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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The global financial crisis has had a significant impact on the way Australians view American society. When I first visited the United States around 15 years ago they thought we wrestled crocodiles, called prawns shrimp and rode kangaroos to work. Their view of Australia was driven by the media they were consuming. 
We all laughed at the simple attitudes of the American public and how naive their view of Australia was, but we have to be careful not to fall into similar traps. 
If we were to believe the media, we would be under the impression that America is one massive foreclosure sign and every property has lost more than half its pre-GFC value. While there is no doubt many property markets in the States are in serious trouble, there are some markets that have held their ground. 
Take, for example, <a target="_blank" href="https://www.zillow.com/homedetails/15-W-11th-St-APT-3B-New-York-NY-10011/72513457_zpid/">this one-bedroom apartment</a> in New York City's Greenwich Village.
 <img alt="greenwich" src="/images/stories/2013/02/greenwich.jpg" height="174" width="300">
It was purchased in 2007 just before the GFC for $1.2 million. Five years later it came out with its head held high and sold for a respectable $1.15 million. 
Similar examples can be found on the west coast of America. In San Francisco <a href="https://www.zillow.com/homedetails/554-Valley-St-San-Francisco-CA-94131/15182872_zpid/" target="_blank">this four-bedroom family home</a> sold for $2,879,000 in 2007 and was sold again in Jan this year $2,725,000.
<img src="/images/stories/2013/02/sanfran.jpg" alt="sanfran" height="196" width="150">
Yes, they both slipped back by a small amount, but even during one of the worst economic environments ever seen these properties protected the majority of their owners’ capital. 
So why does this happen, and what can we learn from it?
Both these properties are located in major cities with strong employment centres, infrastructure and schools. Further, they are in areas where there is a shortage of land, and both are period-style homes that are almost impossible to replace today.
In short, these properties have consistent underlying demand from a large number of people and a limited supply. The laws of supply and demand indicate that regardless of the market conditions these properties are more likely to retain their value during down times and grow well when times are good.
These laws of supply and demand do not have a nationality and will apply to any property market all across the world. They were in full flight on Saturday when a massive crowd turned out for the auction of <a target="_blank" href="https://www.realestate.com.au/property-house-vic-thornbury-112730267">154 Hutton Street, Thornbury</a> (pictured below).
<img alt="huttonst" height="353" width="470" src="/images/stories/2013/02/huttonst.jpg">
During the campaign for this run down timber Edwardian more than 3,000 people viewed the listing online. This translated into more than 360 people turning up to the open for inspections. Impressive numbers in any market.
The property ticks the boxes of limited supply and strong demand. It lies within seven kilometres of Melbourne and sits on around 600 square metres of land. It was also well located to shops, transport, parks and schools. To top it off, the property was seen by many buyers as affordable, as the agent was expecting it to sell for around $800,000.
The scene was set for a big auction as multiple buyers viewed this property as "the one". With the exception of a few under-bidders, the auction did not disappoint anyone. It was declared on the market at $835,000 and when the hammer fell it had exceeded this point by almost $100,000, selling for $933,000.
In a strong market all property looks good, but it's not until the market turns south that the cream rises to the top. As the market heats up into 2013 buyers would be wise not to lose sight of the laws of supply and demand.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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What the American housing market crash can teach Australia

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Australia’s biggest mortgage lender, the Commonwealth Bank, has signalled a brighter outlook for 2013 as it reported a 6% rise in interim profits to December 2012 of $3.78 billion.
The bank has 25.1% of the mortgage market – one in four borrowers in Australian has a Commonwealth Bank home loan – and its earlier reporting of interim results ahead of its big four rivals is considered a bellwether for the health of the banking and mortgage industry.
The bank wrote $1.54 billion in new mortgages in the half-year period an increase of 15% on the previous corresponding period, with mortgage brokers responsible for 38% of new lending over this period.
Importantly for borrowers, it reported a steep decline in long-term wholesale funding costs, giving the bank the capacity to use the $13 billion raised from investors offshore to fund cheaper mortgage lending in 2013.
Long-term wholesale funding margins decline from 169 basis points (margin to BBSW) six months ago to 109 basis points as of December 2012.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/cbafeb13.gif"><img src="/images/stories/2013/02/cbafeb13thumb.gif"></a>
Earnings from the bank’s retail banking division, which includes mortgage lending, rose 7% to $2.93 billion.
Commonwealth Bank chief executive Ian Narev called it a “strong result” in “subdued market conditions”.
He says the bank maintains a “cautious outlook” for 2013 with modest expectations for mortgage lending growth in 2013.
The bank expects mortgage growth of between 4% and 6% in 2013 rising to 5.5% to 7.5% in 2014.
Narev acknowledged that conditions remained challenging for borrowers, but that credit quality has not deteriorated.
