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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Mortgages lending remained at record lows over December while the major banks increased their market dominance over non-bank lenders, according to the latest RBA figures.
Housing credit advanced by banks and non-banks increased by 0.3% over December, following an increase of 0.4% over November.
Over the year to December, housing credit rose by 4.5% the slowest annual pace of mortgage lending growth for RBA data going back to 1976.
The slow growth suggests it’s not just a case of borrowers paying down their mortgages and other debts but that banks and non-banks are reluctant to lend.
“If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive,” says Savanth Sebastian, economist at CommSec.
Sebastian says little growth in property prices is one of the factors holding back borrowers from taking on fresh debt.
"The main factor underpinning the conservative approach to lending is weak growth in asset prices, especially property. Clearly you are likely to be less willing to take on a large debt load if the price in the underlying asset is barely growing, or in some cases, going backwards," Sebastian says.
Total credit provided to the private sector by financial intermediaries rose by 0.4% over December 2012, after remaining unchanged over November. Over the year to December, total credit rose by 3.6%.
Other personal credit (credit cards, personal loans) increased by 0.2% over December to be up just 0.3% over 2012 while business credit increased by 0.7% over December to be up 2.8% for the year.
Commonwealth Bank economist Diana Mousina said the figures indicate household borrowing restraint, low business appetite for debt; and deposit growth stronger than credit growth.
“The trend of sluggish credit growth reflects competing factors. Household and business balance sheets are in relatively good health and the household savings ratio is around 11%. Under normal circumstances strong balance sheets and low interest rates create a favourable environment for credit growth. However, business and consumer sentiment are subdued due to uncertainty about the outlook. This acts as a drag on credit growth,” she says.
The figures also show that non-bank lenders continue to lose ground to the banking sector.
Banks added $9.4 billion to their collective mortgage books over December, which now stand at $1, 771.5 billion ($1.77 trillion) while non-bank loan books shrunk by $2.8 billion to $151.3 billion.
Proportionally, banks have 92% of the lending market and non-banks 8%.
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lschlesinger-FZcF9M3vE6

Mortgage growth remains at record lows as non-banks lose market share: RBA

<html><body>
The release of December data from Residex appears to confirm that Melbourne house prices probably went nowhere in 2012.
Residex reports a 1.5% rebound in Melbourne house prices in the final quarter of the year, but with house prices still down 1.4% over the year with a median value $566,000.
Unit prices dropped 1.4% over the quarter to end the year down 4.3%, with a median price of $427,000.
The Residex figures means that two data providers – Residex and RP Data – have Melbourne house prices down over 2012, while two – the Real Estate Institute of Victoria (REIV) and Australian Property Monitors (APM) have them up.
Melbourne houses
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td colspan="4" width="491" valign="top">
House price changes
</td>
</tr>
<tr>
<td width="133" valign="top">
 
</td>
<td width="114" valign="top">
Quarter
</td>
<td width="134" valign="top">
2012
</td>
<td width="110" valign="top">
Median
</td>
</tr>
<tr>
<td width="133" valign="top">
RP Data
</td>
<td width="114" valign="top">
-1.5%
</td>
<td width="134" valign="top">
-2.9%
</td>
<td width="110" valign="top">
$550,000
</td>
</tr>
<tr>
<td width="133" valign="top">
APM
</td>
<td width="114" valign="top">
+2.4%
</td>
<td width="134" valign="top">
+0.5%
</td>
<td width="110" valign="top">
$526,000
</td>
</tr>
<tr>
<td width="133" valign="top">
REIV
</td>
<td width="114" valign="top">
+7.8%
</td>
<td width="134" valign="top">
+4.7%*
</td>
<td width="110" valign="top">
$555,000
</td>
</tr>
<tr>
<td width="133" valign="top">
Residex
</td>
<td width="114" valign="top">
+1.54%
</td>
<td width="134" valign="top">
-1.41%
</td>
<td width="110" valign="top">
$566,000
</td>
</tr>
</tbody></table>
Melbourne units
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td colspan="4" width="491" valign="top">
Unit price changes
</td>
</tr>
<tr>
<td width="133" valign="top">
 
