcompany.com.au/strategy/049928-bettina-liano-escapes-administration-and-stitches-up-a-new-deal-three-companies-that-have-hung-on-to-their-founders">fighting her way back from voluntary administration</a> the business struggled last year because of a supply delay.
"I experienced chronic delays with my suppliers. I didn't get delivery of a summer season until the first week of January so that just killed me – I don't know how long you can sell a sweater for," she says.
Liano cites the <a target="_blank" href="https://www.smartcompany.com.au/property/054256-international-retailers-keep-sydney-and-melbourne-in-top-10-most-expensive-global-retail-property-markets">expensive rents in Australia</a> as a key reason for closing her stores and says she was paying $25,000 a month in Chapel Street.
"It's sad, but I'm going to come back by the end of the year I'm going to reopen stores. I just want to pay good rent; Melbourne is not worth what they are charging at the moment," she says.
"At the moment in the States it is like repeating how I started in Melbourne, there were empty stores going cheap. In Australia, in the last 12 months, I have been on sale for the last 12 months; it is just so price sensitive."
Liano's New York store will open at 246 Mott Street in NewYork's SoHo district and she plans to open stores in San Francisco, Los Angeles and Miami.
"I saw an opportunity as they've had a recession here, it's small and the rent is really reasonable so I don't have to sell a lot of stock to break even," she says.
Liano is also developing a new Bettina Liano website but says actual bricks-and-mortar stores will always be important for retail.
"Opening a store is like a showroom, it's like a billboard, it gives people a place to go and you can communicate your offer," she says.
"Online is a focus for me but online and the real experience are not comparable. I might have been born in the 60s, [but] I don't care what anyone says, you can't touch the fabric online, you can't smell the candle burning, you can't sit on a chair and be served."
Liano says it has been <a target="_blank" href="https://www.smartcompany.com.au/retail/20110711-melbourne-jeans-label-bettina-liano-collapses">a long road back from the collapse</a> of her business but she is confident about the future for the Bettina Liano brand.
"I lost most of what I worked 25 years for, I lost millions of dollars in equity and I'm trying really hard. I'm not a crook," she says.
"They have a different attitude to that sort of stuff in America, what I have done is going to make me money. I am still here, I am still 100% in business, and I still own the business 100%."
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank" rel="nofollow">SmartCompany</a>.
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Bettina Liano closing Australian stores and selling jeans in the United States

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After the passing of my father two weeks ago, I’ve found myself pondering a lot of things. Things I’ve learnt from him and things that I want to teach my sons.  Dad didn’t teach me by sitting me down to explain anything, he simply did his thing and I watched. At the time I didn’t even realise I was taking it in, but now looking back, his work ethic and attitude shaped mine.
When writing his eulogy with my brothers and sister, it was truly amazing to recognise all the different jobs he worked to make money. He seemed to always have an idea for creating some extra income, like when he was a milkman: he saw an opportunity to sell hotdogs to the farmers at the co-op where he picked up his milk, as they’d been up early to get the milk to the city and were hungry. So he kept a pot of hot water with the hotdogs and bread rolls in his truck and after selling out, he’d then start on his milk deliveries.
Another example was when he bought a white LTD car – with four kids he needed a big car. But he also used it for chauffeuring weddings on his weekends after working all week in his own tyre-fitting business.
Dad didn’t go to uni or study, everything useful he learnt was from doing it.
While I did go to uni years ago I don’t really use what I studied now.  Everything I learnt about property development has been from doing.  When I remember back to my first development, I really had no idea what I was doing, but I learnt from my builders and my surveyor and my tradies by asking lots and lots and lots of questions and then having a go.
When I made a mistake, I learnt not to do it that way. After 60 or more developments under my belt, I am still learning from each one because they all bring something a little different to me. These differences make up my experience.  I learnt to develop property by doing and repeating and then refining the process.
I see lots of people wanting to learn about property by completing more and more courses, doing more and more seminars.  Like my dad, I believe the real education comes from doing; it comes from the experience that you will take away from what you do.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank">Property Bloom</a>, which manages property development.
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You learn property development and investment by doing, not studying: Jo Chivers

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Hi Margaret
We have an investment property that needs some tidying up to maximise the rent – things such as replacing the carpets, renovating the kitchen and bathroom, painting and a carport.
Should we get a depreciation schedule before and after the renovations?
Your help is appreciated.
Regards
Debbe
 