“As a result we have experienced a period of relative stability, which has had a positive impact on global equity and debt markets
“Of course risks remain in the economy as a major financial institution we must remain cautious.”
But he said if the current stability continues, slow but steady rebuilding of consumer and business confidence in 2013
“And that is our base case for 2013.”
The Commonwealth Bank is the second biggest listed Australian company on the ASX by market capitalisation and fourth biggest taxpayer.
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Commonwealth Bank reports lower funding costs and brighter outlook as interim profits rise 6% to $3.78 billion

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Apartment living can be fabulous, but with over 70,000 residential strata developments in NSW alone, there are several things to consider before committing to purchase, the most obvious being budget, location and lifestyle.
It is also important that the size of the building be taken into account. For example, if you want modern facilities including a gymnasium, pool, and concierge service, you may want to consider a larger development – more people contribute to maintenance and management costs, making outgoings more reasonable in the long term.
And then there is the endless stream of other questions you need answered before proceeding with the investment. Is the building pet friendly? What is the split between owner-occupiers versus tenants? Are the outgoings (levies) sustainable over the long term? Is the development well managed by a reputable company and are there any pending issues? Are the common walls well insulated? Will your views ever be built out? What is the capital growth potential, rental return and demand? What are the by-laws of the building that you need to adhere to?
The good news is that you don’t have to figure it all out on your own. There is plenty of assistance and support at hand for apartment owners and investors that can provide answers while saving you time and money.
Firstly, you should have a good conveyancer who can give you the right advice about the contract, by-laws and all other terms relating to the purchase.
Unlike buying a house, the reality of communal living is that you are investing in an entire building development and essentially buying the air space, fixtures and fittings that are within the apartment. Common walls and common areas are the responsibility of the owners' corporation on or executive committees of each development, making it imperative that you thoroughly research the building and its history before purchasing.
The easiest way to investigate this is to find a good strata search company that can arrange a comprehensive strata report on the particular building you are looking at. This will cover all the necessary information on the development, including whether the sinking fund has a sufficient amount and the minutes from previous strata meetings. The report will also shed light on any short or long-term structural issues that could cost you in the future.
Another great source of assistance is The Owners Corporation Network (OCN), a not-for-profit organisation established in 2002 by representatives from 13 of Sydney’s largest buildings at the time.
Karen Stiles, OCN’s executive officer, says that by working closely with the government and industry bodies and hosting various forums, meetings and seminars, the OCN’s ultimate goal to improve strata living.
According to Stiles, over half the new dwellings to be built in our metropolitan areas over the next decade will be strata-titled. She says that it is essential that Australians transition as painlessly as possible from the idea of being the kings of their quarter-acre blocks to living in a well-managed ‘vertical village’.
Stiles added that the OCN is a support network that thrives because very few people have the knowledge or skill required to effectively manage their assets particularly when dealing with developers, builders and contractors in an increasingly complex area.
Carlie Ziri is the director of <a target="_blank" href="https://www.lifestylepropertyagency.com/">Lifestyle Property Agency.</a>
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How to decide what is most important when buying an apartment

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Charter Hall Group’s $1.7 billion Core Plus Office Fund has spent $172.5 million on the purchase of a Harry Seidler-designed Castlereagh Street, Sydney, office tower.
The 35-level, 1989-built Castlereagh Street office was sold by Stockland through Josh Cullen and Michael Andrews of CBRE.
<img alt="9castlereagh" height="600" width="401" src="/images/stories/2013/02/9castlereagh.jpg">
It's the one with the impressive hanging gardens.
On its completion, with tenants including Tricontinental, Credit Lyonnaise and merchant banking group Fay Rich White, the office tower had gardens on the ground level, landscaping on level nine, more gardens on level 13 and 15, palm trees on level 19 and a single tree on level 31.
It first sold in 1994 for $78.1 million when Capita Finance Group sold what was then known as the Capita Centre to Singaporean Straits Steamship Land.
It last sold in 1998 for $112 million.
<img alt="9castlereagh2" height="300" width="450" src="/images/stories/2013/02/9castlereagh2.jpg">
Stockland, the diversified property group, has been exiting its office and industrial holdings to focus on its retail, residential and retirement property portfolio.
<img alt="9castlereagh3" height="300" width="450" src="/images/stories/2013/02/9castlereagh3.jpg">
The 9 Castlereagh Street sale reflects a likely yield of around 8% as it is expected to generate a rental income of $15.1 million on a fully leased basis.
The purchase price includes $4 million in income support and the payment of all outstanding incentives.
<img alt="9castlereagh4" height="300" width="450" src="/images/stories/2013/02/9castlereagh4.jpg">
Its sale price was just above <a href="https://www.stockland.com.au/leasing-and-tenants/office/nsw/9-castlereagh-street-sydney_about-9-castlereagh-street.htm" target="_blank">Stockland’s June 2012 book value of $172.3 million</a>.
