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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When taking photos of your home for sale, be sure they are from the best angle and in the best light.
Tell the professional photographer from the estate agency when is the best time/times to attend to show the property at its best.
If you can, take your own photos during the summer, or at any time of year when the garden looks terrific. These can always be added to the marketing material whenever you list throughout the year.
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jchancellor-FAypfDUnLy

Tip of the week: 52 enlightening property investment gems

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 As Australia Day is all about celebrating, many will do so in a picturesque alfresco pavilion or deep into the back garden of one's own home.

From separate kitchens to mega barbecues, Property Observer looks at the many different places where you can celebrate next year if you are in the market for a new property.

Located on <a href="https://www.realestate.com.au/property-house-vic-point+leo-107582313" target="_blank">Frankston Flinders Road, Point Leo</a> Victoria, this three-bedroom limestone and timber residence offers a Tuscan-inspired alfresco courtyard and outdoor kitchen (pictured below).
<img src="/images/stories/2013/01/ptleo.jpg" height="314" width="470" alt="ptleo">
While you sit back and eat lunch, you can bask in the views across Western Port Bay to Phillip Island and The Nobbies.

After lunch, you can wander through the 10 hectares of property or hit the ball on the tennis court.

Further down the bay is the four-bedroom, five-bath <a href="https://www.realestate.com.au/property-house-vic-portsea-112328231" target="_blank">Dreamweaver property</a> (pictured below), located on Cheviot Road, <a href="/news">Portsea</a>.
<img src="/images/stories/2013/01/chevriot1.jpg" height="353" width="470" alt="chevriot1">
You can start Australia Day in the undercover breakfast teppanyaki area on the east side, which captures the morning sun.

With a 20-metre heated lap pool and spa, you can work up an appetite for lunch before settling into the designer cabana with a full Corian outdoor kitchen, including a barbecue, dishwasher, rangehood and bathroom.

You are spoilt for choice with activities including a tennis court, an Olympic sized in-ground trampoline and a home theatre.

Or sit above the tennis court on the deck chairs and enjoy the views across Portsea and the bay.

<a href="https://www.rs.realestate.com.au/property-house-vic-rythdale-112448459" target="_blank">The Dale</a> is located on McGregor Road <a href="/news">Rythdale, </a>Victoria, and comprises of two residences on a 52-hectare block.
<img src="/images/stories/2013/01/rythdale.jpg" height="295" width="470" alt="rythdale">
This property boasts an outdoor entertaining area with a covered, paved patio (pictured above) and a built-in gas barbecue.

As the day fades, you can unwind in the home cinema or pop into the red gum wet bar in the family room for a drink.
 
<hr class="system-pagebreak">
 
A <a href="https://www.realestate.com.au/property-apartment-vic-st+kilda-112604455" target="_blank">St Kilda penthouse</a> located on The Esplanade has <a href="https://www.propertyobserver.com.au/victoria/st-kilda-penthouse-with-luna-park-views-fishing-for-new-%24225-million-owner/2012121358466" target="_blank">previously caught Property Observer’s eye</a>, but what better way to spend Australia Day than on your own private rooftop?
<img src="/images/stories/2013/01/luna3.jpg" height="353" width="470" alt="luna3">
The rooftop alfresco entertaining area (pictured above) has a built-in barbecue and full guest bathrooms.

Offering views over St Kilda and the iconic Luna Park, this rooftop would be suited to the city-lover who loves bright lights and the faint noise of a distant rollercoaster.

The two-bedroom, three-bathroom penthouse is currently listed with an asking price of $2.25 million.

This <a href="https://www.realestate.com.au/property-house-vic-brighton-112679927" target="_blank">five-bedroom home</a> (pictured below) is located on Victoria Street in the popular Melbourne bayside suburb of <a href="/news">Brighton</a>.
<img src="/images/stories/2013/01/vicst.jpg" height="353" width="470" alt="vicst">
It boasts an outdoor barbecue area with a separate temperature-controlled wine storeroom.

After lunch, you can dip into the 20-metre heated pool and spa or relax in the living room – which has sliding glass walls that open out to Japanese-inspired gardens.

