High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

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For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

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<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

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The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

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For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

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The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

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Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

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Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

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The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

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According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

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Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

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Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

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Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

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<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

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A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

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The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

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

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RBA governor Glenn Stevens has released a statement concerning the RBA's decision to keep the cash rate on hold today.
"At its meeting today, the board decided to leave the cash rate unchanged at 3%," Stevens wrote.
"Global growth is forecast to be a little below average for a time, but the downside risks appear to have abated, for the moment at least. The United States has so far avoided a severe fiscal contraction and financial strains in Europe have lessened considerably over recent months. Growth in China has stabilised at a fairly robust pace. Around Asia generally, growth was dampened by the earlier slowing in China and the weakness in Europe, but again there are signs recently of stabilisation. Some commodity prices have firmed over recent months.
"Sentiment in financial markets has continued to improve, with risk spreads narrowing and funding conditions for financial institutions becoming more favourable. Long-term interest rates faced by highly rated sovereigns, including Australia, remain at exceptionally low levels. Borrowing conditions for large corporations are very attractive. Share prices have made further gains. However, the task of putting private and public finances on sustainable paths in several major countries is far from complete and, accordingly, financial markets remain vulnerable to setbacks in these areas.
"In Australia, most indicators available for this meeting suggest that growth was close to trend in 2012, led by very large increases in capital spending in the resources sector, while some other sectors experienced weaker conditions. Looking ahead, the peak in resource investment is approaching. As it does, there will be more scope for some other areas of demand to strengthen," says Stevens.
"Present indications are that moderate growth in private consumption spending is occurring, though a return to the very strong growth of some years ago is unlikely. The near-term outlook for non-residential building investment, and investment generally outside the resources sector, remains relatively subdued. Public spending is forecast to be constrained. On the other hand, there are indications of a prospective improvement in dwelling investment, with dwelling prices moving higher, rental yields increasing and building approvals higher than a year ago. Exports of natural resources have been strengthening, though recent bad weather is affecting some shipments.
"Inflation is consistent with the medium-term target, with both headline CPI and underlying measures at around 2¼ per cent on the latest reading. Looking ahead, with the labour market softening somewhat and unemployment edging higher, conditions are working to contain pressure on labour costs. Moreover, businesses are likely to be focusing on lifting efficiency under conditions of moderate demand growth. These trends should help to keep inflation low, even as the effects on prices of the earlier exchange rate appreciation wane. The bank's assessment remains that inflation will be consistent with the target over the next one to two years.
"During 2012, there was a significant easing in monetary policy. Though the full impact of this will still take further time to become apparent, there are signs that the easier conditions are having some of the expected effects: the demand for some categories of consumer durables has picked up; housing prices have moved higher; there are early indications of a pick-up in dwelling construction; and savers are starting to shift portfolios towards assets offering higher expected returns. On the other hand, the exchange rate remains higher than might have been expected, given the observed decline in export prices, and the demand for credit is low, as some households and firms continue to seek lower debt levels," says the statement.
"The board's view is that with inflation likely to be consistent with the target, and with growth likely to be a little below trend over the coming year, an accommodative stance of monetary policy is appropriate. The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand. At today's meeting, taking into account the flow of recent information and noting that there had been a substantial easing of policy as a result of previous decisions, the board judged that it was prudent to leave the cash rate unchanged. The board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target over time."
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Housing prices have moved higher: RBA governor's statement

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A four-bedroom house in Somerton Park, South Australia, was the top sale in the country last week.
<img src="/images/stories/2013/02/wilkinsonave.jpg" width="470" height="353" alt="wilkinsonave">
 The house at <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/12_wilkinson_avenue_somerton_park_sa_5044/10530717">12 Wilkinson Avenue, </a><a href="/news">Somerton Park</a> (pictured above), was sold for $3 million last week by Lew Toop from Toop &amp; Toop Real Estate.
Built in 2010 and within walking distance of the beach, the house has three bathrooms and in-ground swimming pool, along with a four-car garage plus workshop and further off-street parking. 
On the market for 17 days, the 495-square-metre house sits on 925 square metres of land. 
The property was last sold for $1.21 million in July 2008, for $805,000 in August 2005 and $450,000 in June 2000, according to RP Data.
Somerton Park is located 12 kilometres south-west of Adelaide in sits within the local government area of Holdfast Bay.
 