The building comprises 21,000 square metres of net lettable area, with tenants including Tokio Marine Management, van Eyk Research, PTW Architects and Talent 2.
The CPOF had been seeking to buy in Sydney for some time with the purchase increasing CPOF’s Sydney exposure from 19% to 27%.
“We believe the medium-term prospects for the Sydney office market remain positive and as such CPOF was attracted to this investment given the $8241 per square metre is below replacement cost and represents good value when compared to new building asset sales,” said Charter Hall joint managing director David Harrison.
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Charter Hall spends $172.5 million on Harry Seidler-designed Castlereagh Street office

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They may be unglamorous warehouses on the outskirts of Melbourne, but private investors are returning to the Melbourne south-east industrial market, accounting for more than a third of all transactions over $2 million in 2012, according to Savills.
The pie chart below shows that private investors were the biggest buying group of industrial properties in south east Melbourne  in 2012, accounting for 36% of all transactions.
According to Savills' Victorian head of research Glenn Lampard, investment yields for prime industrial property remained in a range of 7.5% to 8.75% while land values ranged from $115 to $200 a square metre for land between one and five hectares.
Lampard said private investors had been quicker out of the blocks to recognise an opportunity in the growing region.
The south-east Melbourne industrial market includes suburbs like Clayton, Moorabbin and Huntingdale.
<img alt="savillsfeb13" height="311" width="470" src="/images/stories/2013/02/savillsfeb13.gif">
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Private investors return to south-east Melbourne industrial market in droves

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The 21st century may be the “Asian century”, but Australia has enjoyed links with the region for over 150 years. The Australian gold rush, which began in 1852 and petered out in the late 1880s, was built on a massive wave of migration from all parts of the world.
The largest foreign contingent on the goldfields was the 40,000 Chinese. In 1861, Chinese immigrants made up 3.3% of the Australian population, the greatest share it has ever been. The 2011 Australian census recorded Chinese-born people at 1.5% of the population.
Most of the Chinese in Australia working on the goldfields were under contract to Chinese and foreign businessmen. In exchange for their passage money, they worked on the goldfields until their debt was paid off, and most returned to China.  About 10% stayed, and their hard work continued, putting down roots to create the Chinatown precincts in central Melbourne and Sydney. These areas continue as the vibrant epicentres of Chinese history, culture and business in Australia.
While the recent high level of Asian investment into the Australian apartment market attracts much publicity, much less is known about the impact offshore developers are having on the Australian residential market.
Many are surprised to know offshore developers are now proposing or building 20,000 apartments across Australia, with Chinese developers second only to Singaporeans in the ranking of offshore sources. This provides offshore developers with close to a 50% market share in this Australian property development sector.
But there is a link between the number of offshore developers and the high level of foreign purchases. Many Asian developers are marketing off-the-plan sales directly back into their home countries and cities through well-known and tried marketing avenues.
This high visibility through marketing and the familiarity offshore purchasers have with the product appears to be a winning formula and has helped push off-the-plan sales to a level that is ultimately supporting such a high foreign developer involvement in Australia. This is certainly the case for Chinese developers.
As at December 2012, Chinese developers have about 4,500 apartments in the development pipeline in Australia. This is a tiny number by Chinese standards, where some of the larger developers will complete about 100,000 apartments in a single year, and there are a number of developers doing that when market conditions allow.
In Australia, Chinese developers have invested at least $A350 million in sites nationally and are proposing projects so far of at least $1.6 billion. This activity is providing an important stimulus to a local property and building industry, which is at a very low point in the economic and financial cycle.
But Chinese developers are still very much in the emerging phase in Australia, behind the Singaporeans, who have been the pioneers of offshore developers here and successful ones at that. Singapore-based Frasers Property stands out as the single largest offshore developer to date, with large and high-profile projects such as Central Park in Sydney and the Frasers Landing/Queens Riverside projects in Perth making a bold mark on the local scene.
Of the 4,500 apartments in the Chinese developer pipeline, 72% are still classified in the broad “planning” phase, which could mean sites have only recently been purchased with plans still being developed (and often final apartment numbers still unknown), with others still going through the development approval process. Singaporean developers have just 39% of proposed stock in the “planning” phase and 44% (2,600 apartments) under construction.
Of the Chinese pipeline, 700 apartments are presently under construction and around 550 recently approved.
The Chinese component of the offshore developer trend in Australia comprises 17 projects of the 58 presently monitored in total. Interestingly, of these Chinese-backed projects, 74% by apartment numbers are in Melbourne, with the percentage of foreign-developed apartments in Melbourne at a still-strong 48%.
Access to sites, a lower general site cost per square metre, a more accessible planning system and the strong cultural/education connections appear to have driven this higher-than-average representation of Chinese-developed apartments in Melbourne. Strong growth in visitor arrivals from China to Melbourne though increased direct flights appears as evidence of the strengthening links.