</td>
<td width="114" valign="top">
Quarter
</td>
<td width="134" valign="top">
2012
</td>
<td width="110" valign="top">
Median
</td>
</tr>
<tr>
<td width="133" valign="top">
RP Data
</td>
<td width="114" valign="top">
-2.7%
</td>
<td width="134" valign="top">
-2.5%
</td>
<td width="110" valign="top">
$435,000
</td>
</tr>
<tr>
<td width="133" valign="top">
APM
</td>
<td width="114" valign="top">
+1%
</td>
<td width="134" valign="top">
+2.2%
</td>
<td width="110" valign="top">
$391,000
</td>
</tr>
<tr>
<td width="133" valign="top">
REIV
</td>
<td width="114" valign="top">
+4.2%
</td>
<td width="134" valign="top">
+1.3%*
</td>
<td width="110" valign="top">
$456,000
</td>
</tr>
<tr>
<td width="133" valign="top">
Residex
</td>
<td width="114" valign="top">
-1.37%
</td>
<td width="134" valign="top">
-4.28%
</td>
<td width="110" valign="top">
$427,000
</td>
</tr>
</tbody></table>
*The REIV figures compare December quarter 2012 figures with December 2011 quarter figures. APM and RP Data are annual changes over 2012.
Averaging out the four property data providers indicates, as suggested by <a href="https://www.propertyobserver.com.au/victoria/melbourne-residential-property-market-on-the-mend-property-observer-navigates-the-muddling-median-maze/2013013059037">Property Observer before publication of the Residex figures</a>, that property prices in Melbourne hardly moved in 2012.
The average house price change for Melbourne is 0.2% over 2012 while units fell 0.8%.
Residex had Sydney as the top-performing detached house market over 2012 (up 4.91%) with Perth the strongest performing unit market up 10.89%.
Residex chief executive John Edwards says that overall, 2012 was a better year for Australian property than the previous 12-month period.
“Additionally, the past few weeks will have helped consumers gain higher levels of optimism as there has been positive news surrounding the US economy and little negative news out of Europe. Lifted confidence should flow into higher levels of housing market activity,” says Edwards.
“On the other hand, the floods currently being experienced in Northern NSW and Queensland will be having a dampening influence on these markets. Some slowing in the economy will drive unemployment, which will also have some moderating impacts. However, we shouldn’t get too carried away with moderate increases in unemployment as we are coming off all but full employment.
“On an Australia wide basis, capital growth in the house and land market achieved its best performance in the last 18 months. Weekly rentals also increased, with rentals for houses and land maintaining real value while units outperformed inflation by about 3%. Rental increases are good news and much needed as the sector’s capital value is either stagnant or just maintaining real value. This should be expected to continue,” he says.
<a target="_blank" href="https://blog.residex.com.au/wp-content/uploads/2013/01/Australian-Property-Market-Statistics-December-12.jpg">The full set of Residex results can be found here.</a>
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Melbourne houses and units end year in the red: Residex

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Melbourne and Adelaide will be "the worst-performing markets for house price growth in 2013," according to modelling by the National Australian Bank.
While not anticipated to be in negative territory, they are expected to continue to lag behind the capital city average, with state economic conditions and employment prospects in both these states also expected to remain tougher.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/01/nabjan311.gif" title="Click to enlarge"><img src="/images/stories/2013/01/nabjan311thumb.gif"></a>
Source: NAB
Despite relatively subdued credit lending overall, NAB notes the Australian housing market had shown intermittent improvement as the effects of lower interest rates, an uptick in growth in real rents and sound underlying fundamentals had supported recent improvements in house prices.
"With very accommodative monetary policy now firmly in place, another 75 bps of rate cuts pencilled in by NAB this  year and a continuing shortage of dwellings, it is possible that we will see resumption in national house price growth in the years ahead," says NAB. 
"However, job insecurity may act as a constraint during 2013.
"Our modelling indicates that capital city average house prices will rise by around 1½% through the year to end-2013 and 3% in the year through to end-2014, which is slightly higher than <a target="_blank" href="https://www.propertyobserver.com.au/news/australian-house-prices-to-rise-21-over-next-two-years-nab/2013013059038">the average survey forecast</a>."
It notes house price divergence between the states is likely to persist, with the ‘multi-speed’ nature of the Australian economy also "very apparent" across state housing markets.
Perth is tipped to lead the nation in terms of house price growth with capital gains forecast to run at around 3.5% through the year to end-2013 and 5% in the year through to end-2014, underpinned by improved affordability, population growth and above average state economic growth. Sydney (2.1% and 3.7%) and Brisbane (1.7% and 3.5%) also out-perform the national average.
</body></html>

jchancellor-FAypfDUnLy

Melbourne and Adelaide will be the 'worst' performing markets in 2013: NAB modelling