In the last 12 months in Somerton Park:
<ul>
<li>53 houses sold</li>
<li>$580,000 median sale price</li>
<li>95 average days on market 
</li>
</ul>
The top 10 sales in Australia last week were (RP Data):
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/12_wilkinson_avenue_somerton_park_sa_5044/10530717">12 Wilkinson Avenue, Somerton Park, SA, 5044</a>, four-bedroom house, sold at auction on January 31 by Toop &amp; Toop Goodwood for $3 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/945_barrenjoey_road_palm_beach_nsw_2108/5301020" target="_blank">945 Barrenjoey Road, Palm Beach, NSW, 2108</a>, five-bedroom house, sold on February 2 by Barrenjoey Properties Avalon for $2.159 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/49_brighton_avenue_toronto_nsw_2283/6910335" target="_blank">49 Brighton Avenue, Toronto, NSW, 2283</a>, four-bedroom house, sold at auction on January 31 by L J Hooker Toronto for $1.9 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/601/168_queenscliff_road_queenscliff_nsw_2096/16163917" target="_blank">601/168 Queenscliff Road, Queenscliff, NSW, 2096</a>, three-bedroom unit, sold on January 30 by McGrath Estate Agents for $1.6 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/3/4_young_street_paddington_nsw_2021/16161758" target="_blank">3/4 Young Street, Paddington, NSW, 2021</a>, three-bedroom unit, sold on January 31 by BresicWhitney Estate Agents Darlinghurst for $1.575 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/47_griffiths_street_fairlight_nsw_2094/2306239" target="_blank">47 Griffiths Street, Fairlight, NSW, 2094</a>, four-bedroom house, sold on January 30 by Cunninghams Property Balgowlah for $1.4 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/46_greenlaw_street_indooroopilly_qld_4068/5160112" target="_blank">46 Greenlaw Street, Indooroopilly, QLD, 4068</a>, five-bedroom house, sold at auction on February 2 by Karen Mortland Inner West Specialist for $1.39 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/46_greenlaw_street_indooroopilly_qld_4068/5160112" target="_blank">16 Hillview Street, Sans Souci, NSW, 2219</a>, four-bedroom house, sold at auction on February 2 by PRD Nationwide Woodward for $1.378 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/2_frederick_street_malvern_vic_3144/11577137" target="_blank">2 Frederick Street, Malvern, VIC, 3144</a>, three-bedroom house, sold on January 31 by Bennison Mackinnon Armadale for $1.36 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/58_curry_street_merewether_nsw_2291/4208613" target="_blank">58 Curry Street, Merewether, NSW, 2291</a>, four-bedroom house, sold on January 31 by PRD Nationwide Newcastle for $1.35 million
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Four-bedroom South Australian house tops week's sales: RP Data

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The Reserve Bank has, as expected, left the cash rate unchanged at 3% today following its February monetary policy meeting.
A poll of 28 economists carried out by <a target="_blank" href="/news">Bloomberg last week</a> found that 24 expected the RBA to leave the cash rate unchanged today.
Preliminary figures released by ABS today revealed that capital city house prices increased by 1.6% over the December quarter, following a revised 0.1% fall over the September quarter, indicating that previous rate cuts may be starting to have an impact on the housing market.
Commenting on the decision, RP Data national research director Tim Lawless said the RBA was likely to be "reasonably satisfied with how the housing market has played out since they embarked on the rate cutting cycle back in November 2011".  
"Since that time dwelling values across the combined capital cities of Australia have increased by 0.8%, and values are up 3.1% since bottoming out at the end of May last year.  
"Most other indicators are also showing some subtle improvements, albeit from a low base.  
"Consumer confidence has shown some improvement, commodity prices are once again on the rise, and share markets have shown some consistent gains as well.  The big wild card remains the labour market; how high will unemployment go and at what level will the RBA react with a further cut to the cash rate," he says.
Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au, said that while there was no  cut from the Reserve Bank today, "it is possible that we’ll see lenders make an unprecedented move to cut their rates out-of-cycle this year".
"Lenders have kept 40 basis points on average from variable home loans since rates began to fall and with wholesale funding reportedly lower, they have room to move," she says.
"Borrowers need to keep a close eye on their lenders, find out what rates you’re paying and compare it to the rest of the home loan market using RateCity. The slow lending market is set to continue so borrowers are in a great position to haggle for an even better deal.”
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RBA leaves cash rate on hold at 3% in February 