The Gu family’s AXF Group is the most active of the Chinese developers in Melbourne, with at least 2,300 apartments in the pipeline, including the 3.3-hectare former Kinnears Ropes site in Ballarat Road, Footscray, which could yield as many as 2,000 apartments.
 
<hr class="system-pagebreak">
 
The other prominent location for Chinese developers is the Gold Coast, which represents 12% of the total Chinese-backed proposals. The massive three-tower Jewel project dominates this interest. The AU$1 billion project recently received state government approval and may kick off within the next 12 months. The project will include a six-star hotel and two residential towers.
Jewel's northern tower will have 215 luxury apartments over 41 levels; the central tower will be a six-star hotel with 300 suites and apartments over 45 levels; and the beachfront tower will have 108 premium residences over 35 levels. There will also be office and retail space and a host of resort facilities.
Jewel is being proposed by the Zhuhai Ridong Group and is likely to be completed by 2016, a time when the current oversupply of apartments on the Gold Coast is expected to be well and truly absorbed. Chinese developer Yan Jian is also active in the Gold Coast market.
Showing that Chinese developers are not just active in the larger Australian cities, the Datong Investment and Development Group is proposing two schemes in Adelaide, both in the CBD. The 123 Flinders Street scheme is particularly notable for its very bold design and is proposed to be the tallest building in the city at 39 storeys, a height only recently allowed under new planning controls. The same developers are also proposing the Aria on Gouger project on Gouger Street.
It’s perhaps surprising Chinese developers are not more active in Sydney, given the size of the city, its popularity with Asian visitors and the large number of Chinese apartment buyers in that market. Only 6% of Chinese-backed apartments are actually in Sydney, compared with 35% overall for offshore developers. There is further scope for Chinese developers to move into the Sydney market, but for now, the Singaporean-based groups have established the lead position among the offshore developers.
But why such a pronounced trend in Chinese and offshore developers, and why now? There are many drivers to this trend that have come together at this time, including:
<ol>
<li>The globalisation of property investment and development companies, looking to simultaneously grow business and spread risk by tapping into a number of different demand cycles and sized markets.</li>
<li>Coupled with point 1 is the significant growth of equity capital, particularly in China and the desire to invest part of this into “safe haven” destinations. Australia is considered a reliable investment location and place to do property business, with a secure land tenure system.</li>
<li>Like other property sectors, the price of residential development sites is generally low in Australia at present, coupled with reduced local appetite to acquire. Buying at this low point in the cycle will improve development feasibility and returns. Some previous site owners have been in a financially distressed state, particularly in suburban or country areas, with these sites being sold through receivers. Most site acquisitions by offshore groups have occurred since the global financial crisis, with this activity peaking in 2010-11.</li>
<li>Housing in most parts of Australia is undersupplied, particularly for reasonably priced products. This situation has been created by years of high interest rates and increasing developer charges being passed on to the end product.  The present low confidence caused by global economic uncertainty is further compounding generally low levels of buyer demand, particularly in greenfield housing markets.</li>
<li>The market popularity of inner-city apartment living close to transport, retail and education continues to be high, and this is where most apartments being developed by offshore groups are being proposed and built. This well-defined sector of the market is running counter to the general greenfield housing market at present.</li>
<li>Population growth in Australia remains high, and provided developers can meet the parts of the market where demand is highest there remains a good chance of achieving a successful project with high returns and low risk in a transparent, regulated industry.</li>
<li>Marketing of apartments directly into a developer’s home country has also opened sales to a purchaser group familiar with the developer’s product and has proved successful in reducing development risk by spreading the buyer catchment.</li>
<li>Various governments in Australia have and still provide incentives to purchase new dwellings (below a price point, which is typically in the middle market) and particularly for new apartments. These incentives can take various forms, such as a stamp duty concession or a first-home owners’ grant. These schemes appeared to have brought forward purchasing decisions and the termination of the schemes can lead to a spike in off-the-plan pre-sales and distortion in the cycle of transaction volume.</li>
</ol>
The risk around apartments developed by Chinese or offshore developers appears to be little different from the risk of those developed by local companies. Off-the-plan sales of individual apartments can remove part of the development risk, although risk is then transferred to settlement.
A number of the projects being developed by offshore groups have experienced a high proportion of sales to parties from the country of the developer or countries other than Australia. This does raise the prospect of the developer (or financier, if relevant) not being familiar with the buyers and reduces the ability to trace the ultimate source of funds for settlement.
Yet there appears to be no evidence through this cycle of this risk being realised to a point that has jeopardised the construction and completion of a residential project developed by an offshore company.
In some ways, offshore developers are in a fortunate position to be able to tap into large offshore buyers groups through existing contacts, opening up a source of equity capital not otherwise familiar to Australian developers.
