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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Expressions of interest close today for a development site in the east Melbourne suburb of Blackburn that was once a fruit orchard and forms part of the estate of  the late Alan Herbert ‘Bert’ Cock, who played VFL in the early 1900s.
He died in April last year.
Cock played just two games for Collingwood in 1909 scoring one goal.
His brother, Eric was a more successful VFL player and a member of the Collingwood team which contested the 1922 VFL Grand Final playing 36 games and scoring 40 goals.
Another brother, Arthur, played two games for St Kilda in 1924.
The 10,360 square metre property stands at 59-67 Surrey Road, Blackburn North with three street frontages, 12 title allotments and is a 20-minute drive to the Melbourne CBD.
The portion up for sale is the remnant of the original 8.9 hectare estate, which was originally a large orchard operated by Bob Slater through the first half of the 1900s, and which is now the children’s playground known as Slater Reserve.
Since 1919 it has been owned by Herbert and Eva Cock or their immediate descendants.
The property harks back to the days when Blackburn was a country suburb, with the investment report noting that “all five family members loved the property and spent much of their lives on it watching its evolution from quiet countryside to busy suburbia”.
Eva Phillips, one of 14 siblings in a large orcharding family in Tunstall (now Nunawading) married Bert, a VFL footballer from Clifton Hill in 1914.
When they purchased the land in 1919, Bert and Eva, built a two room cottage close to Koonung Creek (now lot 11 Kent Close) and some 20 acres of orchard was painstakingly established.
Produce was initially taken by horse and wagon to Victoria Market however, with the development of reliable trucks and refrigerated transport, produce was trucked to the Blue Moon Co-operative (rail siding to the east of Blackburn Station) then shipped from Station Pier to Europe.
By the mid-1950s and to support their retirement, around 7.7 hectares of the property was sub-divided for urban housing. All five family members loved the property and spent much of their lives on it watching its evolution from quiet countryside to busy suburbia.
<a target="_blank" href="https://www.woodards.com.au/index.cfm?pagecall=property&amp;propertyid=2234678">It is being sold by Julian Badenach and Cameron Way of Woodwards with expectations of a price in excess of $4 million</a>.
“We are expecting interest from a number of investment bodies. Aged care services,  property developers interested in land subdivision for the creation of small house blocks as well as medium and high density units, townhouses and apartments are all showing interest,” Badenach tells Property Observer.
The land is zoned Residential 1 Zone and is close to Westfield Doncaster, Centro Box Hill and Blackburn North Village retail strip.
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lschlesinger-FZcF9M3vE6

Blackburn orchard owned by former VFL player Bert Cock seeks $4 million from developers

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For many global retailers, Australia represents a relatively untapped market. Its geographical location, opposing seasons to North America and Europe, smaller critical mass and more attractive growth opportunities in domestic markets in Europe and the U.S. have meant that Australia has remained somewhat sheltered from many international competitors.
However, with many economies in Europe and North America experiencing significantly declines in growth, Australia has become of more interest to many global retailers. Whilst forecast retail growth rates in Australia of 2.9% for 2012-13 are relatively modest, they are still higher than many growth rates in North America and Europe.
Similarly, with an advanced economy and stable political and legislative structures, setting up operations in Australia is a relatively easier prospect doing so in other less developed countries. It also allows global retailers to use this expansion into Australia as a springboard into the potentially highly lucrative growth economies in Asia.
With the strengthening of the Australian dollar and the increasing use of online as a medium for shopping, many Australians have taken to purchasing products from overseas. This has awakened global retailers to demand for their products from Australian consumers. It has also given them vital information on what Australian consumers want which is a significant benefit when setting up business in Australia.
Global retailers also have a number of potential competitive advantages over local Australian retailers. With operations globally, there are naturally potential economies of scale which can be used to bring products to Australian shores at cheaper prices. Many global retailers, particularly in the fashion retail space, have invested significantly in building their brand equity. Such brands are highly attractive to many consumers, as we have seen with the new store openings of Zara and Topshop in Australia which have proven to be highly successful.
Many such retailers are more advanced in terms of vertical integration, which allows new products to be brought to consumers quicker, more conveniently and at a lower price. Customer experience and customer service are also areas where typically many global retailers are more developed.