<html><body>
Big-box retailing is in full swing in Australia, with the local arm of bulk buying group Costco receiving yet another $50 million from its parent company in order to fund further expansion after reporting its first profit.
The move comes as the bulk buying industry <a href="https://www.smartcompany.com.au/advertising-and-marketing/048283-costco-gets-140-million-from-parent-to-fuel-expansion" target="_blank">continues to expand</a> in Australia, with Costco planning an expansion which will bring <a href="https://www.smartcompany.com.au/retail/050601-costco-to-announce-new-store-within-weeks-aims-at-three-stores-in-sydney-and-melbourne" target="_blank">multiple stores</a> in capital cities across the country. The business received $140 million in 2012 to help open new stores.
But while Costco has made an impressive stamp on the food and grocery market in Australia, some analysts believe it isn't the supermarkets which should be scared. Instead, as companies such as Costco and Aldi expand, experts say it's the wholesale market that should be worried.
"The biggest losers here are the wholesalers," says City Markets analyst Peter Esho. "Costco is a wholesale model rather than a mainstream supermarket."
"It's going to nibble into Coles and Woolworths, and IGA, but I don't think at this stage there is going to be too much impact."
Esho points to Coles' own financial results, released today, which show food and liquor sales increased 3.9% in the second quarter on a like-for-like basis.
New figures lodged with the Australian Securities and Investments Commission show Costco turned a profit of $9.73 million during the year to September 2012, while revenue also doubled to over $609.5 million. According to Fairfax, the Melbourne and Sydney stores generated most of that revenue, a large portion of which comes from membership sales.
Costco Australia managing director Patrick Noone told SmartCompany the business is continuing its expansion plans, and is constantly looking for new locations.
"We're always searching," he says. "Always looking at ways to do things better."
However, he did say the lack of property available for big-box sites has been a challenge. "The lack of availability has been a problem," he says.
The business plans on opening locations across the country, including two or three locations in some cities. Adelaide is a possibility soon, although Noone said a Perth location may not arrive for a while.
The introduction of Costco into the Australian market has signalled a surge of big-box retailing. The local big-box industry has pushed for new laws to help businesses find suitable land more easily, as they require larger than normal sites.
Noone said Costco usually puts its case forward regarding zoning laws - its Auburn location in Sydney suffered some delays due to zoning disputes.
But the expansion of Costco shouldn't make supermarkets feel uneasy, says Esho. He argues the company is playing on a different field.
"I think ALDI is very well placed to defend itself, it has its own brands, exclusive brands, that run on a low cost model and are competitive. I think the impact on ALDI would be minimal."
ALDI has expanded to nearly 300 stores since opening here in 2001. Esho says the main impact will be directed at the German company, along with other wholesalers.
"There might be an impact if wholesaling draws people away from the main supermarkets, where that migration sees people buying at Costco and ALDI for main products instead of Coles and Woolworths."
Wholesalers will feel the pinch, he says. <a href="https://www.smartcompany.com.au/retail/053438-metcash-takes-on-costco-with-launch-of-value-depot-warehouse-stores" target="_blank">Metcash was in a position to be hurt</a>, but the company has already restructured itself in anticipation of Costco's expansion.
Costco Australia managing director Patrick Noone has previously said the business wants to expand with two more stores in 2013. A second Melbourne store in the eastern suburb of Ringwood is currently being constructed.
Esho says despite the expansion plan, the existing grocery market doesn't have a lot to be worried about.
"I don't think at this stage there'll be too much of an impact, at least not at this stage – and it won't for at least a decade."
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
</body></html>

pmcstafford-pr9eMARWoN

Australian Costco gets $50 million boost and turns its first profit

<html><body>
Sydney house and unit prices rebounded in the final quarter of 2012 to finish the year at record highs, according to full year figures from Australian Property Monitors (APM). 
Sydney house prices rose by 2% over the quarter to be up 3.4% for the year with the median price rising to a record $656,415, the first time the median price has been above $650,000 and are now $10,000 above their previous peaks.
Canterbury-Bankstown was the top performing region with the median house price increasing 11.5%, however prices did fall on the lower north shore by -0.4%.