The other obvious risk is oversupply in concentrated locations, leading to the potential for softening in achievable prices for off-the-plan sales. However, were this potential to be realised it should be revealed through difficulty or lack of pre-sales and a response by the developer to defer or alter a project.
Much has been written globally about Australian property prices being too high. Australian residential prices have grown over the longer term on the back of moderate but sustained levels of economic growth, coupled with population, employment and wages growth.
Add to this a general undersupply of dwellings nationwide and a conservative lending policy among domestic banks, and residential pricing appears to have been well supported to its current position. Unless all of these drivers unwind, it appears unlikely the median pricing levels of residential property will adjust downwards in the near term.
Provided offshore (and local) developers continue to carefully respond to the nature of demand for apartment product coming from the marketplace, in terms of product location, concentration, design, pricing, etc. then the supply-side risk appears to be manageable.
Although the connection of the Australian, Chinese and more generally, the Asian economies is a long and growing one, the relationship through the real estate sector still has a long way to develop.
 
Kevin Stanley is an independent real estate analyst with over 20 years' experience in property market research and urban planning.  He is located in Sydney, Australia, and can be <a href="mailto:kevinstanley3@bigpond.com">contacted via email</a>
For more on the allure of Australian property to Asian buyers, <a href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment" target="_blank">download our free eBook. </a> The eBook is also available for<a href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook" target="_blank"> free download in Chinese. </a>
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kstanley-sW5KFjskLN

Eight reasons Chinese residential developers have emerged as a major force in the Australian market: Kevin Stanley

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Stockland has delivered a horror set of interim results, reporting a 148% drop in statutory interim profits and a loss of $147 million to December 31.
A slump in the outer-Melbourne land market was largely to blame, with Victorian residential lot sales falling 46% from 850 to just 463.
In the space of six months, Victoria has gone from being Stockland's biggest selling region to third biggest, behind a surging WA and a declining Queensland,with NSW the fastest growing region, albeit from a low base.
Australia’s biggest new housing builder with 70 residential communities also reported a $306 million write-down across 13 residential community projects, which have now been listed for wholesale disposal.
Today’s release of results were something of a baptism of fire for new Stockland managing director and chief executive Mark Steinert – the first results briefing he has presided over since taking being appointed to the role  in November and replacing  the long-serving Matthew Quinn.
Ahead of delivering his market briefing on the results today, Steinert called the results “disappointing".
Speaking to the media and analysts, he downgraded this assessment to “very disappointing, driven primarily by weakness in housing market” though he says the outlook is better for the 2014 financial year (from July onwards).
<img alt="stocklandfeb13" height="580" width="470" src="/images/stories/2013/02/stocklandfeb13.gif">
Five of the impaired residential projects are in NSW, six in Queensland, one in Victoria and one in WA.
In total there are 4,700 lots across the 13 projects – about 5.5% of the 86,000 lots currently in the Stockland development pipeline.
They include long-held residential sites such as Pinny and Mawson (englobo land) and West Dapto in NSW and Birtinya, Bokarina Beach and Lake Kawana projects, all on the Sunshine Coast.
The residential business was weakest in Victoria over the six-month period, with Stockland reporting a 46% decline in Victorian settlements to 463, compared with 850 in the first half of the 2012 financial year.
This contributed to an overall 6% decline in residential settlement over the first half of 2,085 compared with 2,209 in the previous corresponding period.
There was also a 13% decline in Queensland settlements (686 to 594) – Stockland has a third of the south-east Queensland new housing market – with these declines offset by rises in lot settlements in NSW (up 101% from 210 to 422 lots sold) and WA (up 31% to 606 lots due to growth in new community launches).
Stockland will look to bring its East Leppington and Marsden Park projects on the outskirts of Sydney to market more quickly.
East Leppington in Sydney’s south-west will comprise 3,000 residential lots as well as retirement living and retail facilities with the first settlements expected in the second half of the 2014 financial year. House-and-land packages will start from $350,000.
Stockland acquired the 163-hectare residential site at Marsden Park in Sydney’s north-west from the private Winten Property Group for $165 million in January this year with the potential to deliver about 2,300 new homes. Stockland also secured the first right of refusal from Winten Property Group over an adjacent parcel of land, which has the potential for a further 2,200 homes.
Commenting on the state of the Melbourne market, Steinert said the market had been impacted by the state government efficiently delivering new land supply to the market and by the withdrawal of previous state housing grants.
“We don’t see a collapse, but this has put some downward pressure on price increases,” he said.
“The pull forward effect from early incentives effected prior levels of volume. Those incentives are no longer there, which has created recent slowing in settlements.
“Those things combined – increase in supply and withdrawal of incentives  - means we have a cautious view for Victoria and Melbourne, but it is still an important part of our business and a key profit generator.