What does this mean for Australian retailers?
Undoubtedly, the influx of global retailers to the Australian market has and will continue to increase competition. However, we shouldn’t forget that Australian retailers still have a number of advantages including a greater knowledge of the local market, customers and seasons; an established customer base; and prime store locations.
For Australian retailers to be successful it’s vital that their response to global competition is positive and developed around a well thought out long term strategy. Being price competitive will always be an important part of a retailer’s strategy, but it can only have limited success against a retailer with a global presence and potential greater economies of scale. Therefore it will be vital to differentiate and adapt, be it through product or customer innovation, branding, sales channels, speed to market or customer experience.
With some of the largest global retailers entering the market it’s an opportunity for Australian retailers to step up to the challenge. Australian retailers need to have a long term strategy which addresses globalisation and which ensures they have a point of difference. In doing so, many more Australian retailers will be competing and potentially succeeding against some of the biggest retailers in the world.
David White is <a target="_blank" href="https://www.deloitte.com/view/en_AU/au/index.htm">Deloitte's</a> national leader  for retail, wholesale &amp; distribution and author of the report: Global Powers of Retailing 2013.
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davidwhite-5tP2hYCn9U

Why global retailers are setting up shop in Australia

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Auction clearance rates <a href="https://www.propertyobserver.com.au/auctions/apm-s-melbourne-auction-results/2013021759384?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_self">nudged 70%</a> in Melbourne last weekend and now all the major banks have followed Westpac’s lead in dropping their two year fixed rate to 4.99%. The scene is set for the market to move – particularly the inner urban areas – and I believe it will grow by more than 10% this year.
For many people, this is a scary proposition, as getting into the market is already difficult. With four young children of my own at home, I often wonder how on earth they are going to be able to afford to get into the market. I am sure it will just be a matter of time before they stop asking for iPods and get into more serious requests.
Many parents are already being called upon to assist their children either into their first home or to upsize as they start a family. It is important, however, that both parties enter any arrangement with eyes wide open.
Let’s say your child wants to purchase a $500,000 property (a fairly modest price in many parts of Melbourne). Without a substantial deposit, they are forced to borrow 95 per cent of the purchase price, or $475,000. Unless they can find a way to reduce the loan amount to 80% of the purchase price, or $400,000, they will have to pay mortgage insurance. On a loan of $475,000, this could cost around $15,000.
To avoid mortgage insurance, they need a $100,000 deposit plus around $25,000 to cover stamp duty and other costs. They either need to save $125,000 or call in some help.
If you are willing and able to help, that’s great — but what’s the best way to do it, at a time in life when you are probably focused on saving for your retirement and can ill afford to risk your hard-earned savings?
Option One is to put the funds into a term deposit and offer that as security for the loan. This carries relatively little risk for you because it doesn’t make you responsible for paying back the loan.
In this scenario, they borrow 100% of the property value with a principal and interest loan in their own name. Over time, with the combined effects of loan repayments and capital growth, the loan balance will drop to 80% of the property’s current value.
They should keep an eye on sales results for similar properties in the local area, and ask a local estate agent to give an opinion on the property’s current market value. If it looks like the value has grown to the level where the loan is less than 80%, they can ask their lender or broker to arrange a new valuation. No need to pay for it as many banks now provide free upfront valuations.
If the valuation confirms that they have reached the 80% mark, the lender can release the term deposit and the money is yours again to do with as you choose.
What if you don’t have a lazy $125,000 in cash? Option Two is to take out a line of credit against your family home or investment property. You transfer them the funds, and they take out a $400,000 loan in their name. This option is relatively low risk for you because you are not responsible for the loan repayments. However, you need to understand that lenders charge interest on funds withdrawn from a line of credit. The rate is generally around .15% higher than a normal home loan.
Option Three carries more risk for you and should not be entered into lightly. Under this option you put up the family home or investment property as security for their loan. In this case, you become guarantors and therefore responsible for the loan. If they don’t meet the repayments, you could lose the property, though this only happens in extreme situations.
If you choose this option, it’s preferable to ask for a limited liability guarantee, which means you are not liable for the whole loan amount. In addition it is better, if possible, to use an investment property as security. This way, if the worst happens, the family home won’t be jeopardised.