Last but not least, this home (pictured below) is located on a 4,051-square-metre block on <a href="https://www.realestate.com.au/property-house-nsw-terranora-112685815" target="_blank">Winchelsea Way Terranora NSW.</a>
<img src="/images/stories/2013/01/terranora.jpg" height="353" width="470" alt="terranora">
The four-bedroom home has a detached alfresco dining area, complete with a kitchen and built-in barbecue and teppanyaki grill.

While sitting in the dining area you can overlook the in-ground saltwater pool, and if you overdo the food and drinks there’s a lift to take you up and down between floors.

Property Observer previously reported on the Brisbane listing of rugby league sportsman <a href="https://www.propertyobserver.com.au/queensland/darren-lockyer-s-brisbane-house-for-sale-in-tough-selling-season/2011072850958">Darren Lockyer’s property</a>.
<img src="/images/stories/2013/01/lockyerbbq.jpg" height="225" width="400" alt="lockyerbbq">
It came with a large in-built barbecue (pictured below), big enough to befit any Queenslander sportsman.
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ntrotman-Et3xWpamVh

Snag a hot barbecue for Australia Day: Properties with casual outdoor dining spaces

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Last week I had the benefit of attending the <a href="https://www.realestateconnect.com/nyc13/index" target="_blank">Inman Connect conference</a> in the USA. I like getting to Inman each year; it’s a great way to keep up to date with new technologies, trends and evolutions in best practice that are relevant to the real estate sector. This year was no different, so I thought I would share some of the things I thought were most interesting.
I’ll be sharing my notes over two parts – the first part explores what Bradley Inman calls ‘the latte vision’ and the second covers off on some of the new trends, apps and utilities that are starting to emerge in the US as must haves and must dos across the property sector.
One of the key themes this year was what they call the ‘latte vision’, where purchasing a property will eventually become as easy as purchasing a coffee. While I don’t really agree that buying or selling a property will ever be that streamlined (you don’t need finance approval before buying a coffee, for example!), however, I absolutely agree with the philosophy that the property transaction can be made much more efficient.
Digital document transfer, administration and signing is already happening to varying extents in Australia; US agents are arguably further down the track with applications like Docusign, Dropbox and, to a lesser extent, Dot Loop firmly entrenched in the their workflow.
In a more practical sense, the ‘latte vision’ means more than moving to a paperless transaction environment; it means that a large amount of the paperwork ceases to exist. Speakers at Inman were looking forward to a time when buyers are financially pre-approved on site with a tap of their smartphones. At the same time their phone transfers vital details like contact details and preferences back to the agent. Their mobile device would also download the latest research, comparable sales, brochures and neighbourhood information. Documents are created and controlled in the cloud, pre-populated with cross-referenced data sourced from a variety of databases. Signatures are digital and documents can be executed on any platform that has access to the internet (be it a mobile phone, tablet or computer).
<a target="_blank" href="https://www.inman.com/news/2012/09/28/make-mechanics-homebuying-easy-purchasing-a-latte">Bradley Inman gives an entertaining summary of his latte vision here. </a> From a personal level though, he seems to gloss over or miss completely the inherent complexities involved in a real estate transaction, the role of the agent as an intermediary and consumer mistrust of what can be seen as privacy invading technologies. These factors are going to be significant hurdles to the latte vision. Additionally, there are other regulatory obstacles – banks need to be comfortable with digital signatures and transfer, and we need to be sure that these digital documents are completely enforceable.
 
<hr class="system-pagebreak">
 
Not only would a paperless transaction be more efficient, it would also be more secure and help to minimize the risk of fraud (digital records are much easier to cross reference and data mine).
Some elements of the latte vision are already here, some are just around the corner, and some might be just fanciful thinking for the foreseeable future. What is certain is that the way real estate is bought and sold is already changing. To make progress here in Australia, the first steps will involve greater acceptance of digital documentation and digital signatures. We need to see greater collaboration between the banking, insurance, legal and real estate sectors, and also of course with State Governments who administer the titles. Cross-referencing data sources and digital transfer of information will be a critical element in improving efficiencies of the transaction.
Agents who have jumped from the analog to the digital age early have gained some serious competitive advantage for themselves. For those looking to gain the first mover advantage here in Australia (it’s not too late) it would be worthwhile checking out some of the trends and applications I have outlined below and look up your own US case studies. When technologies are moving this fast, it becomes hard to catch up if you get left behind.
From a completely different perspective, another speaker was direct in his cynicism of the latte vision, reminding the audience that you can dominate social media, be well and truly into the cloud and fire off digital documents all day long, but the secret to a successful business is always going to be hard work. I think the secret sauce will ultimately involve both!
Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/">RP Data.</a>
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tlawless-5VLUrbAk9s

Will buying real estate soon be as easy as buying a coffee? 