Sydney unit prices gained 2.3% over the quarter to be up 5.6% for the year and also posted a record median price of $475,314.
The rises for the quarter were based on upwardly revised September quarter figures. 
APM revised the Sydney’s median house price for the September quarter from $641,890 to $643,578, while the median unit price was revised from $458,562 to $464,572. 
Australian Property Monitors senior economist Dr Andrew Wilson says Sydney again “illustrated the resilience of its housing market”. 
Wilson says the Sydney market revival is being driven from the middle upwards rather than from the top down with changes to first-home buyer grants in 2012 bringing forward demand while change-up buyers also become active.
“We are seeing a lot of activity in the middle price section of the Sydney market between $500,000 and $900,000, and that’s what is pushing up those median house prices to record levels," he said in an interview on AFR TV.
Wilsons says the prestige market in Sydney, which has to date been the ‘weak link” in the market, may also start to grow in 2013.
<img alt="apmjan31" src="/images/stories/2013/01/apmjan31.jpg" width="470" height="294">
Nationally, house prices rose by 1.9% over the quarter to finish the year in positive territory – up 2.1% to a median of $542,299. 
Unit prices increased by 1.6% over the quarter to be up 2.4% for the year with a median price of $417,123. 
September quarter figures were also revised. 
The median house price was revised downward from $533,480 to $532,274, while unit prices were upwardly revised from $406,415 to $410,508. 
All capital cities recording house price gains over the quarter – the first time this has happened since March 2010. 
“I think it is no coincidence that we have historically low interest rates and we are just starting to see a consistent rise in confidence in housing markets," says Wilson.
But he tempered this by saying capital cities and sub-markets are still performing at different levels. 
“We are still seeing the fractured type of outcome."
Sydney is the only capital city market where house prices are above their previous peaks, but APM expects that based on current trends, Perth, Canberra and Darwin will achieve record house prices in 2013. 
Wilson says the property market rebounded “as expected in 2012” on the back of the “general improvement in affordability and confidence” due to record low interest rates fuelling increasing buyer activity. 
Excluding the volatile Darwin market, Perth was the top-performing capital city market over the year, with house prices up 6% over the quarter and unit prices up 6.1% to medians of $560,780 and $365,132 respectively.
Perth’s September median house price was upwardly revised from $537,237 to $547,160, and its median unit price upwardly revised from $348,293 to $352,961. 
Wilson says the Perth price rises are being driven by around 1,500 people arriving each week in Perth and by a tightening rental market and rising rents, pushing more people into the house-buying market. 
Melbourne house prices gained 2.5% over the quarter to end the year just in positive territory – up 0.5% to a median of $526,281 with units up 1% for the quarter but still down for the year at -2.2% and a median of $390,651. 
Brisbane house prices increased by just 0.3% to be down 0.5% for the year (median of $433,302) but Wilson said this small quarterly gain was significant “as it signalled a revival in activity after a lengthy period of price falls”.
Of some concern to investors would be the Brisbane unit market – the epicentre of dozens of new apartment projects – where prices fell 2.7% over the quarter to be down 3.2% for the year, making it the worst performing house or unit market for the year. 
Adelaide continues to remain the most affordable mainland capitals with as median house price of $432,309.   “Looking ahead in 2013 activity will depend on the direction of local economies as it is no coincidence that the better performing housing markets in 2012 reflected better performing economies - particularly in regard to unemployment levels,” says Wilson.
“With a rising share market and an improving international outlook, the general economic landscape and prospects remain optimistic which is unequivocal good news for Australia’s recovering housing markets,” he says.
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'Resilient' Sydney house and unit prices reach record highs in 2012: APM

<html><body>
The $400 million Hamilton Reach development by Australand has successfully sold four terrace homes in the second stage of the Green Quarter precinct.
Construction of the first 12 Green Quarter terrace homes is now complete with $11.5 million secured in sales after its late 2011 launch.
<img height="378" width="470" src="/images/stories/2013/01/greenquarter.jpg" alt="greenquarter">
The two-storey Green Quarter homes had been "hugely popular", says Richard Fulcher, general manager of Queensland residential Australand.
<img height="374" width="470" src="/images/stories/2013/01/greenquarter2.jpg" alt="greenquarter2">
The second and final stage of the Green Quarter precinct was released last October with 10 townhouses, ranging in size from 241 square metres to 283 square metres and priced from $980,000 to $1.475 million. With four already sold the remaining six offerings are priced from $980,000 to $1.15 million.
The Hamilton Reach development is located six kilometres from the Brisbane CBD in north shore <a target="_blank" href="/news">Hamilton </a>and is bordered by 530 metres of river frontage and 2.5 hectares of Northshore Riverside Park.
<img height="204" width="470" src="/images/stories/2013/01/greenquarter1.jpg" alt="greenquarter1">
The Green Quarter precinct is located one street from the river.
Homes within the precinct endeavour to promote environmentally friendly living – with solar panels and solar hot water to reduce energy and water consumption.
The terrace homes, designed by Rothe Lowman White architects, also boast internal courtyards, high-level windows and private terraces.
“We are happy to see people embracing the concept of environmentally sustainable living, which is becoming increasingly important to buyers as they become more conscious about energy consumption and reducing their carbon footprint,” says Fulcher.
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Australand secures four further sales in Green Quarter precinct at Hamilton Reach 