No matter which option you choose, you should aim to minimise the level of risk and the length of time your funds are tied up. The sooner they can take full responsibility for their financial affairs, the better off everyone will be.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers
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marmstrong-sd3emVLPPb

How to help your children break into the market: Mark Armstrong

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With the release of the RP Data-Rismark Home Value Index results earlier this month, we also received the updated information on median selling prices of homes over the three months to January 2013.  This data revealed that the gap between selling prices of houses and units reached a record high over the first month of year.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/kusher1.gif"><img src="/images/stories/2013/02/kusher1thumb.gif"></a>
At a national level, median selling prices of houses were 11.4% higher than median selling price of units and across the combined capital cities, the differential was a much larger 19.4%. Five years ago, the differential was 15.6% and 8.3% respectively and a decade ago capital city houses were 1.1% more affordable than units and nationally houses were 5.6% more affordable.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/kusher2.gif"><img src="/images/stories/2013/02/kusher2thumb.gif"></a>
Across most individual capital cities the difference between selling prices of houses and units is at a record high.  In fact, Adelaide and Hobart are the only cities where the difference is not currently at record highs and they are only 2.6% and 5.0% off the records respectively.  The above chart highlights the differential across the major capital cities over time.  The graph also shows that since the start of the 2000’s the gap between the median price of a house and that of a unit has increased significantly.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/kusher3.gif"><img src="/images/stories/2013/02/kusher3thumb.gif"></a>
The difference between median selling prices of houses and units is currently quite significant across individual capital cities. In particular, some of the most expensive housing markets nationally such as Sydney, Melbourne, Darwin and Canberra all have a price differential in excess of $100,000. Across the individual capital cities the current differences are:
<ul>
<li>Sydney $171,000</li>
<li>Melbourne $103,250</li>
<li>Brisbane $99,500</li>
<li>Adelaide $78,000</li>
<li>Perth $96,000</li>
<li>Hobart $85,750</li>
<li>Darwin $164,000</li>
<li>Canberra $165,000</li>
</ul>
The significant price difference is highlighted by the fact that houses remain a much more popular choice across the nation than units.  The 2011 Census showed that 75.6% of all occupied dwellings were houses.  Although houses remain more popular, for price sensitive purchasers, particularly in major capital cities, units may be the only option for these buyers to enter the market.  With the gap widening between house and unit prices you would expect that unit sales activity would be increasing but this has not been the case over recent years.
Click to enlarge
<a href="/images/stories/2013/02/kusherfeb19.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/02/kusherfeb19thumb.gif"></a>
Of those properties sold over the 12 months to November 2012, units accounted for just 29.2% of sales across the combined capital cities and 25.6% at a national level.  As the graph above shows, there has been a strong trend toward fewer unit sales since late 2009.  This trend was probably influenced to some extent by the boos t to the First Home Owners Grant and the subsequent surge in first time buyers, many of whom were looking to purchase detached homes.  It is important to note that this trend may be slightly overstated due to the fact that off-the-plan unit sales are not provided until the property is titled however, there remains a trend toward fewer unit sales over recent years.  This seems to contrast dwelling approvals data which was released earlier this week.
Click to enlarge
<a href="/images/stories/2013/02/kusherfeb20.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/02/kusherfeb20thumb.gif"></a>
The annual dwelling approvals data shows that the proportion of units approved for construction has reached an historic high with 40.4% of all approvals over 2012 for units.  Of course the data still shows that the majority of approvals are for houses but it is noteworthy that more than half of all New South Wales approvals and almost half of all Victorian approvals were for units.  Given that in Sydney and Melbourne there is such a large gap between median house and unit prices this may be indicative of developers offering the market a cheaper housing alternative in the form of units. However, given that the number of unit transactions has been falling since 2009, are more units what the marketplace wants?
I believe that most Australian’s still aspire to own their detached home however; the high cost of vacant land coupled with limited new land supply and the concentration of employment opportunities within a few major centres has made owning a detached home out of reach for some.  For others, the only locations in which they can afford to own a detached home is either in a regional market, where there are fewer job opportunities, or on the outskirts of the city where amenity and infrastructure is less abundant than in those areas closer to the city centre.