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Mortgage holders have been warned of two illegal tax avoidance schemes being offered by unscrupulous promoters that could result in tax deductions being cancelled and penalties being imposed.
The home loan schemes are included in examples that form part of the ATO’s new guide 'Investigating tax-effective arrangements', which aims to help borrowers “recognise some of the common types of tax avoidance schemes so you can reject them and avoid the negative consequences associated with them”.
The ATO warns of a tax avoidance scheme being promoted as a<a target="_blank" href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=8&amp;H8"> 'mortgage management'</a> plan, which involves refinancing your home loan.
“In this arrangement, a tax scheme promoter offers you a means of creating deductible interest payments, equivalent to your home loan interest payments, using the existing equity in your home to obtain additional loans for the purpose of claiming investment deductions.
“This is a scheme because there is no real investment and the dominant purpose of the arrangement is to reduce your assessable income by claiming deductions you are not entitled to,” says the ATO, which warns of “significant commercial risks if you enter into these types of arrangements”.
“Shares in the promoter company may not deliver a reasonable return or be worth far less than you anticipate," says the ATO.
The second property-related tax avoidance scheme is a <a target="_blank" href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=11&amp;H11">‘home loan unit trust arrangement’.</a>
“In this arrangement, a promoter claims they can make your home loan interest payments tax deductible.
"Using a unit trust the scheme promoter sets you up to borrow funds to purchase a property. You then live in the property and pay rent to the unit trust at market rates which the trust declares as taxable income.
“The trust claims associated expenses and interest charges as deductions against the rental income and you claim a tax deduction for the interest payments on the borrowing.
“This is a scheme because it involves getting a tax benefit from borrowings for private expenses - your home.
“You would not be entitled to claim the interest payments as deductions and you risk having to pay penalties and interest,” says the ATO.
The ATO warns: “When we identify arrangements where the promised tax benefit isn't available under the law, the arrangement is deemed to be a tax avoidance scheme. As a result, tax deductions for the arrangement are disallowed and participants face potential penalties.
“Tax schemes aren't limited to the 'too good to be true' type of arrangement. They can be more sophisticated than many people realise. Schemes can be complex arrangements that are offered to you by some advisers with claims the availability of tax benefits is confirmed by genuine experts."
The ATO is also warning investors about <a target="_blank" href="/news">illegal SMSF rental property scheme</a>. The guide can be read <a target="_blank" href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=1&amp;H1">online</a> or <a href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=1&amp;H1">downloaded as a PDF document</a>.</body></html>

lschlesinger-FZcF9M3vE6

ATO warns on home loan tax avoidance schemes

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NSW will be the epicentre of a housing construction recovery in 2013 following years of underperformance, according to the latest Business Outlook report from Deloitte Access Economics.

