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>
{qtube vid:=yvFh0pliQ8c}
In an Australian-first engineering feat, Frasers Property Australia and Sekisui House Australia have elevated a 110-tonne steel frame 100 metres in the air, successfully attaching it to the One Central Park apartment block on Sydney’s Broadway.
<img src="/images/stories/2013/02/heliostat1.jpg" alt="heliostat1" width="470" height="194">
It is considered the most complex part of the construction process in building Australia’s first residential heliostat. Frasers Property Australia chief Guy Pahor says the joint venture partners are delighted builder Watpac was up to the the "highly challenging engineering and construction task".
He said it had been 30 months in the making.
<img src="/images/stories/2013/02/heliostat2.jpg" alt="heliostat2" width="470" height="601">
When the cantilever is completed, the residents of  Sky at One Central Park will have access to the sky garden with outdoor dining and a plunge pool.
<img src="/images/stories/2013/02/heliostat3.jpg" alt="heliostat3" width="470" height="313">
Underneath its 3,000 coloured LED lights will become an eye-catching piece of public art at night, illuminating the residential towers with a light display designed by French lighting artist Yann Kersale.
<img src="/images/stories/2013/02/heliostat4.jpg" alt="heliostat4" width="470" height="313">
With the reflector frame now in place, the next complex task requires 320 large mirrored panels to be affixed to the enormous reflector frame.
<img src="/images/stories/2013/02/heliostat5.jpg" alt="heliostat5" width="470" height="313">
The Sky apartments comprise 38 penthouse and sub-penthouse apartments, ranging in size from 120 square metre to 200 square metres for the two bedroom offerings and 190 square metres for a dual-level, three-bedroom penthouse.
<img src="/images/stories/2013/02/heliostat6.jpg" alt="heliostat6" width="470" height="313">
 Construction completion is expected in late 2013.
</body></html>

gdwyer-vyxhMDDW5L

Frasers and Sekisui House's One Central Park in Sydney gets Australia's first rooftop heliostat

<html><body>
All immigration signs are pointing to a continued rise in the number of houses and apartments being bought by Chinese immigrants on Australia’s east coast.
According to the ABS, around 17,580 Chinese people settled permanently in Australia in 2012, up from 15,780 in 2011 and 14,720 in 2010.
Short term Chinese visitor arrival numbers - a forward indicator of demand for Australian residential property – are rising at even faster rate.
The ABS reports that Chinese short-stay visits to Australia have more then trebled over the past decade from 190,000 in 2002 to 630,000 in 2012.
Similarly, Indian short stay visits have jumped almost four fold from 45,000 to 160,000 over the same period.
Its not suprising as at the same time Australia's close proximity to Asia, the resilience of its economy driven by the mining boom, a transparent real estate market, and new apartment developments being actively marketed in China and other Asian markets are all enticing factors.
Last year alone there were an extra 85,000 visits from Chinese nationals - an increase of 16% over 2011 – with Chinese tourists now the second biggest visitor group behind New Zealanders, accounting for around one in 10 of the 6.1 million tourists who arrived for holiday or business purposes last year.
The ABS figures cover stays of up to 12 months, more than enough time for Chinese visitors that arrive in Australian on holiday or business to have a look at what’s on offer, in many cases decide they like what the country has to offer them and perhaps buy an apartment close to the Melbourne or Sydney CBD where their children will attend university or a family homes in suburbs in desirable school zones.
Evidence of this trend can be seen in Census 2011 figures, which show the number of Chinese-born people living in Australia has increased by 54% over the five year period since the last census from 207,000 to 319,000 while Indian-born resident numbers increased by 100% from 147,000 to 295,000 and now rank as the third and fourth biggest expat populations in Australia after British and New Zealanders.
Meriton’s Harry Triguboff says that most buyers of his new apartment blocks in Sydney, Brisbane and on the Gold Coast are from Asia while <a target="_blank" href="https://www.propertyobserver.com.au/residential/asian-buyers-vital-to-australian-property-market-morry-schwartz/2011121552862">Morry Schwartz, who heads up Melbourne developer Pan Urban</a>, says they are vital to the success of future residential developments.
Making the permanent move even easier now for high-net worth Chinese and other foreign nationals is the recent launch of the <a target="_blank" href="/news">“Golden ticket” significant investor stream visa </a>that provides non-English speaking immigrants with a four-year visa to live in Australia if they invest $5 million.
Apart from Chinese and Indian tourists, visitor numbers from other Asian countries are also rising with Japan, Singapore, Malaysia, South Korea and Hong Kong all in the top 10 visiting nationality groups.
"New Zealand remains our biggest source of overseas short-term visitor arrivals with 1.2 million trips in 2012 or one in five visitors coming from there, but China is now in second place with one in ten, followed by the UK, the USA and Japan,” says Neil Scott, assistant director of demography at the ABS.
"The top five countries alone provided more than half of last year’s overseas visitors, and there were an extra 85,000 visits from China - an increase of 16%. The next largest increase in visitor numbers came from Malaysia, with a 9% increase.
</body></html>