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Sales of strata offices in the Melbourne CBD have begun strongly in 2013 after being flagged as a potentially attractive investment option last year.
Owner-occupiers and investors have been buyers of strata offices in the first two months of 2013.
The sale of 1 Elizabeth Street Melbourne for $940,000 by agents DTZ represented $4,921 per square meter and was purchased by YC Travel who intends on occupying the space.
This is in contrast to a previous sale in the building in 2011 for $800,000 for a full floor strata office.
The property had been on the market for over 12 months, but upon advice from DTZ, the previous owner removed the existing dental practice fit-out to reposition the property in the market.
“Within a week of the removal of the previous fit-out we received multiple enquiries, with the offers ranging from $840,000 up to the $940,000 negotiated sale price,” said DTZ agent Craig Hembrow.
Also sold in January was level three at 250 Queen Street.
The 420 square metre floor sold for $1.85 million through Kliger Wood Real Estate, representing around $4,404 per square meter.
Selling agent, Grant McKenzie says the sale represents an indicative yield of 7.46% based on the current rent for a whole floor in the building.
The property was sold with a lease in place consisting of $138,000 net rent per annum on a four year lease with a four year renewal option and 4% annual rental increases.
<a target="_blank" href="https://www.propertyobserver.com.au/office/small-business-snapping-up-melbourne-cbd-strata-offices-for-as-little-as-%2495000-dtz/2012121358460">Last year Property Observer reported</a> that strata office space in the Melbourne CBD was being acquired by small businesses as their business premises for as little as $95,000, according to property services group DTZ.
A 2012 Urbis Melbourne strata office market report calculated that there are some 1,800 strata units within the Melbourne CBD, with an average sales turnover approaching 130 units per annum – this represents 7% per cent of total stock.
The report notes that prior to 2000, the market was characterised by the creation of strata units from the conversion of older, conventional office buildings, with few purpose built facilities.
Sales completed towards the end of last year include an office-warehouse property on Ricketts Road in Mount Waverley, which sold through Crabtrees Real Estate sold for $1.26 million in November.
The site has a total building area of 695 square meters inclusive of 191 square meters of air-conditioned offices.
It was purchased by owner-occupiers and brickwork specialists, Byrne Construction Systems.
The property is part of a commercial strata development located within close proximity to the Monash Freeway.
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Melbourne CBD strata offices continue to be snapped up.  

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Auction volumes are slowly beginning to increase after a subdued couple of months over the end-of-year holiday season. Last week, there were 403 auctions held across the capital cities, and the clearance rate was recorded at 55.9%. Over the same week last year, there were 371 auctions in the capital cities with a clearance rate of 41.8%.
Melbourne recorded a clearance rate of 62.8% last week, with 122 auctions held across the city. Last year there were 121 auctions, and the clearance rate was 42.5%. A clearance rate of 74.4% was recorded for Sydney, where 82 auctions took place over the week. At the same time last year, Sydney recorded a clearance rate of 62.5% when 69 auctions were held across the capital city.
Over the coming week, there are 665 auctions scheduled. It is expected that within the next month, auction volumes will resume some normality.
Click to enlarge
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Auction volumes slowly on the rise after holiday break: RP Data