Deloitte is forecasting a 9.7% rise in private housing investment in NSW in 2013-14 followed by annual rises of 9.3%, 8.4% and 11.1% in the three subsequent years to 2016-17.
This lift in housing construction, which should “comfortably outperform the size and speed of the national recovery”, is expected to drive an overall improvement in the state’s economy.
Click to enlarge
<a href="/images/stories/2013/01/deloittejan25.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/01/deloittejan25thumb.gif"></a>
“New South Wales’ housing sector is expected to see some good news – which will be something of a welcome change for a perennial underperformer," says Deloitte.
“In the main that is due to lower mortgage rates, with the latter expected to work their usual magic, but it also helps that land release is expected to accelerate, and that while rental vacancy rates have increased, they are still signalling a need for new housing stock.
“Moreover, while we note the news on the population front has been less than impressive, it is still true that overall population growth in NSW is improving.
“That won’t generate a massive housing recovery, but NSW’s performance should better than in other states, if only because its housing construction sector has been so weak for so long,” says Deloitte.
Other good news includes job growth lifting from early 2012 lows, nearly full hotels due to healthy numbers of business travellers and a "pretty full" NSW Government’s capital spending agenda is pretty full with investment in roads and railway and on the commercial front, projects like Barangaroo and the redevelopment of the Sydney Convention Centre at Darling Harbour.
It isn’t all positive news in the NSW property market with Deloitte noting that rental vacancy rates are climbing, while approvals for renovation work remain in the doldrums.
The recover in housing construction in NSW is part of a national recovery sparked by lower interest rates.
Alongside housing construction, Deloitte also expects a recovery in the retail sector from the second half of 2013 onwards as the mining boom “hurtles towards a peak” in 2013.
Howerver, it says the Australian dollar is “still giving manufacturing a Chinese burn, and the news also remains modest in both tourism and international education” - all key non-mining sectorst that need to life to take up the slack from mining investment peaking.
As a result, the report anticipates that lower interest rates are set to linger.
Looking at the other states , the report has favourable economic expectations for WA, Queensland (though not completely out of the woods) and the Northern Territory, with more modest expectations for Victoria and the ACT and gloomy ones for Tasmania and South Australia.
Victoria, Deloitte says, is more dependent on the Australian dollar (where as NSW is interest rate sensitive) meaning a recovery is further off with the state's economy losing a little momentum in 2013.
And while the report says interest rates are expected to also have a positive impact on housing construction in the state, it notes that Victoria’s housing construction sector is “no longer the 400 pound gorilla that it was for some years”.
“The key albatross on the outlook is simply this state’s past successes in housing activity – which means it hasn’t got anything like the pent-up demand evident in some other key states.
“As we have often noted, that leaves the overall housing construction outlook in this state projected to be solid enough, just somewhat less impressive than it is for other parts of the country,” says Deloitte
Rate cuts and accelerating population gains are expected to spell “rather better news in the housing construction sector in Queensland” while Deloitte says in WA leading indicators of housing construction activity have been “showering sparks all over the dragway as they accelerate after a period of slowdown”.
The biggest problem facing the national economy is the “Godzilla-like “strength of Australian dollar, which Deloitte says remains a problem for job prospects in a range of sectors and which is acting against a welcome pick up in migrant numbers.
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NSW to lead national housing construction recovery: Deloitte

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Queensland-based bank Suncorp financed 6.1% of all first-home buyer loans arranged by AFG mortgage brokers over December, according to new AFG figures.
It was the top-ranked lender outside the major banks with nearly 40% of all first-home buyer home loans processed in December either financed by the Commonwealth Bank or its subsidiary Bankwest, the latest AFG’s quarterly Competition Index shows.
Second on the non-major bank list was AFG’s own mortgage products, which accounted for 5% of all first-home buyer loans, up from 1.9% at the start of the year.
The other non-major bank lenders to appeal to first-home buyers were WA government-owned lender KeyStart with 4.9% of the market, recording the “most dynamic performance among non-major lenders” growing market share from just 0.1% in January.
ING Direct (2.1%) and South Australian government lender Homestart (1.1%) were the only other non-major bank lenders to pick up more than 1% of the first-home buyer market.
According to the index, the CBA accounted for 29.6% and Bankwest for 9.3% of all first home loans in December with the major banks taking 77.5% of the first-home buyer mortgage market.
The Commonwealth Bank’s success with first-home buyers has helped it pick up overall mortgage market share, which has risen from 17.4% in January to 20.7%
Despite accounting for nearly one in 10 first-home buyer home loans in December, Bankwest’s share of the total mortgage market has fallen from 7% to 4.2% over the past 12 months.
AFG bills itself as Australia’s largest mortgage broker, with its brokers writing one in 10 home loans in Australia.
NON MAJOR LENDER MARKET SHARE FIRST HOME BUYERS DECEMBER

Suncorp 6.1%

AFG 5.0%

ING 2.1%

Citibank 0.7% -

Macquarie 0.2%

Circle 0.2%

AMP 0.4% -

ME Bank 0.8%

Liberty 0.4%

Pepper 0.1%

Homestart 1.1%

Wide Bay 0.8%

Adelaide 0.1%

Heritage 0.3%

Rock 0.1%

Keystart 4.9%

Other 0.3%

All Non 22.5%

 
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Suncorp ranks as top non-major bank first-home buyer lender as Commonwealth Bank grabs lion’s share of market: AFG

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As Australian operators prepare for the year ahead, IBISWorld unveils its annual list of the top five industries set to soar in 2013, and the five expected to sink.
 
