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.

[smartcode_project:default project_id=5743 project_image_fid=372394]

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.

[smartcode_project:default project_id=5743 project_image_fid=927]

<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.

[smartcode_project:default project_id=5743 project_image_fid=375255]

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.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

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.

[smartcode_project:default project_id=5743 project_image_fid=925]

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.

[smartcode_project_cta:default project_id=5743]

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.

[smartcode_project:default project_id=145324 project_image_fid=372749]

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.

[smartcode_project:default project_id=145324 project_image_fid=354343]

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.

[smartcode_project:default project_id=145324 project_image_fid=354347]

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.

[smartcode_project:default project_id=152069 project_image_fid=374394]

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.

[smartcode_project:default project_id=152069 project_image_fid=374399]

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.

[smartcode_project_cta:default project_id=152069]

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.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<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.

[smartcode_project:default project_id=95289 project_image_fid=366769]

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.

[smartcode_project:default project_id=95289 project_image_fid=366762]

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

<html><body>
Fears the federal government would impose greater taxes on superannuants over 60 have been allayed.
Prime Minister Julia Gillard said the government had no plans to introduce taxes <a target="_blank" href="https://www.propertyobserver.com.au/news/tax-industry-welcomes-over-60s-superanuation-clarfication/2013020759212">on superannuation payments for over 60s.</a>
“The government reaffirms that it will never remove tax-free superannuation payments for the over 60s,” she told Parliament.
The prosect was raised earlier this year given the government needs to seeks new ways to pay for spending promises.
It was suggested the $1.5 trillion Australian industry could have been on top of the list to fund the promises.
It has been estimated $32 billion worth of tax concessions are derived annually by superannuants.
Last May the government lifted the tax on superannuation contributions for Australians earning more than $300,000.
The government currently has a 15% tax rate on super contributions and earnings.
 
</body></html>

equinn-i7Kmo9afeu

Tax-free superannuation payments for the over 60s to remain: Julia Gillard

<html><body>
The Mirvac Group has booked a $273 million write-down provision, as new chief executive Susan Lloyd-Hurwitz reviews the group’s poorly performing residential developments especially in Queensland and Western Australia.
“Price points and sales rates over the past six months, including the recent spring and summer sales periods, have shown that the velocity and extent of a market recovery are not likely to eventuate as previously expected,” she told the ASX market update. 
Seeking $89 million, Mirvac will sell off some struggling englobo projects to generate cash inorder to avoid putting more capital into these under-performing projects.
The decision aims at avoiding $476 million of future cash commitments. 
Queensland represents 72% of the provision and Western Australia represents 27%.
The poorly performing Queensland projects include Gainsborough Greens, Mariner’s Peninsula, and the balance of its Waterfront Newstead, Mackay and Hope Island inventory.
Smaller provisions were made on other Queensland projects in Hamilton, Waterfront Newstead Park and Brookwater.
In Western Australia, provisions were made on the second stage of Beachside Leighton and a Burswood project.
Earlier write-down provisions on some pre-GFC projects were taken under Susan Lloyd-Hurwitz's Nick Collishaw as the projects pre-date his 2008 appointment.
“Today’s announcement is disappointing, however our December project assessment process has shown that specific markets have remained subdued and are not expected to improve to the extent previously expected.
“The majority of the projects impacted today were initiated when the world was a very different place with significantly higher growth expectations. As a sector we have shifted to a new environment of
lower growth and it is our responsibility to ensure that the capital we invest going forward reflects this new paradigm."
Mirvac confirmed that it was on track to deliver fiscal 2013 operating earnings per security in line with guidance at 10.7 to 10.8 cents and a distribution per security of 8.5 to 8.7 cents.
</body></html>

jchancellor-FAypfDUnLy

Mirvac to ditch under-performing development projects

<html><body>
St George has cut its fixed home loan rates by between 10 and 15 basis points.
For those who take out an advantage package loan, the bank cut its one-year fixed rate to 5.15% per annum, its three-year fixed-rate to 5.29%, four-year fixed rate to 5.64% and five-year fixed rate to 5.69%.
The new rates are available for a limited time for new and existing customers.
Customers with fixed rate applications underway that have not yet settled, are also eligible for these new lower interest rates.