 
Hi Debbe
I am so glad that you clarified this before you went ahead.  There is a significant benefit to be gained from what is known as ‘scrapping’, but all too often investors think of this after they have already thrown everything out, and this is too late.
First of all, your property has to be technically in the middle of being rented.  So, if it’s never been rented and you carry out these minor renovations before you make it available to rent, then you will not be able to make claims.  The property must be ‘income-producing’ in order to make claims.  So the best time is either while the tenant is in there, or in between tenancies.
If you do not know the value of the items which you will be removing from the property, start out by having a depreciation schedule prepared.  You are allowed to estimate the value of plant and equipment yourself (but not construction values), but in my experience it’s easier to have the schedule prepared, as this provides your construction values too.   Once you have had this done, go ahead and carry out the makeover.  Then, have the quantity surveyor come back to prepare an updated schedule.  It’s probably helpful if you can keep a list of anything you threw out to assist them.
You can then go ahead and ‘scrap’ any items which had a value before you disposed of them.  This means that their full, remaining value as at the time you threw them out carries an immediate deduction of 100% of the value for you, in that year!  For example, if you dispose of $5,000 worth of old items, you can claim an immediate tax deduction for the entire amount! For those on the 40% tax bracket, this is a tax break of $2,000, which isn’t to be sneezed at!
Good luck with your renovation!
Update
Last week a reader asked me to clarify whether I meant that you could avoid capital gains tax if you move out of your Principal Place of Residence for up to 6 years (as written), or if I meant 6 months!
You can move out of your PPOR for up to 6 years and still claim the PPOR exemption on that property, as long as you are not claiming the exemption on any other property.  You can rent it out during this time.  You must move back in (or sell it) not a day later than the 6 years are over.
The ‘6 month overlap rule’ is a different rule – it states that you can apply the PPOR exemption to two properties at the same time for an overlap period of not more than 6 months.  This allows you to move from your former home and into a new one and have 6 months to sell the old one without incurring CGT.  Again, the timing is strict; one day more than 6 months and the CGT applies form the date you moved out.
 
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 rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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Ask Margaret: When should I get a depreciation schedule?

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Investors who purchase Perth apartments or Perth properties priced under $500,000 have the best prospects for capital growth over 2013, says WBP Property Group CEO Greville Pabst.
Pabst expects these types of Perth properties to generate capital growth of between 5% and 10% over 2013.
However, the outlook is far from uniform across Perth with Pabst forecasting that Perth holiday homes could lose up to 5% of their value over 2013 with declines of up to 3% for residential development sites.
The outlook for Perth houses within 20 kilometres of the city is for capital growth of around 7% at best, but there could be no price appreciation for Perth houses over 2013.
Little if any gains are tipped for the Perth prestige market ($2 million plus).
The outlook in Sydney is strongest for established housing within 10 kilometres of the CBD (up to 5% growth) with small gains for established units (up to 2% growth), but the rest of the market is expected to struggle with Sydney holiday homes set to fall by as much as 10% in value.
The forecasts cover the key capital city markets of Sydney, Melbourne, Perth and Brisbane and recognise that "different markets [within a larger market] perform differently”.
The outlook is fairly consistent for Brisbane, with modest growth tipped across both houses, units, the holiday market, mortgage belt and even for the long-struggling residential development site sector.
House prices within 20 kilometres of the Brisbane CBD are forecast to grow by 5% or more.
In Melbourne the prospects are strongest for established house and units but weakest for holiday homes and development sites where values could fall by double digits.
Pabst says it’s important for buyers to recognise that “no two properties perform the same because no two properties are exactly the same.
“Size, suburb, street and lot location, orientation, condition and broader economic conditions underpin property performance on an individual level, and exercise significant influence on capital growth,” he says.
<img alt="wbpfeb22one" height="317" width="470" src="/images/stories/2013/02/wbpfeb22one.gif">
<img alt="wbpfeb22two" height="152" width="470" src="/images/stories/2013/02/wbpfeb22two.gif">
<img alt="wbpfeb22three" height="173" width="470" src="/images/stories/2013/02/wbpfeb22three.gif">
Note: The forecasts do not include analysis of off-the-plan properties and only include legitimate resales
Photo courtesy of Flickr.
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Perth apartments likely to be the standout performers for 2013: WBP 