<h2>Industries to fly</h2>
1. Oil and gas production
Forecast to grow by 15.9% to reach $44.4 billion in 2013, the oil and gas production industry has been highlighted by IBISWorld as this year’s top industry performer, with growth driven by higher output and substantially higher global prices.
Australia’s liquefied natural gas production and exports are expected to increase significantly over the coming year. This reflects a switch in favour of gas for electricity generation, which will be driven by more volatile demand and carbon pricing on oil, and an expected increase of 8.4% in US dollar crude oil prices.
With abundant reserves in Queensland and New South Wales, LNG output is rapidly growing and is expected to reach 6.8 billion cubic metres in 2013. Most of this production is expected to come from Queensland, where coal seam methane is already used in electricity generation, and where a number of export-oriented LNG plants are currently under construction.
Strong growth in export demand for LNG is expected to increase world prices by 15.7% over the next year.
2. Organic farming
Organic farming has grown at a compound annual rate of 10% since 2008, and is expected to continue to rise as consumers factor in the health benefits and environmental impact of their food choices. IBISWorld forecasts an increase of 12.5% across the industry over the coming year, boosting revenue to $617 million.
Consumers are becoming increasingly eco and health conscious. This means they are more willing to pay a premium price to prevent environmental degradation caused by conventional farming methods and to ensure the products they consume are free from added chemicals and hormones. Major retailers, such as Coles and Woolworths, continue to respond to this trend, increasing the convenience in which these foods are purchased.
Income growth – forecast to rise 3.4% over the coming year – will be a key factor driving demand for organic products. As Australian incomes rise, we are seeing consumers move away from conventionally farmed produce towards natural, chemical- and hormone-free counterparts.
3. Online education
IBISWorld anticipates revenue for Australia’s online education industry to increase by 10.5% in 2013, to reach just under $5.6 billion. Growth has been supported by the continued uptake of high-speed internet services, growing acceptance of online education, government support for students and efforts to expand access beyond the typical school-leaver demographic.
We are seeing an increase in demand for convenient education, particularly among working adults who wish to gain new skills and qualifications, but are too time poor to attend classes full-time or in person. The NSW Department of Education is also assisting industry growth, with technologies expanding at a rapid rate to deliver education to remote parts of Australia.
4. Online shopping
Forecast to grow by 9.1% to reach almost $11.8 billion in 2013, the online shopping industry has continued to flourish as consumers demand more of their goods and services via the online realm.
Australians are increasingly expecting traditional retailers to have an active investment in the online sphere, and to provide options for online browsing and shopping to complement their storefronts.
Over the coming year, IBISWorld expects online retailers to move into the bricks-and-mortar space, providing convenient pick-up and return locations for consumers. This phenomenon will lead to a greater increase in the convenience provided by online retail.
5. Multi-unit apartment and townhouse construction
Strong population growth in the late 2000s has fuelled underlying demand for housing, in particularly for the multi-unit apartment and townhouse construction industry, which is forecast to grow 9% over the coming year to reach $16.6 billion.
IBISWorld is seeing an urban shift towards medium to high density residential developments as occupants opt to remain close to the CBD, transport and commercial hubs.
Property investors – primarily funded from Asia – kick-started new apartment projects in 2010 and 2011. This, coupled with several interest rate cuts since November 2011 and the flow through of government assistance to both homebuyers and investors, is projected to have a buoyant effect on the industry.
<hr>
<h2>Industries to fall</h2>
1. Gaming and vending machines manufacturing
The gaming and vending machines manufacturing industry is set to follow suit in the overall decline of manufacturing in Australia, with revenue expected to fall by 6.4% in 2013.
The replacement cycle for gaming machines in Australia has increased from 12 years in 2005 to 35 years since 2008. This, along with legislative limits on the number of poker machines, has restricted demand for new machines.
With high labour costs and the Australian dollar remaining strong, production is increasingly moving offshore, with hardware going to Asia and software to the US.
2. Wired telecommunications carriers
Intense competition in the mobile space continues to have a negative effect on wired telecommunications carriers. The industry is expected to fall by 5.5% in 2013, bringing total revenue down to $9.7 billion, from its peak of $21.5 billion in 2002.
Competition in the mobile sphere is driving prices down to the extent that it is now cheaper for some consumers to disconnect their landlines and rely solely on mobile services. Increased wireless broadband penetration and strong growth in the number of naked DSL internet subscribers are also eating into industry revenue.