lschlesinger-FZcF9M3vE6

Chinese signal property buying intentions in Australia as permanent arrivals numbers rise and visitor numbers jump dramatically

<html><body>
After your spot of shopping on Collins Street, why not pop into the Bank of Melbourne branch at the Paris end for a free valuation of your investment property or a quick read of the latest investment tips from Alan Kohler or Robert Gottliebsen? Or even just sit back and watch Sky Business for a while?
Just don’t expect either of these two economic gurus to be standing around answering personal investment questions when you step into the recently opened 'Investore' at the Bank of Melbourne branch at 233 Collins Street.
<img src="/images/stories/2013/02/investore1.jpg" width="470" height="583" alt="investore1">
Despite the store beckoning you to enter with a collage poster featuring a slice of Alan Kohler's face alongside that of Robert Gottliebsen's, they won't actually be there. 
They will seemingly limit their involvement in the venture to providing half of their faces to the promotional material and allowing visitors to read their investment tips for free.
It’s a rather unusual venture with a Fairfax brand, Domain, sitting alongside a News Limited one, The Eureka Report.
The Investore, as explained by an onsite Bank of Melbourne employee, is not a pop-up shop but a permanent investment lounge with computers and rows of iPads where visitors can obtain free property reports provided by Domain's Australian Property Monitors and read unlocked stories and reports on the Eureka website from Kohler, Gottliebsen and other investment writers.
<img src="/images/stories/2013/02/investore2.jpg" width="470" height="283" alt="investore2">
It’s all part of efforts by the Bank of Melbourne to add extra value to its customers and build the brand and, one imagines, take on the likes of Bankwest, which was the first to pioneer the idea of a funky bank branch offering free coffee, the chance to buy property investment books and this writer's personal favourite, the coin counter.
Certainly, Bank of Melbourne been trying to separate itself (in the minds of customers) from its big four bank parent Westpac, with signs in Bank of Melbourne windows promising lower mortgage rates than the big four banks.
In addition to the free property reports and a browse of the Eureka website, there’s also the chance to sign up for free property and investment seminars presented by Business Spectator editor James Kirby and Consumer Affairs Victoria.
</body></html>

Bank of Melbourne offers free property reports and investment tips but don’t expect a chat with Alan Kohler

<html><body>
Over the past several months, I have been recommending you refrain from trying to pick the bottom of the commercial property market.
And certainly you should not wait for overwhelming evidence of prices being "on the up".
Anyway, last month you were probably given the best confirmation you needed in an article by Carolyn Cummins (The Age, BusinessDay: January 24, 2013).
In the article, she talked about high-net-worth investors having now joined institutional investors and sovereign funds at the top end of the commercial property market.
Driven by lower interest rates, demand has increased for healthcare properties and large-scale shopping centres, plus traditional offices and industrial property.
How will this affect smaller private investors?
On the face of it, you can be forgiven for thinking that this would have virtually no impact whatsoever. But just stop and think that through for a moment.
As demand picks up at the top end for commercial properties, prices will inevitably begin to rise.
Therefore, the properties in the $40 million to $60 million price bracket are quickly pushed into the $50 million $70 million bracket. As a result, the $40 million $60 million buyers are forced to start bidding on the $30 million to $50 million properties.
As such, these price increases will quickly work their way down through the entire commercial property market — much like the "ripple effect" of a pebble in a pond.
Therefore, it is only a matter of time before you soon feel the effect of price increases occurring down in the $1 million to $2 million price range.
Bottom line: By the time you reach the middle of 2013, you should see the start of this upward trend in prices for the lower end of the commercial property market.
As you can appreciate, that will then only be accentuated when renewed confidence returns in earnest within the Australian economy as a whole.
And this was further emphasised in last week’s front-page article in the Financial Review: "Switch is on from bonds to shares".
Therefore, now is the time to make your move — rather than be left to merely follow the herd.
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a target="_blank" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
</body></html>

chrislang-EQKojcgJPV

Why a rise in high-end commercial property investment is good for the small investor