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Expectations for house price growth improved marginally in the final quarter of 2012 but remain very modest, with just 2.1% growth tipped for the next two years, according NAB’s December 2012 quarterly residential property index survey. 
This compares with September quarter expectations of a 1.7% gain in house prices over the next two years. 
The expectations are based on the sentiments of around 270 property markets participants, predominantly estate agents (39% of respondents), property owners and investors (20%) and developers (17%). 
They indicate that despite rate cuts and improving housing affordability, there is still much caution among those directly involved in the property market about medium-term prospects, though they have brightened. 
The survey found that concerns over housing affordability are falling slowly as interest rates fall but are still “significant”. 
In addition, property professionals remain concerned about the domestic economy and a weakening labour market, with “employment security entrenched as the biggest impediment to purchasing existing property in all states”. 
“Access to credit also seen as a ‘significant’ impediment to purchasing existing property,” NAB says of the survey results. 
Property professionals expect “good” capital growth prospects in the sub-$500,000 market next year, but the outlook for premium stock is still “poor”. 
The strongest outlook is for the mining-states of Western Australia and Queensland, where house prices are expected to increase by 3.6% and 2.2% respectively over the next two years, driven by strong state economic growth, migration and rental growth. 
Click to enlarge
<a href="/images/stories/2013/01/nabjan31.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/01/nabjan31thumb.gif"></a>
Perth will be the strongest performing capital city market with capital growth forecast to run at around 3.5% through the year to end-2013 and 5% in the year through to end-2014, “underpinned by improved affordability, population growth and above average state economic growth”. 
Brisbane house prices are forecast to increase by 1.7% over 2013 and then by 3.5% over 2014. 
Stronger price growth is also tipped for NSW (1.8% over the next two years compared with 1.5% in the previous quarter), with Sydney set to outperform with growth of 2.1% in 2013 and 3.7% in 2014. 
Expectations also improved in Victoria, where property professionals now expecting house prices to grow by 1.9% in the next two  years, having previously forecast 0.9% growth. 
Melbourne house prices are expected to continue to tread water over 2013 – rising just 0.4% – but are expected to pick up slightly in 2014, rising by 2%. 
Expectations for house price growth over the next two years for the combined South Australia/Northern Territory market were scaled back to 1.5%, from 2.4% previously.
Melbourne along with Adelaide (growth of 0.1% in 2013 and 2% in 2014) are forecast to be the worst-performing markets for house price growth in 2013 and “will continue to lag the capital city average with state economic conditions and employment prospects in both these states also expected to remain tougher”. 
The overall index rose 4 points in the final quarter to sit at 8 points attributed to the rate of decline in national house prices slowing and rents growing.
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Australian house prices to rise 2.1% over next two years: NAB industry survey