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A mortgage war between the four major banks and the smaller banks is looming as APRA figures show regional banks Bendigo &amp; Adelaide Bank and Suncorp along with investment bank Macquarie Bank and mutual bank Members Equity Bank competed strongly for new mortgage customers in 2012.
This week Westpac signalled its intentions by becoming the first major bank to currently offer a <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">fixed-rate home loan below 5%</a>, while its subsidiary brands RAMS and St George have also cut their fixed-rate offerings.
Fairfax economic commentator Michael Pascoe told David Koch on Sunrise this morning that all a customer had to do was walk into his or her bank, show a loan approval from a lender like ME Bank offering a lower variable rate, and the bank would match it or beat it – echoing similar sentiments made by Business Spectator’s Robert Gottliebsen.
Pascoe says variable mortgage holders should not be paying an annual interest rate of more than 5.5%.
Tim Brown, CEO of mortgage aggregator VOW Financial, which has 600 mortgage broker members, told Property Observer recently that he expected banks to launch their discounted mortgage offerings over the next two months as they looked to improve their mortgage settlement numbers ahead of reporting season.
But he says it is possible to get a discount of up 100 basis points just by shopping around.
“Some of these discounts are advertised, but the bigger ones are a negotiation dependent on the standing of the borrower,” he says.
Property Observer's analysis of APRA banking figures for the 2012 calendar year reveals that Bendigo &amp; Adelaide Bank and Suncorp increased their owner-occupier home loans books by more than $2.5 billion each, achieving annual growth rates of 19.4% and 12% respectively.
This compares with average industry mortgage growth for owner-occupier lending over 2012 of just 4.1%, according to RBA figures.
Click to enlarge
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/banksfeb8.gif"><img src="/images/stories/2013/02/banksfeb8thumb.gif"></a>
Source: APRA * Commonwealth Bank and Bankwest figures combined from November 2012, Bankwest mortgage book around $38 billion.
The January 2013 competition index compiled by mortgage broker AFG reveal that Suncorp, in addition to performing well in its home state with 8.2% of the Queensland market and ranking as the fifth biggest lender, also performed strongly in NSW (sixth biggest lender with 9% of the market) and with some success in WA (eight biggest with 3.1% of the market) and Victoria (seventh biggest, with 2.8% of the market).
The APRA figures also show that Macquarie Bank was another stand-out home loan provider over 2012, with the fastest-growing home loan book of all bank lenders.
Over 2012, Macquarie doubled its owner occupier mortgage lending book from $1.55 billion to $3.17 billion as it returned  strongly to mortgage lending following its post-GFC exit.
Macquarie also teamed up with <a target="_blank" href="/news">Mark Bouris’s Yellow Brick Road franchise venture in November</a> to provide wholesale funding for its mortgage lending.
Another strong performer was mutual bank Members Equity (ME) Bank, which provides discounted home loans to eligible super fund and union members.
ME Bank currently offers a standard home loan rate to members of 5.88% compared with an average standard variable home loan rate of 6.42% offered by the major banks and is one of a number of lenders offering a one-year fixed rate at 4.99%.
Among the major banks, NAB was a strong performer, growing its home loan book by nearly 10% - more than double the average industry growth rate.
NAB offers the lowest standard variable rate of the major banks at 6.38% and has maintained this ranking for the past 43 months as part of a pledge to customers.
ANZ managed to growt its mortgage book by 6%, but both the Commonwealth Bank and Westpac – the two biggest home loan providers in Australia – grew at well below the industry average.
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Mortgage war looms as smaller banks show they are more than willing home loan providers: APRA figures

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GPT is reportedly looking to sell its half-share in the super-regional Erina Fair Mall on the Central Coast, according to the Australian Financial Review.
The mall is considered one of the retail jewels on the central coast, about an hour's drive from Sydney.
<img alt="erina" height="314" width="470" src="/images/stories/2013/02/erina.jpg">
GPT’s half-share in the 113,700-square-metre centre was valued at $392.9 million as of June 30, 2012, and it will reportedly be seeking around $400 million.
It paid in excess of $80 million to acquire its half share of the mall in June 1992 from the Capita Statutory Fund.
The mall is jointly owned by the Australian Prime Property Fund Retail (APPRF) and is managed by Lend Lease.
It was built in 1987 and is the largest mall on the central coast.
<img alt="erina1" height="195" width="470" src="/images/stories/2013/02/erina1.jpg">
In 2003, GPT and APPRF spent a combined $210 million on a redevelopment of the centre including adding a Coles supermarket and creating a homewares precinct.
A further refurbishment was completed in 2009. 
The mall has an occupancy rate of 99.8%, with annual sales turnover of $626.9 million, putting it among the top 15 malls in Australia.
A spokesperson from GPT said it could not confirm the AFR report, but said GPT had advised the market last June of its strategy to “reweight the retail portfolio to 50% and increase the weighting in office and logistics &amp; business parks to 35% and 15% respectively".
“This is being done through a combination of organic means, actively managing our portfolio and through selective acquisitions.
“The GPT Group has implemented a number of initiatives in line with this strategy including the divestment of 50% interests in shopping centres at Woden in Canberra and Casuarina in Darwin, the divestment of Jindalee and Aspley Homemaker Centres in Brisbane and the acquisition of two logistics facilities in Sydney, one in Melbourne and an agreement to develop a new logistics facility for the Toll Group in Brisbane.
“GPT continues to review opportunities to deliver on our strategy,” says the spokesperson.
The cash injection from the sale of the mall will also firm up the GPT balance sheet as it considers a fresh bid for Australand’s commercial assets and investment business.
GPT's offer of $3 billion for Australand’s investment property portfolio and commercial and industrial business - but not its residential business - in mid-December 2012 was <a href="https://www.propertyobserver.com.au/australian-capital-territory/australand-rejects-gpt-offer/2012121358470" target="_blank">rejected by Australand.</a>
According to the AFR, the marketing and sale of the mall is being handled by Jones Lang LaSalle’s shopping centre specialist Simon Rooney.
The mall is tenanted by Myer, Kmart, Target, Big W, Best &amp; Less, Woolworths, Coles and Aldi plus over 300 specialty stores an eight screen Hoyts Cinema.
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GPT puts half-share in Erina Mall on Central Coast up for sale: Reports