<html><body>
The Gold Coast has replaced the outer south-west Sydney regions of Fairfield and Liverpool as having the highest proportion of home owners more than a month behind on their mortgage repayments.
The Gold Coast east market (including <a href="/news">Surfers Paradise</a> and <a href="/news">Broadbeach</a>) ranks as the worst-performing region, with a delinquency rate of 2.44%. The Gold Coast west (suburbs including <a href="/news">Nerang </a>and <a href="/news">Carrara</a>) ranked second, with a delinquency rate of 2.08%, according to the latest Fitch Ratings Australian Mortgage Delinquency report for the six months to September 2012.
The two markets ranked fifth and sixth in the March 2012 Fitch report have improved in line with the national trend, but not at the same pace as other regions.
At its current delinquency rate, the Gold Coast east region would have ranked as the eighth worst performing region in Australia six months ago (March 2012 report).
But demonstrating that tourism-dependent regions have not benefited to the same degree as other parts of the country from interest rate reductions and improved affordability, the Sunshine Coast ranked fourth most delinquent region with a 30 days-plus arrears rate of 1.89%. The NSW central coast market ranked sixth, with a delinquency rate of 1.81%.
All are well above the national delinquency rate, which improved from 1.6% at the end of March 2012 to 1.4% at the end of September, to be currently significantly below the five-year average of 1.56%.
“Tourist areas are less affected by monetary policy and more by the high Australian dollar, housing prices, occupancy rates and rental yields,” says Fitch.
“This is evident in popular tourist destinations being among the worst-performing postcodes. “
On a postcode basis, the well-known tourist destination of <a href="/news">Nelson Bay</a> in the NSW Hunter region remains the worst-performing postcode by value of mortgages in arrears, with a 30+ day delinquency rate of 6.6%.
Click to enlarge
<a href="/images/stories/2013/02/fitchfeb6.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/02/fitchfeb6thumb.gif"></a>
In the previous March survey, Fairfield and Liverpool ranked as the worst-performing region in Australia, but in line with an improving outlook for the western Sydney market and parts of it being considered investment hotspots –<a target="_blank" href="https://www.propertyobserver.com.au/landlords/investors-returning-in-droves-to-outer-western-sydney-with-granny-flat-appeal-htw/2012121158164"> granny flat conversions are growing increasingly prevalent </a>– its delinquency rate improved from 2.82% to 1.82% and its ranking has fallen from first to fifth most delinquent market.
Similarly, the delinquency rate improved noticeably in the outer south-west Sydney region from 2.78% to 1.99% between March and September.
Another region on the western outskirts of Sydney, <a target="_blank" href="/news">Blacktown</a>, which was among the 10 worst-performing regions by value until September 2011, “continues to perform remarkably”, says Fitch, with a delinquency rate of 1.55% at the end of September 2012.
Fitch notes that most of the 10 worst-performing regions were in Queensland, not NSW, as was the case in March 2012.
“House price stagnation in Queensland particularly affected Gold Coast east ? which has been among the worst performing regions since September 2008 ? and the Sunshine Coast. Other regions in Queensland, which have been historically characterised by serviceability constraints, remained among the worst performing regions despite their remarkable improvement following cash-rate cuts.
“For example, delinquencies in Ipswich and Logan City, which started to increase at the beginning of 2011, have improved significantly (100bp and 91bp, respectively) in the six months end-September 2012,” says Fitch.
 