It has also cut its fixed rates for non-package customers with a one-year fixed rate to 5.30% pa, its three-year fixed-rate to 5.44%, four-year fixed rate to 5.79% and five-year fixed rate to 5.84%.
“Fixed loans are a popular option, as they provide customers with the security of having a set loan repayment each month. This is a good way for customers to manage their household finances more effectively and St George’s current fixed rate offer for 1, 3, 4 and 5 years puts us in a leading position against the four major banks,” says Andy Fell, general manager at St George Retail Banking.

In addition, anyone who applies for a St George home loan receives a free Australian Property Monitors (APM) property profile report for the property they are interested in buying and its location.  St George also offers conditional loan pre-approval that is valid for six months, as well as a 5% deposit requirement.
Also announcing a cut today was <a target="_blank" href="https://www.propertyobserver.com.au/news/westpac-lead-the-big-banks-below-5-on-nfixed-home-loans/2013020659208?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">Westpac, with its packaged two-year fixed-rate mortgage now at 4.99%.</a> Since the RBA left the cash rate steady on Tuesday several lenders, including most of the major banks, have trimmed up to 40 basis points off certain fixed rate products, says leading mortgage broker Loan Market.
Loan Market corporate spokesperson Paul Smith says the latest shift in fixed interest rates indicates lenders are all anticipating further rate cuts this year.
“We haven’t seen fixed rate this low in several years and the spread between them and variable remains in the unique position where variable are nearly a full per cent higher,” Smith says.

Smith says that although the RBA cash rate is at 3% the chances of it falling more than a full percentage point in the year next were slim, considering the RBA’s conservative response to the soft areas of the economy over the past year.
“Fixed-rate products are currently priced at a level that variable rates may not reach for several months; even with the help of RBA rate cuts."
Smith says all borrowers had varying considerations and that one’s personal circumstances, aversion for risk and financial goals were the key fundamental to bear in mind when looking at fixed interest rates.

“Fixed-rate borrowers should have the mindset to accept that variable rates could fall to a place lower than their fixed rates.”
</body></html>

lschlesinger-FZcF9M3vE6

St George cuts fixed rates, with three-year fixed at 5.29% 

<html><body>
Gerry Harvey has been one of the most divisive figures in Australian online retail, and he’s not going away.
It was way back in 2008 when he first told SmartCompany <a target="_blank" href="https://www.smartcompany.com.au/retail/why-online-retailing-is-a-dead-end-gerry-harvey" rel="nofollow">online retailing was a “dead end”,</a> (a story mentioned in <a target="_blank" href="https://ten.com.au/ten-late-news.htm" rel="nofollow">last night’s interview</a>). Yet last night the industry veteran spoke to Network Ten about his online plans, and even claimed the company could be the biggest online retailer in the country.
“I think one day you’ll find that Harvey Norman is the biggest online retailer in Australia,” he said. “But it’s not going to happen overnight.”
It was two years ago Gerry Harvey started work on the company’s online retail venture, and even managed to put together a good-looking site. But the business is a fair way off from making a significant impact on the Australian online retail scene.
It’s been a while since Harvey has put his name in lights given the backlash from his campaign to charge GST for offshore purposes. Last night’s interview is a media comeback for the veteran who’s known for making outrageous statements.
Here are five of the best gems from Gerry Harvey’s latest interview on online retailing:
1. Harvey Norman will be the biggest online retailer
It’s hard to imagine Harvey Norman being the largest player in Australian online retail, but that’s what Gerry thinks will happen. As he said last night: “I think one day you’ll find that Harvey Norman is the biggest online retailer in Australia. But it’s not going to happen overnight.”
He’s definitely right there. In fact, the most recent numbers from Harvey himself suggest the company is earning only 1% of its money from the online store, or roughly $18.2 million based <a href="https://www.smartcompany.com.au/retail/052012-the-2012-retail-online-sales-report-card-part-2-what-the-big-boys-aren-t-telling-us" rel="nofollow">on our own estimates</a>.
Compared to a company like Kogan, or Catch of the Day, that means Gerry is a long way off.
2. He only Googles something every few days
Harvey is famous for not using a computer in his office, but this comment from last night’s interview is a whopper: not only does Gerry not shop online, but he only Googles something “every few days”.
For an entrepreneur who says online retailing is the future, admitting you don’t shop online isn’t necessarily a good look.
3. He still wants that online shopping tax
Many of the retailers campaigning for a GST on online sales have backed down due to customer backlash, but not Harvey. Last night he admitted he still wants that tax to change: “If you buy online in Australia you pay GST. If you buy online you don’t pay GST, clearly unfair, clearly the law has to change.”
He’s not alone. The Australian Retailers Association along with other lobby groups have been calling for a change to the law. It seems this fight isn’t over yet.
4. The company is simply treading water
It’s no secret Harvey Norman hasn’t been doing very well lately. But this admission is a frank look at how badly it is doing. Harvey said last night the company is being affected by the fact it’s simply not expanding.
“We’re not opening shops, we’re treading water; we’re not expanding.”
Retail has shifted fundamentally, and it seems Harvey Norman is at a crossroads. With shares at just $2, it seems Gerry Harvey is being forced to consider online retailing as a method of growth.
5. Get rid of leisure computers
This gem is just weird. In December 2011 Gerry Harvey launched a new online store for console and computer games, saying it would be one of the best sources for imported cheap games. (A small industry of importers has arisen to offer cheaper prices).
But last night, Harvey said he’d get rid of all “leisure computers” if he could: “They [youth] spend their time on crap like games. If I could get rid of computers – leisure computers – then I probably would.”
That’s a shocking admission for an entrepreneur who runs a company selling video games, along with a website dedicated to selling them.
But maybe he has a point – he said in the interview he’d rather spend time outside than “sitting on a computer for days”.
Patrick Stafford is deputy editor of <a href="https://www.smartcompany.com.au/" rel="nofollow" target="_blank">SmartCompany</a>.
</body></html>