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The Edwardian-era building that houses the Elephant Backpacker, across the road from Flinders Street Station, has been sold to an owner-operator for a price in excess of $6.6 million plus GST.
<img alt="elephant" height="353" width="470" src="/images/stories/2013/02/elephant.jpg">
The freehold building, formerly called Ackmans Building, was built in 1910, around the same time as Flinders Street Station (1909) was constructed.
Heritage website <a target="_blank" href="https://www.walkingmelbourne.com/">walkingmelbourne.com.au</a> describes the building as a “classically inspired Edwardian building featuring Federation free-style motifs”.
It most likely bears the name of former pawnbroker-turned-retailer Henry Ackman, who ran a department store called Ackman's Monster Emporium on Smith Street in Fitzroy.
Located on the corner with Degraves Street, the property incorporates the ground floor entrance foyer and basement area together with three upper levels that are serviced by a single lift and stairwells.
The sale price included the business itself.
In May last year a historic <a href="https://www.propertyobserver.com.au/leisure/art-nouveau-backpackers-hostel-on-spencer-street-sells-for-%241075-million/2012051154659" target="_blank">1913-built Art Nouveau backpackers' hostel on the corner of Flinders Street and Spencer Street</a> sold for $10.75 million with an expected yield of more than 8%. 
The new owner of Elephant Backpackers operates a hostel in the Melbourne CBD and plans to continue operating the 240-bed backpacker hostel.
It currently generates an annual cashflow from accommodation and related services afforded to backpackers and travellers of around $1.4 million.
The building extends 45.6 metres along the eastern side of Degraves Street, the popular laneway and eating strip, which runs all the way to Flinders Lane.
It includes part ground floor and three upper floors measuring 2,141 square metres on a site measuring 584 square metres.
The sale does not include the shopfronts that run the length of the hostel that extends down Degraves Street, which are separately titled.
It was sold via an expressions of interest campaign by Kliger Wood agents Grant McKenzie and Russell Meerkin, who said it had attracted a significant number of offers.
“The vendors of the freehold and business are based interstate so the accommodation business has been operated efficiently prior to the sale under management,” says McKenzie
“The location of the building is the key factor, as it abuts Degraves Street probably the city’s most dynamic laneway and cafe precinct.
“In addition, the building itself is relatively under-developed.
“The basement for instance is used only as a resident communal kitchen for backpackers, as a laundry facility and break-out area.
“It could in future be utilised as a bar or restaurant and could also provide direct pedestrian access under Flinders Street to the Station and on across the River to Southbank.
“Two of the upper levels provide older style accommodation with a mix of single and double rooms, with dormitories offering four to six bed accommodation," he says.
“The third level has been extensively renovated as 18 flash pack rooms, 11 with en suites inclusive of shower, basin and toilet with three eight-bed dormitories and another two six-bedroom dormitories.
Subject to the owner obtaining the necessary permits and planning permission, the building has the potential to have additional floors added.
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Melbourne backpackers' hostel building the Elephant with faded Edwardian charm sells to owner-operator