<hr class="system-pagebreak">
 
Melbourne dominates the best-performing regions, with five of the top six locations led by northern middle Melbourne (suburbs like <a target="_blank" href="/news">North Melbourne</a>, <a target="_blank" href="/news">Kensington</a>, <a target="_blank" href="/news">Ascot Vale</a>) with an arrears rate of just 0.55% compared with a rate of 0.7% six months ago.
The affluent lower northern Sydney market (including million dollar suburbs like <a target="_blank" href="/news">Cremorne</a>, <a target="_blank" href="/news">Kirribilli </a>and <a target="_blank" href="/news">Neutral Bay</a>) ranks second with a 30 days plus arrears rate of 0.56%, up from 0.63%. 
Click to enlarge
<a href="/images/stories/2013/02/fitchfeb61.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/02/fitchfeb61thumb.gif"></a>
 
Commenting on the national improvement in the delinquency rate, Nomura banking analyst Victor German says the sharp but consistent improvements seen in delinquency rates coincide with the 50-basis-point and 25-basis-point interest rate cuts announced by the RBA in May and June 2012, respectively.
“With further 25-basis-point interest rate cuts put through in Oct and Dec 2012, we will be looking for signs of further improvement in delinquency rates during the upcoming reporting season,” German says.
On a state-by-state basis, Queensland has the highest arrears rate (1.41%), followed by NSW (1.25%), WA and Tasmania (1.2%) and South Australia (1.19%). The remaining states are all below 1%.
</body></html>

Gold Coast replaces Sydney south-west fringe as most mortgage delinquent region in Australia: Fitch Ratings

<html><body>
Private investors or a syndicate of private investors may be interested in a Woolworths Service Station and adjoining development site listed for sale and offering a potential yield of around 7.5%.
The Woolworths Service Station stands at 258 Beenleigh-Redland Bay Road in <a target="_blank" href="/news">Cornubia</a>, a busy road between the Gold Coast, 54 kilometres to the south and the Brisbane CBD, 32 kilometres to the north.
It stands on a 6,031-square-metre site, with the corner portion of the site available for further development.
The service station is branded ‘Caltex Woolworths’ – one of 550 such petrol outlets located around the country.
It is leased by Woolworths on a 20-year lease, which expires in 2022.
The site is zoned for residential use but according to the investment memorandum prepared by Jones Lang LaSalle, it could be developed as a retail outlet subject to planning approval from Logan City Council.
The property brings in current net income of around $249,555 per annum with CPI annual increases capped at 4%.
The property is being marketed for sale by private treaty by Sam Hatcher, manager of Queensland retail investments at Jones Lang LaSalle, who expects it to sell for around $3.4 million, representing a yield of around 7.5%.
Refurbished 7-Eleven petrol stations have proved popular investments for self-managed super funds and retirees, with dozens selling on strong yields over the past 18 months.
In December last year<a href="https://www.propertyobserver.com.au/news/more-than-%2440-million-worth-of-7-eleven-service-stations-sold/2012121458473">,</a> <a href="https://www.propertyobserver.com.au/news/more-than-%2440-million-worth-of-7-eleven-service-stations-sold/2012121458473">$40 million worth of 7-Eleven service stations</a> sold at auction in Brisbane and Sydney, which achieved a 100% clearance rate and yields averaging 6.9% in Brisbane.
“Interest is expected from private investors with the opportunity to develop (subject to council approval) on the adjoining parcel,” says Hatcher.
“The opportunity also includes an adjoining site on the corner of Beenleigh-Redland Bay Road which could be used for future retail development (STCA).
“In addition, Fabcot Pty Ltd (Woolworths Development Company) have acquired a supermarket site approximately two kilometres from the service station further strengthening the desirability of this store to Woolworths Fuel,” says Hatcher.
</body></html>

Woolworths service station to tempt private investors with 7.5% return

<html><body>
The mining boom has pushed up demand for accommodation in hotels, motels and serviced apartments from those working on projects in the mining industry.
The chart below prepared by valuers at LandMark White shows how occupancy rates have risen more or less in line with rising mining investment over the last few years.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/lmwfeb6.gif"><img src="/images/stories/2013/02/lmwfeb6thumb.gif"></a>
</body></html>