pmcstafford-pr9eMARWoN

How Gerry Harvey plans to turn Harvey Norman into Australia's biggest retailer

<html><body>
Two major research sources agreeing on price movements is surprisingly rare in Australian real estate. 
But it has happened in the past week, with the Australian Bureau of Statistics and Australian Property Monitors saying similar things about capital city prices. 
It’s noteworthy because this kind of alignment in the figures from different sources is rare. Each quarter I compare figures from four regular sources of national price data, and usually the points of difference are more numerous than the areas of agreement. 
Often figures from one source totally contradict those from an alternative source. It makes it hard for investors to decide what markets are really doing – and it illustrates how invalid it is for media to place such emphasis on figures from one source, particularly for short time periods. 
But, this time, the ABS and APM agree that the average result for house prices across the eight state and territory capitals in 2012 was a rise of 2.1%. 
For the December quarter, the ABS records an average rise of 1.6%, while APM says 1.9%. 
They agree that Darwin is the market leader and have almost identical stats for the Northern Territory capital: the ABS says it rose 2.6% in the December quarter and 10.1% for the year, while APM records a 2.7% rise for the quarter and 10.2% for the year. 
They also agree that Perth is the second-ranked city on capital growth, up solidly in the quarter and about 6% in the positive for 2012. 
Both sources record a solid rise by Sydney, up 2%-ish in the December quarter and 3-4% for the year. 
They have similar figures for Canberra, Adelaide and Brisbane also. 
The ABS has Melbourne still slightly down on the price levels of a year ago, and APM has Melbourne slightly up (both less than 1%). 
The only major point of difference between the two sources is Hobart. The APM figures are a lot more bullish than those from the ABS. 
APM records a 4.7% rise in Hobart price levels in the December quarter, leaving them less than 1% below the levels of a year earlier. I found that surprising, as Tasmania is the recession state and Hobart lacks any discernible drivers of price growth that I can see. 
The ABS figures for Hobart make more sense: down 1.4% in the December quarter, leaving Hobart price levels 6% lower than a year earlier. 
Overall, the figures published by both sources confirm the recovery in capital city prices experienced in the latter part of 2012, pretty much as expected. 
They both have Darwin as the runaway leader among the capital cities on price growth, followed by the rapidly improving Perth, with Sydney also doing well. 
It’s a pity neither publishes collated data for major regional cities, as it would show that only Darwin among the capital cities is in the same league for capital growth. And Darwin is essentially a regional centre masquerading as a capital city. 
Numerous regional centres had double-digit growth in median house prices in 2012 and many of them have superior long-term growth rates to most capital cities, particularly when compared with Sydney and Melbourne.