Higher density units within inner city areas remain popular with investors because of their strong rental demand and subsequent attractive rental returns.  As a result of the more affordable price point of units as opposed to houses and their appeal to investors, I believe we will continue to see more and more units being developed, in particular within inner city areas.  Whether or not it is necessarily the product type that the market aspires to own, is unlikely to matter, given the reality is that for a proportion of the population, units are the only product type that they can afford in the location that they desire (unless they choose to locate within the more affordable detached housing areas on the outskirts of the major cities).
What do you think, are more units what the market wants and are units a viable alternative to the high cost of detached houses?
Cameron Kusher is senior research analyst at <a target="_blank" href="https://blog.rpdata.com/">RP Data</a>.
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Record gap between median house and unit prices may not mean demand for units is rising: Cameron Kusher

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The stars have well and truly aligned for Asian buyers wanting to invest in Australian residential projects.
The most recent development has been the introduction of “golden ticket” visas aimed at fast-tracking wealthy Asian investors’ entrance into Australia with a provisional four-year visa followed by the opportunity to apply for permanent residency.
The new Significant Investor Stream Visa (as it is officially known) requires an investment of at least $5 million in state or territory bonds; an ASIC-regulated managed investment fund; or a direct investment in an Australian company, which would include investments in commercial property backing a business such as a hotel or lodge.
The visa allows immigrants to skip skilled migration requirements such as being proficient in English and requires immigrants spend a minimum of just 40 days a year in Australia over the four-year visa period.
There is also no upper age limit, and the main applicant does not have to meet the business points test.
The Foreign Investment Review Board (FIRB) requirements must still be met under the visa 188 and 888. However, most commercial enterprises have a substantial financial threshold (currently $244 million) before requiring FIRB approval.
Tony Hogarth, who is a registered migration agent, says it is significant that English language is not a requirement for these visas
“This is likely to open up the Australian market to Chinese investors in particular, where language skills may have been a prohibitive factor in the past.”
The visa complements a number of factors that make investing in Australian residential projects particularly appealing to Asian investors.
According to Savills Australia’s Victorian investment directors, Clinton Baxter and Nick Peden, Asian investors already benefit from easy access to capital, and they also have tremendous competitive advantages over local developers of residential projects, including:
• Lower costs of funds from offshore sources;
• Established project marketing avenues in south-east Asia, leading to strong and rapid pre-sales of apartments; and
• A capacity to bypass onerous pre-sale requirements of the local banks.
These factors allow Asia-based developers to respond more rapidly to market conditions and deliver projects more quickly than most local developers.
“We regularly have several offshore buyers vying for the same property, such is the depth of interest and flow of capital from Asia into the Melbourne market,” say Baxter and Peden.
CBRE associate director Mark Wizel says there can be no doubt many of the new entrants have a far greater ability to contribute their own equity to both development projects and investment assets.
Furthermore, Wizel says that a lot of mainland Chinese developers are not adverse to risk and aggressively gear their projects, especially in the development space.
“We have seen many examples of Malaysian, Singaporean and Chinese developers using local Australian banks for senior debt funding and believe this will continue.
 “One area of particular note, however, is the emergence of offshore banks (mainly Asian) wanting to undertake funding of Australian development projects and investment assets,” he says.
“2012 saw the opening in Collins Street of retail branches for ICBC (the world’s biggest bank) and China Construction Bank, both of Chinese origin and both who have already shown a strong interest in supporting Chinese developers and investors in Melbourne.
“These banks join the Bank of China in Melbourne, who have been here for some time and whose appetite towards large scale lending is no doubt increasing,” he says.
In addition, Wizel says it is understood that OCBC from Malaysia has also been very active as an offshore lender to Malaysian developers working on projects in Melbourne.
Wizel says simple things like the language barrier and the ability to understand that mentality of Asian developers given Chinese bank an advantage over local banks.
In addition to financial factors, Wizel says both Malaysian and Chinese ties with Melbourne go back many decades.
He says Malaysians have an affinity with the city dating back more than 30 years, where many prominent Malaysian property players were educated and where the investment relationship into direct property commenced in the late 1980s.