What the mining boom has done for hotel occupancy rates: Chart of the week

<html><body>
Borrowers risk a headache and frustration if they expect consensus from the major banks about the direction of interest rates in 2013.
Westpac chief economist Bill Evans is tipping one more rate cut in March; ANZ says possibly two rate cuts but maybe not in March; while the Commonwealth Bank’s Michael Blythe says there could be no more rate cuts in 2013.
NAB has yet to update its position, having forecast three more rate cuts last week when surveyed by Bloomberg.
The key issue appears to be how the non-mining sections of the economy will fare over the year and whether they will pick up the slack from the resources sector.
Inflation is expected to remain low throughout the year, providing scope for further rate cuts if they are needed.
In a note following yesterday’s decision, Bill Evans says there is “considerable encouragement in the [monetary policy] statement for our near term view that they will decide to cut rates by 25 basis points at the next meeting on March 5”.
Evans says the most important justification for this expectation is around the sentence in the final paragraph of the statement:
"The inflation outlook as assessed at present would afford scope to ease policy further should that be necessary to support demand."
“Our experience is that use of that word ‘scope’ in a forward sense indicates a decent chance that the bank will move at the next meeting,” says Evans.
He also points out that not much has changed in the domestic economy since the RBA last met in December, with “two extra months of low rates have not provided the board with much encouragement that things are turning”.
Evans notes the RBA’s “modest uplift in the assessment of the housing sector” but also fresh concerns around the outlook for employment growth and weak credit growth in both households and firms.
ANZ has moderated its expectations about further rate cuts.
Having previously forecast the cash rate to fall to 2% by year-end, ANZ says it is now “a little less confident about this call”, though the bank says its “expectations for employment growth and unemployment still suggest significant risk of at least two further rate cuts, even though the global picture appears to be improving”.
“Just as the mining boom kept Australia outperforming during recent years of global weakness, this effect will be a drag for Australia in coming years.
As for a March rate cut, ANZ appears to be hedging its bets at present and waiting for further data.
The bank says the RBA is “comfortably in assessment mode, waiting to see whether its policy easing to date is going to be sufficient to ensure enough of a pick-up in the non-mining sectors of the economy to offset the expected moderation in mining investment”.
“While the chances of a rate cut in March appear to have fallen somewhat, key to the near term path for the cash rate will be incoming labour market data and the outlook for non-mining investment,” says ANZ.
According to ANZ, the capex survey released on February 28 now takes on significant importance “given that it will include firms’ initial estimate of investment intentions for fiscal year 2013-14”.
The Commonwealth Bank’s Michael Blythe expects the cash rate to remain unchanged at 3% during 2013.
“Many of the forces that drove rates lower in 2012 have abated and the transition to non?mining led growth is underway,” says Blythe.
However, he tempers this by saying that an easing bias “persists” and would be triggered by any stumble in the non?mining economy.
“The RBA game plan during 2012 moved along the lines of providing some defence against global risks, moderating some of the pain imposed by a strong currency and fiscal consolidation, and getting the transition towards non mining led growth underway.  It may not be quite 'mission accomplished' but a lot of progress has been made,” says Blythe.
“The RBA notes that downside risks to global growth have ‘abated’, even if it is ‘for the moment at least’.
“Most importantly, growth in China has stabilized at ‘a fairly robust pace’ and commodity prices have ‘firmed’.
“Public spending is expected to be ‘constrained’ but the RBA has no doubt taken some comfort from the government’s decision to abandon the hard edged budget surplus commitment,” Blythe says.
</body></html>

Big four banks divided on likelihood of March RBA cash rate cut

<html><body>
There is a notable lack of Sydney properties in this week's SQM list of the most discounted properties in Australia.
Sydney may have escaped the recent downturn in the property market and is still showing strong demand, according to SQM director Louis Christopher. 
"If there are certain areas of Australia that never or rarely make it to our most discounted property list, there has obviously got to be a little more than pure luck of the draw when it comes to these things," says Christoper. 
"Yes, we note that of late there has been absolutely no properties from Sydney feature on the list. Beside this possibly being a no-brainer in some respects, as the demand in Sydney often assures that the majority of homes do not need to be discounted by massive amounts to make a sale (excluding the luxury end of the market), this potentially shows that the downturn in Sydney was not as severe or as pronounced in comparison to other Australian localities (once again excluding the luxury end of the market)," he says.
Sydney stock is also being absorbed faster than stock in other areas, according to Christopher, with the number of properties on the market falling 13.1% year-on-year.
There are three Queensland properties on the most discounted list, with the plurality (four) in Tasmania.
 