Terry Ryder is the founder of <a target="_blank" rel="nofollow" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> and can be <a target="_blank" rel="nofollow" href="https://www.twitter.com/hotspotting">followed on Twitter</a>.
To help find the next Gladstone-like property investment hotspot, <a href="/news">sign up for Terry's free webinar on Tuesday, February 12 at 12.30</a>
</body></html>

terryryder-YECXbqmri2

For once, the statistics agree that property prices are rising: Terry Ryder

<html><body>
The office vacancy rate in the Sydney CBD, Australia’s biggest capital city office market, fell from 8.1% to 7.2% over the six months to January 2013, moving against the national trend of a rising office vacancy rate, according to the latest Property Council’s Australian Office Market Report.
Nationally, Australian office vacancies now stand at 8.4%, up from 7.8% in July 2012, driven by a “dramatic” fall in demand for office space.
Vacancy rates eased in Perth and Brisbane as demand for office space from mining companies and other businesses that service the resources sector “moved down a gear”.
Perth remains the tightest CBD office market, though its vacancy rate eased from 4.2% to 5.7%, with demand for office accommodation in Perth in the last six months the weakest since 2009.
“The Perth office market was affected by cost-cutting in resources companies, particularly the iron ore sector, last year. This resulted in less demand for office space by firms providing professional services to the sector”, says Property Council executive director,Joe Lenzo.
The Melbourne vacancy rate fell 5.6% to 6.9% over the period with and only premium and A grade stock experiencing substantial positive demand.
<a href="https://www.propertyobserver.com.au/office/melbourne-landlords-with-poor-quality-office-space-placed-on-notice-charter-keck-cramer/2013020659190?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">Consultants at Charter Keck Cramer</a> anticipate a fall in demand for office space in the Melbourne CBD and Docklands over the next two years, with better quality office space best placed to attract tenants.
In Brisbane, the vacancy rate spiked from 8.0% to 9.1% bringing to an end “a sustained two-year run of strong demand and exceptional take-up levels in the market”.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/pcafeb7.gif"><img src="/images/stories/2013/02/pcafeb7thumb.gif"></a>
 
PCA Queensland executive director Kathy MacDermott says the slowing resources sector has triggered a fall in demand to a four-year low with net absorption during the six-month period totalling a mere 2,406 square metres.
The against-trend fall in Sydney’s vacancy rate was masked to an extent by a high rate of withdrawals, but also from demand across the top end of the market.
 
<hr class="system-pagebreak">
 
Net absorption of office space in the Sydney CBD – the amount of space leased minus the amount of space vacated over a given time frame – totalled 8,466 square metres, but withdrawals were at a five-year high, with 87,903 square metres taken off the market.
Withdrawal of stock was strongest in the B- and C-grade markets – with 35,095 square metres and 36,257 square metres taken off ine respectively – as owners looked to refresh their offerings.
These were offset by 48,637 square metres of additions to the total commercial office stock.
“The premium market continues to enjoy strong demand – with 9,957 square metres of net absorption in the past six months – and its vacancy rate falling from 7.8 % to 6.3% in the past six months,” says Property Council NSW executive director Glenn Byres.
The A-grade office vacancy rate fell from 7.5% to 7.4% with net absorption totalling 10,166 square metres.
Commenting on the Sydney performance, Knight Frank managing director for NSW Richard Horne says there has been a marked improvement in sentiment and activity in the Sydney office market in the last four months.
“A large number of new mandates – both onshore superfund money and Asian-based offshore funds – are circling the market.
“These groups are mainly focused on the CBD, although selective suburban markets are starting to be considered. The sharp drop in borrowing costs have made our market very attractive on a world scale," he says.
“Knight Frank recently marketed 9 Hunter Street where interest was stronger than we've seen for many years, with 8 serious bidders. This bodes well for a strong year ahead,” he says.
The PCA report showed that demand for Australian office space in the six months to January dropped to less than half the 20-year average and was just one third of that recorded in the first six months of 2012.
On a more positive note, PCA chief executive, Peter Verwer, points out that overall vacancies sit below the historical average and the GFC peak with only four major markets recorded vacancies of more than 10%.
The four markets with vacancy rates above 10% are the Gold Coast, where the vacancy rate fell marginally from 21.5% to 20.3%; Canberra, which rose from 9.8% to 11.9% (and could rise higher in an election year), the Sunshine Coast, up from 13.6% to 14.1% and Crow’s Nest/St Leonards on the Sydney north shore, which rose from 10.7% to 12%.
“The capital cities of mining states went off the boil in the second half of 2012 and vacancy rates rose in two out of three markets across the country,” says Verwer.
“These vacancy numbers reflect the impact of insipid service sector growth and a resources industry engine that has moved down a gear”.
“Sluggish economic growth and weak demand for commercial space reinforce the need for a better targeted fiscal stimulus and further interest rate cuts,” Verwer says.
 