Steinert said Stockland’s south-east Queensland business – Sunshine Coast, Gold Coast and Brisbane – had been impacted by the higher Australian dollar on tourism as well as weaker employment growth.
Countering that, he said the increasing use of fly-in-fly-out workers was having a “positive impact”.
Steinert also warned that “election cycle” could also increase buyer caution while there are also concerns over the impact of the recent floods.
He highlighted that business is in a transition phase with everything up for review and he said their had already been signficant job cuts.
"Market conditions, however, are expected to remain challenging with ongoing weakness in Victoria and uncertainty in Queensland where we will watch closely to monitor any impact on already weak consumer sentiment following the recent floods," Steinert said in an earlier statement today.
Stockland expects earnings from its retail and retirement living businesses but returns from its office and industrial portfolios were expected to drop.
"We remain confident earnings will begin to improve from the 2014 financial year as we see the benefit of major new retail and residential projects coming on line,” he said.
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Stockland pins hopes on western Sydney and WA residential projects as interim profits slump 148% 

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Non-bank lender Resimac has made a bid to acquire the loan book of RHG Limited that previously traded as RAMS Mortgage Corp.
The RAMS franchise business was acquired by Westpac in January 2008 and is a separate mortgage lending business to RHG Limited.
RHG Limited informed the ASX yesterday that it had received an approach for a possible “asset-level sale of its loan book”.
“Discussions are not concluded and there are complex transactional and commercial issues involved,” RHG said.
“Our primary objective is to maximise the net worth of the company whilst at the same time ensuring the needs of all of our stakeholders, being our home loan customers, shareholders, staff, service providers and funders are considered and addressed.”
A successful transaction would be in the order of around $150 million, the Australian Financial Review suggested.
RHG has a market value of $143 million.
Sydney-based Resimac, a prominent wholesale non-bank lender, has declined to comment on the mooted bid.
It dates back to 1985 when it was originally created to service and securitise residential loans for HomeFund, a New South Wales State government housing programme under the name of FANMAC.
It was the first Australian lender to issue Australian Residential Mortgage Backed Securities (RMBS in 1988 and since then has issued nearly $12 billion through 18 domestic and international RMBS issues.
RHG continues to operate the loans it originated under the old RAMS brand as a closed, amortising book with its business remaining in wind-down.
It reported net profit of $40.7?million in the year ended June?30, down 45%on the previous 12-month period.
Shares in RHG Limited were placed in a trading halt when the announcement of the approach was first made, but climbed 7.5% higher to 50 cents following a resumption of trading.
They remain at 50 cents this morning ahead of trading.
The loan book acquisition proposal by Resimac was
Any final asset-level proposal would require shareholder approval, and may require third party consents.
The original RAMS business was founded by John Kinghorn, who pocketed $650 million for the sharemarket listing of his mortgage lending vehicle in July 2007, before its dramatic implosion as the GFC pulled the rug from under securitised home loan providers. 
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Resimac makes bid for RHG Limited loan book, formerly called RAMS

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Plummeting first-home buyer numbers have raised fresh questions about recently introduced first-home buyer grant schemes on offer in NSW as well as raise issues about current housing affordability. 
The number of loans to first-home buyers in December 2012 fell to 14.9% according to ABS figures, the fourth consecutive month that this segment of the market has declined.
This a 37% decline on figures from a year ago when first-home buyers accounted for more than one in five new home loans (21.1%).
This was the weakest proportion of first-home buyers in the housing market since June 2004 and just two percentage points off the record low of 12.8% in March 2004 for ABS figures going back to July 1991.
The decline suggests that the new first-home owner grants in Queensland and NSW, which provide generous handouts of $15,000 – but only for those who buy or build new homes – have missed the mark and are as claimed by the likes of Ray White chairman Brian White nothing more than a builder or developer incentive.
In addition they suggest housing remains unaffordable or undesirable for most prospective first-home buyers with low mortgage rates and a decline in capital city house prices over the last few years failing to spur this segment of the market in a meaningful way.
The fall was sharpest in NSW, where there was a 3.2% decline as well as a smaller 0.8% drop in Queensland and a 1.9% decline in WA. 
“The state detail was something of a surprise,” notes Westpac, who called the December figures “another weak reading” for first-home buyer activity. 
“We had expected unwinding first-home buyer demand in NSW (from an earlier bring-forward relating to state government changes) to have run its course by December with weakness to instead centre on Victoria where stamp duty concessions coming in from January 1 would have encouraged many FHBs to delay purchases. 
“Instead, the sharp slide in NSW continued (–3.2%) with Victoria posting a slight rise (+0.3% for the month). 
Westpac estimates that approvals in this segment were down another 5.7% in December on a seasonally- adjusted basis.  
First-home buyer numbers peaked in May 2009 following of the doubling of the first-home owners grant to $14,000 for those buying existing homes and trebling it to $21,000 for those buy newly built homes in October 2008. 