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Mortgage Choice CEO Michael Russell says he is certain state governments are re-assessing their first-home buyer grant schemes following dramatic falls in their share of the mortgage market.
Russell quoted ABS figures showing that from July to December, the proportion of first-home buyers taking out home loans fell from 18.6% to 14.2%.
A year ago (December 2011) their share of the market 20.2%.
Russell told Property Observer this was a "significant deterioration" and an area of "genuine concern.
He says changes to first-home owner grant schemes are not having a "particularly favourable effect".
Last year the Queensland and NSW governments withdrew the $7,000 first-home owner grant and replaced it with a $15,000 grant but only for those who buy or build a new home.
Russell says Mortgage Choice believes that all first-home buyers should be entitled to the first-home buyer grant.
"The notion of not indexing it it does not make sense.
"It needs to be indexed.
"I am sure it is being assessed at the moment, there will need to be action," says Russell.
He added that he does not subscribe to the notion that the grant has an inflationary effect - the theory that the grant pushes up house prices so first-home buyer don't actually get any benefit.
In his presentation to media <a href="/news">following strong interim results</a>, Russell noted that there had also been a declining in those refinancing, despite "incredibly attractive competitive interest rate and removal of exit fees" with the percentage of mortgage holders refinancing falling from 19.3% to 17.7%.
The good news for the market, he said was a rise in the number of homeowners looking to upgrade, with loans from this sector rising from 35 to 38.5% and the return of investors coming with their share of the market rising in both percentage of loans  and value, up from 31.4% to 33%.
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State governments need to look at first-home buyer handouts: Mortgage Choice

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Three small lenders led by Holiday Coast Credit Union have cut their variable rates outside of any cash rate cut by the Reserve Bank, according to mortgage comparison website RateCity.com.au. 
<a target="_blank" href="https://www.hccu.com.au/">Holiday Coast Credit Union</a>, which has 15 branches on the NSW Holiday Coast and in the Hunter region, cut several variable loans by 0.20 percentage points. 
It’s lowest variable rate offering is 5.62% offered on its capped home loan product. 
The two other lenders to cut their variable rates were BMC Mortgage, which cut several loans by 0.10 percentage points and IMB Building Society, which cut one home loan by 0.05 percentage points. 
According to RateCity.com.au, a 0.20 percentage point discount can make a big difference on home loan repayments. 
For instance, for a $300,000 home loan dropping from 5.9% to 5.7% could mean a saving of $456 per year or $13,680 over 30 years. 
RateCity.com.au expects more lenders to cut their variable rates. 
Michelle Hutchison, spokesperson for RateCity, sus it's the first time RateCity recorded three lenders cut variable home loan rates out-of-cycle. 
"While there have been several rate increases out-of-cycle, we've never seen lenders drop variable home loan rates while the cash rate remains stable. 
"Lenders have room to move after keeping on average 0.42 percentage points of the Reserve Bank’s 1.75 percentage point cut to the cash rate since November 2011 from variable home loan borrowers. 
“If these three lenders can afford to cut variable rates out-of-cycle, other lenders – including the major banks – have no excuse to sit on their hands,” she says.
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Three small lenders cut variable rates without RBA prompt: RateCity

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Australia’s biggest mortgage broking franchise Mortgage Choice has reported a 20% rise in interim profits with CEO Michael Russell saying the group is optimistic about the housing and home loan markets for the first time in a number of years.
“Housing prices looked to have bottomed and are gradually on their way up,” said Michael Russell at the group's results briefing today.
The group reported interim profits for the six months to December of $7.8 million compared with $6.5 million in the previous corresponding period, in line with previous guidance.
The core Mortgage Choice loan book grew 4.7% to $44.4 billion with approvals down slightly (0.4% to $5.09 billion) and settlements up 2.1% to $4.43 billion.
Mortgage Choice added six franchisees over the six month period to stand at 386 franchises, its highest number of franchisees since January 2009.
After a tough five or six years for the group, mortgage brokers and the market overall, Russell said Mortgage Choice was “optimistic for first time in number of years”.
“Early talks about green shoots were premature a few year back, but looking at the dynamics now, there are sustainable green shoots appearing.
“We are quite buoyed by this."
Russell pointed to RP Data-Rismark figures showing capital city dwelling prices, up for month of January up for the last quarter and up year-on-year.
He noted the resilience in the Melbourne market – the weakest market for Mortgage Choice settlements.
While dwelling prices were down year-on-year in Melbourne, he said it was good to see Melbourne dwelling prices up for the month of January.
“Housing prices looked to have bottomed and are gradually on their way up,” said Russell.
He also noted that consumer sentiment – a significant contributor to the housing and mortgage industry – was finally rising, having “suffered from an extremely long lag time” following 175 basis points being taken off cash rate in past 14 months.
Also supporting the housing market, Russell says, is continued population growth, a housing undersupply issue, “which will form a nice base for housing price growth” and low unemployment, which is “comfortably constrained”.
The interim results show that settlements growth was driven by WA franchisees with settlements up 19% to $469 million  and Queensland up 10% to $1.97 billion in settlements.
This helped correct a small 2% slide in settlements in Mortgage Choice’s biggest market, NSW, which makes up 35% of settlements. Settlements in NSW fell from $1.56 billion to $1.53 billion.
Victorian market hardest for Mortgage Choice, significantly down on year on year basis, with a 4% drop in settlements to $979 million.
Mortgage Choice suffered a small drop in its share of mortgage lending, which fell from 4.1% to 4%. Russell attributed to preparations for a new marketing campaign in March.
"We have held back on marketing spend to give the campaign the best opportunity to be successful,” Russell said.
The group will pay an interim dividend of 6 cents per share.
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Mortgage Choice interim profits up 20% and optimistic about housing market for first time in years