</body></html>

Sydney the only partial bright spot as CBD office vacancies rise, with mining demand down: PCA

<html><body>
The Gold Coast house-and-land market has sunk to its lowest level in over 30 years.
Residential land and house-and-land packages sales totalled just 980 for the full calendar 2012 year, compared with a long-term average sales of 4,200 per year since 1995, according to the latest quarterly Prodap Report.
This is particularly bad news for developer Stockland, which is selling residential lots and house-and-land packages in six residential communities on the Gold Coast and has 35% of the market.
According to the Prodap Report, the three biggest residential development projects on the Gold Coast are all Stockland projects.
Stockland’s biggest is its Riverstone Crossing project in Upper Coomera, which accounts for 10% of the vacant land market on the Gold Coast. Land in the project is priced between $205,000 and $480,000.
Prodap reports just 22 sales over the December quarter in this project, though up from 15 in the September quarter.
Stockland acquired the 14-hectare site along the Coomera River in 2007 for $15.7 million with plans for 652 lots. To date 337 lots have been sold, with 15 still available and another 75 due to be released over the next 12 months.
Stockland’s two other major projects on the Gold Coast are Highland Reserve also in Upper Coomera, with 19 sales over the quarter (25 in September quarter), and Ormeau Ridge in Ormeau, with 18 sales over the quarter (down from 35 in the September quarter).
In its most recent market update in December, Stockland reported that the new housing market remained “poor” with a “negligible impact” from recent interest rate reductions. The introduction of the $15,000 construction grant available to first-home buyers in Queensland who buy or build a new home since September has also not had an impact on demand.
Stockland's head of residential communities, Mark Hunter, said market uncertainty and a lack of confidence were the biggest problems facing the market.
The Prodap report says there are over 2,800 lots that developers plan to produce over the next 12 months – not all of which will go ahead in the current market – adding that Stockland, Mirvac, Lend Lease and QM Properties have combined sufficient land banked to satisfy total market demand.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/prodapfeb7.gif"><img src="/images/stories/2013/02/prodapfeb7thumb.gif"></a>
Along with the drop in demand, the report quotes Department of Natural Resources figures showing that Gold Coast house prices fell by 4.5% and units by 7.3% during 2012.
Prodap Report author Bill Morris says such a “grim picture” of the new housing production market has not been witnessed since the 1981-82 recession.
Over the December quarter Prodap records 166 residential lots sales and 64 house-and-land packages sales – a total of 230 compared with 239 sales in the September quarter.
There are 1,117 vacant lots and house-and-land packages for sale on the Gold Coast, with Stockland the most heavily exposed, with 35% of the market.
“The sad news is that not even record low interest rates seem to have had any effect on the volume of sales. Sad but true,” says Morris, who adds that a reduction in council infrastructure charges had no effect on new production.
Morris says the problem is that established houses are cheaper and in many cases better located than new houses.
“In other words, replacement costs are higher than the price of older homes.
“Why is this so? Land prices are still too high, representing more than 50% of the price of the average home. This was not case 10 years ago, when the average serviced block cost $60,000. In 10 years that has risen to $220,000, almost 300% or 30% per annum” says Morris.
Morris says land prices have escalated out of all proportion to house prices over the past 10 years.
“There needs to be a new era of thinking about what level of services constitutes an 'acceptable' house lot. Do we need 'fully serviced' lots? Can we use septic tanks or package sewage treatment for individual lots?
“Should we continue to treat stormwater to very high standards, or should we 'dose' creeks with nitrates to neutralise phosphorous and nitrogen build up?” says Morris.
</body></html>

Stockland exposed as Gold Coast house-and-land activity falls to worst level in 30 years: Prodap