Prices for the industry’s services continue to be cut in attempts to retain clientele. Consumer confidence with email and SMS has grown significantly over the past five years, causing customers to move away from the traditional home phone. Branding and cross-selling are becoming increasingly vital to the industry, with product bundling being a popular strategy to reduce customer turnover rates.
3. Mineral exploration
Revenue for mineral exploration is expected to fall to $3.7 billion over the coming year, a decline of 5.1% from 2012 – driven by falling investment (forecast to decrease by 6.5%) in the sector as firms shift their focus to production.
The combination of generally lower commodity prices, weak global growth, slowing demand from China and economic uncertainty is expected to result in reduced spending on mineral exploration over 2013.
4. Newspaper printing or publishing
As advertisers and consumers opt for other types of media, the newspaper printing or publishing industry continues to lose advertising market share – with revenue forecast to decrease by 4% in 2013. Printed newspapers’ share of advertising – which accounts for 75% of newspaper revenue – is expected to fall to under 30% of total advertising revenue in 2013, down from a 41.8% share in 2000.
Declining circulation over the past five years, caused by time restraints, the rising popularity of new media like the internet, pay TV, and mobile devices, and competition from consumer magazines has continued to adversely affect the industry. In the coming years, environmental concerns are also expected to affect demand for printed newspapers.
5. Recorded media manufacturing and publishing
Recorded media manufacturing and publishing, including CDs and records, has declined steadily over the past five years. IBISWorld expects this trend to continue – forecasting a decline of 2.8% in 2013.
Physical format music sales have dropped by an estimated compound annual rate of 15.9% since 2007, compared with a compound annual rise of 32.6% for digital music.
Consumers have turned away from purchasing physical media in favour of paid online subscription services, such as Spotify and Pandora, and limited free services such as YouTube and VEVO. The industry also has been dramatically exposed to high levels of music and video piracy.
Online distribution of media has allowed companies to cut bottom line costs, and has resulted in a variety of new products on the market for consumers to view new media.
Licensing and publishing services have provided some reprieve for industry participants as the use of music, sound effects and video in advertising and marketing has increased, particularly with the rise of social media.
<table style="width: 470px;" border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td>
Industries to fly
</td>
<td>
Revenue 2012
($million)
</td>
<td>
Revenue 2013
($million)
</td>
<td>
Growth
(%)
</td>
</tr>
<tr>
<td valign="bottom" width="300">
Oil and Gas Production
</td>
<td width="104">
38,314.1
</td>
<td width="113">
44,422.9
</td>
<td width="104">
15.9
</td>
</tr>
<tr>
<td valign="bottom" width="300">
Organic Farming
</td>
<td width="104">
548.8
</td>
<td width="113">
617.1
</td>
<td width="104">
12.5
</td>
</tr>
<tr>
<td valign="bottom" width="300">
Online Education
</td>
<td width="104">
5,048.5
</td>
<td width="113">
5,577.6
</td>
<td width="104">
10.5
</td>
</tr>
<tr>
<td valign="bottom" width="300">
Online Shopping
</td>
<td width="104">
10,790.2
</td>
<td width="113">
11,771.7
</td>
<td width="104">
9.1
</td>
</tr>
<tr>
<td valign="bottom" width="300">
Multi-Unit Apartment and Townhouse Construction
</td>
<td width="104">
15,225.0
</td>
<td width="113">
16,600.0
</td>
<td width="104">
9.0
</td>
</tr>
</tbody></table>
<table style="width: 470px;" border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td>
Industries to fall
</td>
<td>
Revenue 2012
($million)
</td>
<td>
Revenue 2013
($million)
</td>
<td>
Decline
(%)
</td>
</tr>
<tr>
<td valign="bottom" width="298">
Gaming and Vending Machines Manufacturing
</td>
<td width="108">
434.5
</td>
<td width="108">
406.5
</td>
<td width="107">
-6.4
</td>
</tr>
<tr>
<td valign="bottom" width="298">
Wired Telecommunications Carriers
</td>
<td width="108">
10,215.5
</td>
<td width="108">
9,655.0
</td>
<td width="107">
-5.5
</td>
</tr>
<tr>
<td valign="bottom" width="298">
Mineral Exploration
</td>
<td width="108">
3,936.4
</td>
<td width="108">
3,736.7
</td>
<td width="107">
-5.1
</td>
</tr>
<tr>
<td valign="bottom" width="298">
Newspaper Printing or Publishing
</td>
<td width="108">
6,673.9
</td>
<td width="108">
6,407.0
</td>
<td width="107">
-4.0
</td>
</tr>
<tr>
<td valign="bottom" width="298">
Recorded Media Manufacturing and Publishing
</td>
<td width="108">
888.9
</td>
<td width="108">
863.9
</td>
<td width="107">
-2.8
</td>
</tr>
</tbody></table>
For more information on these, or any of Australia’s 500 industries, log on to <a href="https://www.ibisworld.com.au/" rel="nofollow">www.ibisworld.com.au</a>, or follow<a target="_blank" href="https://twitter.com/IBISWorldAU"> IBISWorldAU</a> on Twitter.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
<h1 class="contentheading2"></h1>
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po-LsXgBTHBmX