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With lower interest rates, and property prices stabilising throughout 2012, the year ahead will afford investors the opportunity to purchase property with less money out of their pockets. There is also the potential for their investments to be cashflow positive. 
Liquidity is bouncing back. I think we’ve seen the worst of the liquidity crisis brought on by the GFC. With the combination of available funding and falling interest rates, Australians will be able to easily invest and reap the rewards of investing in the security of bricks and mortar. 
Another trend to look for in 2013 is the increased use of vehicles such as self-managed super funds to invest in property. With the downturn in the stock market, there has been predominantly negative growth across balanced funds in the past five years. After account keeping fees and running costs, portfolio values have gone sideways or decreased in value. 
A lot of people are pulling their money out of these balanced funds and moving them into a SMSF. They do this one of two ways. The first way is to simply transfer their funds into cash in their SMSF. However, smarter investors are using this cash and gearing it up. Prior to 2007, an owner of a SMSF could not borrow money to purchase property as part of their portfolio. Now that the government has changed the legislation governing SMSFs, things are starting to change. 
People are beginning to understand how they can use their SMSF to grow their portfolio exponentially. As an example, putting in $100,000 and gearing up $400,000 and they are growing a $500,000 portfolio. This is a great outcome for investors, not only the growth on the larger but when they sell the property at 60, there is also no capital gains tax. 
These types of strategies, along with improved affordability and liquidity, will really drive the next upward swing in the property market, and in my opinion I can see 2013 being a good year for property investors and probably the best for almost a decade. 
When talking with potential investors, I like to use a graphic example which I call the property cycle clock. The 12 o’clock position indicates the peak of the market where property prices are highest. The 6 o’clock position is where the property market is at the bottom of the curve. I believe the property market is sitting around 6.30 to 7 o’clock. Cities such as Sydney are sitting around 7 whilst cities such as Brisbane and the Gold Coast are at around 6 o’clock. In 2013, we will start to see momentum building and confidence coming back into the market. 
In the next 12 months we’ll start to see the upswing. This phenomenon starts when smart investors re-enter the property market. As they have invested early in the cycle and in a favourable climate, they start to talk to their peers about their purchase. This in turn drives chatter amongst groups of people, which in turn drives property sales. Your friends buy in, the taxi driver buys in and soon, everyone is back in the market. 
This combined with the funds being more available we really are in the box seat when it comes to property. I have been doing this for over 25 years and I haven’t seen it this good. 
Now onto hot areas, as I see it over the next year. The Sydney market is ready for an upward swing, in particular the more affordable outer western suburbs and other fringe areas. 
The mining boom area has created real opportunities.  They have barely scratched the surface and are yet to really get down and dirty, quite literally as the potential upside will be there for generations to come. The boom will attract better infrastructure and services to the area, which is a major attraction for buyers purchasing investment property. 
Locations where Coal Seam gas exploration is underway is something investors should take into consideration. There is significant exploration underway in many areas, once this has evolved and gas starts to come on line, this will act as a trigger for infrastructure growth. Investors who buy in now will reap the rewards for years to come. 
Parts of Queensland will also present an exciting investment opportunity. Pockets of Queensland will show strong growth. Resources such as natural gas and aluminum are boosting this already robust economy. 
Brisbane has come off the boil a little. Some people who buy now will see the upside. I think this area is sitting close to the bottom of the property cycle clock. 
All in all, the main thing is to look at the supply, demand, affordability and liquidity in the property market.  As your profit is in your buying, the big winners will be the investors who get in while the property market is at the bottom.  As I am already seeing things start to pickup, I think 2013 will be the year of the savvy property investor. 
Robert Projeski is the founder and managing director of <a href="https://www.amo.com.au" target="_blank">Australian Mortgage Options</a>, winner of over 12 industry awards. He is considered a leading property finance expert in Australia. 
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Why 2013 could be the best year in almost a decade for property investors