First home buyers as percentage of home lending dating back to 1991 (ABS)
 
<table border="0" cellpadding="0" cellspacing="0" width="415"><tbody>
<tr>
<td nowrap valign="bottom" width="104">
Month
</td>
<td nowrap valign="bottom" width="104">
Number of FHB loans
</td>
<td nowrap valign="bottom" width="104">
% of new loans
</td>
<td nowrap valign="bottom" width="104">
Size of loan ($)
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1991
</td>
<td nowrap valign="bottom" width="104">
5654
</td>
<td nowrap valign="bottom" width="104">
20.7
</td>
<td nowrap valign="bottom" width="104">
71.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1992
</td>
<td nowrap valign="bottom" width="104">
7733
</td>
<td nowrap valign="bottom" width="104">
22.2
</td>
<td nowrap valign="bottom" width="104">
76.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1993
</td>
<td nowrap valign="bottom" width="104">
10139
</td>
<td nowrap valign="bottom" width="104">
22.4
</td>
<td nowrap valign="bottom" width="104">
83.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1994
</td>
<td nowrap valign="bottom" width="104">
7789
</td>
<td nowrap valign="bottom" width="104">
21.5
</td>
<td nowrap valign="bottom" width="104">
90.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1995
</td>
<td nowrap valign="bottom" width="104">
7218
</td>
<td nowrap valign="bottom" width="104">
21.9
</td>
<td nowrap valign="bottom" width="104">
89.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1996
</td>
<td nowrap valign="bottom" width="104">
8427
</td>
<td nowrap valign="bottom" width="104">
23.0
</td>
<td nowrap valign="bottom" width="104">
99.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1997
</td>
<td nowrap valign="bottom" width="104">
8047
</td>
<td nowrap valign="bottom" width="104">
21.0
</td>
<td nowrap valign="bottom" width="104">
104.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1998
</td>
<td nowrap valign="bottom" width="104">
8651
</td>
<td nowrap valign="bottom" width="104">
22.6
</td>
<td nowrap valign="bottom" width="104">
120.7
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1999
</td>
<td nowrap valign="bottom" width="104">
10264
</td>
<td nowrap valign="bottom" width="104">
22.0
</td>
<td nowrap valign="bottom" width="104">
134.7
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2000
</td>
<td nowrap valign="bottom" width="104">
9654
</td>
<td nowrap valign="bottom" width="104">
22.3
</td>
<td nowrap valign="bottom" width="104">
123.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2001
</td>
<td nowrap valign="bottom" width="104">
12745
</td>
<td nowrap valign="bottom" width="104">
25.8
</td>
<td nowrap valign="bottom" width="104">
146.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2002
</td>
<td nowrap valign="bottom" width="104">
7998
</td>
<td nowrap valign="bottom" width="104">
15.9
</td>
<td nowrap valign="bottom" width="104">
160.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2003
</td>
<td nowrap valign="bottom" width="104">
7618
</td>
<td nowrap valign="bottom" width="104">
13.3
</td>
<td nowrap valign="bottom" width="104">
185.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Mar-2004*
</td>
<td nowrap valign="bottom" width="104">
7083
</td>
<td nowrap valign="bottom" width="104">
12.8
</td>
<td nowrap valign="bottom" width="104">
191.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jun-2004**
</td>
<td nowrap valign="bottom" width="104">
7428
</td>
<td nowrap valign="bottom" width="104">
14.3
</td>
<td nowrap valign="bottom" width="104">
204.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2004
</td>
<td nowrap valign="bottom" width="104">
8845
</td>
<td nowrap valign="bottom" width="104">
16.6
</td>
<td nowrap valign="bottom" width="104">
210.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2005
</td>
<td nowrap valign="bottom" width="104">
10811
</td>
<td nowrap valign="bottom" width="104">
18.8
</td>
<td nowrap valign="bottom" width="104">
217.1
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2006
</td>
<td nowrap valign="bottom" width="104">
10241
</td>
<td nowrap valign="bottom" width="104">
18.0
</td>
<td nowrap valign="bottom" width="104">
228.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2007
</td>
<td nowrap valign="bottom" width="104">
11282
</td>
<td nowrap valign="bottom" width="104">
19.4
</td>
<td nowrap valign="bottom" width="104">
230.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2008
</td>
<td nowrap valign="bottom" width="104">
14142
</td>
<td nowrap valign="bottom" width="104">
27.2
</td>
<td nowrap valign="bottom" width="104">
271.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
May 2009***
</td>
<td nowrap valign="bottom" width="104">
18744
</td>
<td nowrap valign="bottom" width="104">
31.4
</td>
<td nowrap valign="bottom" width="104">
279.4
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2009
</td>
<td nowrap valign="bottom" width="104">
11793
</td>
<td nowrap valign="bottom" width="104">
23.5
</td>
<td nowrap valign="bottom" width="104">
293.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2010