<html><body>
Absentee landlords have been placed on fresh alert against overseas criminals selling their properties after a plot to sell two investment properties in late January was foiled by vigilant Perth estate agents.
Both properties are owned by investors who live in South Africa, and the case follows the foiling of similar scams in <a href="https://www.propertyobserver.com.au/residential/another-nigerian-perth-scam-house-sale-averted/2012101557180" target="_blank">October</a> and <a href="https://www.propertyobserver.com.au/residential/vigilant-applecross-perth-estate-agency-prevents-another-fraudulent-house-sale-nigerian-scam/2012060454969" target="_blank">June</a> last year.
In the last few years scammers have managed to sell two properties they didn't own – one in Karrinyup in 2010 and another in Ballajura in August 2011.
WA Today.com.au reports that scam artists attempted to sell a property worth $700,000 in the northern suburbs of Perth and another in the southern Perth suburbs worth $800,000.
In one case, the agent became suspicious after receiving a phone call from the scammer, who had an African accent, wanting an urgent sale for the property that had just sold two months earlier, said Consumer Protection and WA Police in a joint statement.
“In the second case, the agency had received a request to sell the property supported by copies of fake passports, forged signatures and a letter of verification purportedly from the Australian High Commission in Pretoria, South Africa."
Documents obtained by WA Today.com.au show a date on the letter to the high commission of January 31.
“The alarm was raised when the agency’s sales manager identified warning signs of property fraud he had learned in presentations and educational material provided by Consumer Protection, WA Police and REIWA. In this case, scammers requested an urgent sale and promised the agency future sales – similar tactics used in previous scam attempts.”
The latest attempts are being investigated by the WA Police Major Fraud Squad with a view to identifying the offenders.
“The investigation will analyse similarities between these incidents and past successful and attempted property frauds, such as the links to Africa and the methods of contact. It’s clear that the criminals are again active and could be targeting other agencies now and in the future, so everyone in the property industry needs to be extra vigilant,” said Detective Senior Sergeant Dom Blackshaw.
While the frauds were detected fairly quickly, Commissioner for Consumer Protection Anne Driscoll expressed concern and disappointment that these attempts were not detected much earlier by property management staff.
“It’s vital, where possible, that these fraud attempts are picked up by real estate agents before the scammers even get to first base and certainly well before any documents and personal details of the real owner are sent to these criminals,” Driscoll said.
“It’s important that real estate agents and their employees independently confirm any change in contact details for the properties they manage. It is clearly stated in the scam prevention guidelines issued to agents that confirmation of changes should first be sent to original contact addresses, both physical and email, that are on file. This will alert the real owners should there be an attempt to steal their identity and ultimately their home.
“Agents should be particularly vigilant when a request for change in details comes from an absentee owner, but all transactions should be thoroughly scrutinised to ensure they are only dealing with the true owner. Agents must rely on good procedures to detect these fraud attempts early."
Two weeks ago <a href="https://www.propertyobserver.com.au/residential/how-to-stop-property-scammers-selling-homes-they-don-t-own-david-airey/2013012358923" target="_blank">REIWA president David Airey wrote </a>that the state government has implemented a system "whereby the seller of a property must produce evidence of identity in much the same way as you do when you open a bank account or sign a mobile phone contract".
"This means a 100-point check in most cases, through which the seller has to produce a series of different identity documents such as a passport, driver’s license, rates notice, bank statement and birth certificate. It is almost impossible for such multi-layered counterfeit to occur and hugely reduces the risk of property fraud," wrote Airey.
</body></html>