Multi-unit construction set to fly in 2013: IBISWorld

<html><body>
Residential land sales fell 17.8% over the September quarter of 2012 following three successive quarters of rising sales.
The latest HIA-RP Data Residential Land Report records around 12,000 residential lots sold over the quarter.
Putting this in to context, this is less than half the peak in lot sales achieved three years ago when there were just under 25,000 lot sales recorded over the September 2009 quarter.
Despite the fall, the weighted median residential land value in Australia increased by 3.8% over the quarter to $197,807. This value was 4.2% higher when compared to the same period in 2011
HIA chief economist Harley Dale says despite the fall in the September quarter, the volume of sales was still 14.9% higher than the record low set a year earlier.
The median value of residential land in capital cities increased by 5.1% in the September 2012 quarter to $225,795 - 6% higher than in the September 2011 quarter.
The median value for regional Australia was $155,214 in the September 2012 quarter. This represents a quarterly rise of 0.8% and a 0.2% increase compared with the same period in 2011.
“It is encouraging that land sales in a majority of markets have lifted off the depths plunged in 2011. However, this latest update highlights the uncertainty around whether the new home building sector can mount a recovery that is both sustainable and of the magnitude Australia’s population and economy require,” says Dale.
“Overall, residential land sales, a key leading indicator of housing starts, signal a rocky road for any new home building recovery in 2013.”
“One catalyst for the emergence of a strong new home building recovery would be the reduction in the cost of new housing, including serviceable land, which is brought about by disproportionately high and inefficient levels of taxation.
“This requires bold and decisive policy reform across all levels of government, action which consistently fails to occur to the detriment of a more productive and efficient economy,” he says.
According to RP Data’s research director Tim Lawless, the September results highlight the recovery in the vacant land market remains a fragile one.
“After consistent increases in the number of vacant land sales over the past three quarters, the lower September result is a stark reminder that consumers remain very price sensitive and cautious about their household finances,” says Lawless.
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Residential land sales fall 17.8% in fragile September quarter but values hold firm: HIA/RP Data