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The year is barely a month old and already some of the wackiest things have been written about Australian real estate. 
I've previously commented on the Demographia propaganda manifesto and the strange way in which a shallow survey of six nations generated "we have the world's most unaffordable houses" headlines all over the country, the facts notwithstanding. 
Then we had BRW perpetuating the myth that the "prime" suburbs close to the CBD provide the best growth. BRW writer Andrew Heathcote came up with five locations that would lead price growth in 2013 – the five chosen elite all had proximity to the CBD in common and this, apparently, is what is going to drive places like <a href="/news">New Farm </a>in Brisbane and <a target="_blank" href="/news">Potts Point</a> in Sydney to excel. 
New Farm has one of the lowest capital growth rates in the Brisbane metropolitan area, roughly half that of outperformers in Ipswich City in Brisbane's south-west. 
What was not explained was why New Farm, with its "tree-lined streets containing period cottages", would suddenly burst to the front in the capital growth stakes. New Farm has always had those qualities and it's always been two kilometres from the Brisbane CBD. Why suddenly is it going to outperform, when it hasn't in the past? 
I have the same questions about Potts Point in Sydney, which has the dismal capital growth average of 4.3% per year. This is shabby even by the low standards of Sydney, which has been the under-achiever among the capital cities over the past 10 years. 
Potts Point is suddenly going to outstrip the huddled masses, apparently, because it’s three kilometres from the Sydney CBD (hasn’t it always been?) and it has lots of heritage buildings (by definition, they’ve been there a long time). What new event has supercharged one of the nation’s worst capital growth performers to a ranking of fourth best for 2013? The gentrification of nearby Kings Cross (did that just happen?) or the fact that white-collar workers like the area? 
In similar vein, the swanky suburbs of Melbourne’s inner south-east feature (Hawthorn is the anointed superstar) despite their volatility and lack of consistent performance. 
Continuing the theme of strange musings about real estate, writer Pete Wargent burst into print to say “I told you so” about Sydney’s middle market being “the most resilient market in Australia”. He claims this sector is “the only sector of Australia’s property markets to be at all-time high prices”. 
Apparently Australia’s property markets do not include <a target="_blank" href="/news">Gladstone</a>, <a target="_blank" href="/news">Mackay</a>, <a target="_blank" href="/news">Moranbah</a>, <a target="_blank" href="/news">Port Hedland</a>, <a target="_blank" href="/news">Karratha</a>, the towns of the Hunter Valley, <a target="_blank" href="/news">Dubbo</a>, <a target="_blank" href="/news">Mudgee</a>, <a target="_blank" href="/news">Whyalla</a>, <a target="_blank" href="/news">Bendigo</a>, <a target="_blank" href="/news">Ballarat </a>and many other regional cities and towns that have been growing strongly while the capital city markets have been falling or stagnating. 
As for Sydney’s middle market being the most resilient market in Australia, it’s almost the polar opposite. Sydney generally has delivered the lowest growth among the capital cities in the past decade. Typical Sydney suburbs have averaged less than 5% per year, and the best has managed just 7% – half the best in Brisbane.

Middle-market suburbs have been among the worst Sydney performers. Gordon’s median price has dropped 8% in the past 12 months, according to Australian Property Monitors, and is still lower than it was five years ago. Its 10-year growth average is 3% per year, among the worst in Australia. 
Canterbury, another middle-market suburb, also dropped 8% in the past year and has a 10-year average of 4% per year. There are a hundred other suburbs with similar histories.
Terry Ryder is the founder of <a target="_blank" rel="nofollow" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> and can be <a target="_blank" rel="nofollow" href="https://www.twitter.com/hotspotting">followed on Twitter</a>.
To help find the next Gladstone-like property investment hotspot, <a href="/news">sign up for Terry's free webinar on Tuesday, February 12 at 12.30.</a>
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So-called inner-city hotspots some of the wackiest 2013 opening claims in Australian real estate: Terry Ryder

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The residential property market appears to have bottomed out and is set for a “mild cyclical recovery" over the next 12 months” says AMP Capital Investors chief economist Shane Oliver.
Oliver anticipates only short-term gains in property prices in the range of 5% to 7% over this period as “buyers remain cautious about taking on excessive debt, particularly as job insecurity remains high”.
But he expects the property market to outperform both the bond market and what’s available through cash deposits - a reverse of the performance of these markets over the past five years.
Shares, Oliver says, are the most attractive asset class "offering relatively attractive starting point dividend yields of around 5.7% with franking credits added in" though he warns  investors against presuming a "smooth run" for shares in 2013.
But term deposit rates have fallen from as high as 8% a few years ago to 4% and continue to fall while Australian 10 year government bond yields have fallen from 6.3% to currently 3.5%
In comparison, Oliver says house and apartment yields are running around 3.7% and 4.8% respectively, which are well up from their lows last decade.
Despite offering a better return than cash or bonds, Oliver says capital growth in residential real estate is likely to be constrained over the next five to 10 years “by still very high property prices relative to incomes and rents and house prices still above their longer term trends”.
“This suggests that a cyclical rebound in real estate prices over the next year should be seen as part of a broad range bound market for property prices in real terms as the market continues to work off the excesses that built up over the property boom that started in the mid 1990s and continued into last decade.
“Of course, good quality properties in sought after locations will do well, but the medium term back drop for property returns is likely to remain constrained, albeit better than that from cash and bonds,” he says.
Oliver says there are two main risks to his forecasts.
The main downside risk to property is a hard landing in China, a risk he says is receding while the upside risk is that “the old housing bubble is reignited by the latest collapse in mortgage rates”.
“Again this seems unlikely though given Australians’ more cautious approach to debt since the GFC,” he says.
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