</td>
<td nowrap valign="bottom" width="104">
8199
</td>
<td nowrap valign="bottom" width="104">
17.3
</td>
<td nowrap valign="bottom" width="104">
289.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2011
</td>
<td nowrap valign="bottom" width="104">
10264
</td>
<td nowrap valign="bottom" width="104">
21.1
</td>
<td nowrap valign="bottom" width="104">
285.1
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jan-2012
</td>
<td nowrap valign="bottom" width="104">
8043
</td>
<td nowrap valign="bottom" width="104">
20.6
</td>
<td nowrap valign="bottom" width="104">
282.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Feb-2012
</td>
<td nowrap valign="bottom" width="104">
7360
</td>
<td nowrap valign="bottom" width="104">
17.4
</td>
<td nowrap valign="bottom" width="104">
279.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Mar-2012
</td>
<td nowrap valign="bottom" width="104">
7902
</td>
<td nowrap valign="bottom" width="104">
16.6
</td>
<td nowrap valign="bottom" width="104">
281.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Apr-2012
</td>
<td nowrap valign="bottom" width="104">
7077
</td>
<td nowrap valign="bottom" width="104">
17.0
</td>
<td nowrap valign="bottom" width="104">
282.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
May-2012
</td>
<td nowrap valign="bottom" width="104">
9110
</td>
<td nowrap valign="bottom" width="104">
18.1
</td>
<td nowrap valign="bottom" width="104">
288.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jun-2012
</td>
<td nowrap valign="bottom" width="104">
8415
</td>
<td nowrap valign="bottom" width="104">
18.5
</td>
<td nowrap valign="bottom" width="104">
292.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jul-2012
</td>
<td nowrap valign="bottom" width="104">
8760
</td>
<td nowrap valign="bottom" width="104">
19.2
</td>
<td nowrap valign="bottom" width="104">
291.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Aug-2012
</td>
<td nowrap valign="bottom" width="104">
8921
</td>
<td nowrap valign="bottom" width="104">
18.6
</td>
<td nowrap valign="bottom" width="104">
288.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Sep-2012
</td>
<td nowrap valign="bottom" width="104">
8391
</td>
<td nowrap valign="bottom" width="104">
19.3
</td>
<td nowrap valign="bottom" width="104">
289.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Oct-2012
</td>
<td nowrap valign="bottom" width="104">
9215
</td>
<td nowrap valign="bottom" width="104">
18.7
</td>
<td nowrap valign="bottom" width="104">
288.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Nov-2012
</td>
<td nowrap valign="bottom" width="104">
7921
</td>
<td nowrap valign="bottom" width="104">
15.8
</td>
<td nowrap valign="bottom" width="104">
287.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2012
</td>
<td nowrap valign="bottom" width="104">
6557
</td>
<td nowrap valign="bottom" width="104">
14.9
</td>
<td nowrap valign="bottom" width="104">
293.9
</td>
</tr>
</tbody></table>
Source: ABS
*Record lowest proportion of first-home buyers
**Previous lowest proportion of first homebuyers after December 2012
***Highest proportion of first-home buyers
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First-home buyers at lowest share of new home loans in more than eight years: historical data to 1991

<html><body>
Sydney-based non-bank lender BMC Mortgage Corporation has become the first lender to cut its variable rates outside of an official RBA rate cut.
The lender dropped its variable home loan rates by 10 basis points yesterday, despite the RBA leaving the cash rate unchanged last week.
According to mortgage comparison website Ratecity.com.au, it is the first lender to cut variable home loan rates out-of-cycle with the RBA
BMC Mortgage, based in Clarence Street in the Sydney CBD, offers<a target="_blank" href="https://www.bmcloans.com.au/bmc_rates_and_products"> homeowner and investment loans at 5.53% and a construction loan at 5.75%.</a>
The rate cuts follows RAMS and Westpac both offering fixed-rate home loans below 5%.
Michelle Hutchison, spokesperson for RateCity, said the slow lending market is changing the way lenders compete for customers.
“We’ve never seen lenders cut variable rates while the Reserve Bank cash rate is on hold.
Lenders are obviously feeling the pressure of the slow mortgage market and are doing whatever it takes to attract new customers, including cutting their interest rates out-of-cycle.
The latest rate cuts follow poor lending market results in December, released yesterday by the Australian Bureau of statistics (ABS).
There were 43,885 home loans financed across Australia in December 2012, which was 10% down on December 2011 according to RateCity analysis (original figures).
NSW saw the biggest hit with 24% fewer home loans written in December 2012 (12,135) compared with December 2011 (16,054). Western Australia was the only state to see an increase, of 3% more in December 2012 (6536) than December 2011 (6318), according to RateCity.
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