“In relation to mainland Chinese investment, it needs to be noted that Melbourne has a strong history with Chinese people, this is no better understood than the fact that our Chinatown precinct is known to be the oldest Chinatown precinct anywhere in the world with San Fransisco’s Chinatown precinct coming second,” he says.
For more on Australia’s allure for Asian residential property investment, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment">download our free eBook</a>. It is also<a target="_blank" href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook"> available in Chinese.</a>
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New 'Golden Ticket' visa offers further advantages for cashed-up Asian investors keen on Australian real estate

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Sales of residential land on Melbourne’s fringes are set to retreat to levels last seen in 2006 as land prices continue to fall.
Following reports showing that around <a href="https://www.propertyobserver.com.au/victoria/long-slow-road-to-recovery-for-melbourne-residential-land-market-with-prices-to-fall-further-charter-keck-cramer/2012121158413" target="_blank">30% of all released Melbourne land is being returned by building companies,</a> there seems to be little respite for Melbourne residential developers in 2013, with a higher number of projects competing for business from seemingly reluctant buyers adding to the challenges they face.
According to the latest quarterly report from Oliver Hume, there has been a 29% increase in the number of residential projects being marketed on Melbourne fringes since 2006 with the real estate group forecasting 160 active projects in 2013.
Oliver Hume anticipates that land sales are likely to fall to around 65 per project a year.
“Put simply, since 2006, there has been a 29% increase in the number of projects and a 5% decline in the number of land settlements.
“For the majority of projects, double-digit sales rates may be a long way away,” says report author Andrew Perkins.
Land prices have now fallen for by a cumulative 16% over eight consecutive quarters with an average residential lot price of $190,000.
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Melbourne land prices peaked at an average residential lot price of $225,750 in December 2010.
At the same time, developers continue to offer highly contentious rebates to customers with the median rebate rising slightly during the quarter to $15,000.
Median rebates ranged from $10,000 in Cardinia and Whittlesea to $16,500 in Casey.
When discounting for rebates, Wyndham is the only municipality with a median land price above $200,000.
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The biggest decline from peak prices has occurred in Whittlesea, where the average lot price has fallen 18.6% since peaking in December 2010, falling from $229,850 to just $187,250 – a decline of $42,700. Whittlesea is about 40 kilometres north east of Melbourne.
Land prices have declined 16.9% in Melton, 35 kilometres to the west of the Melbourne CBD. Prices peaked later in Melton than in other fringe suburbs. They reached their highest point in September 2011 of $189,500 and have since declined to just $157,500 – a decline of $32,000.
Casey in Melbourne’s outer south east recorded the third steepest fall in in values with the median land price falling 14.5% from their peak in December 2010 from $232,550 to $198,000 – a decline of nearly $34,000.
Double-digit declines from peaks were also recorded in Hume (values down 13.1%) in Melbourne’s outer north west and in Melbourne’s newest land market Mitchell: Wallan- Beveridge, where values are down 13.8% to just $153,000 – the cheapest place to buy land on the outskirts of Melbourne.
Wyndham and Cardinia recorded the only single digit falls: 9.3% and 9.9% respectively.
For the fourth consecutive quarter, the retail supply has waxed and waned between 3,600 and 3,700 lots, which at current project sales rates, represents 6.6 months supply.
Only three of the seven municipalities recorded an increase in supply over the December quarter: Mitchell (Wallan-Beveridge), Casey and Hume.
Mitchell (Wallan-Beveridge) has the most supply with 9.9 months supply; followed by Whittlesea with 9.5 months. Wyndham and Hume are the smallest with 4.9 and 5 months supply respectively.
"Although many analysts suggest that Melbourne house prices will rise in the year ahead, few would suggest that we are in for a period where growth-area land prices may start to climb.
"There are nevertheless several indicators suggesting the down-side risk is no longer greater than the upside potential," says Oliver Hume.*
Exacerbating the challenges facing fringe land developers, a recent report by Essential Economics warned that Melbourne’s growth areas needed $10 billion spent on new education, transport and health services in the next 15 years - this from a Victorian government trying to rein in spending.
In addition, Essential Economics found there were more limited job opportunities in the 10 councils that form Melbourne's outer urban ring including Wyndham, Melton, Hume, Whittlesea, Yarra Ranges, Casey and Cardinia.