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Adelaide-based mortgage fund and lender Angas Securities has revealed that a third of its loans are now in arrears.
It comes just days after Brisbane mortgage lender Wickham Securities collapsed with $30 million of retiree funds at risk and following the high-profile collapses of debenture-funded mortgage lenders Banksia and Provident Capital last year.
Around 2500 small investors have invested in Angas Securities' debenture fund, which offers returns from 7.5% to 8% and principally lends the money on at high interest rates as commercial property loans.
Angas heavily advertised its debenture products on the radio.
Its latest fixed interest prospectus issued in December, which offers 350 million first ranking securities at $1 each and an annual rate of return of 7.5%, reveals that as of December 2012 it had a loan book worth $229 million with the proportion of loans 90 days in arrears or more tripling in the past six months to $72.3 million.
Around $33 million of these loans are more than a year in arrears.
Loans range in size from $2 million to a $9 million loan, which defaulted in June last year.
The company recently broadcast advertisements on Alan Jones’ 2GB show seeking new investors, reported The Australian.
Angus executive chairman Andrew Luckhurst-Smith told the paper the company was comfortable with its arrears levels due to its conservative lending criteria and had no concerns about recoverability and neither would its auditors, Deloitte Touche Tohmatsu, listed on the prospectus.
The largest loan in the Angas portfolio comprises three mortgages totalling $25.25 million over a “prestigious rural/residential property along with collateral security over harbourside apartments in Sydney”.
Angas says the loan is paid up in terms of interest until December 31, 2012
The second biggest loan is a $21.4 million loan to a “Perth based builder and property developer, with a range of distinct residential, commercial and retail properties providing security”
“The principal activity of Angas is to provide short term loan finance fully secured by registered first mortgages over real property,” reads the prospectus.
First mortgage advances do not exceed maximum loan to valuation ratios of 70% for residential, industrial and commercial loans and 50% for rural loans.
The minimum investment is $10,000 with a maximum of $5 million.
The prospectus warns that “investors may not be able to recover all or part of the principal funds invested in the issue or any fixed interest attaching to these”.
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Adelaide mortgage fund Angas Securities reports a third of loans more than three months in arrears

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The Sebel Hotel in Mandurah, which forms part of the Point Residential Apartments, has been sold by Accor Asia Pacific for about $15 million.
The buyers of the 89-room hotel are entities associated with FJM Property, a Perth company with a list of quality hotel properties already to their name.
Once a holiday town and fishing village, <a target="_blank" href="/news">Mandurah</a> has now become effectively an outer suburb of Perth, being 50 minutes from the Perth CBD situated about 70 kilometres south of Perth. But is retains its tourism attraction.
 Accor, Australia’s largest hotel operator and one of the biggest in the world, has retained management of the 4½ star hotel. Rob Cross, David Kennedy and Ryan McGinnity of CBRE Hotels handled the sale of the hotel.
FJM is led by property veterans Adrian Fini, Barry Jones and David Mack and has projects, including hotels, in <a target="_blank" href="/news">Leederville </a>and <a target="_blank" href="/news">Claremont</a>, across Western Australia. The portfolio includes <a target="_blank" href="https://www.fjmproperty.com.au/FJM-Hospitality/The-Boat-Mindarie-Marina-Complex">The Boat marina complex at Mindarie</a>.
Adrian Fini has been involved in the property development, property investment and construction industries in Western Australia since 1977 and Adrian’s private investment companies have been in partnership with Barry Jones and David Mack’s private investment companies since 1989. He was formerly managing director of Fini Group and following its merger with Mirvac in 2001 was cheif of the expanded Mirvac Fini business. He was subsequently appointed an executive director of Mirvac Group responsible for Mirvac’s development division before resigning in 2010 to concentrate on FJM’s projects.
Barry Jones founded the Criterion Group of private investment companies with David Mack in 1987. Since then, the private group has grown its property and business holdings predominantly in the retail, office and hotel property areas.
David founded Mack &amp; Co, chartered accountants, in 1978 and was a managing partner at the firm until 1987.
The Sebel property was one of two freehold hotels in the Mirvac portfolio that Accor bought last year. Accor have since also sold the Newcastle Beach Novotel to Australia’s largest private hotel owner, Jerry Schwartz, for about $16.5 million.
On the Sebel Mandurah's listing last July the Australian Financial Review reported $18 million price hopes along with $20 million hopes by Accor for the Newcastle offering.
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