Absentee landlords on alert as Perth estate agents foil fresh scammers

<html><body>
Serviced apartment group Quest has announced plans to build ten new apartment buildings in NSW by 2014. 
These are in addition to three new properties that will open in Queensland, one in outer Melbourne, one in regional Victoria and another in the Adelaide CBD this year. 
New serviced apartments will be built in Albury, Shellharbour, Nowra, Orange and Liverpool with five further locations yet to be revealed. 
The announcement was made by Quest chairman Paul Constantinou alongside NSW premier Barry O’Farrell at the opening of the group’s latest property at Sydney Olympic Park. 
The increase in accommodation will be aimed at extended-stay business travellers. 
The new buildings will increase Quests total stock of rooms by over 70%, taking pressure off existing apartments targeting business travellers of four or more nights per stay. 
“This investment follows the increasing need by business travellers for accommodation in the State’s regional and suburban hubs where traditional accommodation options are no longer meeting their needs,” says Constantinou. 
“This year, we will commence construction at five new locations - in Albury, Shellharbour, Nowra, Orange and Liverpool. We will continue this expansion, with another five properties to commence in the following year.”
 Quest currently has 21 properties in NSW, providing accommodation to approximately 120,000 extended stay business travellers. 
On completion of these projects, Quest aims to have a total of 2,365 rooms in NSW hosting around 200,000 travellers annually. 
Quest will build serviced apartments in regional areas where the NSW government is spending on infrastructure. 
“Quest is building properties in areas where there has been significant investment in public and private infrastructure such as roads and rail, hospitals, educational institutions and retail precincts.” 
“This commitment to investment in thriving regional and suburban locations across NSW demonstrates business confidence in long term growth across the State,” said O'Farrell. 
The group has been active in recent years with its expansionary plans.
In July last year, Quest agreed  to lease all <a href="https://www.propertyobserver.com.au/leisure/quest-to-operate-131-serviced-apartments-in-kyren-groups-%24100-million-adelaide-cbd-development/2012072655740" target="_blank">131 apartments</a> that form the residential component of the Kyren Group's $100 million mixed-use building in the Adelaide CBD. 
In May last year Quest signed a lease with the Deague family’s Asian Pacific Group for a $50 million refurbishment of the <a href="https://www.propertyobserver.com.au/leisure/quest-to-operate-serviced-apartments-in-rothelowman-designed-frankston-property/2012050854596">Peninsula Centre in Frankston</a>.  This project consists of 81 serviced apartments within the 150 apartment building, to be completed in early 2013.
Established in 1988, Quest currently has 140 properties across Australia, New Zealand and Fiji.
</body></html>

Quest to build 10 new serviced apartment buildings in NSW over next two years

<html><body>
Melbourne office landlords with better quality floor space are best positioned to weather what is expected to be a softer office rental market over the next two years. 
Consultants Charter Keck Cramer (CKC) are anticipating weaker demand for office rentals in the Melbourne CBD and Docklands markets over 2013 and 2014, with not yet fully committed new supply adding to the pool of available space. 
“Melbourne’s central city office market (CBD and Docklands primarily) have been holding up well in the context of the numerous headwinds that have buffeted the economy and global property markets,” writes CKC director Robert Papaleo in a new commentary piece. 
“Although central city office rents are not growing and vacancy rates are trending up, new supply has continued and investors have keenly sought prime assets at lower yields. 
“The softening demand environment and other indicators clearly signal however that conditions in 2013 and 2014 will shift in favour of tenants in an increasingly competitive marketplace where better quality floor space will become more cost-effective,” he says. 
Papaleo says there now a “clear window of opportunity” for both landlords and tenants to respond proactively to the reality of this emerging situation. 
“Owners that act early and decisively will cap their exposure to the downside risk of further weakening in the rental market. 
“Tenants that properly understand their own requirements (and lease obligations) relating to their accommodation will be best placed to take advantage of changing market conditions and the inevitable opportunities as they arise,” he says. 
A further indication of weaker demand conditions going forward is a rise rental incentives being offered by landlords. 
These can include such things as a certain number of rent free months or contributions made by the landlord to the cost of office fit-outs. 
Papaleo says rent incentives have been a “notable feature of office lease negotiations since 2009 in response to GFC induced fears”. 
These incentives eased through 2011 due to a brighter outlook, but rose again through the second half of 2012. 
“The market is implicitly recognising, through higher incentives, that the impending new supply is expected to have a detrimental effect on vacancies. 
“Firstly, there is a relatively high level of uncommitted floor space in some new buildings under construction which will be compounded by vacant floor space being left behind by those tenants moving into the new buildings. 
“This situation is in contrast to what happened in the last supply cycle (2002 – 2008). 
“In the last cycle, demand from anchor tenants was so strong that it was able to (almost completely) underwrite new floor space prior to its completion whilst other tenants were expanding to absorb much of the space being left behind which prevented extended vacancy. 
“Strong market conditions also implied that it was viable for owners to withdraw vacant backfill floor space for upgrading and refurbishment. 
“The weakening rental scenario this time around however will not afford owners the luxury of withdrawing space through 2013 and 2014 which will leave owners fully exposed to vacant floor space,” he says.
</body></html>

Latest Expert Insights

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News