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Suite 2.06 in the art deco building at 65 York Street, Sydney has been sold for $815,000. 
Savills Australia sold the Icon House strata office space on behalf of Castle Partners Investment Bank.
“The strata market is popular with owner-occupiers as it allows purchasers to take advantage of the fall in interest rates, whilst offering the ability to own their own accommodation within the CBD without the worry of future rent increases,” Savills agent Ben Adler said.
Located on the corner of Barrack and York Streets, the 12 storey building was among the first art deco office buildings in Australia, Formerly known as James Hardie House, it was designed by Robertson and Marks in association with John Reid and Sons in 1927. It was planned in two parts; the first was completed in 1928-29, and the second in 1934-35 to a design by the same architects. The building was praised for its delicate colouring (external terracotta) and its harmonious design. The building is listed in the RAIA Registry of Significant 20th Century Buildings.
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Sydney art deco strata office sells at $6,626 per sq m through Savills 

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The Perth CBD is expected to be the top performing capital city office market this year despite mining companies reducing their costs and office space requirements, says BIS Shrapnel chief economist Frank Gelber.
However, Sydney is the best bet over the next five years with very little new CBD office space coming onto the market over this time period.
“As demand recovers, vacancy rates will tighten, leasing incentives will reduce, rents and property values will rise,” he says.
Gelber expects Sydney to be the top performing office market from 2014 onwards, despite projects like Barangaroo South adding over 120,000 square metres in new office space and due for completion in 2015.
He says the impact of Barangaroo has been built into BIS Shrapnel’s forecasts and he rejects “crazy comments” about the project pushing the Sydney vacancy rate to as high as 9%.
However, he says the other capital city office markets including Melbourne are “way behind”.
BIS Shrapnel is forecasting the Melbourne vacancy rate to reach 10% over the next few years from a current vacancy rate of 6.9%.
New projects and a lack of demand for fringe office space will also keep the vacancy rate elevated in Brisbane.
“This year, we think Perth will again top the pops – despite a recent setback in demand.
“While strong in the first half, net absorption turned negative in the second half of the year,” Gelber writes in The Australian.
Negative net absorption means that more office space was vacated than leased over the second half of 2012  - as mining companies downsized their space requirements.
Gelber highlights though that while mining investment is no longer growing at the “extraordinary rate that drove growth in mining services and hence office demand over the past decade, “it is [still] growing”.
Furthermore supply will dry up once the current spate of office projects are completed.
According to the most recent Property Council of Australia office report for the second half of 2012, the Perth CBD vacancy rate eased from 4.2% to 5.7% in December, but still remains the tightest capital city CBD office market.
“The Perth office market was affected by cost-cutting in resources companies, particularly the iron ore sector, last year. This resulted in less demand for office space by firms providing professional services to the sector”, said Property Council executive director, Joe Lenzo.
Lenzo says demand for Perth office space was at its weakest since 2009, with premium office space experiencing the largest increase in vacancy rates from 1.3% to 4.5% with a negative net absorption of just over 10,000 square metres.
However, mirroring Gelber’s sentiments, he says the new office pipeline will “tighten significantly in 2013” with only 12,249 square metres of new office space coming online in the Perth CBD over the year – a fraction of 180,000 square metres in new office space added in 2012.
From 2014 onwards the new office pipeline will gradually increase again”, he says.
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