1
<a target="_blank" href="https://www.realestate.com.au/property-house-qld-tangalooma-104624146">7 Cassidae Crescent, Tangalooma, Queensland, 4025</a> (pictured)
<a target="_blank" href="https://www.realestate.com.au/property-livestock-qld-caboolture-7262420"></a>Days on the market: 1,399 Initial asking price: $1,495,000 Current asking price: $875,000 Reduction: 41%
 
2
<a target="_blank" href="https://www.realestate.com.au/property-other-tas-taranna-106879142">5756 Arthur Highway, Taranna, Tasmania, 7180</a>
Days on the market: 838 Initial asking price: $499,000 Current asking price: $299,000 Reduction: 40%
 
3
<a target="_blank" href="https://www.realestate.com.au/property-livestock-qld-caboolture-7262420">19 Lychee Drive, Caboolture, Queensland, 4510</a>
Days on the market: 979 Initial asking price: $949,000 Current asking price: $586,000 Reduction: 38%
 
4
<a href="https://www.realestate.com.au/property-apartment-wa-south+perth-110012197" target="_blank">6/152 Mill Point Road, South Perth, WA, 6151</a>
Days on the market: 308 Initial asking price: $2.5 million Current asking price: $1.55 million Reduction: 38%
 
5
<a href="https://www.domain.com.au/Property/For-Sale/Rural/QLD/Morayfield/?adid=2009282451" target="_blank">276 Forest Hills Drive, Morayfield, Queensland, 4506</a>
Days on market: 475 Initial asking price: $790,000 Current asking price: $499,000 Reduction: 37%
 
6
<a target="_blank" href="https://www.realestate.com.au/property-house-wa-two+rocks-106211228">15 Gretel, Two Rocks, WA, 6037</a>
Days on the market: 1,127 Initial asking price: $1.1 million Current asking price: $699,000 Reduction: 36%
 
7
<a href="https://www.realestate.com.au/property-house-tas-white+beach-106479093" target="_blank">588 White Beach Road, White Beach, Tasmania, 7184</a>
Days on the market: 979 Initial asking price: $780,000 Current asking price: $499,000 Reduction: 36%
 
8
<a href="https://www.domain.com.au/Property/For-Sale/House/TAS/Spring-Beach/?adid=2008672031" target="_blank">368 Rheban Road, Spring Beach, Tasmania, 7190</a>
Days on the market: 812 Initial asking price: $760,000 Current asking price: $500,000 Reduction: 34%
 
9
<a href="https://www.realestate.com.au/property-apartment-vic-docklands-109665546" target="_blank">1601/8 Marmion Place, Docklands, VIC, 3008</a>
Days on the market: 336 Initial asking price: $830,000 Current asking price: $550,000 Reduction: 34%
 
10
<a href="https://www.domain.com.au/Property/For-Sale/House/TAS/Dunalley/?adid=2008215774" target="_blank">87 Arthur Highway, Dunalley, Tasmania, 7177</a>
Days on market: 1,078 Initial asking price: $285,000 Current asking price: $190,000 Reduction: 33%
 
SQM Research also offers a list of the <a target="_blank" href="https://www.sqmresearch.com.au/top100bargains.php" title="SQM Research">Top 100 Biggest Bargains in Australia </a>for sale.
</body></html>

cknowlton-QnEa6ntUYP

No NSW listings on most discounted list as Queensland home takes top spot: SQM Research

<html><body>
Piercing studio Body Pleasure Piercing has agreed to pay around $1,900 per square metre per annum to rent a 71 square metre shop on Melbourne’s Flinders Lane.
 
The tenant has taken a three year lease on the ground floor shop at 289 Flinders Lane (Carlow House) at a net rental believed to be around $135,000 per annum. 
The deal was brokered by Savills Australia retail director, Michael Di Carlo, along with colleague Jeremy Marmur. 
The Flinders Lane shop is the first CBD lease for Surf Coast-based Body Pleasure Piercing, which currently operates stores in Geelong, Corio, and Prahran. 
"This has been a natural progression for a firm which has taken body piercing to a new level on the surf coast and will now introduce it to a new client base in a CBD location ideally suited to a company with strong links to the fashion industry, ‘’ says Di Carlo.
</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