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The hype was in hyper-drive following the annual auction orgy on the Gold Coast last week. 
Brisbane’s metropolitan newspaper declared that the property market had turned, based on the evidence from the two-day auction event. The clearance rate was, it said, “impressive”. The Herald-Sun in Melbourne said the tough times in the property market were over. 
Fairly big statements, given that little more half the properties sold – and many went at bargain-basement prices. 
Ray White’s annual exercise in self-aggrandisement is marketed as The Event. It’s about as valid as Anthony Mundine continuing to call himself The Man. But when hype is your business, the results don’t dilute the spin. 
The hysteria was so contagious that it was impossible to distinguish the “news article” in The Courier-Mail and the PR piece on the Ray White website – the level of gush was pretty much the same in both. 
That is, of course, an indictment on The Courier-Mail, which bows down before anyone who directs (vendor-paid) auction advertising its way. I’m surprised it didn’t describe savvy investors snapping up luxury apartments in a hot market. 
So what really happened? Essentially, mortgagees and other battered vendors liquidated some stock. The bottom-feeders came out, attracted by the stench of desperation, and properties sold for a fraction of their former value. The one thing The Courier-Mail got right was this: “Bargain hunters were out in force.” 
At the end of the two days, the clearance rate claimed by the agents was just 58%. Not even the Real Estate Institute of Victoria would parade that as evidence of the good times returning. 
The estimated size of the crowd varied from “more than 500” in the newspapers to the “more than 3,000” claimed by the agent. 
One mortgagee sale resulted in a property purchased for $2 million in 2002 selling for just $851,000. Terrible result for the former owners and their lenders, but the agent still gets well paid. Another property with a claimed value of $2.5 million sold for $1,255,000. 
One newspaper report said: “While all the properties sold well under their peaks, realistic vendors endured that sales were constant and many properties sold above the reserve, according to Andrew Bell, chief executive of Ray White Surfers Paradise.” 
Wow, some actually achieved the reserve – remembering that the reserve price is usually regarded as the absolute minimum the vendor will accept – NOT the result the seller is seeking. Evidently, many vendors accepted less than the absolute minimum. Big win for everyone, except the vendors. 
So what does it all mean? The Gold Coast, after five years in real estate hell, is still trawling the bottom of the cycle, and the only people out buying are the bargain-hunters. 
I continue to urge caution to property investors. Be wary of being enticed by what appear to be attractively low prices. Those prices have dropped for a reason. 
The Courier-Mail quoted one buyer as saying that he bought units sight-unseen because the prices appeared “fairly cheap”. 
You have to think beyond the bargain price. The key question is: does this market and this product have a strong future? 
If you’re satisfied it does, then knock yourself out. But don’t simply be seduced by the hype and the appearance of a bargain.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
To help find the next Gladstone-like property investment hotspot, <a target="_blank" href="/news">sign up for Terry's free webinar on Tuesday, February 12 at 12.30.</a>
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terryryder-YECXbqmri2

Gold Coast mega auction results more battered than bullish: Terry Ryder

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The A-REIT sector showed a total return of 33% for 2012, outperforming shares, which returned 20% over the same period.
Drivers of this outperformance included reducing debt servicing costs and an improved capital position, strong capital inflows to the sector and a surge in merger and acquisition activity in the second half of the year.
An average sector earnings yield of 7.2% and an average payout ratio of approximately 81% underline the strong income proposition offered by A-REITs.
Debt servicing costs for the larger A-REITs have reduced by 1% over the past year to approximately 5.5%. This will benefit those A-REITs with interest rate hedges expiring this year and those who can fund earnings accretive property acquisitions with debt.
With A-REIT sector distribution yields around 6% and Australian 10 year government bond yields currently around 3.5%, a significant yield premium of 2.5% exists.
Share buy backs had been a common capital management strategy in the first half of 2012 as A-REIT prices traded at a significant discount to their asset backing. However, in the final quarter of 2012, over $600 million of equity was raised including $400 million by Goodman Group and $100 million by Charter Hall Retail.
In addition, both the 360 Capital Industrial Fund and the Shopping Centres Australasia Property Group (the Woolworths property offshoot), which raised $472 million, were listed as A-REITs. Excluding Westfield Group, the A-REIT sector discount to asset backing has closed from 10% this time last year to a 5% premium.
At the end of 2012, GPT made an unsolicited bid to acquire the non-residential property and corporate assets of Australand. While the bid was rejected, the principal shareholders of Australand have indicated their willingness to exit their investment.
Mirvac has also expressed interest in acquiring Australand. It is anticipated that Australand will be acquired this year. The benefits of increased scale will a driver of corporate activity. Smaller A-REITs without the capacity to grow their balance sheets without external capital are likely to be among the targets.
While rent growth is likely to be subdued in 2013, development and redevelopment pipelines are likely to boost earnings growth. Continued low interest rates, the prospect of corporate activity, and the relatively high yield from A-REITs compared to equities and fixed interest investments are expected to be factors contributing to another positive total return in 2013.
Mark Wist is senior asset consultant at <a href="https://www.atchison.com.au/" title="Atchison Consultants" target="_blank" rel="nofollow">Atchison Consultants</a>.
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