*Update to article: An earlier version of the article included an incorrect statement:  " Oliver Hume reports that developers are holding back on releasing large amounts of land to the market as take—up remains poor." This statement was incorrect and has been removed.
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Melbourne land sales heading for toughest year since 2006 as rebates rise: Oliver Hume

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The Channel 9 television executive David Gyngell has spent $5.25 million to buy a half share of John "Strop" Cornell's Hotel Brunswick at Brunswick Heads.
The Brunswick pub is a northern NSW tourist stop-over location known for its traditional pub food, a shady beergarden, and the vintage ambience of classic Austalian 1940s architecture.
The "Bruns" has courtyard space shaded by giant poinciana trees.
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It ranked highly in the 2011 Best Of Summer Top 10 Beer Gardens by the Daily Telegraph being placed in number two position behind the Opera Bar @ Circular Quay.
The small coastal village pub was built in 1940 by Jim Cavill overlooking the Brunswick River and Simpsons Creek.
It was almost two decades earlier that Jim Cavill had built the 16-room Surfers Paradise Hotel in what was then Elston and then campaigned to have it renamed Surfers Paradise which occured in 1934.
<a href="https://www.hotelbrunswick.com.au/history/" target="_blank">The first hotel in Brunswick Heads was Bob Marshall’s Ocean View Hotel, which opened in 1884</a>.
The freehold of the pub was bought by the Cornell-directed Hizan Holdings in 1990 from Austotel for $2.1 million.
Hizan has recently touted getting development permission for the site but had a dispute with the local council about the definition of “floor area”.
Property Observer gathers the dispute was concluded without the need for contested litigation.
Gyngell, who has a newly completed retreat in the Byron Bay hinterland, has been a family friend of John Cornell and Delvene Delaney.
Gyngell’s gather, Bruce, helped found the Nine network in 1956. Another father figure was Kerry Packer who died on Boxing Day 2005.
The fellow Byron hotel owner John Cornell, who was the legendary producer who managed Paul Hogan and helped Kerry Packer set up World Series Cricket in 1977, is like a father figure to him.
The purchase had been mooted, but the official paperwork was only available last week at the land titles office.
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David Gyngell buys into John "Strop" Cornell's Hotel Brunswick at Brunswick Heads

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The CBD hotels sector continues to out-perform all other commercial property sectors with expectations dimming for offices and retail property returns, according  the latest NAB’s quarterly survey of commercial property players.
The NAB Commercial Property Index rose slightly to -17 points in the fourth quarter of 2012 from a low of -19 points in the previous quarter.
However, this was solely due to a sharp increase in the CBD Hotels index as capital growth and rental expectations fell in all other commercial property markets.
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“Recovery expectations also postponed in all markets, with property professionals less optimistic about prospects for longer-term capital and income growth,” says the report authored by NABs’ head of research Peter Jolly and chief economist Alan Oster.
On a state-by-state basis, WA was identified as the strongest market, but NSW the most optimistic state by the end of 2014 with Victoria lagging.
“Debt and equity funding still a problem for developers and consumer confidence continues to be identified as the main challenge for property firms in the next year.”
The results are based on a December survey of 270 commercial real estate agents and property managers, property developers, asset/fund managers and commercial property owners and investors.
The CBD Hotel Index rose to +58 points in the December quarter, with more respondents anticipating future capital value.
“CBD hotel operators are benefiting from strong demand for CBD hotel rooms and limited supply additions, which is contributing to revenue per available room (revPar) and room rate growth,” says NAB.
CBD hotels was the only sector to record a rise in capital values over the December quarter (up 1.7%) with retail property recording the greatest decline in value (-1.4%) followed by industrial (-1.2%) property.
Office property values slipped by a relatively modest 0.6% over the quarter.
The outlook is also strongest for CBD hotels with respondents anticipating capital growth of 3% over 2013 and 4% over 2014.
Modest growth is predicted for industrial property (0.3% and 1.2%) and offices (0.1% and 1.2%) with expectations gloomiest for retail property with values forecast to decline by 0.2% this year, before a modest rise of 0.8% in 2014.
NAB says the lower expectations for capital growth and rental growth in the office property market are due to the domestic economy entering a soft patch along with weaker employment conditions seen in the finance/ business/ property sectors in the latest quarterly NAB Business Survey, which has weighed down on confidence.
“With the economy continuing to weaken and unemployment set to rise noticeably through 2013, the outlook for commercial office property has also weakened,” says NAB. 
Commercial property landlords hoping for a better rental return in 2013 will be disappointed.
The NAB survey found that rents contracted in all markets in the final quarter of the 2012 led by retail (-2.1%) with rents down in all states.
Retail participants in the survey are slightly less pessimistic this quarter about rental expectations, expecting average rents to fall 1.5% this year and by 0.4% in 2014. There are more subdued expectations in the office market with rents to remain flat in 2013 and grow by 1% by 2014
Rental expectations for industrial property also revised down with rents to grow 0.8% in next year and 1.7% in 2014.
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Little for office and retail landlords to cheer about as commercial property outlooks dims: NAB survey

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Real estate funds manager, investor and developer Folkestone will shortly secure settlement on the sale of 41 dwellings in the first stage of its key Karratha residential development The Ranges.
Reporting its first interim results since restructuring, Folkestone announced a net profit after tax for the six months ending December 31 of $30,000 compared to a net profit after tax of $700,000 in the corresponding period in 2011 following a number of acquisitions and sales of non-core parts of the business.
Folkestone managing director, Greg Paramor said the company had been very active over the reporting period, and had completed its transformation “from a pure real estate developer to a real estate funds manager, investor and developer providing real estate wealth solutions to private clients and select institutions.”
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“Over the past 18 months, we have sold legacy assets, recycled capital and established a funds management platform that now offers listed and unlisted real estate funds to private clients and a number of institutional investors” said Paramor, who was co-founder and CEO of Mirvac from 2004 to 2008.
Stage 1 of the Ranges comprises 2.2 hectares with a “Tourism” zoning and development approval for 108 single level, one bedroom villas with pool and BBQ facilities.
Folkestone has a 25% interest in the project.
The settlements of the first 41 dwellings in Stage 1a  to individual investors is due to commence in March 2013.
The development is designed to provide accommodation to business travellers to Karratha in the Pilbara, WA’s resource heartland and the focus of a number of long?term LNG  and other resource projects.
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A further 14 dwellings in Stage 1b have been sold and a marketing campaign for the balance of the 53 dwellings in Stage 1 is underway.
Construction of a further 32 villas is expected to commence mid-2013.
Folkestone also settled on a further 7.1 hectare adjoining rear?lot to the project following negotiations with the WA Government and the local indigenous community regarding Native Title clearance issues.
During the reporting period, Folkestone acquired the Austock property funds management business.
Folkestone also completed its joint-venture (with AMP) Noone Street, Clifton Hill residential development featuring 87 dwellings in the inner suburb of Melbourne, acquired in June 2007. The final apartment was settled on September 20.
The project delivered a cash return of $9 million, of which $300,000 occurred in the reporting period.
Folkestone also launched its first real estate income fund at Sydney Olympic Park, the first in a series of such funds.
The Fund acquired a new 5,920 square metre commercial building at 7 Murray Rose Ave, Sydney Olympic Park for $29.25 million, leased to Thales Australia, as its new Australian headquarters.
Offering a commencing annualised yield of 8.1%, the high number of applications to invest in the unlisted fund meant that it closed oversubscribed.
Paramor says he expects economic and financial markets to remain “challenging but believe there will be a number of attractive investment opportunities in both the residential and non?residential sectors in the next 12 months”.
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Restructured Folkestone prepares for first Karratha residential settlements

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Of the 278,222 square metres leased in the Sydney CBD in 2012, the 'property &amp; business services' sector was the dominant sector, leasing 42% of the stock, or 115,678 square metres, according to Savills.
Demand from the ‘finance and insurance’ and the ‘property and business services’ sectors, which make up the majority of tenants in Sydney, continues to build.
The two sectors combined accounted for more than 78% of leases signed during the last 12 months totalling a massive 215,528 square metres. Much of this is precommitment for projects completing in 2015/16.
<img height="311" width="470" src="/images/stories/2013/02/feb20offices/sydney_office_leasing_2012.gif" alt="sydney_office_leasing_2012">
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